CTS CORP (CTS) Stock Fundamental Analysis
NYSE:CTS - New York Stock Exchange, Inc. - US1265011056 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to CTS. CTS was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. CTS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CTS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
CTS had positive earnings in the past year.
In the past year CTS had a positive cash flow from operations.
Of the past 5 years CTS 4 years were profitable.
In the past 5 years CTS always reported a positive cash flow from operatings.
1.2 Ratios
CTS has a Return On Assets of 7.89%. This is amongst the best in the industry. CTS outperforms 89.60% of its industry peers.
The Return On Equity of CTS (11.21%) is better than 79.20% of its industry peers.
With an excellent Return On Invested Capital value of 9.56%, CTS belongs to the best of the industry, outperforming 82.40% of the companies in the same industry.
CTS had an Average Return On Invested Capital over the past 3 years of 10.61%. This is in line with the industry average of 9.21%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.89% | ||
| ROE | 11.21% | ||
| ROIC | 9.56% |
ROA(3y)7.9%
ROA(5y)4.59%
ROE(3y)11.4%
ROE(5y)6.67%
ROIC(3y)10.61%
ROIC(5y)10.13%
1.3 Margins
Looking at the Profit Margin, with a value of 11.70%, CTS belongs to the top of the industry, outperforming 88.80% of the companies in the same industry.
CTS's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 15.39%, CTS belongs to the best of the industry, outperforming 90.40% of the companies in the same industry.
In the last couple of years the Operating Margin of CTS has grown nicely.
CTS's Gross Margin of 37.22% is fine compared to the rest of the industry. CTS outperforms 64.80% of its industry peers.
In the last couple of years the Gross Margin of CTS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.39% | ||
| PM (TTM) | 11.7% | ||
| GM | 37.22% |
OM growth 3Y-0.48%
OM growth 5Y2.89%
PM growth 3YN/A
PM growth 5Y7.92%
GM growth 3Y0.63%
GM growth 5Y1.76%
2. Health
2.1 Basic Checks
CTS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for CTS has been reduced compared to 1 year ago.
Compared to 5 years ago, CTS has less shares outstanding
CTS has a worse debt/assets ratio than last year.
2.2 Solvency
CTS has an Altman-Z score of 5.68. This indicates that CTS is financially healthy and has little risk of bankruptcy at the moment.
CTS has a Altman-Z score of 5.68. This is in the better half of the industry: CTS outperforms 79.20% of its industry peers.
CTS has a debt to FCF ratio of 1.12. This is a very positive value and a sign of high solvency as it would only need 1.12 years to pay back of all of its debts.
The Debt to FCF ratio of CTS (1.12) is better than 83.20% of its industry peers.
CTS has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of CTS (0.16) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.12 | ||
| Altman-Z | 5.68 |
ROIC/WACC1.05
WACC9.11%
2.3 Liquidity
A Current Ratio of 2.63 indicates that CTS has no problem at all paying its short term obligations.
The Current ratio of CTS (2.63) is comparable to the rest of the industry.
CTS has a Quick Ratio of 2.05. This indicates that CTS is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.05, CTS is doing good in the industry, outperforming 60.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.63 | ||
| Quick Ratio | 2.05 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.38% over the past year.
Measured over the past years, CTS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.40% on average per year.
The Revenue has decreased by -2.71% in the past year.
The Revenue has been growing slightly by 1.92% on average over the past years.
EPS 1Y (TTM)3.38%
EPS 3Y3.98%
EPS 5Y8.4%
EPS Q2Q%-6.38%
Revenue 1Y (TTM)-2.71%
Revenue growth 3Y0.18%
Revenue growth 5Y1.92%
Sales Q2Q%0.02%
3.2 Future
CTS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.91% yearly.
CTS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.63% yearly.
EPS Next Y2.4%
EPS Next 2Y5.91%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.32%
Revenue Next 2Y4.63%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.01, which indicates a rather expensive current valuation of CTS.
76.80% of the companies in the same industry are more expensive than CTS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CTS to the average of the S&P500 Index (26.25), we can say CTS is valued slightly cheaper.
CTS is valuated correctly with a Price/Forward Earnings ratio of 16.72.
CTS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CTS is cheaper than 73.60% of the companies in the same industry.
CTS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.01 | ||
| Fwd PE | 16.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CTS is valued a bit cheaper than 79.20% of the companies in the same industry.
CTS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CTS is cheaper than 82.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.68 | ||
| EV/EBITDA | 10.89 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CTS does not grow enough to justify the current Price/Earnings ratio.
CTS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)7.93
PEG (5Y)2.26
EPS Next 2Y5.91%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CTS has a yearly dividend return of 0.39%, which is pretty low.
Compared to an average industry Dividend Yield of 2.07, CTS pays a better dividend. On top of this CTS pays more dividend than 82.40% of the companies listed in the same industry.
With a Dividend Yield of 0.39, CTS pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.39% |
5.2 History
The dividend of CTS has a limited annual growth rate of 0.16%.
CTS has been paying a dividend for at least 10 years, so it has a reliable track record.
CTS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.16%
Div Incr Years0
Div Non Decr Years31
5.3 Sustainability
8.04% of the earnings are spent on dividend by CTS. This is a low number and sustainable payout ratio.
CTS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP8.04%
EPS Next 2Y5.91%
EPS Next 3YN/A
40.69
-0.11 (-0.27%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners98.16%
Inst Owner Change-0.87%
Ins Owners2.12%
Ins Owner Change-1.14%
Market Cap1.21B
Analysts45
Price Target43.86 (7.79%)
Short Float %1.93%
Short Ratio2.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.39% |
Yearly Dividend0.16
Dividend Growth(5Y)0.16%
DP8.04%
Div Incr Years0
Div Non Decr Years31
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.96%
Min EPS beat(2)-11.09%
Max EPS beat(2)-2.82%
EPS beat(4)2
Avg EPS beat(4)0.76%
Min EPS beat(4)-11.09%
Max EPS beat(4)15.51%
EPS beat(8)5
Avg EPS beat(8)2.28%
EPS beat(12)7
Avg EPS beat(12)1.36%
EPS beat(16)11
Avg EPS beat(16)5.97%
Revenue beat(2)0
Avg Revenue beat(2)-4.13%
Min Revenue beat(2)-4.99%
Max Revenue beat(2)-3.26%
Revenue beat(4)0
Avg Revenue beat(4)-3.16%
Min Revenue beat(4)-4.99%
Max Revenue beat(4)-1.03%
Revenue beat(8)0
Avg Revenue beat(8)-2.89%
Revenue beat(12)3
Avg Revenue beat(12)-2.17%
Revenue beat(16)7
Avg Revenue beat(16)-0.15%
PT rev (1m)0%
PT rev (3m)-8.51%
EPS NQ rev (1m)-8.33%
EPS NQ rev (3m)-8.33%
EPS NY rev (1m)4.76%
EPS NY rev (3m)-3.51%
Revenue NQ rev (1m)-3.78%
Revenue NQ rev (3m)-3.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.01 | ||
| Fwd PE | 16.72 | ||
| P/S | 2.35 | ||
| P/FCF | 15.68 | ||
| P/OCF | 12.58 | ||
| P/B | 2.26 | ||
| P/tB | 7.02 | ||
| EV/EBITDA | 10.89 |
EPS(TTM)2.14
EY5.26%
EPS(NY)2.43
Fwd EY5.98%
FCF(TTM)2.59
FCFY6.38%
OCF(TTM)3.23
OCFY7.95%
SpS17.29
BVpS18.04
TBVpS5.8
PEG (NY)7.93
PEG (5Y)2.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.89% | ||
| ROE | 11.21% | ||
| ROCE | 11.79% | ||
| ROIC | 9.56% | ||
| ROICexc | 11.04% | ||
| ROICexgc | 29.58% | ||
| OM | 15.39% | ||
| PM (TTM) | 11.7% | ||
| GM | 37.22% | ||
| FCFM | 15.01% |
ROA(3y)7.9%
ROA(5y)4.59%
ROE(3y)11.4%
ROE(5y)6.67%
ROIC(3y)10.61%
ROIC(5y)10.13%
ROICexc(3y)13.62%
ROICexc(5y)13.04%
ROICexgc(3y)31.83%
ROICexgc(5y)27.79%
ROCE(3y)13.09%
ROCE(5y)12.49%
ROICexcg growth 3Y2.59%
ROICexcg growth 5Y8.96%
ROICexc growth 3Y-10.96%
ROICexc growth 5Y-0.3%
OM growth 3Y-0.48%
OM growth 5Y2.89%
PM growth 3YN/A
PM growth 5Y7.92%
GM growth 3Y0.63%
GM growth 5Y1.76%
F-Score6
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.12 | ||
| Debt/EBITDA | 0.78 | ||
| Cap/Depr | 59.44% | ||
| Cap/Sales | 3.7% | ||
| Interest Coverage | 17.44 | ||
| Cash Conversion | 86.57% | ||
| Profit Quality | 128.26% | ||
| Current Ratio | 2.63 | ||
| Quick Ratio | 2.05 | ||
| Altman-Z | 5.68 |
F-Score6
WACC9.11%
ROIC/WACC1.05
Cap/Depr(3y)53.27%
Cap/Depr(5y)54.74%
Cap/Sales(3y)2.91%
Cap/Sales(5y)3.06%
Profit Quality(3y)146.84%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.38%
EPS 3Y3.98%
EPS 5Y8.4%
EPS Q2Q%-6.38%
EPS Next Y2.4%
EPS Next 2Y5.91%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-2.71%
Revenue growth 3Y0.18%
Revenue growth 5Y1.92%
Sales Q2Q%0.02%
Revenue Next Year2.32%
Revenue Next 2Y4.63%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y5.46%
EBIT growth 3Y-0.29%
EBIT growth 5Y4.86%
EBIT Next Year26.49%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-20.69%
FCF growth 3Y4.58%
FCF growth 5Y13.56%
OCF growth 1Y-14.68%
OCF growth 3Y4.85%
OCF growth 5Y9.04%