CTS CORP (CTS) Stock Fundamental Analysis
NYSE:CTS - New York Stock Exchange, Inc. - US1265011056 - Common Stock - Currency: USD
CTS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 125 industry peers in the Electronic Equipment, Instruments & Components industry. CTS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. CTS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year CTS was profitable.
In the past year CTS had a positive cash flow from operations.
Of the past 5 years CTS 4 years were profitable.
CTS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 7.89%, CTS belongs to the best of the industry, outperforming 89.60% of the companies in the same industry.
CTS has a better Return On Equity (11.21%) than 79.20% of its industry peers.
CTS has a Return On Invested Capital of 9.56%. This is amongst the best in the industry. CTS outperforms 82.40% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CTS is in line with the industry average of 9.38%.
| 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
The Profit Margin of CTS (11.70%) is better than 88.00% of its industry peers.
In the last couple of years the Profit Margin of CTS has grown nicely.
The Operating Margin of CTS (15.39%) is better than 90.40% of its industry peers.
CTS's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 37.22%, CTS is in the better half of the industry, outperforming 64.00% of the companies in the same industry.
CTS's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CTS is still creating some value.
CTS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CTS has less shares outstanding
Compared to 1 year ago, CTS has a worse debt to assets ratio.
2.2 Solvency
CTS has an Altman-Z score of 5.88. This indicates that CTS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CTS (5.88) is better than 79.20% of its industry peers.
The Debt to FCF ratio of CTS is 1.12, which is an excellent value as it means it would take CTS, only 1.12 years of fcf income to pay off all of its debts.
CTS has a better Debt to FCF ratio (1.12) than 82.40% 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.
Looking at the Debt to Equity ratio, with a value of 0.16, CTS is in line with its industry, outperforming 48.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.12 | ||
| Altman-Z | 5.88 |
ROIC/WACC1.1
WACC8.71%
2.3 Liquidity
A Current Ratio of 2.63 indicates that CTS has no problem at all paying its short term obligations.
CTS has a Current ratio (2.63) which is in line with its industry peers.
A Quick Ratio of 2.05 indicates that CTS has no problem at all paying its short term obligations.
CTS has a better Quick ratio (2.05) than 61.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.63 | ||
| Quick Ratio | 2.05 |
3. Growth
3.1 Past
CTS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.38%.
CTS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.40% yearly.
Looking at the last year, CTS shows a decrease in Revenue. The Revenue has decreased by -2.71% in the last year.
Measured over the past years, CTS shows a small growth in Revenue. The Revenue has been growing by 1.92% on average per year.
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
Based on estimates for the next years, CTS will show a small growth in Earnings Per Share. The EPS will grow by 5.91% on average per year.
Based on estimates for the next years, CTS will show a small growth in Revenue. The Revenue will grow by 4.63% on average per year.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.23, the valuation of CTS can be described as rather expensive.
Based on the Price/Earnings ratio, CTS is valued a bit cheaper than 75.20% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.91, CTS is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 17.79, the valuation of CTS can be described as rather expensive.
Based on the Price/Forward Earnings ratio, CTS is valued a bit cheaper than the industry average as 71.20% of the companies are valued more expensively.
CTS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.23 | ||
| Fwd PE | 17.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CTS is valued a bit cheaper than the industry average as 76.80% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CTS is valued cheaply inside the industry as 85.60% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.69 | ||
| EV/EBITDA | 11.56 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of CTS may justify a higher PE ratio.
PEG (NY)8.44
PEG (5Y)2.41
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 2.02, 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 2.43.
| 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 paid a dividend for at least 10 years, which is a reliable track record.
CTS has not decreased their dividend for at least 10 years, which is a reliable track record.
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
43.3
+1.13 (+2.68%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners97.73%
Inst Owner Change-0.86%
Ins Owners2.13%
Ins Owner Change4.48%
Market Cap1.29B
Analysts45
Price Target43.86 (1.29%)
Short Float %1.59%
Short Ratio2.47
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)0%
EPS NQ rev (3m)-8.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.23 | ||
| Fwd PE | 17.79 | ||
| P/S | 2.51 | ||
| P/FCF | 16.69 | ||
| P/OCF | 13.39 | ||
| P/B | 2.4 | ||
| P/tB | 7.47 | ||
| EV/EBITDA | 11.56 |
EPS(TTM)2.14
EY4.94%
EPS(NY)2.43
Fwd EY5.62%
FCF(TTM)2.59
FCFY5.99%
OCF(TTM)3.23
OCFY7.47%
SpS17.29
BVpS18.04
TBVpS5.8
PEG (NY)8.44
PEG (5Y)2.41
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 | 5.88 |
F-Score6
WACC8.71%
ROIC/WACC1.1
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%