CTS CORP (CTS)
US1265011056 - Common Stock
CTS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 127 industry peers in the Electronic Equipment, Instruments & Components industry. CTS gets an excellent profitability rating and is at the same time showing great financial health properties. 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's Return On Assets of 8.17% is amongst the best of the industry. CTS outperforms 85.71% of its industry peers.
CTS's Return On Equity of 11.49% is fine compared to the rest of the industry. CTS outperforms 78.57% of its industry peers.
With a decent Return On Invested Capital value of 9.84%, CTS is doing good in the industry, outperforming 76.19% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CTS is in line with the industry average of 9.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.17% | ||
| ROE | 11.49% | ||
| ROIC | 9.84% |
ROA(3y)3.28%
ROA(5y)4.2%
ROE(3y)4.74%
ROE(5y)6.27%
ROIC(3y)10.77%
ROIC(5y)9.58%
1.3 Margins
With an excellent Profit Margin value of 11.00%, CTS belongs to the best of the industry, outperforming 86.51% of the companies in the same industry.
In the last couple of years the Profit Margin of CTS has grown nicely.
With an excellent Operating Margin value of 14.92%, CTS belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
In the last couple of years the Operating Margin of CTS has remained more or less at the same level.
CTS has a better Gross Margin (34.67%) than 61.11% of its industry peers.
In the last couple of years the Gross Margin of CTS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.92% | ||
| PM (TTM) | 11% | ||
| GM | 34.67% |
OM growth 3Y10.5%
OM growth 5Y1.24%
PM growth 3Y10.36%
PM growth 5Y2.16%
GM growth 3Y1.87%
GM growth 5Y-0.23%
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.
Compared to 1 year ago, CTS has less shares outstanding
CTS has less shares outstanding than it did 5 years ago.
CTS has a better debt/assets ratio than last year.
2.2 Solvency
CTS has an Altman-Z score of 6.77. This indicates that CTS is financially healthy and has little risk of bankruptcy at the moment.
CTS has a better Altman-Z score (6.77) than 84.13% of its industry peers.
CTS has a debt to FCF ratio of 0.91. This is a very positive value and a sign of high solvency as it would only need 0.91 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.91, CTS is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
A Debt/Equity ratio of 0.13 indicates that CTS is not too dependend on debt financing.
CTS has a Debt to Equity ratio of 0.13. This is comparable to the rest of the industry: CTS outperforms 54.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.91 | ||
| Altman-Z | 6.77 |
ROIC/WACC1.08
WACC9.13%
2.3 Liquidity
A Current Ratio of 3.29 indicates that CTS has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.29, CTS is in the better half of the industry, outperforming 65.87% of the companies in the same industry.
A Quick Ratio of 2.67 indicates that CTS has no problem at all paying its short term obligations.
The Quick ratio of CTS (2.67) is better than 68.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.29 | ||
| Quick Ratio | 2.67 |
3. Growth
3.1 Past
The earnings per share for CTS have decreased strongly by -10.53% in the last year.
Measured over the past 5 years, CTS shows a small growth in Earnings Per Share. The EPS has been growing by 7.63% on average per year.
CTS shows a decrease in Revenue. In the last year, the revenue decreased by -6.21%.
CTS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.19% yearly.
EPS 1Y (TTM)-10.53%
EPS 3Y25.43%
EPS 5Y7.63%
EPS growth Q2Q-16.07%
Revenue 1Y (TTM)-6.21%
Revenue growth 3Y9.08%
Revenue growth 5Y3.19%
Revenue growth Q2Q-12.36%
3.2 Future
The Earnings Per Share is expected to grow by 10.01% on average over the next years. This is quite good.
Based on estimates for the next years, CTS will show a small growth in Revenue. The Revenue will grow by 3.82% on average per year.
EPS Next Y3.35%
EPS Next 2Y10.01%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.14%
Revenue Next 2Y3.82%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CTS is valuated rather expensively with a Price/Earnings ratio of 21.95.
Compared to the rest of the industry, the Price/Earnings ratio of CTS indicates a somewhat cheap valuation: CTS is cheaper than 63.49% of the companies listed in the same industry.
CTS is valuated rather cheaply when we compare the Price/Earnings ratio to 28.06, which is the current average of the S&P500 Index.
CTS is valuated rather expensively with a Price/Forward Earnings ratio of 21.24.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CTS indicates a somewhat cheap valuation: CTS is cheaper than 64.29% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CTS to the average of the S&P500 Index (20.72), we can say CTS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.95 | ||
| Fwd PE | 21.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CTS is valued a bit cheaper than 69.05% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CTS is valued a bit cheaper than the industry average as 76.19% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.1 | ||
| EV/EBITDA | 12.56 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CTS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)6.56
PEG (5Y)2.88
EPS Next 2Y10.01%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CTS has a yearly dividend return of 0.34%, which is pretty low.
CTS's Dividend Yield is rather good when compared to the industry average which is at 1.75. CTS pays more dividend than 80.95% of the companies in the same industry.
With a Dividend Yield of 0.34, CTS pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.34% |
5.2 History
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%
Div Incr Years0
Div Non Decr Years19
5.3 Sustainability
CTS pays out 8.33% of its income as dividend. This is a sustainable payout ratio.
DP8.33%
EPS Next 2Y10.01%
EPS Next 3YN/A
CTS CORP
NYSE:CTS (5/2/2024, 7:04:00 PM)
After market: 48.51 0 (0%)48.51
+1.09 (+2.3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.49B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.34% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.95 | ||
| Fwd PE | 21.24 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)6.56
PEG (5Y)2.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.17% | ||
| ROE | 11.49% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.92% | ||
| PM (TTM) | 11% | ||
| GM | 34.67% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.29 | ||
| Quick Ratio | 2.67 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-10.53%
EPS 3Y25.43%
EPS 5Y
EPS growth Q2Q
EPS Next Y3.35%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.21%
Revenue growth 3Y9.08%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y