CTS CORP (CTS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CTS - US1265011056 - Common Stock
43.83 USD
-0.12 (-0.27%)
43.83 USD
0 (0%)
Overall CTS gets a fundamental rating of 7 out of 10. We evaluated CTS against 124 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 is not valued too expensively and it also shows a decent growth rate.
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
Looking at the Return On Assets, with a value of 7.49%, CTS belongs to the top of the industry, outperforming 85.48% of the companies in the same industry.
CTS has a Return On Equity of 10.81%. This is in the better half of the industry: CTS outperforms 72.58% of its industry peers.
With an excellent Return On Invested Capital value of 9.58%, CTS belongs to the best of the industry, outperforming 82.26% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CTS is in line with the industry average of 9.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.49% | ||
| ROE | 10.81% | ||
| ROIC | 9.58% |
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
CTS has a better Profit Margin (11.14%) than 85.48% of its industry peers.
CTS's Profit Margin has improved in the last couple of years.
CTS's Operating Margin of 15.25% is amongst the best of the industry. CTS outperforms 87.90% 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 38.05%, CTS is in the better half of the industry, outperforming 62.90% of the companies in the same industry.
In the last couple of years the Gross Margin of CTS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.25% | ||
| PM (TTM) | 11.14% | ||
| GM | 38.05% |
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.
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
Compared to 1 year ago, CTS has a worse debt to assets ratio.
2.2 Solvency
CTS has an Altman-Z score of 5.66. This indicates that CTS is financially healthy and has little risk of bankruptcy at the moment.
CTS has a better Altman-Z score (5.66) than 77.42% of its industry peers.
The Debt to FCF ratio of CTS is 1.13, which is an excellent value as it means it would take CTS, only 1.13 years of fcf income to pay off all of its debts.
CTS has a better Debt to FCF ratio (1.13) than 82.26% of its industry peers.
CTS has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
CTS's Debt to Equity ratio of 0.17 is in line compared to the rest of the industry. CTS outperforms 49.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.13 | ||
| Altman-Z | 5.66 |
ROIC/WACC1.06
WACC9.01%
2.3 Liquidity
A Current Ratio of 2.64 indicates that CTS has no problem at all paying its short term obligations.
The Current ratio of CTS (2.64) is comparable to the rest of the industry.
A Quick Ratio of 2.12 indicates that CTS has no problem at all paying its short term obligations.
The Quick ratio of CTS (2.12) is better than 62.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.64 | ||
| Quick Ratio | 2.12 |
3. Growth
3.1 Past
CTS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.42%.
CTS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.40% yearly.
CTS shows a small growth in Revenue. In the last year, the Revenue has grown by 3.60%.
The Revenue has been growing slightly by 1.92% on average over the past years.
EPS 1Y (TTM)1.42%
EPS 3Y3.98%
EPS 5Y8.4%
EPS Q2Q%-4.76%
Revenue 1Y (TTM)3.6%
Revenue growth 3Y0.18%
Revenue growth 5Y1.92%
Sales Q2Q%7.96%
3.2 Future
The Earnings Per Share is expected to grow by 6.56% on average over the next years.
Based on estimates for the next years, CTS will show a small growth in Revenue. The Revenue will grow by 4.20% on average per year.
EPS Next Y2.86%
EPS Next 2Y-1.14%
EPS Next 3Y6.56%
EPS Next 5YN/A
Revenue Next Year3.61%
Revenue Next 2Y3.8%
Revenue Next 3Y4.2%
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 20.48, which indicates a rather expensive current valuation of CTS.
CTS's Price/Earnings ratio is a bit cheaper when compared to the industry. CTS is cheaper than 75.81% of the companies in the same industry.
When comparing the Price/Earnings ratio of CTS to the average of the S&P500 Index (26.38), we can say CTS is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 20.66, the valuation of CTS can be described as rather expensive.
Based on the Price/Forward Earnings ratio, CTS is valued a bit cheaper than 66.13% of the companies in the same industry.
CTS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.48 | ||
| Fwd PE | 20.66 |
4.2 Price Multiples
83.06% of the companies in the same industry are more expensive than CTS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CTS is valued cheaply inside the industry as 87.90% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.88 | ||
| EV/EBITDA | 10.91 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)7.16
PEG (5Y)2.44
EPS Next 2Y-1.14%
EPS Next 3Y6.56%
5. Dividend
5.1 Amount
CTS has a yearly dividend return of 0.35%, which is pretty low.
CTS's Dividend Yield is rather good when compared to the industry average which is at 0.47. CTS pays more dividend than 81.45% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, CTS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
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 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
CTS pays out 8.09% of its income as dividend. This is a sustainable payout ratio.
CTS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP8.09%
EPS Next 2Y-1.14%
EPS Next 3Y6.56%
43.83
-0.12 (-0.27%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners98.84%
Inst Owner Change0.48%
Ins Owners2.29%
Ins Owner Change1.76%
Market Cap1.27B
Revenue(TTM)531.48M
Net Income(TTM)59.19M
Analysts45
Price Target47.94 (9.38%)
Short Float %1.77%
Short Ratio2.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
Yearly Dividend0.16
Dividend Growth(5Y)0.16%
DP8.09%
Div Incr Years0
Div Non Decr Years31
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0%
Min EPS beat(2)-2.61%
Max EPS beat(2)2.61%
EPS beat(4)1
Avg EPS beat(4)-3.48%
Min EPS beat(4)-11.09%
Max EPS beat(4)2.61%
EPS beat(8)5
Avg EPS beat(8)1.64%
EPS beat(12)7
Avg EPS beat(12)1.48%
EPS beat(16)10
Avg EPS beat(16)2.79%
Revenue beat(2)2
Avg Revenue beat(2)2.39%
Min Revenue beat(2)0.99%
Max Revenue beat(2)3.78%
Revenue beat(4)2
Avg Revenue beat(4)-0.87%
Min Revenue beat(4)-4.99%
Max Revenue beat(4)3.78%
Revenue beat(8)2
Avg Revenue beat(8)-1.31%
Revenue beat(12)3
Avg Revenue beat(12)-1.88%
Revenue beat(16)7
Avg Revenue beat(16)-0.34%
PT rev (1m)9.3%
PT rev (3m)9.3%
EPS NQ rev (1m)-1.64%
EPS NQ rev (3m)-1.64%
EPS NY rev (1m)-1.34%
EPS NY rev (3m)-1.34%
Revenue NQ rev (1m)2.04%
Revenue NQ rev (3m)-1.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.48 | ||
| Fwd PE | 20.66 | ||
| P/S | 2.4 | ||
| P/FCF | 15.88 | ||
| P/OCF | 12.88 | ||
| P/B | 2.32 | ||
| P/tB | 6.96 | ||
| EV/EBITDA | 10.91 |
EPS(TTM)2.14
EY4.88%
EPS(NY)2.12
Fwd EY4.84%
FCF(TTM)2.76
FCFY6.3%
OCF(TTM)3.4
OCFY7.76%
SpS18.3
BVpS18.85
TBVpS6.3
PEG (NY)7.16
PEG (5Y)2.44
Graham Number30.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.49% | ||
| ROE | 10.81% | ||
| ROCE | 11.82% | ||
| ROIC | 9.58% | ||
| ROICexc | 11.42% | ||
| ROICexgc | 31.19% | ||
| OM | 15.25% | ||
| PM (TTM) | 11.14% | ||
| GM | 38.05% | ||
| FCFM | 15.09% |
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%
ROICexgc growth 3Y2.59%
ROICexgc 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-Score8
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.13 | ||
| Debt/EBITDA | 0.79 | ||
| Cap/Depr | 54.58% | ||
| Cap/Sales | 3.51% | ||
| Interest Coverage | 17.38 | ||
| Cash Conversion | 85.82% | ||
| Profit Quality | 135.51% | ||
| Current Ratio | 2.64 | ||
| Quick Ratio | 2.12 | ||
| Altman-Z | 5.66 |
F-Score8
WACC9.01%
ROIC/WACC1.06
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)1.42%
EPS 3Y3.98%
EPS 5Y8.4%
EPS Q2Q%-4.76%
EPS Next Y2.86%
EPS Next 2Y-1.14%
EPS Next 3Y6.56%
EPS Next 5YN/A
Revenue 1Y (TTM)3.6%
Revenue growth 3Y0.18%
Revenue growth 5Y1.92%
Sales Q2Q%7.96%
Revenue Next Year3.61%
Revenue Next 2Y3.8%
Revenue Next 3Y4.2%
Revenue Next 5YN/A
EBIT growth 1Y6.45%
EBIT growth 3Y-0.29%
EBIT growth 5Y4.86%
EBIT Next Year36.69%
EBIT Next 3Y15%
EBIT Next 5YN/A
FCF growth 1Y21.72%
FCF growth 3Y4.58%
FCF growth 5Y13.56%
OCF growth 1Y20.25%
OCF growth 3Y4.85%
OCF growth 5Y9.04%
CTS CORP / CTS FAQ
What is the ChartMill fundamental rating of CTS CORP (CTS) stock?
ChartMill assigns a fundamental rating of 7 / 10 to CTS.
What is the valuation status of CTS CORP (CTS) stock?
ChartMill assigns a valuation rating of 5 / 10 to CTS CORP (CTS). This can be considered as Fairly Valued.
Can you provide the profitability details for CTS CORP?
CTS CORP (CTS) has a profitability rating of 8 / 10.
What is the expected EPS growth for CTS CORP (CTS) stock?
The Earnings per Share (EPS) of CTS CORP (CTS) is expected to grow by 2.86% in the next year.
How sustainable is the dividend of CTS CORP (CTS) stock?
The dividend rating of CTS CORP (CTS) is 6 / 10 and the dividend payout ratio is 8.09%.