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 124 industry peers in the Electronic Equipment, Instruments & Components industry. Both the health and profitability get an excellent rating, making CTS a very profitable company, without any liquidiy or solvency issues. 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.
CTS had a positive operating cash flow in the past year.
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 8.18%. This is amongst the best in the industry. CTS outperforms 87.90% of its industry peers.
CTS's Return On Equity of 11.67% is fine compared to the rest of the industry. CTS outperforms 78.23% of its industry peers.
CTS's Return On Invested Capital of 9.89% is amongst the best of the industry. CTS outperforms 83.06% of its industry peers.
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 9.55%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.18% | ||
| ROE | 11.67% | ||
| ROIC | 9.89% |
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 12.32%, CTS belongs to the top of the industry, outperforming 87.10% of the companies in the same industry.
CTS's Profit Margin has improved in the last couple of years.
CTS has a better Operating Margin (16.02%) than 90.32% of its industry peers.
In the last couple of years the Operating Margin of CTS has grown nicely.
Looking at the Gross Margin, with a value of 38.02%, CTS is in the better half of the industry, outperforming 65.32% 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 | 16.02% | ||
| PM (TTM) | 12.32% | ||
| GM | 38.02% |
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.
CTS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CTS has been reduced compared to 5 years ago.
CTS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.43 indicates that CTS is not in any danger for bankruptcy at the moment.
The Altman-Z score of CTS (5.43) is better than 79.03% of its industry peers.
CTS has a debt to FCF ratio of 1.01. This is a very positive value and a sign of high solvency as it would only need 1.01 years to pay back of all of its debts.
CTS has a better Debt to FCF ratio (1.01) than 81.45% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that CTS is not too dependend on debt financing.
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 | 1.01 | ||
| Altman-Z | 5.43 |
ROIC/WACC1.03
WACC9.57%
2.3 Liquidity
CTS has a Current Ratio of 2.61. This indicates that CTS is financially healthy and has no problem in meeting its short term obligations.
CTS has a Current ratio of 2.61. This is comparable to the rest of the industry: CTS outperforms 57.26% of its industry peers.
CTS has a Quick Ratio of 2.04. This indicates that CTS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.04, CTS is in the better half of the industry, outperforming 62.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.61 | ||
| Quick Ratio | 2.04 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.43% 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.
Looking at the last year, CTS shows a small growth in Revenue. The Revenue has grown by 1.12% 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)7.43%
EPS 3Y3.98%
EPS 5Y8.4%
EPS Q2Q%5.56%
Revenue 1Y (TTM)1.12%
Revenue growth 3Y0.18%
Revenue growth 5Y1.92%
Sales Q2Q%3.95%
3.2 Future
The Earnings Per Share is expected to grow by 5.91% 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 4.14% on average per year.
EPS Next Y2.4%
EPS Next 2Y5.91%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.82%
Revenue Next 2Y4.14%
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 18.06, which indicates a rather expensive current valuation of CTS.
Compared to the rest of the industry, the Price/Earnings ratio of CTS indicates a rather cheap valuation: CTS is cheaper than 83.06% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.48, CTS is valued a bit cheaper.
CTS is valuated correctly with a Price/Forward Earnings ratio of 16.10.
Based on the Price/Forward Earnings ratio, CTS is valued cheaper than 81.45% of the companies in the same industry.
CTS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.06 | ||
| Fwd PE | 16.1 |
4.2 Price Multiples
86.29% 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 cheaper than 92.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.2 | ||
| EV/EBITDA | 9.79 |
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)7.53
PEG (5Y)2.15
EPS Next 2Y5.91%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.41%, CTS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.76, CTS pays a better dividend. On top of this CTS pays more dividend than 83.06% of the companies listed in the same industry.
With a Dividend Yield of 0.41, CTS pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
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
7.52% 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.
DP7.52%
EPS Next 2Y5.91%
EPS Next 3YN/A
39.18
+0.61 (+1.58%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners99.06%
Inst Owner Change-1.36%
Ins Owners2.17%
Ins Owner Change0.31%
Market Cap1.16B
Analysts45
Price Target43.86 (11.94%)
Short Float %1.32%
Short Ratio1.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
Yearly Dividend0.16
Dividend Growth(5Y)0.16%
DP7.52%
Div Incr Years0
Div Non Decr Years31
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.24%
Min EPS beat(2)-11.09%
Max EPS beat(2)2.61%
EPS beat(4)2
Avg EPS beat(4)1.05%
Min EPS beat(4)-11.09%
Max EPS beat(4)15.51%
EPS beat(8)5
Avg EPS beat(8)1.41%
EPS beat(12)7
Avg EPS beat(12)1.57%
EPS beat(16)11
Avg EPS beat(16)4%
Revenue beat(2)1
Avg Revenue beat(2)-1.14%
Min Revenue beat(2)-3.26%
Max Revenue beat(2)0.99%
Revenue beat(4)1
Avg Revenue beat(4)-2.07%
Min Revenue beat(4)-4.99%
Max Revenue beat(4)0.99%
Revenue beat(8)1
Avg Revenue beat(8)-2.56%
Revenue beat(12)3
Avg Revenue beat(12)-2.13%
Revenue beat(16)7
Avg Revenue beat(16)-0.39%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.61%
EPS NY rev (1m)0%
EPS NY rev (3m)4.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)-0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.06 | ||
| Fwd PE | 16.1 | ||
| P/S | 2.22 | ||
| P/FCF | 13.2 | ||
| P/OCF | 10.98 | ||
| P/B | 2.1 | ||
| P/tB | 6.39 | ||
| EV/EBITDA | 9.79 |
EPS(TTM)2.17
EY5.54%
EPS(NY)2.43
Fwd EY6.21%
FCF(TTM)2.97
FCFY7.58%
OCF(TTM)3.57
OCFY9.11%
SpS17.67
BVpS18.66
TBVpS6.13
PEG (NY)7.53
PEG (5Y)2.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.18% | ||
| ROE | 11.67% | ||
| ROCE | 12.2% | ||
| ROIC | 9.89% | ||
| ROICexc | 11.57% | ||
| ROICexgc | 31.39% | ||
| OM | 16.02% | ||
| PM (TTM) | 12.32% | ||
| GM | 38.02% | ||
| FCFM | 16.8% |
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 Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.01 | ||
| Debt/EBITDA | 0.75 | ||
| Cap/Depr | 53.18% | ||
| Cap/Sales | 3.4% | ||
| Interest Coverage | 17.22 | ||
| Cash Conversion | 90.11% | ||
| Profit Quality | 136.33% | ||
| Current Ratio | 2.61 | ||
| Quick Ratio | 2.04 | ||
| Altman-Z | 5.43 |
F-Score6
WACC9.57%
ROIC/WACC1.03
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)7.43%
EPS 3Y3.98%
EPS 5Y8.4%
EPS Q2Q%5.56%
EPS Next Y2.4%
EPS Next 2Y5.91%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.12%
Revenue growth 3Y0.18%
Revenue growth 5Y1.92%
Sales Q2Q%3.95%
Revenue Next Year1.82%
Revenue Next 2Y4.14%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y12.93%
EBIT growth 3Y-0.29%
EBIT growth 5Y4.86%
EBIT Next Year26.49%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-16.36%
FCF growth 3Y4.58%
FCF growth 5Y13.56%
OCF growth 1Y-12.65%
OCF growth 3Y4.85%
OCF growth 5Y9.04%