CTS CORP (CTS) Stock Fundamental Analysis
USA - NYSE:CTS - US1265011056 - Common Stock
39.22 USD
-0.43 (-1.08%)
Taking everything into account, CTS scores 7 out of 10 in our fundamental rating. CTS was compared to 124 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 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 has a Return On Equity of 11.67%. This is amongst the best in the industry. CTS outperforms 80.65% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.89%, CTS belongs to the top of the industry, outperforming 83.87% 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 9.48%.
| 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
With an excellent Profit Margin value of 12.32%, CTS belongs to the best of the industry, outperforming 88.71% 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 89.52% of its industry peers.
In the last couple of years the Operating Margin of CTS has grown nicely.
With a decent Gross Margin value of 38.02%, CTS is doing good in 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CTS is creating some value.
The number of shares outstanding for CTS has been reduced compared to 1 year ago.
CTS has less shares outstanding than it did 5 years ago.
CTS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.47 indicates that CTS is not in any danger for bankruptcy at the moment.
The Altman-Z score of CTS (5.47) is better than 75.00% of its industry peers.
The Debt to FCF ratio of CTS is 1.01, which is an excellent value as it means it would take CTS, only 1.01 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.01, CTS belongs to the top of the industry, outperforming 81.45% of the companies in the same industry.
A Debt/Equity ratio of 0.16 indicates that CTS is not too dependend on debt financing.
CTS has a Debt to Equity ratio (0.16) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.01 | ||
| Altman-Z | 5.47 |
ROIC/WACC1.06
WACC9.36%
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 (2.61) which is in line with 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.
CTS's Quick ratio of 2.04 is fine compared to the rest of the industry. CTS outperforms 61.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.61 | ||
| Quick Ratio | 2.04 |
3. Growth
3.1 Past
CTS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.43%.
The Earnings Per Share has been growing by 8.40% on average over the past years. This is quite good.
The Revenue has been growing slightly by 1.12% in the past 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
CTS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.91% yearly.
The Revenue is expected to grow by 4.63% on average over the next years.
EPS Next Y4.26%
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.
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
A Price/Earnings ratio of 18.07 indicates a rather expensive valuation of CTS.
CTS's Price/Earnings ratio is rather cheap when compared to the industry. CTS is cheaper than 85.48% of the companies in the same industry.
CTS is valuated rather cheaply when we compare the Price/Earnings ratio to 27.06, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 16.11, the valuation of CTS can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CTS indicates a rather cheap valuation: CTS is cheaper than 82.26% 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 (22.64), we can say CTS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.07 | ||
| Fwd PE | 16.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CTS is valued cheaply inside the industry as 87.10% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CTS is valued cheaply inside the industry as 93.55% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.21 | ||
| EV/EBITDA | 9.92 |
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)4.24
PEG (5Y)2.15
EPS Next 2Y5.91%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.38%, CTS is not a good candidate for dividend investing.
CTS's Dividend Yield is rather good when compared to the industry average which is at 2.22. CTS pays more dividend than 80.65% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, CTS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
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 7.52% 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.
DP7.52%
EPS Next 2Y5.91%
EPS Next 3YN/A
NYSE:CTS (9/26/2025, 11:02:21 AM)
39.22
-0.43 (-1.08%)
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-2.26%
Ins Owners2.17%
Ins Owner Change0.31%
Market Cap1.16B
Analysts45
Price Target43.86 (11.83%)
Short Float %0.99%
Short Ratio1.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
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)0%
EPS NY rev (1m)0%
EPS NY rev (3m)1.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.07 | ||
| Fwd PE | 16.11 | ||
| P/S | 2.22 | ||
| P/FCF | 13.21 | ||
| P/OCF | 10.99 | ||
| P/B | 2.1 | ||
| P/tB | 6.39 | ||
| EV/EBITDA | 9.92 |
EPS(TTM)2.17
EY5.53%
EPS(NY)2.43
Fwd EY6.21%
FCF(TTM)2.97
FCFY7.57%
OCF(TTM)3.57
OCFY9.1%
SpS17.67
BVpS18.66
TBVpS6.13
PEG (NY)4.24
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 | 5.47 |
F-Score6
WACC9.36%
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)7.43%
EPS 3Y3.98%
EPS 5Y8.4%
EPS Q2Q%5.56%
EPS Next Y4.26%
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 Year2.32%
Revenue Next 2Y4.63%
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%