CTS CORP (CTS) Stock Fundamental Analysis
USA - NYSE:CTS - US1265011056 - Common Stock
41.3 USD
+0.08 (+0.19%)
41.3 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to CTS. CTS was compared to 123 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year CTS was profitable.
CTS had a positive operating cash flow in the past year.
CTS had positive earnings in 4 of the past 5 years.
CTS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CTS has a better Return On Assets (8.18%) than 86.99% of its industry peers.
CTS's Return On Equity of 11.67% is fine compared to the rest of the industry. CTS outperforms 79.67% of its industry peers.
CTS's Return On Invested Capital of 9.89% is amongst the best of the industry. CTS outperforms 83.74% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CTS is in line with the industry average of 9.33%.
| 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
CTS has a better Profit Margin (12.32%) than 87.80% of its industry peers.
In the last couple of years the Profit Margin of CTS has grown nicely.
The Operating Margin of CTS (16.02%) is better than 90.24% 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 65.04% 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
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.
CTS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CTS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.59 indicates that CTS is not in any danger for bankruptcy at the moment.
CTS's Altman-Z score of 5.59 is fine compared to the rest of the industry. CTS outperforms 70.73% 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.
CTS has a Debt to FCF ratio of 1.01. This is in the better half of the industry: CTS outperforms 79.67% 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.
CTS has a Debt to Equity ratio of 0.16. This is comparable to the rest of the industry: CTS outperforms 48.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.01 | ||
| Altman-Z | 5.59 |
ROIC/WACC1.09
WACC9.07%
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's Current ratio of 2.61 is in line compared to the rest of the industry. CTS outperforms 56.91% of its industry peers.
A Quick Ratio of 2.04 indicates that CTS has no problem at all paying 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 60.98% 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.
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 1.12%.
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
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 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
Based on the Price/Earnings ratio of 19.03, the valuation of CTS can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CTS indicates a rather cheap valuation: CTS is cheaper than 85.37% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CTS to the average of the S&P500 Index (27.77), we can say CTS is valued slightly cheaper.
With a Price/Forward Earnings ratio of 16.97, CTS is valued correctly.
CTS's Price/Forward Earnings ratio is rather cheap when compared to the industry. CTS is cheaper than 82.11% of the companies in the same industry.
CTS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.03 | ||
| Fwd PE | 16.97 |
4.2 Price Multiples
CTS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CTS is cheaper than 84.55% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CTS indicates a rather cheap valuation: CTS is cheaper than 92.68% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.91 | ||
| EV/EBITDA | 10.33 |
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)4.47
PEG (5Y)2.27
EPS Next 2Y5.91%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.39%, 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 2.06. CTS pays more dividend than 80.49% of the companies in the same industry.
With a Dividend Yield of 0.39, CTS pays less dividend than the S&P500 average, which is at 2.36.
| 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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
41.3
+0.08 (+0.19%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners97.15%
Inst Owner Change0.31%
Ins Owners2.17%
Ins Owner Change0.31%
Market Cap1.22B
Analysts45
Price Target43.86 (6.2%)
Short Float %1.05%
Short Ratio1.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.39% |
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 | 19.03 | ||
| Fwd PE | 16.97 | ||
| P/S | 2.34 | ||
| P/FCF | 13.91 | ||
| P/OCF | 11.57 | ||
| P/B | 2.21 | ||
| P/tB | 6.73 | ||
| EV/EBITDA | 10.33 |
EPS(TTM)2.17
EY5.25%
EPS(NY)2.43
Fwd EY5.89%
FCF(TTM)2.97
FCFY7.19%
OCF(TTM)3.57
OCFY8.64%
SpS17.67
BVpS18.66
TBVpS6.13
PEG (NY)4.47
PEG (5Y)2.27
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 | 5.59 |
F-Score6
WACC9.07%
ROIC/WACC1.09
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 Year30.98%
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%