CTS CORP (CTS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CTS - US1265011056 - Common Stock
44.47 USD
-1.05 (-2.31%)
44.47 USD
0 (0%)
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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CTS is not valued too expensively and it also shows a decent 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.
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 better Return On Assets (7.49%) than 85.48% of its industry peers.
The Return On Equity of CTS (10.81%) is better than 72.58% of its industry peers.
CTS has a Return On Invested Capital of 9.58%. This is amongst the best in the industry. CTS outperforms 82.26% 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 9.28%.
| 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
The Profit Margin of CTS (11.14%) is better than 85.48% of its industry peers.
CTS's Profit Margin has improved in the last couple of years.
The Operating Margin of CTS (15.25%) is better than 87.90% 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 38.05%, CTS is doing good in the industry, outperforming 62.90% of the companies in the same industry.
CTS's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CTS is creating some value.
Compared to 1 year ago, CTS has less shares outstanding
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 5.70. This indicates that CTS is financially healthy and has little risk of bankruptcy at the moment.
CTS has a better Altman-Z score (5.70) 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.
Looking at the Debt to Equity ratio, with a value of 0.17, CTS is in line with its industry, outperforming 49.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.13 | ||
| Altman-Z | 5.7 |
ROIC/WACC1.05
WACC9.12%
2.3 Liquidity
CTS has a Current Ratio of 2.64. This indicates that CTS is financially healthy and has no problem in meeting its short term obligations.
CTS has a Current ratio (2.64) which is comparable to the rest of the industry.
CTS has a Quick Ratio of 2.12. This indicates that CTS is financially healthy and has no problem in meeting 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%.
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.
CTS shows a small growth in Revenue. In the last year, the Revenue has grown by 3.60%.
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)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
CTS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.56% yearly.
The Revenue is expected to grow by 4.20% on average over the next years.
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.
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
With a Price/Earnings ratio of 20.78, CTS is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of CTS indicates a somewhat cheap valuation: CTS is cheaper than 79.03% of the companies listed in the same industry.
CTS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.56, which is the current average of the S&P500 Index.
CTS is valuated rather expensively with a Price/Forward Earnings ratio of 20.97.
66.94% of the companies in the same industry are more expensive than CTS, based on the Price/Forward Earnings ratio.
CTS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.78 | ||
| Fwd PE | 20.97 |
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 cheaper than 88.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.11 | ||
| EV/EBITDA | 11.05 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CTS does not grow enough to justify the current Price/Earnings ratio.
CTS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)7.26
PEG (5Y)2.47
EPS Next 2Y-1.14%
EPS Next 3Y6.56%
5. Dividend
5.1 Amount
With a yearly dividend of 0.35%, 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 0.47. CTS pays more dividend than 81.45% of the companies in the same industry.
With a Dividend Yield of 0.35, CTS pays less dividend than the S&P500 average, which is at 1.87.
| 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 paid a dividend for at least 10 years, which is 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
8.09% 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.
DP8.09%
EPS Next 2Y-1.14%
EPS Next 3Y6.56%
44.47
-1.05 (-2.31%)
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 Cap1.29B
Revenue(TTM)531.48M
Net Income(TTM)59.19M
Analysts45
Price Target47.94 (7.8%)
Short Float %1.72%
Short Ratio2.3
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 | 20.78 | ||
| Fwd PE | 20.97 | ||
| P/S | 2.43 | ||
| P/FCF | 16.11 | ||
| P/OCF | 13.07 | ||
| P/B | 2.36 | ||
| P/tB | 7.06 | ||
| EV/EBITDA | 11.05 |
EPS(TTM)2.14
EY4.81%
EPS(NY)2.12
Fwd EY4.77%
FCF(TTM)2.76
FCFY6.21%
OCF(TTM)3.4
OCFY7.65%
SpS18.3
BVpS18.85
TBVpS6.3
PEG (NY)7.26
PEG (5Y)2.47
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 | 5.7 |
F-Score8
WACC9.12%
ROIC/WACC1.05
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%.