CTS CORP (CTS) Stock Fundamental Analysis
USA - NYSE:CTS - US1265011056 - Common Stock
41.15 USD
+1.12 (+2.8%)
Taking everything into account, CTS scores 6 out of 10 in our fundamental rating. CTS was compared to 123 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 has a correct valuation and a medium 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
With an excellent Return On Assets value of 8.18%, CTS belongs to the best of the industry, outperforming 86.99% of the companies in the same industry.
CTS has a better Return On Equity (11.67%) than 79.67% 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 83.74% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital 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
Looking at the Profit Margin, with a value of 12.32%, CTS belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
In the last couple of years the Profit Margin of CTS has grown nicely.
CTS has a Operating Margin of 16.02%. This is amongst the best in the industry. CTS outperforms 90.24% of its industry peers.
CTS's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 38.02%, CTS is doing good in 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
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
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
CTS has an Altman-Z score of 5.50. This indicates that CTS is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.50, CTS is doing good in the industry, outperforming 70.73% of the companies in the same industry.
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 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 | 5.5 |
ROIC/WACC1.09
WACC9.08%
2.3 Liquidity
A Current Ratio of 2.61 indicates that CTS has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.61, CTS is in line with its industry, outperforming 56.91% of the companies in the same industry.
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 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.
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 1.12%.
CTS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.92% yearly.
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.
CTS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.63% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 18.96, which indicates a rather expensive current valuation of CTS.
CTS's Price/Earnings ratio is rather cheap when compared to the industry. CTS is cheaper than 86.18% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.42. CTS is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 16.91 indicates a correct valuation of CTS.
82.93% of the companies in the same industry are more expensive than CTS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.94. CTS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.96 | ||
| Fwd PE | 16.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CTS is valued cheaply inside the industry as 84.55% of the companies are valued more expensively.
CTS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CTS is cheaper than 92.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.86 | ||
| EV/EBITDA | 10.01 |
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.
The excellent profitability rating of CTS may justify a higher PE ratio.
PEG (NY)4.45
PEG (5Y)2.26
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
7.52% of the earnings are spent on dividend by CTS. This is a low number and sustainable payout ratio.
The dividend of CTS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP7.52%
EPS Next 2Y5.91%
EPS Next 3YN/A
NYSE:CTS (10/20/2025, 3:53:41 PM)
41.15
+1.12 (+2.8%)
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 Cap1.21B
Analysts45
Price Target43.86 (6.59%)
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 | 18.96 | ||
| Fwd PE | 16.91 | ||
| P/S | 2.33 | ||
| P/FCF | 13.86 | ||
| P/OCF | 11.53 | ||
| P/B | 2.21 | ||
| P/tB | 6.71 | ||
| EV/EBITDA | 10.01 |
EPS(TTM)2.17
EY5.27%
EPS(NY)2.43
Fwd EY5.92%
FCF(TTM)2.97
FCFY7.21%
OCF(TTM)3.57
OCFY8.67%
SpS17.67
BVpS18.66
TBVpS6.13
PEG (NY)4.45
PEG (5Y)2.26
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 | 5.5 |
F-Score6
WACC9.08%
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%