CTS CORP (CTS) Stock Fundamental Analysis
NYSE:CTS - New York Stock Exchange, Inc. - US1265011056 - Common Stock
Overall CTS gets a fundamental rating of 6 out of 10. We evaluated CTS against 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 valuation in line with the averages, but it does not seem to be growing.
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.
In the past 5 years CTS always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.58%, CTS belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
With a decent Return On Equity value of 11.27%, CTS is doing good in the industry, outperforming 77.50% of the companies in the same industry.
The Return On Invested Capital of CTS (8.57%) is better than 76.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CTS is in line with the industry average of 9.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.58% | ||
| ROE | 11.27% | ||
| ROIC | 8.57% |
ROA(3y)3.28%
ROA(5y)4.2%
ROE(3y)4.74%
ROE(5y)6.27%
ROIC(3y)10.77%
ROIC(5y)9.58%
1.3 Margins
The Profit Margin of CTS (11.66%) is better than 85.83% of its industry peers.
In the last couple of years the Profit Margin of CTS has grown nicely.
Looking at the Operating Margin, with a value of 14.84%, CTS belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
In the last couple of years the Operating Margin of CTS has remained more or less at the same level.
CTS's Gross Margin of 36.00% is fine compared to the rest of the industry. CTS outperforms 60.83% of its industry peers.
In the last couple of years the Gross Margin of CTS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.84% | ||
| PM (TTM) | 11.66% | ||
| GM | 36% |
OM growth 3Y10.5%
OM growth 5Y1.24%
PM growth 3Y10.36%
PM growth 5Y2.16%
GM growth 3Y1.87%
GM growth 5Y-0.23%
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 has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.03 indicates that CTS is not in any danger for bankruptcy at the moment.
CTS has a Altman-Z score of 6.03. This is in the better half of the industry: CTS outperforms 79.17% of its industry peers.
The Debt to FCF ratio of CTS is 1.15, which is an excellent value as it means it would take CTS, only 1.15 years of fcf income to pay off all of its debts.
CTS's Debt to FCF ratio of 1.15 is fine compared to the rest of the industry. CTS outperforms 80.00% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that CTS is not too dependend on debt financing.
CTS has a Debt to Equity ratio (0.19) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.15 | ||
| Altman-Z | 6.03 |
ROIC/WACC0.82
WACC10.42%
2.3 Liquidity
CTS has a Current Ratio of 2.46. This indicates that CTS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.46, CTS is in line with its industry, outperforming 54.17% of the companies in the same industry.
A Quick Ratio of 1.91 indicates that CTS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.91, CTS is in line with its industry, outperforming 57.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.91 |
3. Growth
3.1 Past
CTS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.26%.
Measured over the past 5 years, CTS shows a small growth in Earnings Per Share. The EPS has been growing by 7.63% on average per year.
The Revenue has decreased by -9.68% in the past year.
Measured over the past years, CTS shows a small growth in Revenue. The Revenue has been growing by 3.19% on average per year.
EPS 1Y (TTM)-8.26%
EPS 3Y25.43%
EPS 5Y7.63%
EPS Q2Q%16.67%
Revenue 1Y (TTM)-9.68%
Revenue growth 3Y9.08%
Revenue growth 5Y3.19%
Sales Q2Q%-1.58%
3.2 Future
The Earnings Per Share is expected to grow by 7.26% 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 2.05% on average per year.
EPS Next Y-0.37%
EPS Next 2Y4.07%
EPS Next 3Y7.26%
EPS Next 5YN/A
Revenue Next Year-5.29%
Revenue Next 2Y0.12%
Revenue Next 3Y2.05%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 25.04, which means the current valuation is very expensive for CTS.
70.00% of the companies in the same industry are more expensive than CTS, based on the Price/Earnings ratio.
CTS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 22.07 indicates a rather expensive valuation of CTS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CTS indicates a somewhat cheap valuation: CTS is cheaper than 68.33% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, CTS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.04 | ||
| Fwd PE | 22.07 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CTS indicates a somewhat cheap valuation: CTS is cheaper than 70.83% of the companies listed in the same industry.
CTS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CTS is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.81 | ||
| EV/EBITDA | 15.08 |
4.3 Compensation for Growth
The decent profitability rating of CTS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.28
EPS Next 2Y4.07%
EPS Next 3Y7.26%
5. Dividend
5.1 Amount
With a yearly dividend of 0.31%, 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 1.87. CTS pays more dividend than 82.50% of the companies in the same industry.
With a Dividend Yield of 0.31, CTS pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.31% |
5.2 History
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%
Div Incr Years0
Div Non Decr Years31
5.3 Sustainability
CTS pays out 8.23% of its income as dividend. This is a sustainable payout ratio.
DP8.23%
EPS Next 2Y4.07%
EPS Next 3Y7.26%
CTS CORP
NYSE:CTS (1/21/2025, 8:04:00 PM)
After market: 52.84 0 (0%)52.84
+1.2 (+2.32%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners100.16%
Inst Owner Change-0.02%
Ins Owners2.11%
Ins Owner Change-4.48%
Market Cap1.59B
Analysts45
Price Target49.98 (-5.41%)
Short Float %1.62%
Short Ratio3.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.31% |
Yearly Dividend0.16
Dividend Growth(5Y)0%
DP8.23%
Div Incr Years0
Div Non Decr Years31
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.48%
Min EPS beat(2)1.45%
Max EPS beat(2)15.51%
EPS beat(4)4
Avg EPS beat(4)6.77%
Min EPS beat(4)1.38%
Max EPS beat(4)15.51%
EPS beat(8)6
Avg EPS beat(8)3.96%
EPS beat(12)9
Avg EPS beat(12)4.88%
EPS beat(16)13
Avg EPS beat(16)9.8%
Revenue beat(2)0
Avg Revenue beat(2)-2.2%
Min Revenue beat(2)-3.38%
Max Revenue beat(2)-1.03%
Revenue beat(4)0
Avg Revenue beat(4)-1.75%
Min Revenue beat(4)-3.38%
Max Revenue beat(4)-0.84%
Revenue beat(8)1
Avg Revenue beat(8)-2.38%
Revenue beat(12)5
Avg Revenue beat(12)-0.16%
Revenue beat(16)9
Avg Revenue beat(16)1.03%
PT rev (1m)0%
PT rev (3m)13.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15.89%
EPS NY rev (1m)0%
EPS NY rev (3m)2.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.04 | ||
| Fwd PE | 22.07 | ||
| P/S | 3.1 | ||
| P/FCF | 17.81 | ||
| P/OCF | 15.1 | ||
| P/B | 3 | ||
| P/tB | 10.26 | ||
| EV/EBITDA | 15.08 |
EPS(TTM)2.11
EY3.99%
EPS(NY)2.39
Fwd EY4.53%
FCF(TTM)2.97
FCFY5.61%
OCF(TTM)3.5
OCFY6.62%
SpS17.03
BVpS17.62
TBVpS5.15
PEG (NY)N/A
PEG (5Y)3.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.58% | ||
| ROE | 11.27% | ||
| ROCE | 11.1% | ||
| ROIC | 8.57% | ||
| ROICexc | 9.94% | ||
| ROICexgc | 27.32% | ||
| OM | 14.84% | ||
| PM (TTM) | 11.66% | ||
| GM | 36% | ||
| FCFM | 17.42% |
ROA(3y)3.28%
ROA(5y)4.2%
ROE(3y)4.74%
ROE(5y)6.27%
ROIC(3y)10.77%
ROIC(5y)9.58%
ROICexc(3y)14.41%
ROICexc(5y)12.45%
ROICexgc(3y)29.6%
ROICexgc(5y)24.47%
ROCE(3y)13.96%
ROCE(5y)12.41%
ROICexcg growth 3Y24.45%
ROICexcg growth 5Y3.78%
ROICexc growth 3Y16.11%
ROICexc growth 5Y-2.34%
OM growth 3Y10.5%
OM growth 5Y1.24%
PM growth 3Y10.36%
PM growth 5Y2.16%
GM growth 3Y1.87%
GM growth 5Y-0.23%
F-Score5
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.15 | ||
| Debt/EBITDA | 0.97 | ||
| Cap/Depr | 53.61% | ||
| Cap/Sales | 3.13% | ||
| Interest Coverage | 21.43 | ||
| Cash Conversion | 99.39% | ||
| Profit Quality | 149.36% | ||
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.91 | ||
| Altman-Z | 6.03 |
F-Score5
WACC10.42%
ROIC/WACC0.82
Cap/Depr(3y)52.53%
Cap/Depr(5y)60.32%
Cap/Sales(3y)2.72%
Cap/Sales(5y)3.26%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-8.26%
EPS 3Y25.43%
EPS 5Y7.63%
EPS Q2Q%16.67%
EPS Next Y-0.37%
EPS Next 2Y4.07%
EPS Next 3Y7.26%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.68%
Revenue growth 3Y9.08%
Revenue growth 5Y3.19%
Sales Q2Q%-1.58%
Revenue Next Year-5.29%
Revenue Next 2Y0.12%
Revenue Next 3Y2.05%
Revenue Next 5YN/A
EBIT growth 1Y-12.44%
EBIT growth 3Y20.53%
EBIT growth 5Y4.47%
EBIT Next Year21.71%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-14.9%
FCF growth 3Y6.17%
FCF growth 5Y20.06%
OCF growth 1Y-13.44%
OCF growth 3Y4.96%
OCF growth 5Y8.82%