CTS CORP (CTS) Stock Fundamental Analysis
NYSE:CTS - New York Stock Exchange, Inc. - US1265011056 - Common Stock - Currency: USD
Taking everything into account, CTS scores 6 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.
Of the past 5 years CTS 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CTS (7.58%) is better than 84.17% of its industry peers.
The Return On Equity of CTS (11.27%) is better than 77.50% of its industry peers.
CTS's Return On Invested Capital of 9.00% is fine compared to the rest of the industry. CTS outperforms 77.50% 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 8.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.58% | ||
| ROE | 11.27% | ||
| ROIC | 9% |
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 11.66%, CTS belongs to the top of the industry, outperforming 85.83% 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 14.84%. This is amongst the best in the industry. CTS outperforms 90.83% of its industry peers.
In the last couple of years the Operating Margin of CTS has grown nicely.
The Gross Margin of CTS (36.00%) is better than 60.83% of its industry peers.
In the last couple of years the Gross Margin of CTS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.84% | ||
| PM (TTM) | 11.66% | ||
| GM | 36% |
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.
CTS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CTS has been reduced compared to 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 5.58. This indicates that CTS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.58, CTS is in the better half of the industry, outperforming 78.33% of the companies in the same industry.
CTS has a debt to FCF ratio of 1.15. This is a very positive value and a sign of high solvency as it would only need 1.15 years to pay back of all of its debts.
CTS's Debt to FCF ratio of 1.15 is fine compared to the rest of the industry. CTS outperforms 79.17% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that CTS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.19, CTS is in line with its industry, outperforming 48.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.15 | ||
| Altman-Z | 5.58 |
ROIC/WACC1.02
WACC8.83%
2.3 Liquidity
A Current Ratio of 2.46 indicates that CTS has no problem at all paying its short term obligations.
CTS has a Current ratio of 2.46. This is comparable to the rest of the industry: CTS outperforms 54.17% of its industry peers.
A Quick Ratio of 1.91 indicates that CTS should not have too much problems paying its short term obligations.
CTS has a Quick ratio (1.91) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.91 |
3. Growth
3.1 Past
The earnings per share for CTS have decreased by -1.81% in the last 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.
The Revenue has decreased by -6.30% in the past year.
CTS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.92% yearly.
EPS 1Y (TTM)-1.81%
EPS 3Y3.98%
EPS 5Y8.4%
EPS Q2Q%12.77%
Revenue 1Y (TTM)-6.3%
Revenue growth 3Y0.18%
Revenue growth 5Y1.92%
Sales Q2Q%2.19%
3.2 Future
The Earnings Per Share is expected to grow by 10.64% on average over the next years. This is quite good.
Based on estimates for the next years, CTS will show a small growth in Revenue. The Revenue will grow by 4.60% on average per year.
EPS Next Y6.12%
EPS Next 2Y10.64%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.21%
Revenue Next 2Y4.6%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.11, CTS is valued on the expensive side.
Based on the Price/Earnings ratio, CTS is valued a bit cheaper than 75.00% of the companies in the same industry.
CTS is valuated rather cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 19.89, the valuation of CTS can be described as rather expensive.
70.00% 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 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.11 | ||
| Fwd PE | 19.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CTS is valued a bit cheaper than 73.33% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CTS is valued cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.44 | ||
| EV/EBITDA | 13.26 |
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 decent profitability rating of CTS may justify a higher PE ratio.
PEG (NY)3.45
PEG (5Y)2.51
EPS Next 2Y10.64%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CTS has a yearly dividend return of 0.34%, which is pretty low.
Compared to an average industry Dividend Yield of 1.92, CTS pays a better dividend. On top of this CTS pays more dividend than 83.33% of the companies listed in the same industry.
With a Dividend Yield of 0.34, CTS pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.34% |
5.2 History
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%
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 2Y10.64%
EPS Next 3YN/A
45.8
-0.61 (-1.31%)
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-0.19%
Ins Owners2.11%
Ins Owner Change-0.11%
Market Cap1.38B
Analysts45
Price Target49.98 (9.13%)
Short Float %1.2%
Short Ratio2.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.34% |
Yearly Dividend0.16
Dividend Growth(5Y)0%
DP8.23%
Div Incr Years0
Div Non Decr Years31
Ex-Date
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)0%
EPS NY rev (1m)-3.8%
EPS NY rev (3m)-3.8%
Revenue NQ rev (1m)-3.95%
Revenue NQ rev (3m)-3.95%
Revenue NY rev (1m)-2.5%
Revenue NY rev (3m)-2.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.11 | ||
| Fwd PE | 19.89 | ||
| P/S | 2.69 | ||
| P/FCF | 15.44 | ||
| P/OCF | 13.09 | ||
| P/B | 2.6 | ||
| P/tB | 8.89 | ||
| EV/EBITDA | 13.26 |
EPS(TTM)2.17
EY4.74%
EPS(NY)2.3
Fwd EY5.03%
FCF(TTM)2.97
FCFY6.48%
OCF(TTM)3.5
OCFY7.64%
SpS17.03
BVpS17.62
TBVpS5.15
PEG (NY)3.45
PEG (5Y)2.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.58% | ||
| ROE | 11.27% | ||
| ROCE | 11.1% | ||
| ROIC | 9% | ||
| ROICexc | 10.45% | ||
| ROICexgc | 28.7% | ||
| OM | 14.84% | ||
| PM (TTM) | 11.66% | ||
| GM | 36% | ||
| FCFM | 17.42% |
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-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 | 5.58 |
F-Score5
WACC8.83%
ROIC/WACC1.02
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-1.81%
EPS 3Y3.98%
EPS 5Y8.4%
EPS Q2Q%12.77%
EPS Next Y6.12%
EPS Next 2Y10.64%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-6.3%
Revenue growth 3Y0.18%
Revenue growth 5Y1.92%
Sales Q2Q%2.19%
Revenue Next Year3.21%
Revenue Next 2Y4.6%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-12.44%
EBIT growth 3Y-0.29%
EBIT growth 5Y4.86%
EBIT Next Year39.87%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y35.62%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y28.23%
OCF growth 3YN/A
OCF growth 5YN/A