CTS CORP (CTS) Stock Fundamental Analysis
NYSE:CTS - New York Stock Exchange, Inc. - US1265011056 - Common Stock - Currency: USD
CTS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
CTS had positive earnings in the past year.
CTS had a positive operating cash flow in the past year.
Of the past 5 years CTS 4 years were profitable.
CTS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CTS's Return On Assets of 7.59% is amongst the best of the industry. CTS outperforms 87.10% of its industry peers.
CTS's Return On Equity of 10.95% is fine compared to the rest of the industry. CTS outperforms 78.23% of its industry peers.
CTS has a better Return On Invested Capital (9.56%) than 83.06% 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 9.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.59% | ||
| ROE | 10.95% | ||
| ROIC | 9.56% |
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's Profit Margin of 11.27% is amongst the best of the industry. CTS outperforms 85.48% 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 15.29%, CTS belongs to the top of the industry, outperforming 89.52% of the companies in the same industry.
In the last couple of years the Operating Margin of CTS has grown nicely.
Looking at the Gross Margin, with a value of 36.94%, CTS is in the better half of the industry, outperforming 64.52% 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 | 15.29% | ||
| PM (TTM) | 11.27% | ||
| GM | 36.94% |
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.
The number of shares outstanding for CTS has been reduced compared to 1 year ago.
Compared to 5 years ago, CTS has less shares outstanding
CTS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.32 indicates that CTS is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.32, CTS is doing good in the industry, outperforming 79.84% of the companies in the same industry.
CTS has a debt to FCF ratio of 1.13. This is a very positive value and a sign of high solvency as it would only need 1.13 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.13, CTS belongs to the best of the industry, outperforming 81.45% of the companies in the same industry.
CTS has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
CTS's Debt to Equity ratio of 0.17 is in line compared to the rest of the industry. CTS outperforms 50.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.13 | ||
| Altman-Z | 5.32 |
ROIC/WACC1.1
WACC8.72%
2.3 Liquidity
CTS has a Current Ratio of 2.50. This indicates that CTS is financially healthy and has no problem in meeting its short term obligations.
CTS has a Current ratio (2.50) which is comparable to the rest of the industry.
A Quick Ratio of 1.95 indicates that CTS should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.95, CTS is doing good in the industry, outperforming 60.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.95 |
3. Growth
3.1 Past
The earnings per share for CTS have decreased by -1.81% in the last 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.
Looking at the last year, CTS shows a decrease in Revenue. The Revenue has decreased by -6.30% in the last year.
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)-1.81%
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 5.91% 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 4.63% on average per year.
EPS Next Y-2.26%
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.
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 17.21, CTS is valued on the expensive side.
75.00% of the companies in the same industry are more expensive than CTS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.63, CTS is valued a bit cheaper.
With a Price/Forward Earnings ratio of 17.61, CTS is valued on the expensive side.
Based on the Price/Forward Earnings ratio, CTS is valued a bit cheaper than the industry average as 66.13% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of CTS to the average of the S&P500 Index (20.85), we can say CTS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.21 | ||
| Fwd PE | 17.61 |
4.2 Price Multiples
77.42% 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 82.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.9 | ||
| EV/EBITDA | 10.24 |
4.3 Compensation for Growth
The excellent profitability rating of CTS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.05
EPS Next 2Y5.91%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CTS has a yearly dividend return of 0.43%, which is pretty low.
In the last 3 months the price of CTS has falen by -28.52%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
CTS's Dividend Yield is rather good when compared to the industry average which is at 2.39. CTS pays more dividend than 81.45% of the companies in the same industry.
With a Dividend Yield of 0.43, CTS pays less dividend than the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
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 8.41% of its income as dividend. This is a sustainable payout ratio.
The dividend of CTS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP8.41%
EPS Next 2Y5.91%
EPS Next 3YN/A
37.35
-0.23 (-0.61%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners98.16%
Inst Owner Change0.18%
Ins Owners2.12%
Ins Owner Change-0.12%
Market Cap1.12B
Analysts45
Price Target47.94 (28.35%)
Short Float %1.38%
Short Ratio2.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
Yearly Dividend0.16
Dividend Growth(5Y)0.16%
DP8.41%
Div Incr Years0
Div Non Decr Years31
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.34%
Min EPS beat(2)-2.82%
Max EPS beat(2)15.51%
EPS beat(4)3
Avg EPS beat(4)5.72%
Min EPS beat(4)-2.82%
Max EPS beat(4)15.51%
EPS beat(8)6
Avg EPS beat(8)4.08%
EPS beat(12)8
Avg EPS beat(12)4.43%
EPS beat(16)12
Avg EPS beat(16)8.05%
Revenue beat(2)0
Avg Revenue beat(2)-3.01%
Min Revenue beat(2)-4.99%
Max Revenue beat(2)-1.03%
Revenue beat(4)0
Avg Revenue beat(4)-2.79%
Min Revenue beat(4)-4.99%
Max Revenue beat(4)-1.03%
Revenue beat(8)1
Avg Revenue beat(8)-2.39%
Revenue beat(12)4
Avg Revenue beat(12)-1.14%
Revenue beat(16)8
Avg Revenue beat(16)0.47%
PT rev (1m)0%
PT rev (3m)-4.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.04%
EPS NY rev (1m)-7.89%
EPS NY rev (3m)-11.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.61%
Revenue NY rev (1m)-0.86%
Revenue NY rev (3m)-3.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.21 | ||
| Fwd PE | 17.61 | ||
| P/S | 2.17 | ||
| P/FCF | 13.9 | ||
| P/OCF | 11.29 | ||
| P/B | 2.11 | ||
| P/tB | 6.71 | ||
| EV/EBITDA | 10.24 |
EPS(TTM)2.17
EY5.81%
EPS(NY)2.12
Fwd EY5.68%
FCF(TTM)2.69
FCFY7.19%
OCF(TTM)3.31
OCFY8.86%
SpS17.19
BVpS17.69
TBVpS5.57
PEG (NY)N/A
PEG (5Y)2.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.59% | ||
| ROE | 10.95% | ||
| ROCE | 11.8% | ||
| ROIC | 9.56% | ||
| ROICexc | 11.13% | ||
| ROICexgc | 30.38% | ||
| OM | 15.29% | ||
| PM (TTM) | 11.27% | ||
| GM | 36.94% | ||
| FCFM | 15.64% |
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 Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.13 | ||
| Debt/EBITDA | 0.83 | ||
| Cap/Depr | 60.29% | ||
| Cap/Sales | 3.61% | ||
| Interest Coverage | 18.64 | ||
| Cash Conversion | 90.44% | ||
| Profit Quality | 138.77% | ||
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.95 | ||
| Altman-Z | 5.32 |
F-Score5
WACC8.72%
ROIC/WACC1.1
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)-1.81%
EPS 3Y3.98%
EPS 5Y8.4%
EPS Q2Q%12.77%
EPS Next Y-2.26%
EPS Next 2Y5.91%
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 Year2.32%
Revenue Next 2Y4.63%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-3.97%
EBIT growth 3Y-0.29%
EBIT growth 5Y4.86%
EBIT Next Year35.14%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y8.87%
FCF growth 3Y4.58%
FCF growth 5Y13.56%
OCF growth 1Y11.8%
OCF growth 3Y4.85%
OCF growth 5Y9.04%