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CPS Technologies Corp. (CPSH)
NASDAQ:CPSH
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CPS Technologies
(NASDAQ:CPSH)
52Neutral
CPS Technologies (CPSH) vs. S&P 500 (SPY)
Market Cap
$21.21M
Dividend YieldN/A
Average Volume (3M)27.72K
Price to Earnings (P/E)―
Beta (1Y)0.56
Revenue Growth-23.33%
EPS Growth-328.22%
CountryUS
Employees92
SectorTechnology
Sector Strength44
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)-0.21
Shares Outstanding14,525,960
10 Day Avg. Volume18,703
30 Day Avg. Volume27,724
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.22
Price to Cash Flow (P/CF)-4.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
CPS Technologies Business Overview & Revenue Model
Company DescriptionCPS Technologies Corporation (CPSH) is a leading provider in the field of advanced materials solutions, primarily focused on the production of metal matrix composites (MMCs). These materials are utilized in a variety of industries, including automotive, telecommunications, aerospace, and defense, where high thermal conductivity and low weight are critical performance factors. CPS is recognized for its expertise in designing and manufacturing complex assemblies that integrate advanced material components for demanding applications.
How the Company Makes MoneyCPS Technologies makes money primarily through the sale of its proprietary metal matrix composite materials and related components. The company's revenue model is centered around custom-designed solutions that meet the specific needs of their clients in high-performance sectors such as aerospace, defense, and telecommunications. CPS generates income by entering into contracts with major corporations requiring thermal management solutions, where its products are used to enhance the performance and reliability of electronic systems. The company also benefits from long-term relationships and partnerships with industry leaders, contributing to a steady stream of orders and repeat business. Additionally, CPS invests in research and development to innovate and expand its product offerings, which can lead to new revenue opportunities as they address emerging industry demands.
CPS Technologies Financial Statement Overview
Summary
CPS Technologies has shown a positive trend in revenue growth with improved gross profit margins. However, profitability is inconsistent, and there are challenges with free cash flow, which declined significantly. The company exhibits strong equity management but needs better asset utilization and cash flow management.Income Statement
CPS Technologies has shown a positive trend in revenue growth, with a significant increase from 2022 to 2023. Gross profit margin improved from 17.4% in 2019 to 24.8% in 2023, indicating better cost management. However, net profit margin fluctuated, reaching 5.0% in 2023, reflecting inconsistent profitability. The company achieved positive EBIT and EBITDA margins in 2023, suggesting operational efficiency improvements but with room for growth.60
Neutral
Balance Sheet
The balance sheet reveals a strong equity position with an equity ratio of 80.2% in 2023, indicating financial stability. The debt-to-equity ratio decreased consistently, showcasing effective debt management. Return on equity was 7.9% in 2023, indicating moderate profitability relative to shareholder equity. Despite these strengths, the company needs to further enhance its asset utilization.65
Positive
Cash Flow
The cash flow statement indicates challenges with free cash flow, which declined significantly from 2022 to 2023. The operating cash flow to net income ratio was 0.9 in 2023, demonstrating decent cash generation relative to net profits. The company needs to address declining free cash flow to ensure sustainable financial health.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 21.12M | 27.55M | 26.59M | 22.45M | 20.87M | Gross Profit |
| -118.64K | 6.83M | 7.30M | 4.79M | 4.17M | EBIT |
| -4.38M | 1.70M | 2.23M | 43.63K | 383.82K | EBITDA |
| -3.83M | 2.19M | 2.68M | 512.97K | 1.44M | Net Income Common Stockholders |
| -3.14M | 1.37M | 2.13M | 3.22M | 908.06K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 4.31M | 8.81M | 8.27M | 5.05M | 195.20K | Total Assets |
| 18.88M | 21.60M | 21.68M | 18.80M | 8.31M | Total Debt |
| 194.13B | 386.89K | 564.56K | 740.59K | 237.70K | Net Debt |
| 194.13B | -8.43M | -7.70M | -4.31M | 42.50K | Total Liabilities |
| 4.36M | 4.28M | 5.97M | 5.63M | 1.96M | Stockholders Equity |
| 14.51T | 17.32M | 15.71M | 13.17M | 6.35M |
| Cash Flow | Free Cash Flow | |||
| -4.47T | 549.18K | 3.11M | 1.49M | 1.34M | Operating Cash Flow |
| -3.48T | 1.27M | 3.55M | 2.01M | 1.67M | Investing Cash Flow |
| -2.01T | -718.27K | -436.37K | -512.27K | -311.99K | Financing Cash Flow |
| -46.76B | -2.31K | 101.41K | 3.36M | -1.29M |
CPS Technologies Technical Analysis
Negative
1.46
Price Trends
1.60
Negative
1.64
Negative
1.56
Negative
Market Momentum
-0.04
Positive
44.27
Neutral
35.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPSH, the sentiment is Negative. The current price of 1.46 is below the 20-day moving average (MA) of 1.53, below the 50-day MA of 1.60, and below the 200-day MA of 1.56, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 44.27 is Neutral, neither overbought nor oversold. The STOCH value of 35.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CPSH.
CPS Technologies Risk Analysis
CPS Technologies disclosed 17 risk factors in its most recent earnings report. CPS Technologies reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CPS Technologies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $41.92M | 11.57 | 19.54% | ― | 16.74% | ― | |
70 Outperform | $56.20M | 13.28 | 12.41% | 2.58% | -0.36% | -40.16% | |
58 Neutral | $9.82B | 10.00 | -6.63% | 3.09% | 7.49% | -11.58% | |
52 Neutral | $21.21M | ― | -19.70% | ― | -23.33% | -328.22% | |
43 Neutral | $21.95M | 6.41 | -3.73% | ― | -8.04% | -118.60% |
* Technology Sector Average
Performance Comparison
CPSH
CPS Technologies
1.48
-0.29
-16.38%
ELTK
Eltek
8.37
-2.42
-22.43%
MIND
MIND Technology
5.44
1.18
27.70%
NSYS
Nortech Systems
7.56
-9.56
-55.84%
CPS Technologies Earnings Call Summary
Earnings Call Date: Mar 12, 2025 | % Change Since: -3.95% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
The earnings call highlights sequential revenue growth and successful securing of new contracts and SBIR awards, along with promising new product introductions. However, there are significant challenges including a year-over-year revenue decline, operating losses, and gross margin issues, alongside decreased cash reserves and uncertainties in the armor segment. The sentiment is mixed with both positive developments and significant challenges.Highlights
Sequential Revenue Growth
Fourth quarter revenue for CPS was $5.9 million, showing a 40% increase from the third quarter of 2024 due to increased customer shipments and expanded production capacity.
New Contract and Production Capabilities
CPS is actively fulfilling a $13.3 million contract with a longstanding semiconductor manufacturer, with increased production capacity now operational.
Promising SBIR Awards
Several SBIR awards were received, expected to expand the product portfolio to meet customer demand, with three new Phase-1 contracts worth $250,000 each over six months.
Introduction of New Commercial Product
Secured the first commercial order for radiation shielding, CPS' first new commercial product in many years.
Potential Expansion in Aerospace
CPS is working towards commercialization of fiber-reinforced aluminum (FRA) with focus on aerospace applications, aiming for customer samples later this year.
Lowlights
Year-over-Year Revenue Decline
Fourth quarter revenue decreased from $6.7 million last year to $5.9 million, primarily due to the fulfillment of a U.S. Navy armor contract.
Operating Loss
CPS reported an operating loss of $1.3 million in the fourth quarter, compared to an operating income of $0.1 million last year.
Gross Margin Challenges
A gross loss of $0.3 million was reported in the fourth quarter due to lower overall revenue, reduced manufacturing efficiencies, and costs associated with hiring and training.
Decreased Cash Reserves
Cash reserves decreased to $3.3 million at the end of the year compared to $8.8 million at the start of 2024.
Uncertain Future for Armor Contracts
While there is cautious optimism for new armor contracts, current budget challenges in Washington may affect future orders.
Company Guidance
During the CPS Technologies Fourth Quarter and Year-End 2024 Earnings Call, the company reported a fourth-quarter revenue of $5.9 million, a decrease from $6.7 million in the same period last year, primarily due to the completion of a U.S. Navy armor contract. Despite this, there was a significant sequential revenue increase of 40% from the third quarter, driven by enhanced production capacity and strong customer demand, which is anticipated to continue into fiscal 2025. The company faced a gross loss of $0.3 million or negative 4.6% of sales, compared to a 17% gross profit in the previous year, largely due to nonrecurring costs of approximately $600,000 associated with production ramp-up. Operating loss stood at $1.3 million, with a net loss of $1 million or $0.07 per share, contrasting with a net income of $0.2 million or $0.01 per share in Q4 2023. CPS ended the year with $3.3 million in cash and $1 million in marketable securities, with an expectation of improved financial performance as efficiencies increase and nonrecurring expenses wane. The company is also optimistic about future growth opportunities, supported by new development contracts and a $13.3 million contract to supply power module components.CPS Technologies Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
CPS Technologies Appoints I. James Cavoli to Board
Positive
Dec 5, 2024
CPS Technologies Corp. has appointed I. James Cavoli, a seasoned leader in the manufacturing sector, to its Board of Directors. Cavoli brings extensive experience from his role as President at Swagelok Company, where he significantly boosted the company’s market cap. His addition to the board is seen as a strategic move to leverage his expertise in strategy, growth, and international business, which aligns with CPS’s commitment to innovation and growth in high-performance materials solutions.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.