CTS (CTS) AI Stock Analysis

• Market Cap: $1.08B
• Dividend Yield: 0.46%
• Average Volume (3M): 178.35K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 1.36
• Revenue Growth: -6.36%
• EPS Growth: -0.89%
• Country: US
• Employees: 3,549
• Sector: Technology
• Sector Strength: 40
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 1.90
• Shares Outstanding: 30,013,311
• 10 Day Avg. Volume: 223,503
• 30 Day Avg. Volume: 178,347
• PEG Ratio: 10.50
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.47
• Price to Cash Flow (P/CF): 12.30
• P/FCF Ratio: 16.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

CTS's overall stock score reflects a strong financial foundation and operational efficiency, despite challenges in revenue growth and bearish technical indicators. The company's strategic focus on diversification and growth in end markets provides optimism for the future, although immediate valuation and technical signals suggest caution. The mixed earnings call sentiment and moderate valuation further contribute to a balanced outlook.

CTS Business Overview & Revenue Model

Company Description

CTS (CTS) is a diversified technology company specializing in the development and manufacturing of sensors, actuators, and electronic components. The company serves various sectors, including automotive, industrial, medical, and communications, providing innovative solutions that enhance the performance, efficiency, and safety of its clients' products. CTS is committed to delivering high-quality, reliable products that meet the evolving demands of its global customer base.

How the Company Makes Money

CTS generates revenue through the sale of its sensors, actuators, and electronic components to a wide range of industries. The company's key revenue streams include direct sales to original equipment manufacturers (OEMs) in the automotive and industrial sectors, as well as contracts with medical and communications companies. CTS also engages in strategic partnerships and collaborations to expand its market reach and drive innovation. The company's earnings are significantly influenced by its ability to adapt to technological advancements and meet the specific needs of its clients, ensuring a steady demand for its products.

CTS Financial Statement Overview

Summary

CTS demonstrates strong financial health overall, supported by a robust balance sheet and efficient cash flow management. The income statement reflects profitability, though revenue growth challenges need to be addressed. Stability and operational efficiency are evident, yet the company should focus on sales growth to enhance future performance.

Income Statement

The income statement shows a mixed performance. The gross profit margin has been stable, indicating effective control over production costs. However, there has been a decline in revenue over the past year, which is concerning. The EBIT and EBITDA margins remain healthy, reflecting good operational efficiency. The net profit margin is positive, but the revenue growth rate has been negative, which suggests challenges in increasing sales.

Balance Sheet

The balance sheet is strong, with a low debt-to-equity ratio indicating conservative leverage. The equity ratio is high, demonstrating financial stability and a strong asset base. Return on Equity (ROE) is positive, though it shows room for improvement. Overall, the company maintains a robust balance sheet with adequate equity support.

Cash Flow

Cash flow analysis reveals a stable free cash flow, although the growth rate has been inconsistent. The operating cash flow to net income ratio is healthy, indicating efficient cash generation from operations. The free cash flow to net income ratio is also strong, assuring good liquidity. However, the variability in free cash flow growth poses a potential risk.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
515.77M	550.42M	586.87M	512.92M	424.07M
	Gross Profit
189.15M	190.86M	210.54M	184.62M	139.06M
	EBIT
72.78M	75.05M	55.09M	78.17M	23.91M
	EBITDA
106.38M	107.19M	113.22M	-32.58M	71.98M
	Net Income Common Stockholders
58.11M	60.53M	59.58M	-41.87M	34.69M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
94.33M	163.88M	156.91M	141.47M	91.77M
	Total Assets
766.11M	741.17M	748.49M	664.46M	626.05M
	Total Debt
129.69M	96.86M	109.36M	74.75M	81.06M
	Net Debt
35.35M	-67.02M	-47.55M	-66.72M	-10.72M
	Total Liabilities
235.26M	214.34M	242.26M	200.88M	202.37M
	Stockholders Equity
1.02B	526.82M	506.22M	463.58M	423.68M
Cash Flow		Free Cash Flow
80.64M	74.07M	106.86M	70.50M	61.92M
	Operating Cash Flow
99.29M	88.81M	121.20M	86.14M	76.78M
	Investing Cash Flow
-140.56M	-18.10M	-111.19M	-15.90M	-23.17M
	Financing Cash Flow
-27.93M	-65.40M	4.34M	-20.71M	-61.33M

CTS Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 38.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTS, the sentiment is Negative. The current price of 38.39 is below the 20-day moving average (MA) of 41.24, below the 50-day MA of 44.18, and below the 200-day MA of 48.91, indicating a bearish trend. The MACD of -0.94 indicates Negative momentum. The RSI at 34.13 is Neutral, neither overbought nor oversold. The STOCH value of 14.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CTS.

CTS Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTS	67 Neutral	$1.08B	18.98	10.99%	0.46%	-6.36%	-0.89%
VICR	65 Neutral	$1.96B	332.74	1.10%	―	-14.92%	-91.72%
BHE	62 Neutral	$1.20B	19.38	5.78%	2.02%	-6.44%	-2.60%
TTMI	61 Neutral	$1.83B	32.45	3.66%	―	9.41%	―
ROG	58 Neutral	$1.16B	41.46	2.08%	―	-8.62%	-53.84%
Sector *	57 Neutral	$18.45B	9.41	-13.97%	2.74%	5.04%	-23.56%
MLAB	46 Neutral	$592.48M	―	-89.38%	0.59%	11.68%	-26360.70%

CTS Corporate Events

CTS Announces Resignation of Chief Legal Officer

On March 5, 2025, Scott D’Angelo, Vice President, Chief Legal and Administrative Officer and Corporate Secretary of CTS Corporation, announced his resignation effective April 4, 2025. His departure was a personal decision to pursue another opportunity and was not due to any disagreement with the company.

CTS Aims for Strategic Growth with Diverse Revenue Streams

In a recent investor presentation, CTS Corporation outlined its strategic growth plan focusing on a 10% organic and inorganic growth target. The company aims to capitalize on megatrends such as automation, healthcare innovation, and electrification, supported by a robust new product pipeline and strategic mergers and acquisitions. CTS’s diverse revenue streams, with a significant portion from non-transportation markets, illustrate its commitment to diversification. The company reported last twelve months’ revenue of $516 million as of December 2024 and highlighted its strong balance sheet as a foundation for continued expansion and value creation.

CTS Reports Mixed 2024 Financial Results and Strategic Growth

CTS Corporation announced its financial results for the fourth quarter and full year of 2024, revealing a 2% year-over-year increase in fourth-quarter sales to $127 million and a 6% decline in full-year sales to $516 million, primarily due to a decrease in the transportation market. The company made significant strides in diversifying its business, with over 50% of revenue now coming from medical, industrial, and aerospace and defense markets. The acquisition of SyQwest contributed $14 million in additional revenue for the year, aligning with their strategic expansion in defense capabilities.