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CPS Technologies Corp. (CPSH)
NASDAQ:CPSH
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CPS Technologies
(NASDAQ:CPSH)
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Rating:52Neutral
Price Target:
$4.00
▲(4.44% Upside)
Action:ReiteratedDate:03/05/26
CPSH scores in the low-50s primarily because weak recent financial statement performance (2024 loss and negative free cash flow) and bearish near-term technicals outweigh a notably improved outlook from the latest earnings call (record FY2025 sales, stronger liquidity, and guidance for 2026 expansion). Valuation is an additional headwind due to the very high P/E and no dividend support.
Positive Factors
Record revenue growth
Sustained, company‑wide revenue growth signals stronger market demand and commercial traction for AlSiC products. A record year and meaningful Q4 acceleration validate product-market fit, support scale economics, and underpin longer‑term sales momentum if order trends hold.
Strengthened liquidity after financing
Materially improved liquidity reduces refinancing risk and funds planned capital investments and working capital for ramp. Having ~ $13.3M of cash/securities supports execution of capacity expansion and gives runway to stabilize operations through the relocation and commercialization phases.
Manufacturing capacity & product investments
Tangible equipment upgrades increase throughput, lower unit costs and shorten development cycles, enabling larger runs and new product commercialization. These durable manufacturing enhancements improve competitive positioning for defense and semiconductor customers over the medium term.
Negative Factors
2024 profitability and cash flow deterioration
A marked reversal to losses and negative cash flow undermines self‑funding capacity and heightens dependence on external capital. Persistent cash burn weakens ability to invest organically and raises the bar for management to convert recent revenue gains into durable, cash‑generative operations.
Margin pressure from higher gold costs
Significant commodity exposure for gold‑plated components creates structural margin volatility. If gold prices remain elevated or cannot be passed through to specialized customers, gross margins and profitability may be persistently compressed despite higher volumes and capacity gains.
Execution risk from planned facility relocation
Relocating production introduces tangible operational risk: qualification delays, temporary capacity loss, and added costs can interrupt deliveries to key customers. Successful revalidation and minimal downtime are critical; failure to execute could reverse margin and revenue gains.
CPS Technologies (CPSH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$68.91M
Dividend YieldN/A
Average Volume (3M)385.00K
Price to Earnings (P/E)110.9
Beta (1Y)-0.07
Revenue Growth38.22%
EPS Growth70.68%
CountryUS
Employees92
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.00
Shares Outstanding17,991,780
10 Day Avg. Volume528,079
30 Day Avg. Volume385,001
Financial Highlights & Ratios
PEG Ratio-0.98
Price to Book (P/B)1.89
Price to Sales (P/S)1.43
P/FCF Ratio>-0.01
Enterprise Value/Market Cap0.80
Enterprise Value/Revenue1.70
Enterprise Value/Gross Profit10.46
Enterprise Value/Ebitda58.38
Forecast
1Y Price Target
$6.00Price Target Upside56.66% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.1
Revenue Forecast (FY)$38.73M
CPS Technologies Business Overview & Revenue Model
Company DescriptionCPS Technologies Corporation produces and sells advanced material solutions to the transportation, automotive, energy, computing/internet, telecommunication, aerospace, defense, and oil and gas markets. It primarily offers metal matrix composites that are a combination of metal and ceramic, such as baseplates for various applications, including motor controllers used in electric trains, subway cars, wind turbines, and hybrid and electric vehicles; hermetic packages for use in radar, satellite, and avionics applications; baseplates and housings used in modules built with wide band gap semiconductors; and lids and heatspreaders used with integrated circuits for use in internet switches and routers. The company also assembles housings and packages for hybrid circuits. It primarily sells its products to microelectronics systems companies in the United States, Europe, and Asia. The company was formerly known as Ceramics Process Systems Corporation and changed its name to CPS Technologies Corporation in March 2007. CPS Technologies Corporation was incorporated in 1984 and is headquartered in Norton, Massachusetts.
How the Company Makes MoneyCPS Technologies generates revenue through multiple streams, including the sale of advanced materials and engineered products to defense and aerospace contractors. The company often engages in long-term contracts and collaborations with government agencies and private sector entities, providing tailored solutions that meet specific requirements. Additionally, CPSH may benefit from research grants and funding aimed at advancing material technologies. Strategic partnerships with major defense and aerospace firms further bolster its earnings, allowing for consistent demand for its specialized materials and products.
CPS Technologies Earnings Call Summary
Earnings Call Date:Mar 02, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call highlighted a clear turnaround: record annual revenue, meaningful improvement in quarterly profitability, a stronger balance sheet after a $9.5M financing and targeted capital investments to expand capacity and diversify product lines. Offsetting risks include near‑term margin pressure from sharply higher gold costs, conservative inventory accounting, a planned facility move that introduces execution risk, elevated SG&A versus prior year, and some program timing uncertainty (SBIR reauthorization and defense contract timing). Overall, the positives around revenue growth, improved operating performance and materially stronger liquidity outweigh the near‑term operational and margin headwinds, supporting an optimistic outlook for 2026 conditional on successful relocation and execution.Q4-2025 Updates
Positive Updates
Record Annual Revenue
Fiscal 2025 revenue of $32.6 million — the highest in company history, described as a milestone and a strong comeback vs. the prior year.
Fourth Quarter Revenue Growth
Q4 revenue of $8.2 million versus $5.9 million in Q4 FY2024, a year‑over‑year increase of ~39%, driven by strong product demand, higher shipments and a fully operational third shift.
Improved Profitability Metrics
Q4 gross profit of $1.2 million (~14.6% of sales) versus a gross loss of $0.3 million a year earlier. Operating loss narrowed to about $100,000 from ~$1.3 million the prior year (~92% improvement). Net income of ~$12,000 (EPS $0.00) vs. a net loss of ~$1.0 million (EPS ~$0.07) in Q4 FY2024.
Balance Sheet Strengthened by Financing
Completed a secondary offering in Q4 that raised $9.5 million in net proceeds. Cash of $4.5 million and marketable securities of $8.8 million at year end (combined ~$13.3 million) versus a combined ~$4.3 million at the start of 2025, materially improving liquidity.
Operational Investments and Capacity Upgrades
Installed a higher‑capacity mill for Almax (doubling ceramic fiber throughput), added a sintering oven and established a work cell for controlled‑fragmentation tungsten warhead development (Phase II) — enabling larger sample production and accelerated product development.
Progress on Facility Expansion and Market Opportunities
Selected DAO Corporation as general contractor and narrowed facility options; expect to decide within weeks and begin an upfit/move in several months to expand floor space, increase capacity, improve efficiencies and support commercialization of new product lines (e.g., radiation shielding).
Ongoing Government Contracts and Program Wins
Since 2021, received 13 SBIR/STTR awards; 4 ongoing government contracts (1 Phase I and 3 Phase II) continue funded and active, and recent indications point toward likely reauthorization of SBIR/STTR (potential through Sept 30, 2031) which would resume review of pending proposals.
Near‑Term Defense Opportunity — HybridTech Armor
Partner Kinetic Protection optimistic FY2026 Navy orders will resume in H2 calendar 2026 for ballistic shields on a small number of destroyers; contract negotiations expected in coming months.
Negative Updates
Margin Pressure from Rising Gold Costs
Q4 margins were down vs. Q3 largely due to dramatically higher gold costs (gold roughly doubled over ~1 year per management), which have a dilutive impact because many products are gold‑slated and the incremental margin on added gold is nominal (management estimated a ~1–2 percentage‑point headwind depending on quarter volumes).
Quarterly Margin Volatility and Inventory Effects
Although year‑over‑year profitability improved, margins were negatively impacted in Q4 by lower revenue vs. Q3 (customer holiday patterns) and by conservative inventory valuation practices as inventories rose to support the move, creating a near‑term headwind to reported margin percentage.
SG&A Increase
Selling, general & administrative expenses rose to $1.3 million in Q4 from $1.0 million a year earlier (an increase of ~30%), reflecting continued investment while ramping production.
Potential Disruption and Execution Risk from Facility Move
Relocation and upfit expected to begin in several months and will be executed work‑cell by work‑cell; management acknowledged the move will be naturally disruptive and will require revalidation of production equipment, posing short‑term execution risk.
SBIR/STTR Reauthorization Uncertainty (Near Past)
Federal SBIR/STTR programs lapsed on Sept 30, 2025, halting publication of new topics and review of newly submitted proposals (though existing awarded contracts remain funded). Management noted recent indications of a congressional compromise but timing/terms were uncertain at the time of the call.
Timing and Scale Uncertainty for Some New Programs
Promising initiatives (e.g., binder‑jet tungsten alloy for Army artillery and HybridTech Armor Navy orders) were described as strategically significant but not expected to contribute material revenue in 2026; validation and contract negotiation timelines remain uncertain.
Company Guidance
Management guided that 2026 should be a year of solid revenue and margin expansion as CPS completes a planned multi‑month relocation to a larger facility (decision expected within weeks, move to start in a few months) to increase capacity (third shift already operational) and improve efficiencies; they cited FY2025 record sales of $32.6M and Q4 revenue of $8.2M (vs $5.9M in Q4 FY2024), Q4 gross profit of $1.2M (14.6% of sales) vs a $0.3M gross loss a year earlier, an operating loss of about $100k (vs $1.3M), and net income of roughly $12k ($0.00/sh) vs a $1.0M loss ($0.07/sh). Management highlighted a strengthened balance sheet from a $9.5M net secondary offering and year‑end liquidity of about $4.5M cash + $8.8M marketable securities (~$13.3M combined, up from ~$4.3M at the start of 2025), trade receivables near $5.2M, payables/accruals of $4.3M, and rising inventories to support the move; they warned of near‑term margin pressure from sharply higher gold (more than doubled year‑over‑year) but expect margins to expand over time, with H2 calendar‑2026 potential resumption of HybridTech Armor Navy orders, continued execution of four SBIR/STTR contracts (1 Phase I, 3 Phase II) out of 13 awards since 2021, and operational upgrades (e.g., Almax mill at 2× capacity and 40‑mm warhead samples in Army Phase II).CPS Technologies Financial Statement Overview
Summary
Underlying financial statements are pressured: 2024 revenue declined ($27.6M to $21.1M), profitability swung to a sizable net loss (net margin ~-15%), and both operating cash flow (~-$3.5M) and free cash flow (~-$4.5M) turned negative. The key offset is a conservative balance sheet with very low debt-to-equity (~1–6%), but the deteriorated operating/cash trend dominates the near-term assessment.Income Statement
Operating performance shows a clear deterioration: revenue fell from $27.6M (2023) to $21.1M (2024) and profitability swung from positive in 2021–2023 (net margin ~5% in 2023) to a sizable loss in 2024 (net margin ~-15%) with negative operating margins. While earlier years showed improving scale and healthy gross margins (~25–27% in 2022–2023), the latest annual results reflect pressure on demand and/or cost structure, raising near-term earnings quality concerns.22
Negative
Balance Sheet
Leverage appears conservative, with debt-to-equity consistently low (~1–6% across the annual periods shown), which provides balance-sheet flexibility. However, profitability on shareholder capital is volatile—strong in 2021–2022, positive in 2023, and sharply negative in 2024—suggesting that while the capital structure is stable, returns are not. (2025 data also shows several apparent anomalies such as zero assets/revenue alongside very large equity and income values, so it is not relied upon for trend assessment.)76
Positive
Cash Flow
Cash generation weakened materially in 2024, with operating cash flow turning negative (about -$3.5M) and free cash flow also negative (about -$4.5M), reversing positive free cash flow in 2021–2023. Earlier years showed the business could convert earnings into cash (free cash flow positive in 2020–2023), but the latest year indicates higher cash burn and reduced self-funding capacity, increasing reliance on liquidity and execution improvement to stabilize cash flows.30
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 32.60M | 21.12M | 27.55M | 26.59M | 22.45M |
| Gross Profit | 5.29M | -118.64K | 6.83M | 7.30M | 4.79M |
| EBITDA | 443.97K | -3.83M | 2.19M | 2.68M | 982.30K |
| Net Income | 420.35K | -3.14M | 1.37M | 2.13M | 3.22M |
Balance Sheet | |||||
| Total Assets | 29.51M | 18.88M | 21.60M | 21.68M | 18.80M |
| Cash, Cash Equivalents and Short-Term Investments | 13.24M | 4.31M | 8.81M | 8.27M | 5.05M |
| Total Debt | 336.00K | 194.13K | 386.89K | 564.56K | 740.59K |
| Total Liabilities | 4.88M | 4.36M | 4.28M | 5.97M | 5.63M |
| Stockholders Equity | 24.64M | 14.51M | 17.32M | 15.71M | 13.17M |
Cash Flow | |||||
| Free Cash Flow | -487.02B | -4.47M | 549.18K | 3.11M | 1.49M |
| Operating Cash Flow | 243.64B | -3.48M | 1.27M | 3.55M | 2.01M |
| Investing Cash Flow | -8.50T | -2.01M | -718.27K | -436.37K | -512.27K |
| Financing Cash Flow | 9.44T | -46.76K | -2.31K | 101.41K | 3.36M |
CPS Technologies Technical Analysis
Negative
3.83
Price Trends
4.60
Negative
4.00
Negative
3.58
Positive
Market Momentum
-0.23
Positive
41.63
Neutral
24.34
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 3.83 is below the 20-day moving average (MA) of 4.14, below the 50-day MA of 4.60, and above the 200-day MA of 3.58, indicating a neutral trend. The MACD of -0.23 indicates Positive momentum. The RSI at 41.63 is Neutral, neither overbought nor oversold. The STOCH value of 24.34 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $1.04B | 40.66 | 7.61% | 0.22% | -2.88% | 26.14% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $39.00M | 11.57 | 2.33% | ― | 14.07% | 153.24% | |
54 Neutral | $60.84M | 70.33 | 1.85% | 2.16% | 2.54% | -79.99% | |
52 Neutral | $68.91M | 110.94 | 2.42% | ― | 38.22% | 70.68% | |
49 Neutral | $85.45M | -29.74 | -391.12% | ― | 69.76% | 43.82% | |
45 Neutral | $34.65M | -14.39 | -122.90% | ― | -16.49% | -59.21% |
* Technology Sector Average
CPSH
CPS Technologies
3.83
2.17
130.72%
ALNT
Allient
61.25
37.43
157.14%
ELTK
Eltek
9.06
0.59
6.95%
LGL
LGL Group
7.05
0.39
5.86%
GNSS
Genasys
1.89
-0.58
-23.48%
REFR
Research Frontiers
1.00
-0.25
-20.00%
CPS Technologies Corporate Events
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
CPS Technologies Delivers Record 2025 Sales and Growth
Positive
Mar 4, 2026
CPS Technologies reported on March 2, 2025, that it closed fiscal 2025 with record annual sales of $32.6 million, up 54% from 2024, driven by strong demand for core product lines, higher production rates, and the benefit of elevated gold prices. For the fourth quarter ended December 27, 2025, revenue rose to $8.2 million from $5.9 million a year earlier, gross margin improved to 14.6% from a prior gross loss, and the operating loss narrowed to $0.1 million, resulting in breakeven net income compared with a $1.0 million loss in the same quarter of 2024.
During the quarter, CPS secured a $15.5 million follow-on order from a major multinational semiconductor manufacturer and completed a public offering on October 8, 2025, that raised $9.5 million in net proceeds to fund general corporate purposes, including a move to a larger manufacturing facility. Management said the strengthened balance sheet and capacity expansion plans, alongside higher sales and improved production efficiencies, position the company for continued revenue growth and margin expansion, enhancing its competitive standing in advanced materials markets and offering a more favorable outlook for stakeholders.
The most recent analyst rating on (CPSH) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on CPS Technologies stock, see the CPSH Stock Forecast page.
Executive/Board Changes
CPS Technologies CFO Announces Planned Retirement
Neutral
Dec 17, 2025
On December 11, 2025, CPS Technologies Corp. announced that its CFO and corporate secretary, Charles K. Griffith, Jr., plans to retire in 2026, with the expected timeline around mid-second to early third quarter of the year. The company has initiated plans to identify a successor and ensure a seamless transition, signaling commitment to operational stability and continuity for stakeholders.
The most recent analyst rating on (CPSH) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on CPS Technologies stock, see the CPSH Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.