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CPS Technologies Corp. (CPSH)
:CPSH
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CPS Technologies
(NASDAQ:CPSH)
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Rating:61Neutral
Price Target:
$4.50
▲(13.07% Upside)
CPS Technologies' stock score is primarily driven by its strong technical indicators, suggesting bullish momentum. However, the financial performance is mixed, with strong revenue growth but inconsistent profitability and cash flow management. The valuation is a significant concern due to the negative P/E ratio, reflecting current unprofitability.
CPS Technologies (CPSH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$51.43M
Dividend YieldN/A
Average Volume (3M)285.56K
Price to Earnings (P/E)―
Beta (1Y)-0.08
Revenue Growth7.47%
EPS Growth-133.39%
CountryUS
Employees92
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)<0.01
Shares Outstanding14,529,277
10 Day Avg. Volume275,428
30 Day Avg. Volume285,560
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)1.62
Price to Sales (P/S)1.11
P/FCF Ratio-5.26
Enterprise Value/Market Cap0.73
Enterprise Value/Revenue1.46
Enterprise Value/Gross Profit21.16
Enterprise Value/Ebitda-18.75
Forecast
1Y Price Target
$3.50Price Target Upside-12.06% Downside
Rating ConsensusHold
Number of Analyst Covering0
CPS Technologies Business Overview & Revenue Model
Company DescriptionCPS Technologies (CPSH) is a leading provider of advanced materials and innovative manufacturing solutions, primarily operating in the defense, aerospace, and commercial sectors. The company specializes in the development and production of high-performance metal matrix composites, which are utilized in a variety of applications including electronics, energy, and transportation. CPS Technologies focuses on delivering cutting-edge products that enhance performance, reliability, and durability for its clients.
How the Company Makes MoneyCPS Technologies generates revenue through the sale of its proprietary products, particularly its advanced composite materials and components. The company typically engages in both direct sales to customers in specialized industries and government contracts, which can provide significant funding through long-term agreements. Key revenue streams include contracts with defense contractors and aerospace manufacturers, where CPSH's materials are critical for high-performance applications. Additionally, CPS Technologies may also generate income through partnerships and collaborations with other technology firms, enabling them to expand their market reach and develop new product lines. Factors contributing to its earnings include the increasing demand for lightweight and durable materials in various sectors, as well as ongoing investments in research and development to enhance product offerings.
CPS Technologies Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call was predominantly positive, highlighting record revenues, improved profitability, and strategic growth initiatives. However, there were challenges such as the cancellation of a contract and operational inefficiencies that need addressing.Q1-2025 Updates
Positive Updates
Record Revenue Achievement
CPS Technologies reported a record revenue of $7.5 million for Q1 2025, surpassing the previous record despite no revenue from HybridTech Armor, which was a significant contributor in past quarters.
Revenue Growth and Profitability
Revenue increased by 27% year-over-year from $5.9 million in Q1 2024 to $7.5 million in Q1 2025. The company also turned an operating profit of $130,000 compared to a loss of $260,000 in the prior year.
Improved Gross Profit Margins
Gross profit increased to $1.2 million, representing 16.4% of sales, up from $0.9 million or 15.3% of sales in the previous year.
Strong Backlog and Manufacturing Capabilities
The company has a strong backlog, increased manufacturing capabilities, and improved efficiencies, contributing to anticipated growth in margins and profitability.
Expansion into New Markets
CPS is exploring new markets such as wind farms and military applications, leveraging their AlSiC products and ongoing product development initiatives.
Successful Product Development and SBIR Awards
CPS has six active externally-funded research programs, including five SBIRs, indicating strong market interest and potential for future growth.
Negative Updates
Cancellation of Commercial Purchase Order
A previously announced commercial purchase order for HybridTech radiation shielding was canceled due to reasons unrelated to CPS, although subcontractors will be paid for work done.
Yield and Process Issues
The company faced yield and process issues, especially with a new third production shift, impacting margins despite improvements over the past months.
Tariff Concerns
Potential impacts from tariffs on aluminum and other materials were discussed, although the direct impact on CPS was expected to be minimal.
Company Guidance
During the CPS Technologies First Quarter 2025 Earnings Call, the company reported a record revenue of $7.5 million, marking a 27% year-over-year increase from $5.9 million in Q1 2024. Despite the absence of $2.8 million in Armor revenue from the previous year, CPS Technologies achieved an operating profit of approximately $130,000, compared to a loss of $260,000 in the prior year. The gross profit rose to $1.2 million, or 16.4% of sales, up from $0.9 million, or 15.3% of sales, reflecting improved manufacturing efficiencies. Net income for the quarter was just under $100,000, translating to $0.01 per share, compared to a net loss of $140,000 or negative $0.01 per share in Q1 2024. The company ended the quarter with $1.9 million in cash and $1 million in marketable securities, with trade accounts receivable growing to $6.3 million. The call highlighted strong demand for AlSiC and hermetic packaging products, as well as ongoing research initiatives, including six active externally-funded programs. Looking forward, CPS Technologies anticipates continued growth in margins and profitability, supported by a strong backlog and enhanced manufacturing capabilities.CPS Technologies Financial Statement Overview
Summary
CPS Technologies shows strong revenue growth in the recent TTM period but faces challenges with consistent profitability and cash flow management. The balance sheet is robust with low leverage and a strong equity base, positioning the company well for future opportunities despite current cash flow challenges.Income Statement
The company's revenue for the TTM period shows a massive increase, but historical revenue growth has been inconsistent. The gross profit margin for TTM is positive and healthier compared to previous periods. However, the net profit margin is modest, and EBIT and EBITDA margins suggest room for improvement in operational efficiency.62
Positive
Balance Sheet
The company maintains a strong equity position with a high equity ratio, indicating low leverage and financial stability. The debt-to-equity ratio is favorable, showing prudent financial management. Return on equity is positive, reflecting profitability for shareholders, but there's potential for improvement.75
Positive
Cash Flow
The company has experienced fluctuations in free cash flow, with a significant negative figure in the TTM period. Operating cash flow is negative, indicating challenges in converting revenue into cash, which poses short-term liquidity risks. However, historical periods show more stable cash flow performance.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2019 | Dec 2018 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.76M | 21.12M | 27.55M | 26.59M | 21.47M | 21.58M |
| Gross Profit | 1.77M | -118.64K | 6.83M | 7.30M | 2.54M | 2.91M |
| EBITDA | -2.00M | -3.83M | 2.19M | 2.68M | -71.42K | -332.40K |
| Net Income | -1.84M | -3.14M | 1.37M | 2.13M | -638.20K | -3.71M |
Balance Sheet | ||||||
| Total Assets | 19.37M | 18.88M | 21.60M | 21.68M | 9.02M | 8.49M |
| Cash, Cash Equivalents and Short-Term Investments | 3.42M | 4.31M | 8.81M | 8.27M | 133.97K | 628.80K |
| Total Debt | 108.00K | 194.13K | 386.89K | 564.56K | 1.42M | 0.00 |
| Total Liabilities | 4.49M | 4.36M | 4.28M | 5.97M | 3.66M | 2.66M |
| Stockholders Equity | 14.88M | 14.51M | 17.32M | 15.71M | 5.37M | 5.84M |
Cash Flow | ||||||
| Free Cash Flow | -3.63M | -4.47M | 549.18K | 3.11M | -1.75M | -724.41K |
| Operating Cash Flow | -3.16M | -3.48M | 1.27M | 3.55M | -1.26M | -373.56K |
| Investing Cash Flow | -739.09K | -2.01M | -718.27K | -436.37K | -482.53K | -337.21K |
| Financing Cash Flow | -31.89K | -46.76K | -2.31K | 101.41K | 1.25M | -900.00K |
CPS Technologies Technical Analysis
Positive
3.98
Price Trends
3.41
Positive
3.05
Positive
2.36
Positive
Market Momentum
0.15
Negative
66.44
Neutral
76.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPSH, the sentiment is Positive. The current price of 3.98 is above the 20-day moving average (MA) of 3.64, above the 50-day MA of 3.41, and above the 200-day MA of 2.36, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 66.44 is Neutral, neither overbought nor oversold. The STOCH value of 76.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $75.40M | 24.53 | 7.51% | 1.69% | 6.75% | -52.37% | |
67 Neutral | $80.41M | 18.53 | 16.05% | ― | 27.70% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $51.43M | ― | -11.74% | ― | 7.47% | -133.39% | |
49 Neutral | $25.94M | 6.41 | -9.26% | ― | -14.49% | -149.37% |
* Technology Sector Average
CPSH
CPS Technologies
4.48
3.05
213.29%
ELTK
Eltek
11.13
0.94
9.22%
MIND
MIND Technology
9.62
5.88
157.22%
NSYS
Nortech Systems
9.30
-3.69
-28.41%
IMTE
Integrated Media Technology
1.04
-0.20
-16.13%
SOBR
SOBR Safe
3.81
-61.69
-94.18%
CPS Technologies Corporate Events
Business Operations and StrategyFinancial Disclosures
CPS Technologies Reports Record Q2 2025 Revenue
Positive
Aug 1, 2025
CPS Technologies announced record revenue of $8.1 million for the second quarter of 2025, marking a significant increase from $5.0 million in the previous year, driven by strong demand for its core products. The company returned to profitability with a net income of $0.1 million, compared to a loss in the prior-year period, and secured a new SBIR contract focused on reducing the weight of the Amphibious Combat Vehicle for the U.S. Marine Corps, highlighting its continued innovation and market expansion.
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.