CPS Technologies (CPSH) AI Stock Analysis

• Market Cap: $114.71M
• Dividend Yield: N/A
• Average Volume (3M): 385.00K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.19
• Revenue Growth: 38.22%
• EPS Growth: 70.68%
• Country: US
• Employees: 92
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.01
• Shares Outstanding: 17,979,277
• 10 Day Avg. Volume: 528,079
• 30 Day Avg. Volume: 385,001
• PEG Ratio: 0.02
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 1.11
• P/FCF Ratio: -5.26
• Enterprise Value/Market Cap: 0.65
• Enterprise Value/Revenue: 2.90
• Enterprise Value/Gross Profit: 42.16
• Enterprise Value/Ebitda: -40.10
• 1Y Price Target: $6.00
• Price Target Upside: -2.60% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $7.00 ▲(13.64% Upside)

The score is primarily supported by improving operating results and positive business momentum from the earnings call (record revenue, margin improvement, and new contracts), alongside a solid balance sheet. Offsetting these are weak cash flow performance, an overbought technical setup, and limited valuation support due to a negative P/E and no dividend yield data.

Positive Factors

Low leverage / strong balance sheet

A high equity ratio and favorable debt-to-equity indicate low leverage and financial flexibility. This durable strength reduces refinancing risk, supports capital spending for expansion, and provides a buffer during demand variability over the next several quarters.

Large multi-year contract drives revenue visibility

A $15.5M contract with a semiconductor OEM materially increases near-term revenue visibility and backlog. Multi-period contract revenue smooths sales cycles and supports capacity utilization, underpinning more predictable cash generation over coming quarters.

Capital raise funds capacity expansion

A successful $9.5M secondary offering earmarked for a facility move to double usable space is a structural enabler. It allows scaling manufacturing throughput to meet growing demand without immediate cash strain, improving long-term revenue and margin prospects.

Negative Factors

Negative operating and free cash flow

Negative operating and free cash flow signal challenges converting sales into cash, creating liquidity pressure despite equity strength. Over 2–6 months this can limit working capital, delay investments, or require additional financing, raising execution risk for expansion plans.

Inconsistent historical growth and modest margins

Despite recent record quarters, historical revenue inconsistency and only modest net and operating margins indicate earnings fragility. Sustaining profitability through scale and operational improvements is required to make growth durable over the next several quarters.

CFO retirement / leadership transition risk

A planned CFO retirement in mid-2026 introduces execution risk during a critical scaling phase. Transitioning financial leadership could affect treasury, fund deployment, and reporting continuity, potentially complicating expansion and contract delivery over the medium term.

CPS Technologies Business Overview & Revenue Model

Company Description

CPS 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 Money

CPS 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 Financial Statement Overview

Summary

Strong recent revenue growth and a robust, low-leverage balance sheet support the score, but profitability is still modest and the latest period shows negative operating and free cash flow, raising near-term execution and liquidity risk.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.76M	21.12M	27.55M	26.59M	22.45M	20.87M
Gross Profit	1.77M	-118.64K	6.83M	7.30M	4.79M	4.17M
EBITDA	-1.86M	-3.83M	2.19M	2.68M	982.30K	1.44M
Net Income	-1.84M	-3.14M	1.37M	2.13M	3.22M	908.06K
Balance Sheet
Total Assets	19.37M	18.88M	21.60M	21.68M	18.80M	8.31M
Cash, Cash Equivalents and Short-Term Investments	3.42M	4.31M	8.81M	8.27M	5.05M	195.20K
Total Debt	108.00K	194.13K	386.89K	564.56K	740.59K	237.70K
Total Liabilities	4.49M	4.36M	4.28M	5.97M	5.63M	1.96M
Stockholders Equity	14.88M	14.51M	17.32M	15.71M	13.17M	6.35M
Cash Flow
Free Cash Flow	-3.63M	-4.47M	549.18K	3.11M	1.49M	1.34M
Operating Cash Flow	-3.16M	-3.48M	1.27M	3.55M	2.01M	1.67M
Investing Cash Flow	-739.09K	-2.01M	-718.27K	-436.37K	-512.27K	-311.99K
Financing Cash Flow	-31.89K	-46.76K	-2.31K	101.41K	3.36M	-1.29M

CPS Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 6.16 is above the 20-day moving average (MA) of 4.65, above the 50-day MA of 3.82, and above the 200-day MA of 3.17, indicating a bullish trend. The MACD of 0.69 indicates Negative momentum. The RSI at 71.31 is Negative, neither overbought nor oversold. The STOCH value of 74.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CPSH.

CPS Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALNT	72 Outperform	$1.01B	53.60	6.58%	0.22%	-2.88%	26.14%
CPSH	64 Neutral	$114.71M	-151.72	-3.84%	―	38.22%	70.68%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
LGL	58 Neutral	$39.83M	44.80	2.33%	―	14.07%	153.24%
ELTK	51 Neutral	$60.55M	52.88	2.70%	2.16%	2.54%	-79.99%
GNSS	49 Neutral	$88.13M	-4.82	-183.60%	―	69.76%	43.82%
REFR	44 Neutral	$42.73M	-21.35	-87.36%	―	-16.49%	-59.21%

CPS Technologies Corporate Events

CPS Technologies CFO Announces Planned Retirement

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.

CPS Technologies Reports Record Q3 2025 Sales

CPS Technologies reported record sales of $8.8 million for the third quarter of 2025, more than doubling the revenue from the same period last year, and marking the third consecutive quarter of record revenue. The company achieved a gross margin of 17.1% and an operating profit of $0.3 million, compared to a loss in the previous year. CPS also secured a $15.5 million contract with a major semiconductor manufacturer and received two government-funded research awards. Additionally, the company raised $9.5 million through a public offering to expand its production capabilities.

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.