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CPS Technologies
(NASDAQ:CPSH)
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Rating:48Neutral
Price Target:
$4.00
▼(-9.91% Downside)
Action:Reiterated
Date:08/06/26
The score is held back primarily by weak cash-flow quality and inconsistent profitability, alongside bearish technicals (price below key moving averages and negative MACD). A very high P/E further pressures the rating. Offsetting these are a low-leverage balance sheet and a cautiously improving operational narrative from the latest call (sequential margin recovery and improved liquidity), but execution risk around the facility move and ongoing cash usage keep the overall score below average.
Positive Factors
Conservative balance sheet / low leverage
Very low leverage and a sizeable equity base provide durable financial flexibility, lowering solvency and refinancing risk. This structural strength helps fund multi‑period investments, supports resilience during cyclical revenue swings, and reduces bankruptcy risk while cash generation normalizes.
Negative Factors
Weak operating and free cash flow
Sustained negative operating and free cash flow raises structural funding risk, forcing reliance on equity raises or external financing to fund growth and working capital. Persistent cash deficits constrain reinvestment, increase dilution risk, and make long‑term project timing sensitive to external funding availability.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / low leverage
Very low leverage and a sizeable equity base provide durable financial flexibility, lowering solvency and refinancing risk. This structural strength helps fund multi‑period investments, supports resilience during cyclical revenue swings, and reduces bankruptcy risk while cash generation normalizes.
Read all positive factors
CPS Technologies (CPSH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$75.53M
Dividend YieldN/A
Average Volume (3M)385.00K
Price to Earnings (P/E)687.7
Beta (1Y)0.46
Revenue Growth41.39%
EPS GrowthN/A
CountryUS
Employees117
SectorTechnology
Sector Strength88
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)0.01
Shares Outstanding19,268,448
10 Day Avg. Volume528,079
30 Day Avg. Volume385,001
Financial Highlights & Ratios
PEG Ratio-0.94
Price to Book (P/B)1.89
Price to Sales (P/S)1.43
P/FCF Ratio-90.88
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.04
Revenue Forecast (FY)$34.98M
CPS Technologies Business Overview & Revenue Model
Company Description
CPS Technologies Corporation (CPSH) is a U.S.-based advanced materials company that designs and manufactures metal matrix composite components, primarily using aluminum silicon carbide (AlSiC) materials, for applications that require efficient the...
How the Company Makes Money
CPS Technologies makes money primarily by selling engineered metal matrix composite components and related assemblies to customers that need high-performance thermal management and mechanical stability. Revenue is generated through (1) product sal...
CPS Technologies Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Neutral
The call conveyed a mixed but constructive tone: operationally the company showed sequential margin recovery (620 basis points vs Q1), modest YoY revenue growth, strengthened liquidity via a $9.6M secondary offering and promising commercial and government-driven product opportunities (tungsten alloys, HybridTech Armor, multiple SBIR-funded projects). Counterbalancing these positives are YoY margin pressure, an operating loss and lower net income vs prior year, substantial inventory buildup in advance of a facility move, a longer-than-expected and multi-million dollar upfit timeline with associated execution and requalification risks, and uncertainties around timing of government funding decisions. Overall, the positives and negatives are roughly balanced, yielding cautious optimism but notable execution and timing risks.Positive Updates
Stable Revenue with Modest Year-over-Year Growth
Revenue of $8.3M in Q2 2026 versus $8.1M in Q2 2025, reflecting a slight YoY increase (~2.5%) and growth versus Q1 2026 (company noted increased shipments and robust demand).
Negative Updates
Gross Margin Decline Year-over-Year
Gross profit was $1.2M (14.8% of revenue) versus $1.3M (16.5% of revenue) in Q2 2025 — a YoY margin decline of 170 basis points attributed in part to higher material and plating costs.
Read all updates
Q2-2026 Updates
Positive
Negative
Stable Revenue with Modest Year-over-Year Growth
Revenue of $8.3M in Q2 2026 versus $8.1M in Q2 2025, reflecting a slight YoY increase (~2.5%) and growth versus Q1 2026 (company noted increased shipments and robust demand).
Read all positive updates
Company Guidance
Management guided that shipments should continue at a similar pace to Q2 (Q2 revenue $8.3M) given the current order backlog, while they near-finalize a lease for a new facility roughly twice the size of the current site—design/engineering ~3–4 months followed by ~7–8 months for construction and equipment installation, with the current lease running through February 2028 and a phased relocation and equipment qualification planned to position the company for improved performance in 2027 and beyond. They said liquidity is strong after a May secondary that raised $9.6M, ending the quarter with $15.4M cash and $3.8M marketable securities ($19.2M combined), inventories have been built to $8.6M to support the move, and additional CapEx in the “millions” is expected to upfit the site and add capacity (notably for metal matrix composites, AlMax and tungsten/QuickSet). Q2 operating metrics cited were $1.2M gross profit (14.8% margin, a 620‑bp improvement from Q1’s 8.6%), SG&A $1.5M, operating loss ≈ $200k, and net income ≈ $40k ($0.00/sh); management also highlighted government-funded programs (Army tungsten work through fall 2027, an ACV option exercised through December with potential Phase II), expected HybridTech Armor awards later this year, and SBIR/STTR reauthorization through FY2031 amid a backlog of proposals.CPS Technologies Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
74
Positive
Cash Flow
28
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 39.63M | 32.60M | 21.12M | 27.55M | 26.59M | 22.45M |
| Gross Profit | 5.90M | 5.29M | -118.64K | 6.83M | 7.30M | 4.79M |
| EBITDA | 1.06M | 1.28M | -3.55M | 2.45M | 3.34M | 1.01M |
| Net Income | 126.17K | 420.35K | -3.14M | 1.37M | 2.13M | 3.22M |
Balance Sheet | ||||||
| Total Assets | 29.11M | 29.51M | 18.88M | 21.60M | 21.68M | 18.80M |
| Cash, Cash Equivalents and Short-Term Investments | 12.52M | 13.24M | 4.31M | 8.81M | 8.27M | 5.05M |
| Total Debt | 300.00K | 336.00K | 194.13K | 386.89K | 564.56K | 740.59K |
| Total Liabilities | 4.70M | 4.88M | 4.36M | 4.28M | 5.97M | 5.63M |
| Stockholders Equity | 24.42M | 24.64M | 14.51M | 17.32M | 15.71M | 13.17M |
Cash Flow | ||||||
| Free Cash Flow | -1.28M | -513.13K | -4.47M | 549.18K | 3.11M | 1.49M |
| Operating Cash Flow | -48.31K | 243.64K | -3.48M | 1.27M | 3.55M | 2.01M |
| Investing Cash Flow | -6.98M | -8.50M | -2.01M | -718.27K | -436.37K | -512.27K |
| Financing Cash Flow | 9.47M | 9.44M | -46.76K | -2.31K | 101.41K | 3.36M |
CPS Technologies Risk Analysis
CPS Technologies disclosed 21 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $1.49B | 61.16 | 8.01% | 0.15% | 8.63% | 141.02% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $90.26M | 269.53 | 0.17% | ― | 13.08% | -55.05% | |
49 Neutral | $56.96M | -18.99 | -6.69% | 2.13% | 4.15% | -186.73% | |
49 Neutral | $76.06M | -9.64 | -314.53% | ― | 114.02% | 72.01% | |
48 Neutral | $75.53M | 687.72 | 0.15% | ― | 41.39% | ― | |
44 Neutral | $13.95M | -5.64 | -159.17% | ― | -55.89% | -127.24% |
* Technology Sector Average
CPSH
CPS Technologies
4.36
1.59
57.40%
ALNT
Allient
111.21
69.03
163.64%
ELTK
Eltek
8.85
-1.29
-12.72%
LGL
LGL Group
7.35
0.31
4.40%
GNSS
Genasys
1.76
0.12
7.32%
REFR
Research Frontiers
0.47
-1.10
-70.25%
CPS Technologies Corporate Events
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
CPS Technologies Posts Modest Q2 Growth Amid Margin Pressure
Neutral
Aug 6, 2026
On August 4, 2026, CPS Technologies reported fiscal second-quarter results for the period ended June 27, 2026, with revenue rising slightly to $8.3 million from $8.1 million a year earlier on robust product demand. Despite this, gross margin slipp...
Business Operations and StrategyPrivate Placements and Financing
CPS Technologies Raises Capital in Registered Direct Offering
Positive
Jun 1, 2026
On May 27, 2026, CPS Technologies Corp. entered into securities purchase agreements with institutional investors for a registered direct offering of 1,200,000 shares of common stock at $8.00 per share, priced at‑the‑market under Nasdaq...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
CPS Technologies Navigates Q1 Loss Amid Expansion Plans
Negative
May 6, 2026
CPS Technologies, a U.S.-listed advanced materials specialist, reported that first-quarter 2026 revenue fell to $7.0 million from $7.5 million a year earlier, with gross margin slipping to 8.6% from 16.4% and the business swinging to a net loss of...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
CPS Technologies Shareholders Approve Governance and Share Increase
Positive
May 6, 2026
At its April 30, 2026 annual meeting, CPS Technologies reported that 60.6% of eligible common shares were represented in person or by proxy, and stockholders elected five directors with more than 70% of votes cast in favor of each nominee. Investo...
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.