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CPS Technologies Corp. (CPSH)
NASDAQ:CPSH
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CPS Technologies
(NASDAQ:CPSH)
61Neutral
CPS Technologies (CPSH) vs. S&P 500 (SPY)
Market Cap
$23.24M
Dividend YieldN/A
Average Volume (3M)26.01K
Price to Earnings (P/E)―
Beta (1Y)0.59
Revenue Growth-13.83%
EPS Growth-476.23%
CountryUS
Employees92
SectorTechnology
Sector Strength68
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)-0.20
Shares Outstanding14,525,960
10 Day Avg. Volume30,027
30 Day Avg. Volume26,010
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.83
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit-162.93
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
CPS Technologies Business Overview & Revenue Model
Company DescriptionCPS Technologies Corporation (CPSH) is a leading provider in the field of advanced materials solutions, primarily focused on the production of metal matrix composites (MMCs). These materials are utilized in a variety of industries, including automotive, telecommunications, aerospace, and defense, where high thermal conductivity and low weight are critical performance factors. CPS is recognized for its expertise in designing and manufacturing complex assemblies that integrate advanced material components for demanding applications.
How the Company Makes MoneyCPS Technologies makes money primarily through the sale of its proprietary metal matrix composite materials and related components. The company's revenue model is centered around custom-designed solutions that meet the specific needs of their clients in high-performance sectors such as aerospace, defense, and telecommunications. CPS generates income by entering into contracts with major corporations requiring thermal management solutions, where its products are used to enhance the performance and reliability of electronic systems. The company also benefits from long-term relationships and partnerships with industry leaders, contributing to a steady stream of orders and repeat business. Additionally, CPS invests in research and development to innovate and expand its product offerings, which can lead to new revenue opportunities as they address emerging industry demands.
CPS Technologies Financial Statement Overview
Summary
CPS Technologies demonstrates a stable financial position with strengths in revenue growth and equity management. However, the company faces challenges in maintaining consistent profitability and generating sufficient free cash flow. Improving operational efficiency and cash flow management will be critical for sustained financial success.Income Statement
CPS Technologies has shown a positive trend in revenue growth, with a significant increase from 2022 to 2023. Gross profit margin improved from 17.4% in 2019 to 24.8% in 2023, indicating better cost management. However, net profit margin fluctuated, reaching 5.0% in 2023, reflecting inconsistent profitability. The company achieved positive EBIT and EBITDA margins in 2023, suggesting operational efficiency improvements but with room for growth.60
Neutral
Balance Sheet
The balance sheet reveals a strong equity position with an equity ratio of 80.2% in 2023, indicating financial stability. The debt-to-equity ratio decreased consistently, showcasing effective debt management. Return on equity was 7.9% in 2023, indicating moderate profitability relative to shareholder equity. Despite these strengths, the company needs to further enhance its asset utilization.65
Positive
Cash Flow
The cash flow statement indicates challenges with free cash flow, which declined significantly from 2022 to 2023. The operating cash flow to net income ratio was 0.9 in 2023, demonstrating decent cash generation relative to net profits. The company needs to address declining free cash flow to ensure sustainable financial health.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 21.12M | 27.55M | 26.59M | 22.45M | 20.87M | Gross Profit |
| -118.64K | 6.83M | 7.30M | 4.79M | 4.17M | EBIT |
| -4.38M | 1.70M | 2.23M | 43.63K | 383.82K | EBITDA |
| -3.54M | 2.19M | 2.68M | 512.97K | 1.44M | Net Income Common Stockholders |
| -3.14M | 1.37M | 2.13M | 3.22M | 908.06K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 4.31M | 8.81M | 8.27M | 5.05M | 195.20K | Total Assets |
| 18.88M | 21.60M | 21.68M | 18.80M | 8.31M | Total Debt |
| 194.13B | 386.89K | 564.56K | 740.59K | 237.70K | Net Debt |
| -3.09M | -8.43M | -7.70M | -4.31M | 42.50K | Total Liabilities |
| 4.36M | 4.28M | 5.97M | 5.63M | 1.96M | Stockholders Equity |
| 14.51T | 17.32M | 15.71M | 13.17M | 6.35M |
| Cash Flow | Free Cash Flow | |||
| -4.47M | 549.18K | 3.11M | 1.49M | 1.34M | Operating Cash Flow |
| -3.48M | 1.27M | 3.55M | 2.01M | 1.67M | Investing Cash Flow |
| -2.01M | -718.27K | -436.37K | -512.27K | -311.99K | Financing Cash Flow |
| -46.76B | -2.31K | 101.41K | 3.36M | -1.29M |
CPS Technologies Technical Analysis
Positive
1.60
Price Trends
1.56
Positive
1.64
Negative
1.55
Positive
Market Momentum
<0.01
Negative
52.57
Neutral
51.33
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 1.6 is above the 20-day moving average (MA) of 1.52, above the 50-day MA of 1.56, and above the 200-day MA of 1.55, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.57 is Neutral, neither overbought nor oversold. The STOCH value of 51.33 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
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $57.27M | 13.53 | 12.41% | 2.23% | -0.36% | -40.16% | |
68 Neutral | $54.59M | 21.19 | 20.31% | ― | 18.08% | ― | |
61 Neutral | $23.24M | ― | -18.07% | ― | -13.83% | -476.23% | |
60 Neutral | $10.94B | 10.58 | -7.08% | 2.98% | 7.52% | -12.04% | |
45 Neutral | $24.16M | 6.41 | -3.73% | ― | -8.04% | -118.60% |
* Technology Sector Average
Performance Comparison
CPSH
CPS Technologies
1.60
-0.14
-8.05%
ELTK
Eltek
8.53
-1.53
-15.21%
MIND
MIND Technology
6.85
1.01
17.29%
NSYS
Nortech Systems
8.75
-6.43
-42.36%
CPS Technologies Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 3.23%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call highlighted CPS Technologies' record-breaking revenue and return to profitability, driven by increased demand and manufacturing capabilities. However, challenges remain in margin expansion and a recent contract cancellation. Overall, the positive aspects of revenue growth and new opportunities outweigh the lowlights.Q1-2025 Updates
Positive Updates
Record-Breaking Revenue
CPS Technologies reported a record revenue of $7.5 million in Q1 2025, up from $5.9 million in Q1 2024, marking a 27% increase year-over-year and sequentially from Q4 2024.
Operating Profit Achievement
The company achieved an operating profit of approximately $130,000 in Q1 2025 compared to an operating loss of $260,000 in Q1 2024.
Gross Profit Improvement
Gross profit increased to $1.2 million, or 16.4% of sales, compared to $0.9 million, or 15.3% of sales, in the previous year.
New Product Development Initiatives
CPS Technologies is expanding its product portfolio with the ongoing development of metal matrix composite products, including six active externally-funded research programs.
Increased Manufacturing Capabilities
The company increased manufacturing throughput by adding a third shift of production, contributing to higher capacity utilization.
Defense Market Opportunities
CPS Technologies sees significant opportunities in the defense market, specifically with the U.S. Navy and potential orders for HybridTech Armor.
Negative Updates
Cancellation of Radiation Shielding Contract
The company's first commercial purchase order for HybridTech radiation shielding was canceled due to reasons unrelated to CPS Technologies.
Challenges in Margin Expansion
Despite increased revenue, the company acknowledges the need to expand margins and improve the bottom line further.
Company Guidance
During the CPS Technologies First Quarter 2025 earnings call, it was reported that the company achieved record revenue of $7.5 million, surpassing the prior year's first quarter revenue of $5.9 million. This increase in revenue was achieved without any sales from HybridTech Armor, highlighting the strong demand for other product lines. The company also reported an operating profit of approximately $130,000, a significant improvement compared to an operating loss of $260,000 in the previous year. Gross profit for the quarter was $1.2 million, or 16.4% of sales, up from $0.9 million, or 15.3% of sales last year, attributed to increased manufacturing efficiencies and higher overall revenue. Selling, general, and administrative expenses were reduced to $1.1 million from $1.2 million the previous year. CPS Technologies ended the quarter with $1.9 million in cash and $1 million in marketable securities, while trade accounts receivable grew to $6.3 million due to increased sales. The company is optimistic about continued growth, with a strong backlog and enhanced manufacturing capabilities promising further margin expansion and profitability.CPS Technologies Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
CPS Technologies Appoints I. James Cavoli to Board
Positive
Dec 5, 2024
CPS Technologies Corp. has appointed I. James Cavoli, a seasoned leader in the manufacturing sector, to its Board of Directors. Cavoli brings extensive experience from his role as President at Swagelok Company, where he significantly boosted the company’s market cap. His addition to the board is seen as a strategic move to leverage his expertise in strategy, growth, and international business, which aligns with CPS’s commitment to innovation and growth in high-performance materials solutions.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.