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CPS Technologies Corp. (CPSH)
:CPSH
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CPS Technologies
(NASDAQ:CPSH)
Rating:61Neutral
Price Target:
$3.00
▲(19.05%Upside)
CPS Technologies (CPSH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$36.61M
Dividend YieldN/A
Average Volume (3M)91.58K
Price to Earnings (P/E)―
Beta (1Y)0.10
Revenue Growth-13.83%
EPS Growth-476.23%
CountryUS
Employees92
SectorTechnology
Sector Strength94
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)<0.01
Shares Outstanding14,525,960
10 Day Avg. Volume68,518
30 Day Avg. Volume91,578
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)<0.01
Price to Sales (P/S)0.00
P/FCF Ratio-0.03
Enterprise Value/Market Cap-47.73
Enterprise Value/Revenue-0.23
Enterprise Value/Gross Profit-1.42
Enterprise Value/Ebitda-14.68
Forecast
1Y Price Target
$3.00Price Target Upside19.05% Upside
Rating ConsensusHold
Number of Analyst Covering0
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 makes money through the sale of its advanced material solutions and metal matrix composites to various industries. Key revenue streams include the development and sale of hermetic packages, substrates, and components that utilize its proprietary materials to improve thermal management and structural integrity in high-performance applications. The company collaborates closely with clients to develop customized solutions, which often results in long-term partnerships and repeat business. Additionally, CPS Technologies benefits from the growing demand for high-reliability and efficient electronic components across sectors such as telecommunications, automotive, and renewable energy, contributing to its revenue growth.
CPS Technologies Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 62.58%|
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 Financial Statement Overview
Summary
CPS Technologies shows strong recent revenue growth but struggles with consistent profitability and cash flow management. The robust balance sheet with low leverage and strong equity base positions the company well, 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 | 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 |
| EBITDA | -3.54M | 2.19M | 2.68M | 512.97K | 1.44M |
| Net Income | -3.14M | 1.37M | 2.13M | 3.22M | 908.06K |
Balance Sheet | |||||
| Total Assets | 18.88M | 21.60M | 21.68M | 18.80M | 8.31M |
| Cash, Cash Equivalents and Short-Term Investments | 4.31M | 8.81M | 8.27M | 5.05M | 195.20K |
| Total Debt | 194.13B | 386.89K | 564.56K | 740.59K | 237.70K |
| 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
Neutral
2.52
Price Trends
2.56
Negative
2.06
Positive
1.83
Positive
Market Momentum
-0.01
Positive
45.86
Neutral
65.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPSH, the sentiment is Neutral. The current price of 2.52 is below the 20-day moving average (MA) of 2.73, below the 50-day MA of 2.56, and above the 200-day MA of 1.83, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 45.86 is Neutral, neither overbought nor oversold. The STOCH value of 65.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 3 New Risks
1.
Our dependence on outside vendors to perform particular steps in our manufacturing process could negatively impact us should those vendors be unable or unwilling to provide such service at a reasonable cost. Q4, 2024
2.
Changes in trade policy could seriously impact our business. Q4, 2024
3.
Fluctuations in foreign exchange rates can negatively impact our ability to compete against foreign based competitors. Q4, 2024
CPS Technologies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $68.95M | 19.90 | 8.80% | 1.85% | 1.05% | -51.90% | |
67 Neutral | $58.81M | 37.54 | 12.53% | ― | 22.59% | ― | |
63 Neutral | $34.60B | 5.43 | -11.64% | 1.84% | 5.30% | -18.55% | |
61 Neutral | $36.61M | ― | -18.07% | ― | -13.83% | -476.23% | |
48 Neutral | $24.02M | 6.41 | -9.81% | ― | -12.87% | -148.14% |
* Technology Sector Average
Performance Comparison
CPSH
CPS Technologies
2.52
0.82
48.24%
ELTK
Eltek
10.27
0.45
4.58%
MIND
MIND Technology
7.38
2.60
54.39%
NSYS
Nortech Systems
8.70
-5.83
-40.12%
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
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.