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CPS Technologies Corp. (CPSH)
NASDAQ:CPSH
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CPS Technologies
(NASDAQ:CPSH)
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Rating:64Neutral
Price Target:
$7.00
▲(44.93% Upside)
Action:DowngradedDate:01/29/26
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 (CPSH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$84.86M
Dividend YieldN/A
Average Volume (3M)385.00K
Price to Earnings (P/E)―
Beta (1Y)-0.14
Revenue Growth38.22%
EPS Growth70.68%
CountryUS
Employees92
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.00
Shares Outstanding17,979,277
10 Day Avg. Volume528,079
30 Day Avg. Volume385,001
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 Cap0.66
Enterprise Value/Revenue1.86
Enterprise Value/Gross Profit14.83
Enterprise Value/Ebitda-1.14K
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.1
Revenue Forecast (FY)$38.73M
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 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 Earnings Call Summary
Earnings Call Date:Mar 02, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call highlighted a clear turnaround: record annual revenue, meaningful improvement in quarterly profitability, a stronger balance sheet after a $9.5M financing and targeted capital investments to expand capacity and diversify product lines. Offsetting risks include near‑term margin pressure from sharply higher gold costs, conservative inventory accounting, a planned facility move that introduces execution risk, elevated SG&A versus prior year, and some program timing uncertainty (SBIR reauthorization and defense contract timing). Overall, the positives around revenue growth, improved operating performance and materially stronger liquidity outweigh the near‑term operational and margin headwinds, supporting an optimistic outlook for 2026 conditional on successful relocation and execution.Q4-2025 Updates
Positive Updates
Record Annual Revenue
Fiscal 2025 revenue of $32.6 million — the highest in company history, described as a milestone and a strong comeback vs. the prior year.
Fourth Quarter Revenue Growth
Q4 revenue of $8.2 million versus $5.9 million in Q4 FY2024, a year‑over‑year increase of ~39%, driven by strong product demand, higher shipments and a fully operational third shift.
Improved Profitability Metrics
Q4 gross profit of $1.2 million (~14.6% of sales) versus a gross loss of $0.3 million a year earlier. Operating loss narrowed to about $100,000 from ~$1.3 million the prior year (~92% improvement). Net income of ~$12,000 (EPS $0.00) vs. a net loss of ~$1.0 million (EPS ~$0.07) in Q4 FY2024.
Balance Sheet Strengthened by Financing
Completed a secondary offering in Q4 that raised $9.5 million in net proceeds. Cash of $4.5 million and marketable securities of $8.8 million at year end (combined ~$13.3 million) versus a combined ~$4.3 million at the start of 2025, materially improving liquidity.
Operational Investments and Capacity Upgrades
Installed a higher‑capacity mill for Almax (doubling ceramic fiber throughput), added a sintering oven and established a work cell for controlled‑fragmentation tungsten warhead development (Phase II) — enabling larger sample production and accelerated product development.
Progress on Facility Expansion and Market Opportunities
Selected DAO Corporation as general contractor and narrowed facility options; expect to decide within weeks and begin an upfit/move in several months to expand floor space, increase capacity, improve efficiencies and support commercialization of new product lines (e.g., radiation shielding).
Ongoing Government Contracts and Program Wins
Since 2021, received 13 SBIR/STTR awards; 4 ongoing government contracts (1 Phase I and 3 Phase II) continue funded and active, and recent indications point toward likely reauthorization of SBIR/STTR (potential through Sept 30, 2031) which would resume review of pending proposals.
Near‑Term Defense Opportunity — HybridTech Armor
Partner Kinetic Protection optimistic FY2026 Navy orders will resume in H2 calendar 2026 for ballistic shields on a small number of destroyers; contract negotiations expected in coming months.
Negative Updates
Margin Pressure from Rising Gold Costs
Q4 margins were down vs. Q3 largely due to dramatically higher gold costs (gold roughly doubled over ~1 year per management), which have a dilutive impact because many products are gold‑slated and the incremental margin on added gold is nominal (management estimated a ~1–2 percentage‑point headwind depending on quarter volumes).
Quarterly Margin Volatility and Inventory Effects
Although year‑over‑year profitability improved, margins were negatively impacted in Q4 by lower revenue vs. Q3 (customer holiday patterns) and by conservative inventory valuation practices as inventories rose to support the move, creating a near‑term headwind to reported margin percentage.
SG&A Increase
Selling, general & administrative expenses rose to $1.3 million in Q4 from $1.0 million a year earlier (an increase of ~30%), reflecting continued investment while ramping production.
Potential Disruption and Execution Risk from Facility Move
Relocation and upfit expected to begin in several months and will be executed work‑cell by work‑cell; management acknowledged the move will be naturally disruptive and will require revalidation of production equipment, posing short‑term execution risk.
SBIR/STTR Reauthorization Uncertainty (Near Past)
Federal SBIR/STTR programs lapsed on Sept 30, 2025, halting publication of new topics and review of newly submitted proposals (though existing awarded contracts remain funded). Management noted recent indications of a congressional compromise but timing/terms were uncertain at the time of the call.
Timing and Scale Uncertainty for Some New Programs
Promising initiatives (e.g., binder‑jet tungsten alloy for Army artillery and HybridTech Armor Navy orders) were described as strategically significant but not expected to contribute material revenue in 2026; validation and contract negotiation timelines remain uncertain.
Company Guidance
Management guided that 2026 should be a year of solid revenue and margin expansion as CPS completes a planned multi‑month relocation to a larger facility (decision expected within weeks, move to start in a few months) to increase capacity (third shift already operational) and improve efficiencies; they cited FY2025 record sales of $32.6M and Q4 revenue of $8.2M (vs $5.9M in Q4 FY2024), Q4 gross profit of $1.2M (14.6% of sales) vs a $0.3M gross loss a year earlier, an operating loss of about $100k (vs $1.3M), and net income of roughly $12k ($0.00/sh) vs a $1.0M loss ($0.07/sh). Management highlighted a strengthened balance sheet from a $9.5M net secondary offering and year‑end liquidity of about $4.5M cash + $8.8M marketable securities (~$13.3M combined, up from ~$4.3M at the start of 2025), trade receivables near $5.2M, payables/accruals of $4.3M, and rising inventories to support the move; they warned of near‑term margin pressure from sharply higher gold (more than doubled year‑over‑year) but expect margins to expand over time, with H2 calendar‑2026 potential resumption of HybridTech Armor Navy orders, continued execution of four SBIR/STTR contracts (1 Phase I, 3 Phase II) out of 13 awards since 2021, and operational upgrades (e.g., Almax mill at 2× capacity and 40‑mm warhead samples in Army Phase II).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.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 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 30.32M | 21.12M | 27.55M | 26.59M | 22.45M | 20.87M |
| Gross Profit | 3.80M | -118.64K | 6.83M | 7.30M | 4.79M | 4.17M |
| EBITDA | -49.51K | -3.83M | 2.19M | 2.68M | 982.30K | 1.44M |
| Net Income | -587.39K | -3.14M | 1.37M | 2.13M | 3.22M | 908.06K |
Balance Sheet | ||||||
| Total Assets | 20.44M | 18.88M | 21.60M | 21.68M | 18.80M | 8.31M |
| Cash, Cash Equivalents and Short-Term Investments | 4.29M | 4.31M | 8.81M | 8.27M | 5.05M | 195.20K |
| Total Debt | 370.00K | 194.13K | 386.89K | 564.56K | 740.59K | 237.70K |
| Total Liabilities | 5.30M | 4.36M | 4.28M | 5.97M | 5.63M | 1.96M |
| Stockholders Equity | 15.13M | 14.51M | 17.32M | 15.71M | 13.17M | 6.35M |
Cash Flow | ||||||
| Free Cash Flow | -1.49M | -4.47M | 549.18K | 3.11M | 1.49M | 1.34M |
| Operating Cash Flow | -923.76K | -3.48M | 1.27M | 3.55M | 2.01M | 1.67M |
| Investing Cash Flow | -595.72K | -2.01M | -718.27K | -436.37K | -512.27K | -311.99K |
| Financing Cash Flow | -20.10K | -46.76K | -2.31K | 101.41K | 3.36M | -1.29M |
CPS Technologies Technical Analysis
Positive
4.83
Price Trends
4.42
Positive
4.02
Positive
3.50
Positive
Market Momentum
-0.05
Positive
51.31
Neutral
44.89
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 4.83 is above the 20-day moving average (MA) of 4.72, above the 50-day MA of 4.42, and above the 200-day MA of 3.50, indicating a bullish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 51.31 is Neutral, neither overbought nor oversold. The STOCH value of 44.89 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.11B | 58.93 | 6.58% | 0.22% | -2.88% | 26.14% | |
64 Neutral | $84.86M | -116.26 | -3.84% | ― | 38.22% | 70.68% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $39.83M | 44.01 | 2.33% | ― | 14.07% | 153.24% | |
51 Neutral | $59.10M | 52.73 | 2.70% | 2.16% | 2.54% | -79.99% | |
49 Neutral | $89.52M | -6.01 | -183.60% | ― | 69.76% | 43.82% | |
44 Neutral | $34.66M | -18.33 | -87.36% | ― | -16.49% | -59.21% |
* Technology Sector Average
CPSH
CPS Technologies
4.72
3.21
212.58%
ALNT
Allient
65.25
42.11
181.98%
ELTK
Eltek
8.80
-2.19
-19.93%
LGL
LGL Group
7.20
0.87
13.74%
GNSS
Genasys
1.98
-0.47
-19.18%
REFR
Research Frontiers
1.03
-0.23
-18.25%
CPS Technologies Corporate Events
Executive/Board Changes
CPS Technologies CFO Announces Planned Retirement
Neutral
Dec 17, 2025
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.
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
CPS Technologies Reports Record Q3 2025 Sales
Positive
Oct 31, 2025
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.
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.