CPS Technologies Corp. (CPSH)
NASDAQ:CPSH
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CPS Technologies
(NASDAQ:CPSH)
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Rating:53Neutral
Price Target:
$8.00
▲(53.26% Upside)
Action:Reiterated
Date:06/10/26
The score is primarily held back by weak recent cash flow and inconsistent profitability despite a strong balance sheet. Technicals are moderately supportive with a positive trend and healthy momentum, but valuation is a significant negative due to the extremely high P/E and lack of dividend support. Recent financing improves liquidity, though with dilution trade-offs.
Positive Factors
Balance Sheet Strength
Very low financial leverage and a sizeable equity base provide durable solvency and financing optionality. This structural strength lowers bankruptcy risk, supports multi-month conversion of working capital, and gives management flexibility to fund capex or commercialization without immediate reliance on costly external debt.
Negative Factors
Weak Cash Generation
Persistently negative operating and free cash flow increases structural funding risk and reduces financial flexibility. Continued cash burn forces reliance on external financing or equity raises, constraining reinvestment, slowing margin recovery, and elevating execution risk until cash generation normalizes.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Very low financial leverage and a sizeable equity base provide durable solvency and financing optionality. This structural strength lowers bankruptcy risk, supports multi-month conversion of working capital, and gives management flexibility to fund capex or commercialization without immediate reliance on costly external debt.
Read all positive factors
CPS Technologies (CPSH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$151.45M
Dividend YieldN/A
Average Volume (3M)385.00K
Price to Earnings (P/E)4682.0
Beta (1Y)0.45
Revenue Growth41.39%
EPS GrowthN/A
CountryUS
Employees92
SectorTechnology
Sector Strength88
IndustryHardware, 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-0.98
Price to Book (P/B)1.89
Price to Sales (P/S)1.43
P/FCF Ratio-90.88
Enterprise Value/Market Cap0.87
Enterprise Value/Revenue3.34
Enterprise Value/Gross Profit22.47
Enterprise Value/Ebitda125.15
Forecast
1Y Price Target
$5.50Price Target Upside5.36% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.09
Revenue Forecast (FY)$37.23M
CPS Technologies Business Overview & Revenue Model
Company Description
Headquartered in Norton, Massachusetts, and established in 1984, CPS Technologies Corporation is a provider of cutting-edge material solutions. The company's core offering consists of metal matrix composites, innovative blends of metal and ceramic...
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:Mar 02, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 30, 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.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.
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).
Read all updates
Q4-2025 Updates
Positive
Negative
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.
Read all positive updates
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
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 Technical Analysis
Positive
5.22
Price Trends
5.85
Positive
5.17
Positive
4.39
Positive
Market Momentum
0.63
Positive
53.96
Neutral
37.52
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 5.22 is below the 20-day moving average (MA) of 7.56, below the 50-day MA of 5.85, and above the 200-day MA of 4.39, indicating a bullish trend. The MACD of 0.63 indicates Positive momentum. The RSI at 53.96 is Neutral, neither overbought nor oversold. The STOCH value of 37.52 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 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | $1.55B | 64.07 | 8.01% | 0.22% | 8.63% | 141.02% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $89.87M | 611.64 | 0.17% | ― | 13.08% | -55.05% | |
53 Neutral | $151.45M | 4,681.99 | 0.15% | ― | 41.39% | ― | |
49 Neutral | $62.83M | -20.74 | -6.69% | 2.16% | 4.15% | -186.73% | |
48 Neutral | $87.90M | -10.93 | -314.53% | ― | 114.02% | 72.01% | |
43 Neutral | $24.76M | -10.13 | -122.90% | ― | -55.89% | -127.24% |
* Technology Sector Average
CPSH
CPS Technologies
7.86
5.27
203.47%
ALNT
Allient
91.37
56.52
162.14%
ELTK
Eltek
9.35
-1.06
-10.18%
LGL
LGL Group
6.87
0.27
4.09%
GNSS
Genasys
1.93
0.42
27.39%
REFR
Research Frontiers
0.71
-1.11
-60.99%
CPS Technologies Corporate Events
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.