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CPS Technologies Corp. (CPSH)
NASDAQ:CPSH
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CPS Technologies
(NASDAQ:CPSH)
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Rating:60Neutral
Price Target:
$3.50
▼(-3.31% Downside)
CPS Technologies' overall stock score is driven by strong financial performance in terms of revenue growth and a robust balance sheet. However, challenges in profitability, cash flow management, and valuation concerns weigh down the score. The positive sentiment from the earnings call, with record revenue and new contracts, provides a favorable outlook, but potential risks from increased expenses and external factors like government shutdowns remain.
Positive Factors
Revenue Growth
The record revenue growth indicates strong market demand and effective sales strategies, enhancing the company's market position and long-term growth prospects.
New Contracts
Securing a significant contract with a major semiconductor manufacturer strengthens CPS's revenue base and underscores its competitive edge in the industry.
Capital Expansion
The capital raised will fund expansion to a larger facility, increasing production capacity and supporting future growth initiatives.
Negative Factors
Cash Flow Challenges
Negative operating cash flow suggests liquidity issues, potentially limiting the company's ability to invest in growth and meet short-term obligations.
Increased SG&A Expenses
Rising SG&A expenses can pressure profit margins, reducing overall profitability and potentially impacting long-term financial health.
Government Shutdown Impact
Delays in government contracts due to the shutdown could hinder revenue growth and disrupt strategic initiatives in the defense sector.
CPS Technologies (CPSH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$63.29M
Dividend YieldN/A
Average Volume (3M)385.00K
Price to Earnings (P/E)―
Beta (1Y)-0.35
Revenue Growth38.22%
EPS Growth70.68%
CountryUS
Employees92
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.01
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 Cap0.59
Enterprise Value/Revenue1.46
Enterprise Value/Gross Profit21.16
Enterprise Value/Ebitda-20.13
Forecast
1Y Price Target
$6.00Price Target Upside65.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
CPS Technologies Business Overview & Revenue Model
Company DescriptionCPS Technologies (CPSH) is a leading provider of advanced materials and engineering solutions, primarily serving the defense, aerospace, and industrial sectors. The company specializes in the development and manufacturing of high-performance materials, particularly in the field of ceramic and metal matrix composites. CPS Technologies is known for its innovative approaches to material science, focusing on enhancing the performance and reliability of critical components used in demanding environments.
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:Oct 29, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 11, 2026
Earnings Call Sentiment Positive
CPS Technologies delivered a strong third quarter with record revenue and significant new contracts, alongside successful capital raising efforts. However, there are concerns about the potential impacts of the government shutdown and increased SG&A expenses, which could affect future growth and profitability.Q3-2025 Updates
Positive Updates
Record Revenue Achievement
CPS Technologies reported record revenue of $8.8 million for the third quarter of 2025, more than doubling from $4.2 million in the same quarter of 2024. This represents a 9% growth compared to the second quarter of 2025.
Successful Capital Raise
CPS completed a successful secondary offering that brought in over $9.5 million in net proceeds, aimed at funding a move to a larger manufacturing facility.
New $15.5 Million Contract
CPS secured a $15.5 million contract from a multinational semiconductor manufacturer, representing a 16.5% year-over-year increase in contract value.
Improved Financial Performance
The company posted an operating profit of $276,000 and net income of over $200,000, turning around from an operating loss of $1.5 million and a net loss of about $1 million in Q3 2024.
Expansion in Research Contracts
CPS announced its fifth and sixth federally funded research contracts of 2025, with significant potential for commercialization, including a $1.15 million Phase II contract for a controlled fragmentation warhead.
Negative Updates
Potential Impact of Government Shutdown
The ongoing federal government shutdown could delay new proposals and research topics under review, impacting future contract opportunities.
Fourth Quarter Revenue Expectations
Due to holidays and planned plant shutdowns at vendors and customers, CPS does not expect to achieve another quarter of record revenue in Q4 2025.
Increased SG&A Expenses
Selling, general, and administrative expenses increased to $1.2 million from $1.0 million in the previous year, which could impact margins.
Company Guidance
During the third quarter earnings call, CPS Technologies provided substantial guidance and updates on its financial and operational performance. The company reported a record revenue of $8.8 million, marking a significant increase from $4.2 million in the same period last year, driven by strong customer demand and improved manufacturing throughput. CPS completed a secondary offering that generated over $9.5 million in net proceeds, earmarked for a move to a larger manufacturing facility planned for 2026, which will nearly double their usable space. The company achieved a gross profit of $1.5 million, representing 17.1% of sales, compared to a gross loss in the previous year, largely due to increased revenue and manufacturing efficiencies. Operating profit was reported at $276,000, a turnaround from a $1.5 million loss last year, with net income reaching over $200,000. CPS also highlighted a new $15.5 million contract for power module components, expected to contribute steadily over the next year. Additionally, the company is advancing several federally funded research initiatives, including a notable $1.15 million Army contract for developing a controlled fragmentation warhead, showcasing CPS's expanding role in both commercial and military sectors.CPS Technologies Financial Statement Overview
Summary
CPS Technologies shows strong revenue growth in the recent TTM period but faces challenges with consistent profitability and cash flow management. The balance sheet is robust with low leverage and a strong equity base, positioning the company well for future opportunities 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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.76M | 21.12M | 27.55M | 26.59M | 22.45M | 20.87M |
| Gross Profit | 1.77M | -118.64K | 6.83M | 7.30M | 4.79M | 4.17M |
| EBITDA | -1.86M | -3.83M | 2.19M | 2.68M | 982.30K | 1.44M |
| Net Income | -1.84M | -3.14M | 1.37M | 2.13M | 3.22M | 908.06K |
Balance Sheet | ||||||
| Total Assets | 19.37M | 18.88M | 21.60M | 21.68M | 18.80M | 8.31M |
| Cash, Cash Equivalents and Short-Term Investments | 3.42M | 4.31M | 8.81M | 8.27M | 5.05M | 195.20K |
| Total Debt | 108.00K | 194.13K | 386.89K | 564.56K | 740.59K | 237.70K |
| Total Liabilities | 4.49M | 4.36M | 4.28M | 5.97M | 5.63M | 1.96M |
| Stockholders Equity | 14.88M | 14.51M | 17.32M | 15.71M | 13.17M | 6.35M |
Cash Flow | ||||||
| Free Cash Flow | -3.63M | -4.47M | 549.18K | 3.11M | 1.49M | 1.34M |
| Operating Cash Flow | -3.16M | -3.48M | 1.27M | 3.55M | 2.01M | 1.67M |
| Investing Cash Flow | -739.09K | -2.01M | -718.27K | -436.37K | -512.27K | -311.99K |
| Financing Cash Flow | -31.89K | -46.76K | -2.31K | 101.41K | 3.36M | -1.29M |
CPS Technologies Technical Analysis
Neutral
3.62
Price Trends
3.63
Negative
3.45
Negative
2.77
Positive
Market Momentum
-0.02
Negative
49.04
Neutral
65.89
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 3.62 is above the 20-day moving average (MA) of 3.33, below the 50-day MA of 3.63, and above the 200-day MA of 2.77, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 49.04 is Neutral, neither overbought nor oversold. The STOCH value of 65.89 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 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 | $909.71M | 62.58 | 6.58% | 0.22% | -2.88% | 26.14% | |
64 Neutral | $31.75M | 35.09 | 2.33% | ― | 14.07% | 153.24% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $63.29M | -86.70 | -3.84% | ― | 38.22% | 70.68% | |
59 Neutral | $75.87M | 24.68 | 2.70% | 2.01% | 2.54% | -79.99% | |
49 Neutral | $58.88M | -33.46 | -87.36% | ― | -16.49% | -59.21% | |
47 Neutral | $96.86M | ― | -183.60% | ― | 69.76% | 43.82% |
* Technology Sector Average
CPSH
CPS Technologies
3.40
1.82
115.19%
ALNT
Allient
55.40
29.65
115.15%
ELTK
Eltek
9.45
-1.30
-12.09%
LGL
LGL Group
5.74
-0.17
-2.88%
GNSS
Genasys
2.11
-0.53
-20.08%
REFR
Research Frontiers
1.54
-0.24
-13.48%
CPS Technologies Corporate Events
Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
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.
Private Placements and FinancingBusiness Operations and Strategy
CPS Technologies Completes $9.5 Million Public Offering
Positive
Oct 8, 2025
On October 8, 2025, CPS Technologies Corp. completed a public offering of 3,450,000 shares of its common stock, including an overallotment option, at $3.00 per share, raising approximately $9.5 million in net proceeds. The company plans to use the funds for general corporate purposes, potentially including working capital, capital expenditures, and expanding production capacity to meet customer demand, possibly through relocating to a larger facility.
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.