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Cts Corp. (CTS)
NYSE:CTS
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CTS
(NYSE:CTS)67Neutral
CTS (CTS) vs. S&P 500 (SPY)
Market Cap
$1.27B
Dividend Yield0.38%
Average Volume (3M)152.43K
Price to Earnings (P/E)22.4
Beta (1Y)1.35
Revenue Growth-6.34%
EPS Growth-0.89%
CountryUS
Employees4,081
SectorTechnology
Sector Strength48
IndustryHardware & Equipment
Share Statistics
EPS (TTM)1.90
Shares Outstanding30,041,311
10 Day Avg. Volume140,252
30 Day Avg. Volume152,429
Financial Highlights & Ratios
PEG Ratio10.50
Price to Book (P/B)N/A
Price to Sales (P/S)2.47
Price to Cash Flow (P/CF)12.30
P/FCF Ratio16.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
CTS Business Overview & Revenue Model
Company DescriptionCTS (CTS) is a diversified technology company specializing in the development and manufacturing of sensors, actuators, and electronic components. The company serves various sectors, including automotive, industrial, medical, and communications, providing innovative solutions that enhance the performance, efficiency, and safety of its clients' products. CTS is committed to delivering high-quality, reliable products that meet the evolving demands of its global customer base.
How the Company Makes MoneyCTS generates revenue through the sale of its sensors, actuators, and electronic components to a wide range of industries. The company's key revenue streams include direct sales to original equipment manufacturers (OEMs) in the automotive and industrial sectors, as well as contracts with medical and communications companies. CTS also engages in strategic partnerships and collaborations to expand its market reach and drive innovation. The company's earnings are significantly influenced by its ability to adapt to technological advancements and meet the specific needs of its clients, ensuring a steady demand for its products.
CTS Financial Statement Overview
Summary
CTS demonstrates strong financial health overall, supported by a robust balance sheet and efficient cash flow management. The income statement reflects profitability, though revenue growth challenges need to be addressed. Stability and operational efficiency are evident, yet the company should focus on sales growth to enhance future performance.Income Statement
The income statement shows a mixed performance. The gross profit margin has been stable, indicating effective control over production costs. However, there has been a decline in revenue over the past year, which is concerning. The EBIT and EBITDA margins remain healthy, reflecting good operational efficiency. The net profit margin is positive, but the revenue growth rate has been negative, which suggests challenges in increasing sales.75
Positive
Balance Sheet
The balance sheet is strong, with a low debt-to-equity ratio indicating conservative leverage. The equity ratio is high, demonstrating financial stability and a strong asset base. Return on Equity (ROE) is positive, though it shows room for improvement. Overall, the company maintains a robust balance sheet with adequate equity support.80
Positive
Cash Flow
Cash flow analysis reveals a stable free cash flow, although the growth rate has been inconsistent. The operating cash flow to net income ratio is healthy, indicating efficient cash generation from operations. The free cash flow to net income ratio is also strong, assuring good liquidity. However, the variability in free cash flow growth poses a potential risk.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 515.77M | 550.42M | 586.87M | 512.92M | 424.07M | Gross Profit |
| 189.15M | 190.86M | 210.54M | 184.62M | 139.06M | EBIT |
| 72.78M | 75.05M | 55.09M | 78.17M | 23.91M | EBITDA |
| 106.38M | 107.19M | 113.22M | -32.58M | 71.98M | Net Income Common Stockholders |
| 58.11M | 60.53M | 59.58M | -41.87M | 34.69M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 94.33M | 163.88M | 156.91M | 141.47M | 91.77M | Total Assets |
| 766.11M | 741.17M | 748.49M | 664.46M | 626.05M | Total Debt |
| 129.69M | 96.86M | 109.36M | 74.75M | 81.06M | Net Debt |
| 35.35M | -67.02M | -47.55M | -66.72M | -10.72M | Total Liabilities |
| 235.26M | 214.34M | 242.26M | 200.88M | 202.37M | Stockholders Equity |
| 1.02B | 526.82M | 506.22M | 463.58M | 423.68M |
| Cash Flow | Free Cash Flow | |||
| 80.64M | 74.07M | 106.86M | 70.50M | 61.92M | Operating Cash Flow |
| 99.29M | 88.81M | 121.20M | 86.14M | 76.78M | Investing Cash Flow |
| -140.56M | -18.10M | -111.19M | -15.90M | -23.17M | Financing Cash Flow |
| -27.93M | -65.40M | 4.34M | -20.71M | -61.33M |
CTS Technical Analysis
Negative
43.37
Price Trends
49.24
Negative
51.01
Negative
50.25
Negative
Market Momentum
-1.77
Positive
31.96
Neutral
15.12
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTS, the sentiment is Negative. The current price of 43.37 is below the 20-day moving average (MA) of 45.58, below the 50-day MA of 49.24, and below the 200-day MA of 50.25, indicating a bearish trend. The MACD of -1.77 indicates Positive momentum. The RSI at 31.96 is Neutral, neither overbought nor oversold. The STOCH value of 15.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CTS.
CTS Risk Analysis
CTS disclosed 35 risk factors in its most recent earnings report. CTS reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CTS Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $3.88B | 12.17 | 18.36% | 0.95% | -2.94% | 22.32% | |
69 Neutral | $2.32B | 42.03 | 3.60% | ― | 9.41% | ― | |
67 Neutral | $1.27B | 22.42 | 10.99% | 0.38% | -6.34% | -0.89% | |
67 Neutral | $9.55B | 671.94 | 1.65% | ― | 8.66% | ― | |
63 Neutral | $5.35B | 47.81 | 4.61% | 1.27% | -7.28% | -56.46% | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% | |
58 Neutral | $1.39B | 55.51 | 2.08% | ― | -8.62% | -53.84% |
* Technology Sector Average
Performance Comparison
CTS
CTS
43.37
-1.45
-3.24%
ENS
EnerSys
100.25
8.83
9.66%
LFUS
Littelfuse
217.68
-20.84
-8.74%
ROG
Rogers
77.77
-33.99
-30.41%
TTMI
TTM Technologies
23.16
8.21
54.92%
ALTR
Altair Engineering
111.32
27.82
33.32%
CTS Earnings Call Summary
Earnings Call Date: Feb 4, 2025 | % Change Since: -11.97% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong growth in diversified markets and improvements in gross margin, yet faced challenges with overall revenue decline, particularly in the transportation segment. Adjusted EPS also saw a slight drop. The company remains optimistic about future growth driven by strategic acquisitions and strong performance in specific sectors.Highlights
Diversified End Market Growth
Sales to diversified end markets increased by 28% year-over-year in Q4 and constituted 56% of the overall company revenue in Q4 and 51% for the full year 2024.
Gross Margin Improvement
Adjusted gross margin for the full year 2024 improved by 243 basis points compared to 2023, and by 394 basis points in Q4 year-over-year.
Aerospace and Defense Revenue Growth
Full year 2024 sales in the aerospace and defense sector were up 37% compared to 2023, indicating strong performance in this segment.
Medical Market Success
The company's medical market sales grew by 3% year-over-year for the full year 2024, with several new customer acquisitions and product wins.
Strong Cash Flow Generation
The company generated $99 million in operating cash flow for the full year, up from $89 million in 2023, and maintained a strong balance sheet.
Lowlights
Overall Revenue Decline
Full year 2024 sales were $516 million, down 6% from 2023, with transportation sales particularly impacted.
Transportation Revenue Decrease
Transportation sales declined by 18% in Q4 and 17% for the full year 2024 due to demand softness in China and competition in the commercial vehicle market.
Adjusted EPS Decline
Adjusted diluted EPS for the full year 2024 was $2.17, a decrease from $2.22 in 2023.
Industrial Market Challenges
Full year 2024 sales in the industrial market were down compared to 2023, although a gradual recovery is expected.
Company Guidance
During the CTS Corporation Fourth Quarter and Full Year 2024 Earnings Call, the company provided guidance for 2025, highlighting several key metrics and strategic focuses. Diversification remained a priority, with diversified markets contributing 56% of total revenue in Q4 2024. CEO Kieran O’Sullivan projected 2025 sales to be in the range of $520 million to $550 million, with adjusted diluted EPS expected between $2.20 and $2.35. The company anticipated solid growth in diversified markets, with a single-digit decline in transportation revenues. The integration of the SyQwest acquisition was expected to contribute positively, particularly in the second half of 2025. CTS highlighted improvements in profitability, with a full-year 2024 adjusted gross margin increase of 243 basis points, and adjusted EBITDA margin up by 80 basis points to 22.7%. The strategic focus on electrification, mobility, and high-quality end markets, alongside a strong balance sheet for acquisitions, was set to drive future growth.CTS Corporate Events
M&A TransactionsBusiness Operations and Strategy
CTS Aims for Strategic Growth with Diverse Revenue Streams
Positive
Feb 4, 2025
In a recent investor presentation, CTS Corporation outlined its strategic growth plan focusing on a 10% organic and inorganic growth target. The company aims to capitalize on megatrends such as automation, healthcare innovation, and electrification, supported by a robust new product pipeline and strategic mergers and acquisitions. CTS’s diverse revenue streams, with a significant portion from non-transportation markets, illustrate its commitment to diversification. The company reported last twelve months’ revenue of $516 million as of December 2024 and highlighted its strong balance sheet as a foundation for continued expansion and value creation.
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
CTS Reports Mixed 2024 Financial Results and Strategic Growth
Neutral
Feb 4, 2025
CTS Corporation announced its financial results for the fourth quarter and full year of 2024, revealing a 2% year-over-year increase in fourth-quarter sales to $127 million and a 6% decline in full-year sales to $516 million, primarily due to a decrease in the transportation market. The company made significant strides in diversifying its business, with over 50% of revenue now coming from medical, industrial, and aerospace and defense markets. The acquisition of SyQwest contributed $14 million in additional revenue for the year, aligning with their strategic expansion in defense capabilities.
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.