CTS (CTS) AI Stock Analysis

• Market Cap: $1.26B
• Dividend Yield: 0.38%
• Average Volume (3M): 204.43K
• Price to Earnings (P/E): 19.8
• Beta (1Y): 1.47
• Revenue Growth: 1.16%
• EPS Growth: 19.81%
• Country: US
• Employees: 3,549
• Sector: Technology
• Sector Strength: 84
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.57
• Shares Outstanding: 29,476,637
• 10 Day Avg. Volume: 146,957
• 30 Day Avg. Volume: 204,425
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 2.48
• Enterprise Value/Gross Profit: 6.56
• Enterprise Value/Ebitda: 11.72
• 1Y Price Target: $48.00
• Price Target Upside: 12.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: $48.00 ▲(12.70% Upside)

CTS Corporation's overall stock score reflects its strong financial performance and positive earnings call, highlighting growth in diversified markets and robust cash flow. The technical analysis supports a stable outlook, while the valuation is fair. Challenges in the transportation market and geopolitical pressures are notable risks but are balanced by strategic growth initiatives.

CTS Business Overview & Revenue Model

Company Description

CTS Corporation (CTS) is a global leader in the design and manufacturing of sensors, electronic components, and connectivity solutions. The company operates primarily in the aerospace and defense, industrial, medical, and telecommunications sectors. CTS offers a diverse range of products including piezoelectric sensors, capacitors, and frequency control devices that are essential for various electronic applications.

How the Company Makes Money

CTS generates revenue through the sale of its electronic components and sensors to a wide array of industries. The company's key revenue streams include the production of sensors and actuators for aerospace and defense applications, as well as electronic components for industrial and medical devices. Additionally, CTS benefits from long-term relationships with major clients and strategic partnerships that enhance its market presence and drive sales. Their focus on innovation and the development of advanced technologies also contributes to increased demand for their products, further solidifying their revenue model.

CTS Financial Statement Overview

Summary

CTS demonstrates a strong financial position with solid profitability and cash flow generation. Revenue growth is consistent, although there are fluctuations that need monitoring. The balance sheet is robust, with low leverage and strong equity. Overall, the company is financially sound with good potential for sustainable growth, subject to managing revenue fluctuations and maintaining profitability.

Income Statement

CTS has shown consistent revenue growth with a TTM revenue of $520.9M, indicating a positive growth trajectory. The gross profit margin stands at 37.76%, and the net profit margin is at 12.32%, both healthy indicators of profitability. However, the revenue growth rate has fluctuated in recent years, with a decline from 2023 to 2024. EBIT and EBITDA margins are strong at 15.26% and 21.15% respectively, demonstrating effective cost management.

Balance Sheet

The company's balance sheet is stable with a debt-to-equity ratio of 0.13, indicating low leverage and financial risk. The return on equity stands at 6.05%, reflecting moderate efficiency in generating returns on equity. The equity ratio of 135.10% suggests strong equity financing and a solid financial structure. However, stockholders' equity has increased significantly, which could dilute returns if not matched by growth in net income.

Cash Flow

Cash flow metrics indicate a well-managed cash position with a free cash flow of $87.5M in the TTM. The operating cash flow to net income ratio is robust at 1.64, suggesting efficient conversion of net income into cash. Free cash flow growth has been healthy, although capital expenditures have been a constant drain on cash flow. The company's ability to generate free cash flow is a positive indicator.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	520.94M	515.77M	550.42M	586.87M	512.92M	424.07M
Gross Profit	196.67M	189.15M	190.86M	210.54M	184.62M	139.06M
EBITDA	110.19M	108.17M	107.19M	113.22M	-32.58M	74.99M
Net Income	64.18M	58.11M	60.53M	59.58M	-41.87M	34.69M
Balance Sheet
Total Assets	784.73M	766.11M	741.17M	748.49M	664.46M	626.05M
Cash, Cash Equivalents and Short-Term Investments	99.44M	94.33M	163.88M	156.91M	141.47M	91.77M
Total Debt	137.32M	117.09M	96.86M	109.36M	74.75M	81.06M
Total Liabilities	234.57M	235.26M	214.34M	242.26M	200.88M	202.37M
Stockholders Equity	1.06B	530.85M	526.82M	506.22M	463.58M	423.68M
Cash Flow
Free Cash Flow	87.50M	80.64M	74.07M	106.86M	70.50M	61.92M
Operating Cash Flow	105.22M	99.29M	88.81M	121.20M	86.14M	76.78M
Investing Cash Flow	-139.63M	-140.56M	-18.10M	-111.19M	-15.90M	-23.17M
Financing Cash Flow	-28.23M	-27.93M	-65.40M	4.34M	-20.71M	-61.33M

CTS Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 42.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTS, the sentiment is Positive. The current price of 42.59 is above the 20-day moving average (MA) of 41.67, above the 50-day MA of 41.65, and below the 200-day MA of 44.75, indicating a neutral trend. The MACD of 0.42 indicates Negative momentum. The RSI at 56.30 is Neutral, neither overbought nor oversold. The STOCH value of 41.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CTS.

CTS Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TTMI	79 Outperform	$4.64B	51.88	5.89%	―	14.24%	424.78%
VICR	77 Outperform	$2.27B	34.80	11.44%	―	2.46%	572.04%
CTS	76 Outperform	$1.26B	19.82	11.96%	0.38%	1.16%	19.81%
BHE	69 Neutral	$1.44B	38.30	3.49%	1.69%	-5.95%	-43.46%
ROG	62 Neutral	$1.44B	72.21	-5.25%	―	-7.61%	-212.91%
Sector *	61 Neutral	$35.51B	8.11	-11.05%	1.89%	8.55%	-8.72%
MLAB	49 Neutral	$353.25M	―	-0.38%	1.04%	8.33%	99.75%

CTS Corporate Events

CTS Corporation Highlights Growth Strategy in Investor Presentation

CTS Corporation presented an investor presentation for the fiscal year ending December 31, 2025, highlighting its strategic focus on growth and diversification across various end markets. The company aims to deliver 10% organic and inorganic growth by leveraging its deep custom engineered capabilities, strong customer relationships, and a robust new product pipeline. CTS is positioned to capitalize on megatrends such as automation, healthcare innovation, and electrification, supported by a strong balance sheet and cash flow to pursue strategic mergers and acquisitions. The company’s diversified end markets, including industrial, medical, and aerospace and defense, show promising growth prospects with significant revenue contributions and market opportunities.

CTS Reports Q2 2025 Financial Results with Growth

On July 24, 2025, CTS Corporation announced its financial results for the second quarter of 2025, reporting a 4% year-over-year increase in sales to $135 million. The company achieved a net income of $19 million, up from $15 million in the same quarter of 2024, and an adjusted EBITDA margin of 23.0%. Despite a 6% decrease in sales to the transportation market, sales to diversified end markets grew by 13%. CTS maintains its 2025 guidance for sales and adjusted diluted EPS, indicating a focus on strategic diversification through organic growth and acquisitions.

CTS Appoints Mark Pacioni as Chief Legal Officer

On July 1, 2025, CTS Corporation appointed Mark Pacioni as Chief Legal & Administrative Officer and Corporate Secretary. Mr. Pacioni brings over 30 years of legal experience, having previously served in senior roles at CareerBuilder, LLC, and its successor, as well as at Knowles Corp., Molex, Inc., and Boeing. His extensive background is expected to contribute significantly to CTS’s global strategy and business diversification efforts.