CTS (CTS) AI Stock Analysis

• Market Cap: $1.54B
• Dividend Yield: 0.36%
• Average Volume (3M): 206.01K
• Price to Earnings (P/E): 23.8
• Beta (1Y): 1.41
• Revenue Growth: 3.70%
• EPS Growth: 1.68%
• Country: US
• Employees: 3,549
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.62
• Shares Outstanding: 29,052,423
• 10 Day Avg. Volume: 262,823
• 30 Day Avg. Volume: 206,011
• PEG Ratio: 1.23
• Price to Book (P/B): 2.29
• Price to Sales (P/S): 2.34
• P/FCF Ratio: 14.65
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 3.01
• Enterprise Value/Gross Profit: 7.90
• Enterprise Value/Ebitda: 13.80
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $58.00 ▲(36.21% Upside)
• Action: Downgraded Date: 02/25/26
• Date: Action: Downgraded 02/25/26

The score is driven primarily by solid and improving financial performance (higher margins, low leverage, positive free cash flow) and supportive 2026 guidance highlighting continued diversification and profitability gains. Offsetting factors are mixed near-term technical signals and a valuation profile that offers limited yield and no clear discount, alongside ongoing transportation and timing-related demand risks.

Positive Factors

Diversification into higher-margin end markets

CTS has materially shifted its revenue mix toward industrial, medical and aerospace (57% of revenue). This durable diversification reduces reliance on cyclical transportation volumes, improves revenue stability and supports higher-margin product sales and steadier earnings over coming quarters.

Margin expansion and improving profitability

Sustained gross- and EBITDA-margin expansion reflects improved product mix, pricing and operational leverage. Higher, durable margins increase free cash flow potential, fund R&D and strategic investments, and provide a structural cushion against demand softness across cycles.

Consistent positive free cash flow

Consistent and growing free cash flow gives CTS financial flexibility to repurchase shares, invest in new products and fund M&A. Reliable cash generation reduces external funding dependence and supports durable capital allocation even if revenue timing remains uneven.

Negative Factors

Transportation end-market exposure

Transportation remains a large revenue component and is exposed to China auto dynamics and commercial vehicle softness. Structural weakness or slower EV investment cycles in these markets can meaningfully drag consolidated revenue and delay the company's shift toward higher‑quality end markets.

Revenue cyclicality and uneven momentum

The top line has shown multi-year variability, reflecting customer/program timing and end-market cycles. Persistent uneven revenue momentum complicates capacity planning, creates margin and cash-conversion volatility, and weakens predictability of multi-quarter growth sustainability.

Timing volatility in defense contracts and product ramps

Dependence on government contract timing and long product qualification cycles (e.g., slower SideQuest and later floor‑hinge ramps) makes revenue lumpier. This timing risk can delay backlog conversion, cause quarter-to-quarter variability and extend the payback period on program investments.

CTS Business Overview & Revenue Model

Company Description

CTS Corporation (CTS) is a global leader in the design and manufacture of sensors, actuators, and electronic components. The company serves a diverse range of sectors, including automotive, aerospace and defense, communications, medical, and industrial markets. CTS's core products include piezoelectric sensors, timing devices, and advanced electronic components that enhance the performance and reliability of a wide array of applications.

How the Company Makes Money

CTS generates revenue primarily through the sale of its electronic components and sensors to various industries. The company operates on a B2B model, supplying its products to OEMs (original equipment manufacturers) and Tier 1 suppliers. Key revenue streams include sales of piezoelectric devices, timing products, and custom-engineered solutions tailored to specific customer needs. CTS also benefits from long-term contracts and partnerships with major industry players, which provide recurring revenue and stability. Additionally, the company invests in research and development to innovate and expand its product offerings, aiming to capture emerging market opportunities and increase its market share.

CTS Financial Statement Overview

Summary

Fundamentals are healthy with improving profitability (gross margin up to ~38% and net margin ~12% in 2025) and consistently positive free cash flow. Leverage is conservative (debt-to-equity ~0.18–0.22) with solid ROE (~11–12%). Offsets include uneven revenue momentum (declines in 2023–2024 before 2025 growth) and some cash-conversion volatility versus net income in several years.

Income Statement

Profitability is solid and improving: gross margin expanded from ~33% (2020) to ~38% (2025), and net margin improved to ~12% (2025) after a loss year in 2021. Earnings have been consistently positive since 2022 with healthy operating profitability (EBIT margin ~14–16% from 2022–2025). The key weakness is uneven top-line momentum—revenue declined in 2023 and 2024 before returning to growth in 2025, indicating demand cyclicality or customer/program timing risk.

Balance Sheet

Leverage looks conservative, with debt-to-equity staying low and stable (~0.18–0.22 from 2022–2025), and equity building over time. Returns on equity are healthy in the ~11–12% range (2022–2025), reflecting decent profitability on a strengthening capital base. The main drawback is the 2021 loss year (negative return on equity), which highlights that results can be sensitive in weaker operating environments, even if the current balance sheet is not heavily levered.

Cash Flow

Cash generation is generally strong: free cash flow is consistently positive (2020–2025) and has been growing recently (notably in 2025). Free cash flow tracks earnings reasonably well (free cash flow running at ~81–88% of net income from 2022–2025), supporting earnings quality. The weakness is that operating cash flow has not consistently covered net income (coverage below 1.0 in several years, including 2023 and 2025), suggesting working-capital timing or conversion volatility despite solid free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	531.63M	541.32M	515.54M	550.55M	586.87M	512.92M
Gross Profit	202.55M	208.03M	188.21M	188.19M	209.61M	183.24M
EBITDA	115.91M	118.54M	108.17M	109.50M	113.22M	-32.58M
Net Income	59.19M	65.32M	58.11M	60.53M	59.58M	-41.87M
Balance Sheet
Total Assets	790.37M	764.31M	766.11M	741.17M	748.49M	664.46M
Cash, Cash Equivalents and Short-Term Investments	110.30M	82.30M	94.33M	163.88M	156.91M	141.47M
Total Debt	139.97M	121.91M	117.09M	96.86M	109.36M	74.75M
Total Liabilities	242.72M	212.53M	235.26M	214.34M	242.26M	200.88M
Stockholders Equity	547.65M	551.79M	530.85M	526.82M	506.22M	463.58M
Cash Flow
Free Cash Flow	80.20M	86.37M	80.64M	74.07M	106.86M	70.50M
Operating Cash Flow	98.85M	102.11M	99.29M	88.81M	121.20M	86.14M
Investing Cash Flow	-18.64M	-18.51M	-140.56M	-18.10M	-111.19M	-15.90M
Financing Cash Flow	-67.84M	-98.44M	-27.93M	-65.40M	4.34M	-20.71M

CTS Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 42.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTS, the sentiment is Neutral. The current price of 42.58 is below the 20-day moving average (MA) of 54.11, below the 50-day MA of 49.09, and below the 200-day MA of 43.35, indicating a neutral trend. The MACD of 1.34 indicates Positive momentum. The RSI at 51.67 is Neutral, neither overbought nor oversold. The STOCH value of 13.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CTS.

CTS Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BELFB	76 Outperform	$2.93B	46.56	15.66%	0.16%	23.70%	14.78%
CTS	68 Neutral	$1.54B	23.84	10.98%	0.36%	3.70%	1.68%
ROG	68 Neutral	$1.93B	-32.35	-5.34%	―	-4.87%	-235.48%
DAKT	66 Neutral	$1.33B	201.62	2.64%	―	-6.13%	-76.92%
BHE	64 Neutral	$2.13B	85.00	3.37%	1.44%	-2.93%	-40.33%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MEI	56 Neutral	$309.47M	-4.94	-8.87%	5.93%	-9.51%	29.57%

CTS Corporate Events

CTS Delivers Strong Q4 2025 Results Amid Diversification

On February 10, 2026, CTS reported strong fourth-quarter and full-year 2025 results, underscoring the success of its diversification strategy as sales to industrial, aerospace and defense, and medical end markets grew 16% and reached 57% of total revenue. Fourth-quarter sales rose 9% to $137 million, with net income jumping to $20 million and adjusted gross and EBITDA margins improving, despite a 1% decline in transportation sales.

For 2025 overall, CTS lifted sales 5% to $541 million, expanded net income to $65 million, and delivered higher diluted and adjusted diluted EPS alongside stronger cash generation of $102 million. While transportation revenues fell 7% for the year, management highlighted margin expansion, increased operating cash flow and new transportation product offerings and awards as reinforcing the company’s shift toward higher-quality, diversified earnings.

The most recent analyst rating on (CTS) stock is a Buy with a $59.00 price target. To see the full list of analyst forecasts on CTS stock, see the CTS Stock Forecast page.

CTS Highlights Growth Strategy in February 2026 Investor Update

CTS Corporation has presented an investor update for February 2026 outlining its financial profile and strategic positioning, highlighting last-12-month revenue of $541 million as of December 2025, an adjusted EBITDA margin of 23%, adjusted diluted EPS of $2.23 and a growing mix of diversified end markets now contributing 57% of sales. Management emphasized its goal of delivering about 10% total growth through a combination of mid‑single‑digit organic expansion and strategic M&A, leveraging megatrends such as automation, healthcare innovation and electrification, and underscored strong double‑digit year‑over‑year revenue growth in its industrial, medical, and aerospace and defense segments, signaling an ongoing shift away from transportation concentration and reinforcing CTS’s positioning in higher‑growth, technology‑driven niches.

The most recent analyst rating on (CTS) stock is a Buy with a $59.00 price target. To see the full list of analyst forecasts on CTS stock, see the CTS Stock Forecast page.

CTS Announces Leadership Changes with New COO

On November 21, 2025, Martin Baumeister announced his resignation as Senior Vice President of CTS Corporation, effective December 5, 2025, to pursue another opportunity. His departure was not due to any disagreement with the company. Pratik Trivedi has been appointed as the new Chief Operating Officer of CTS, effective the same date. Mr. Trivedi, who joined CTS in April 2024, previously held significant roles at Eaton Corporation and Cummins, Inc. His appointment does not involve any changes to his compensation or equity.

The most recent analyst rating on (CTS) stock is a Hold with a $44.00 price target. To see the full list of analyst forecasts on CTS stock, see the CTS Stock Forecast page.