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CTS
(NYSE:CTS)
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Rating:73Outperform
Price Target:
$67.00
▲(11.69% Upside)
Action:Reiterated
Date:07/28/26
The score is driven primarily by strong fundamentals and a very constructive earnings update (raised guidance, record margins, strong bookings/backlog and cash generation). These positives are tempered by mixed/uneven longer-term revenue growth in the financial statements, modest near-term technical weakness versus the 50-day moving average, and a valuation that looks more mid-to-high (P/E ~25) with a low dividend yield.
Positive Factors
Strong cash generation
Consistent, high free cash flow relative to net income demonstrates durable earnings quality and internal funding capacity. This supports capex for capacity expansion, strategic M&A, buybacks and debt flexibility, reducing reliance on external financing across a 2–6 month horizon and beyond.
Negative Factors
Transportation revenue softness
Ongoing weakness and flat-to-declining light vehicle production make transportation a volatile revenue bucket. Given legacy exposure and program ramp risks, prolonged softness could materially depress overall revenue and pressure margins until higher‑value diversified programs fully offset declines.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent, high free cash flow relative to net income demonstrates durable earnings quality and internal funding capacity. This supports capex for capacity expansion, strategic M&A, buybacks and debt flexibility, reducing reliance on external financing across a 2–6 month horizon and beyond.
Read all positive factors
CTS (CTS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.83B
Dividend Yield0.25%
Average Volume (3M)309.65K
Price to Earnings (P/E)26.5
Beta (1Y)1.44
Revenue Growth8.48%
EPS Growth13.14%
CountryUS
Employees3,492
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)2.42
Shares Outstanding28,556,194
10 Day Avg. Volume185,122
30 Day Avg. Volume309,654
Financial Highlights & Ratios
PEG Ratio1.24
Price to Book (P/B)2.29
Price to Sales (P/S)2.33
P/FCF Ratio14.65
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.43
Revenue Forecast (FY)$571.09M
CTS Business Overview & Revenue Model
Company Description
CTS Corporation is a global enterprise specializing in the production and distribution of vital electronic components, such as sensors, actuators, and connectivity solutions, with operations spanning North America, Europe, and Asia. Its extensive ...
How the Company Makes Money
CTS makes money primarily by selling manufactured products and, where applicable, related engineering/manufacturing services to OEMs and other industrial customers. Key revenue streams include: (1) Sensors: revenue from the sale of sensor products...
CTS Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive tone: the company reported record margins, record adjusted EPS, revenue growth, strong bookings/backlog, robust cash generation, and raised full-year guidance—driven largely by diversified end market strength (medical, industrial, aerospace & defense). Offsetting risks include modest declines in transportation revenue, a year-over-year drop in aerospace driven by timing, one-time FX and reimbursement benefits that aided comparability, ongoing tariff and input-cost pressures, and some program/competitive uncertainty in transportation. On balance, the positive operational and financial momentum materially outweighs the noted headwinds.Positive Updates
Revenue Growth
Second quarter sales of $144.8M (rounded to $145M) increased 7% year-over-year and 4% sequentially, driven by strength in diversified end markets.
Negative Updates
Transportation Revenue Softness
Transportation sales were $59M, down 2% year-over-year and down 2% sequentially. Global light vehicle production is expected to be flat to modestly down amid tariff, geopolitical, and demand uncertainties, creating uncertainty in near-term transportation volumes.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Second quarter sales of $144.8M (rounded to $145M) increased 7% year-over-year and 4% sequentially, driven by strength in diversified end markets.
Read all positive updates
Company Guidance
Management raised 2026 guidance to full‑year sales of $565–$585 million and adjusted diluted EPS of $2.55–$2.70, assuming current market conditions, while reiterating a full‑year tax rate of about 21–23% (ex‑discretes); that outlook reflects a strong Q2 with sales of $144.8M (+7% YoY, +4% sequential), diversified sales up 15% and comprising 59% of revenue (transportation down 2%), total booked business of ~$1.2B (up ~$100M QoQ) and Q2 book‑to‑bill 1.1 (diversified 1.17; medical 1.21; aerospace 1.23; industrial 1.11). Financials underpinning the guidance include a record adjusted gross margin of 41.5% (+270 bps YoY), adjusted EBITDA margin of 25.4% (+~240 bps), Q2 adjusted EPS $0.74 (vs. $0.57 prior year; ~+$0.07 benefit from FX and customer reimbursement), Q2 operating cash flow $33M, capex $4.6M, free cash flow ~$29M, cash balance $108M, borrowings $55M, and $3.5M of buybacks (64k shares) with $78M remaining; sector outlooks are for continued strength in medical/industrial/aerospace (H2 improvement in aerospace) and flat‑to‑modestly down light‑vehicle production but modest commercial‑vehicle growth.CTS Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 564.82M | 542.16M | 515.54M | 550.55M | 586.87M | 512.92M |
| Gross Profit | 222.13M | 208.73M | 188.21M | 188.19M | 209.61M | 183.24M |
| EBITDA | 131.86M | 123.81M | 108.17M | 109.50M | 113.22M | -32.58M |
| Net Income | 69.78M | 65.32M | 58.11M | 60.53M | 59.58M | -41.87M |
Balance Sheet | ||||||
| Total Assets | 791.53M | 764.31M | 766.11M | 741.17M | 748.49M | 664.46M |
| Cash, Cash Equivalents and Short-Term Investments | 107.54M | 82.30M | 94.33M | 163.88M | 156.91M | 141.47M |
| Total Debt | 115.68M | 121.91M | 117.09M | 96.86M | 109.36M | 74.75M |
| Total Liabilities | 218.72M | 212.53M | 235.26M | 214.34M | 242.26M | 200.88M |
| Stockholders Equity | 572.82M | 551.79M | 530.85M | 526.82M | 506.22M | 463.58M |
Cash Flow | ||||||
| Free Cash Flow | 91.41M | 86.37M | 80.64M | 74.07M | 106.86M | 70.50M |
| Operating Cash Flow | 108.97M | 102.11M | 99.29M | 88.81M | 121.20M | 86.14M |
| Investing Cash Flow | -17.46M | -18.51M | -140.56M | -18.10M | -111.19M | -15.90M |
| Financing Cash Flow | -84.79M | -98.44M | -27.93M | -65.40M | 4.34M | -20.71M |
CTS Technical Analysis
Positive
59.99
Price Trends
63.31
Positive
58.30
Positive
52.33
Positive
Market Momentum
0.30
Negative
59.05
Neutral
71.42
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 59.99 is below the 20-day moving average (MA) of 60.85, below the 50-day MA of 63.31, and above the 200-day MA of 52.33, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 59.05 is Neutral, neither overbought nor oversold. The STOCH value of 71.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CTS.
CTS Risk Analysis
CTS disclosed 76 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.21B | 71.37 | 2.61% | ― | 4.90% | ― | |
73 Outperform | $1.83B | 26.50 | 10.02% | 0.27% | 8.48% | 13.14% | |
72 Outperform | $955.01M | 21.21 | 15.49% | ― | 10.87% | ― | |
68 Neutral | $2.87B | 53.90 | 3.85% | 0.84% | 8.87% | 39.10% | |
67 Neutral | $3.76B | 67.99 | 10.97% | 0.10% | 25.26% | -2.96% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
49 Neutral | $496.25M | -13.87 | -5.25% | 1.31% | -2.76% | 42.91% |
* Technology Sector Average
CTS
CTS
65.23
26.37
67.86%
BELFB
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274.83
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BHE
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80.96
41.89
107.20%
DAKT
Daktronics
20.71
4.02
24.09%
MEI
Methode Electronics
14.07
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131.03%
ROG
Rogers
125.59
55.92
80.26%
CTS Corporate Events
Business Operations and StrategyFinancial Disclosures
CTS Lifts 2026 Outlook on Strong Q2 Results
Positive
Jul 28, 2026
CTS Corporation reported on July 28, 2026, that second-quarter 2026 sales rose 7% year over year to $144.8 million, with diversified end-market revenue up 15% and now accounting for 59% of total sales, while transportation revenue slipped 2%. Net ...
Business Operations and StrategyFinancial Disclosures
CTS Highlights Growth Strategy in July 2026 Investor Presentation
Positive
Jul 28, 2026
In July 2026, CTS released an investor presentation outlining its financial profile and growth strategy, highlighting last-twelve-month revenue of $564 million, an adjusted EBITDA margin of 24% and adjusted diluted EPS of $2.58, supported by a 10%...
Executive/Board Changes
CTS appoints Pratik Trivedi as new CEO
Neutral
Jun 25, 2026
On June 25, 2026, CTS Corporation announced that President and CEO Kieran O’Sullivan will step down from his executive roles effective July 6, 2026, transitioning to Executive Chairman while retaining his board seat. In his new role, O’...
Executive/Board ChangesShareholder Meetings
CTS Shareholders Reinforce Governance, Executive Pay and Auditor
Positive
May 19, 2026
CTS reported the results of its Annual Meeting of Shareholders held on May 14, 2026, where all eight director nominees were elected with substantial support, reaffirming the company’s existing governance structure. Shareholders also approved...
Business Operations and StrategyFinancial Disclosures
CTS Delivers Strong Q1 2026 Results, Narrows Guidance
Positive
Apr 29, 2026
On April 29, 2026, CTS reported strong first‑quarter 2026 results, with sales rising 11% year over year to $139 million, driven by an 18% increase in diversified end‑market revenue and a 3% gain in transportation sales. Net income grew...
Business Operations and StrategyFinancial Disclosures
CTS Highlights Diversified Growth Strategy in April Presentation
Positive
Apr 29, 2026
In an April 2026 investor presentation, CTS reported last-12-month revenue of $555 million as of March 2026, with an adjusted EBITDA margin of 23%, adjusted diluted EPS of $2.41 and a 10% revenue CAGR supported by a strong balance sheet. The compa...
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.