CTS (CTS) AI Stock Analysis

• Market Cap: $1.26B
• Dividend Yield: 0.38%
• Average Volume (3M): 205.66K
• Price to Earnings (P/E): 21.3
• Beta (1Y): 1.32
• Revenue Growth: -2.76%
• EPS Growth: 16.64%
• Country: US
• Employees: 3,549
• Sector: Technology
• Sector Strength: 76
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.44
• Shares Outstanding: 29,843,811
• 10 Day Avg. Volume: 172,249
• 30 Day Avg. Volume: 205,665
• PEG Ratio: 4.21
• Price to Book (P/B): 2.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.38
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 0.59
• Enterprise Value/Gross Profit: 6.35
• Enterprise Value/Ebitda: 2.97
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: $46.00 ▲( 12.20% Upside)

CTS's overall score reflects a solid financial foundation with strong operational efficiency and a stable outlook from technical indicators. The company's strategic diversification and growth initiatives are positive, but revenue stagnation and external challenges weigh on the score.

CTS Business Overview & Revenue Model

Company Description

CTS Corporation manufactures and sells sensors, actuators, and connectivity components in North America, Europe, and Asia. The company provides sensors and actuators for use in passenger or commercial vehicles; connectivity components for telecommunications infrastructure, information technology, and other high-speed applications; switches, temperature sensors, and potentiometers supplied to multiple markets; and fabricated piezoelectric materials and substrates used primarily in medical, industrial, aerospace and defense, and information technology markets. In addition, the company sells and markets its products through its sales engineers, independent manufacturers' representatives, and distributors. CTS Corporation was founded in 1896 and is headquartered in Lisle, Illinois.

How the Company Makes Money

CTS 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 a robust financial position with solid profitability and cash flow metrics. While revenue growth has faced challenges, the company maintains strong operational margins and a healthy balance sheet. Continued focus on revenue expansion and managing cash flow volatility will be key to sustaining financial performance.

Income Statement

The income statement of CTS depicts a stable gross profit margin and improving net income over the TTM period. However, there is a noticeable decline in total revenue compared to previous years, indicating potential challenges in revenue growth. Despite this, the company maintains decent EBIT and EBITDA margins, showcasing operational efficiency.

Balance Sheet

CTS exhibits a strong balance sheet with a high equity ratio and manageable debt levels, reflected in a moderate debt-to-equity ratio. The company has a solid return on equity, indicating effective utilization of shareholder funds. However, fluctuations in total assets and equity warrant close monitoring.

Cash Flow

The cash flow statement indicates a healthy operating cash flow with a consistent free cash flow generation over the years. The free cash flow to net income ratio is strong, suggesting efficient cash conversion from earnings. However, investing and financing cash flows show volatility, which could impact future liquidity.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
515.72M	515.77M	550.42M	586.87M	512.92M	424.07M
	Gross Profit
190.92M	189.15M	190.86M	210.54M	184.62M	139.06M
	EBIT
76.03M	72.78M	75.05M	55.09M	78.17M	23.91M
	EBITDA
93.88M	108.17M	107.19M	113.22M	-32.58M	71.98M
	Net Income Common Stockholders
60.36M	58.11M	60.53M	59.58M	-41.87M	34.69M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
90.29M	94.33M	163.88M	156.91M	141.47M	91.77M
	Total Assets
765.53M	766.11M	741.17M	748.49M	664.46M	626.05M
	Total Debt
112.20M	117.09M	96.86M	109.36M	74.75M	81.06M
	Net Debt
21.91M	22.76M	-67.02M	-47.55M	-66.72M	-10.72M
	Total Liabilities
227.29M	235.26M	214.34M	242.26M	200.88M	202.37M
	Stockholders Equity
538.24M	530.85M	526.82M	506.22M	463.58M	423.68M
Cash Flow		Free Cash Flow
77.42M	80.64M	74.07M	106.86M	70.50M	61.92M
	Operating Cash Flow
96.50M	99.29M	88.81M	121.20M	86.14M	76.78M
	Investing Cash Flow
-140.99M	-140.56M	-18.10M	-111.19M	-15.90M	-23.17M
	Financing Cash Flow
-27.53M	-27.93M	-65.40M	4.34M	-20.71M	-61.33M

CTS Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 41.00
• 50DMA: Positive
• 100DMA: Negative
• 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 Negative. The current price of 41 is above the 20-day moving average (MA) of 40.71, above the 50-day MA of 40.29, and below the 200-day MA of 47.24, indicating a neutral trend. The MACD of 0.73 indicates Negative momentum. The RSI at 50.97 is Neutral, neither overbought nor oversold. The STOCH value of 59.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CTS.

CTS Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TTMI	73 Outperform	$2.98B	38.60	5.02%	―	11.65%	―
CTS	73 Outperform	$1.26B	21.32	11.39%	0.38%	-2.76%	16.64%
BHE	68 Neutral	$1.34B	25.65	4.84%	1.82%	-7.36%	-20.46%
VICR	65 Neutral	$1.97B	81.14	4.16%	―	-14.92%	-91.72%
ROG	64 Neutral	$1.27B	73.36	1.34%	―	-8.06%	-75.10%
Sector *	60 Neutral	$11.56B	10.24	-7.04%	2.94%	7.46%	-10.54%
MLAB	51 Neutral	$626.60M	―	-89.38%	0.55%	11.68%	-26360.70%

CTS Corporate Events

CTS Shareholders Approve Key Proposals at Annual Meeting

On May 8, 2025, CTS held its Annual Meeting of Shareholders where all director nominees were successfully elected, and Proposals 2 and 3 were approved. The meeting included the election of seven directors and the approval of executive compensation and the appointment of Grant Thornton, LLP as the independent registered public accounting firm for the year ending December 31, 2025.

The most recent analyst rating on (CTS) stock is a Hold with a $46.00 price target. To see the full list of analyst forecasts on CTS stock, see the CTS Stock Forecast page.

CTS Reports Q1 2025 Financial Results

CTS Corporation announced its financial results for the first quarter of 2025, reporting flat sales of $126 million compared to the previous year, with a 14% increase in sales to diversified markets but a 12% decline in the transportation sector. The company achieved a net income of $13 million, up from $11 million in the first quarter of 2024, and earnings per diluted share increased to $0.44. Despite economic pressures and tariff uncertainties, CTS remains committed to revenue growth and quality of earnings through diversification and strategic acquisitions.

CTS Corporation Highlights Strategic Growth Initiatives

CTS Corporation has released 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 achieve 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 strategic M&A initiatives. The company also emphasizes its commitment to sustainability and efficiency, with a focus on enhancing its core capabilities and expanding its market presence.

CTS Announces Resignation of Chief Legal Officer

On March 5, 2025, Scott D’Angelo, Vice President, Chief Legal and Administrative Officer and Corporate Secretary of CTS Corporation, announced his resignation effective April 4, 2025. His departure was a personal decision to pursue another opportunity and was not due to any disagreement with the company.