CTS (CTS) AI Stock Analysis

• Market Cap: $1.29B
• Dividend Yield: 0.36%
• Average Volume (3M): 189.96K
• Price to Earnings (P/E): 22.6
• Beta (1Y): 1.46
• Revenue Growth: 3.70%
• EPS Growth: 1.68%
• Country: US
• Employees: 3,549
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.60
• Shares Outstanding: 29,052,423
• 10 Day Avg. Volume: 213,572
• 30 Day Avg. Volume: 189,959
• PEG Ratio: -26.63
• Price to Book (P/B): 3.02
• Price to Sales (P/S): 3.11
• P/FCF Ratio: 19.88
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 2.24
• Enterprise Value/Gross Profit: 5.88
• Enterprise Value/Ebitda: 10.27
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 2.24
• Revenue Forecast (FY): $530.61M

• Rating: 73 Outperform
• Price Target: $50.00 ▲(17.43% Upside)

CTS's overall stock score reflects a stable financial position with strong profitability and low leverage. The technical indicators show a bullish trend, and recent corporate events and earnings call highlight strategic growth initiatives. However, valuation concerns and challenges in specific sectors like transportation slightly temper the overall outlook.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility for future investments and growth opportunities.

Strategic Growth Initiatives

Strategic initiatives targeting growth and diversification position CTS to capitalize on industry trends and expand its market share.

Diversified End Markets Growth

Strong growth in diversified markets like medical and aerospace enhances revenue stability and reduces reliance on any single sector.

Negative Factors

Decline in Transportation Sales

A decline in transportation sales indicates challenges in this sector, potentially impacting overall revenue growth if not addressed.

Adverse Impact from U.S. Tax Legislation

Changes in tax legislation can reduce net income and affect financial performance, requiring strategic adjustments to mitigate impacts.

Lower Operating Cash Flow

A decline in operating cash flow may constrain the company's ability to fund operations and growth initiatives without additional financing.

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

CTS demonstrates a stable financial position with strong profitability and low leverage. While revenue and cash flow growth are areas to watch, the company maintains healthy margins and a solid balance sheet, positioning it well for future opportunities.

Income Statement

CTS shows a solid performance with a consistent gross profit margin of around 38% in the TTM, indicating effective cost management. The net profit margin is stable at approximately 11%, reflecting good profitability. Revenue growth is modest at 2.02% in the TTM, suggesting steady but slow growth. The EBIT and EBITDA margins are healthy, supporting operational efficiency.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.13 in the TTM, indicating low leverage and financial stability. Return on equity is moderate at 8.79%, showing decent returns for shareholders. However, the equity ratio is not provided, which limits a full assessment of asset financing.

Cash Flow

Cash flow analysis reveals a slight decline in free cash flow growth by -8.34% in the TTM, which could be a concern if the trend continues. The operating cash flow to net income ratio is slightly above 1, indicating good cash generation relative to net income. The free cash flow to net income ratio is strong at 0.83, showing efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	531.63M	515.54M	550.55M	586.87M	512.92M	424.19M
Gross Profit	202.55M	188.21M	188.19M	209.61M	183.24M	139.94M
EBITDA	115.91M	108.17M	109.50M	113.22M	-32.58M	74.99M
Net Income	59.19M	58.11M	60.53M	59.58M	-41.87M	34.69M
Balance Sheet
Total Assets	790.37M	766.11M	741.17M	748.49M	664.46M	626.05M
Cash, Cash Equivalents and Short-Term Investments	110.30M	94.33M	163.88M	156.91M	141.47M	91.77M
Total Debt	132.56M	117.09M	96.86M	109.36M	74.75M	81.06M
Total Liabilities	242.72M	235.26M	214.34M	242.26M	200.88M	202.37M
Stockholders Equity	547.65M	530.85M	526.82M	506.22M	463.58M	423.68M
Cash Flow
Free Cash Flow	80.20M	80.64M	74.07M	106.86M	70.50M	61.92M
Operating Cash Flow	98.85M	99.29M	88.81M	121.20M	86.14M	76.78M
Investing Cash Flow	-18.64M	-140.56M	-18.10M	-111.19M	-15.90M	-23.17M
Financing Cash Flow	-67.84M	-27.93M	-65.40M	4.34M	-20.71M	-61.33M

CTS Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 42.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 42.58 is below the 20-day moving average (MA) of 43.37, above the 50-day MA of 41.83, and above the 200-day MA of 41.25, indicating a bullish trend. The MACD of 0.71 indicates Positive momentum. The RSI at 51.48 is Neutral, neither overbought nor oversold. The STOCH value of 44.88 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
CTS	73 Outperform	$1.29B	22.63	10.98%	0.36%	3.70%	1.68%
BELFB	73 Outperform	$2.13B	33.79	16.40%	0.16%	23.70%	14.78%
BHE	70 Neutral	$1.63B	44.57	3.37%	1.44%	-2.93%	-40.33%
DAKT	67 Neutral	$935.96M	140.27	2.64%	―	-6.13%	-76.92%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ROG	58 Neutral	$1.66B	-25.32	-5.34%	―	-4.87%	-235.48%
MEI	50 Neutral	$237.94M	-3.76	-8.87%	5.95%	-9.51%	29.57%

CTS Corporate Events

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.

CTS Secures New $300M Credit Agreement with Wells Fargo

On November 24, 2025, CTS Corporation and its subsidiary, CTS Denmark Holding A/S, entered into a new five-year Credit Agreement with Wells Fargo Bank and other financial institutions. This agreement provides an unsecured revolving credit facility of $300 million, replacing a prior $400 million facility. The new agreement includes various financial covenants and conditions, such as maintaining a net leverage ratio and an interest coverage ratio, and offers flexibility for incremental loans. The initial borrowings were used to repay $63.3 million under the previous agreement, and the facility includes sublimits for swing line loans, letters of credit, and alternative currencies.

CTS Appoints Kimberly Banks MacKay to Board

On November 5, 2025, CTS Corporation expanded its Board of Directors from seven to eight members with the appointment of Kimberly Banks MacKay. Ms. MacKay, who brings over 30 years of experience in multinational companies, will serve on the Nominating, Governance and Sustainability Committee, and the Technology and Transactions Committee. Her extensive background in healthcare and global business leadership is expected to support CTS’s focus on growth and market diversification.

CTS Corporation Highlights Strategic Growth Initiatives

In its recent investor presentation, CTS Corporation highlighted its strategic focus on growth and diversification across various end markets, aiming for a 10% organic and inorganic growth. The company emphasized its strong balance sheet and cash flow to support mergers and acquisitions, alongside a robust new product pipeline driven by megatrends such as automation, healthcare innovation, and electrification. CTS is leveraging its deep technical expertise and global footprint to enhance operational excellence and drive profitable growth, positioning itself to capitalize on market opportunities and address key challenges in its industry.

CTS Corporation Reports Strong Q3 2025 Financial Results

CTS Corporation announced its third quarter 2025 financial results, reporting a strong 22% year-over-year sales growth in diversified end markets despite a 7% decline in the transportation sector. The company achieved $143 million in sales, with a net income of $14 million, impacted by a $4.2 million charge related to an EPA claim. Adjusted gross margin improved slightly to 38.9%, while operating cash flow decreased to $29 million from the previous year. CTS updated its 2025 guidance, projecting sales between $535-$545 million and adjusted diluted EPS of $2.20-$2.25, reflecting its strategic focus on diversification and margin expansion.