CTS (CTS) AI Stock Analysis

• Market Cap: $1.26B
• Dividend Yield: 0.37%
• Average Volume (3M): 231.09K
• Price to Earnings (P/E): 22.0
• Beta (1Y): 1.50
• 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: 268,331
• 30 Day Avg. Volume: 231,095
• 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: 0.95
• 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): $530.60M

• Rating: 68 Neutral
• Price Target: $44.00 ▲(6.54% Upside)

CTS's overall stock score reflects a stable financial foundation with strong profitability and low leverage. The earnings call provided positive insights into growth in diversified markets and strategic wins, which bolster the company's outlook. However, the valuation is moderate, and technical indicators suggest caution due to potential overbought conditions.

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 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 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: Negative
• Last Price: 41.30
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 41.3 is above the 20-day moving average (MA) of 40.71, above the 50-day MA of 40.86, and below the 200-day MA of 41.85, indicating a neutral trend. The MACD of 0.45 indicates Negative momentum. The RSI at 50.16 is Neutral, neither overbought nor oversold. The STOCH value of 83.35 is Negative, 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
BELFB	74 Outperform	$1.91B	29.78	16.40%	0.18%	23.70%	14.78%
BHE	69 Neutral	$1.54B	41.01	3.37%	1.50%	-2.93%	-40.33%
CTS	68 Neutral	$1.26B	21.99	10.98%	0.37%	3.70%	1.68%
DAKT	67 Neutral	$942.46M	4,486.36	4.36%	―	-7.67%	7.66%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ROG	56 Neutral	$1.48B	-22.69	-5.34%	―	-4.87%	-235.48%
MEI	54 Neutral	$232.79M	―	-7.62%	5.89%	-4.91%	61.77%

CTS Corporate Events

CTS Corporation Reports Strong Q3 2025 Performance

CTS Corporation is a global leader in designing and manufacturing custom-engineered solutions that ‘Sense, Connect and Move,’ serving diverse markets such as aerospace, defense, industrial, medical, and transportation.

CTS Corp’s Earnings Call: Growth Amid Challenges

CTS Corporation’s recent earnings call painted a picture of robust growth and strategic resilience, despite facing some headwinds. The company reported strong performance in diversified end markets and celebrated new contract wins, notably in the industrial and aerospace sectors. However, challenges such as a decline in transportation sales and adverse effects from tax legislation were also highlighted. Overall, the sentiment was positive, underscoring CTS’s strategic wins and a solid financial outlook.

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.

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

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.

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