CTS (CTS) AI Stock Analysis

• Market Cap: $1.46B
• Dividend Yield: 0.36%
• Average Volume (3M): 206.01K
• Price to Earnings (P/E): 25.5
• 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: 262,823
• 30 Day Avg. Volume: 206,011
• 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: 1.04
• Enterprise Value/Revenue: 2.84
• Enterprise Value/Gross Profit: 7.45
• Enterprise Value/Ebitda: 13.02
• 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: 73 Outperform
• Price Target: $57.00 ▲(33.87% 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

Diversified End Markets

Growing exposure to medical, aerospace & industrial (22% YoY, 59% of revenue) reduces cyclicality and concentration risk. A broader revenue mix supports steadier demand, higher resilience to downturns in any single end market, and a firmer base for sustainable growth.

Strong Profitability and Margins

Consistent gross margins near 38% and stable ~11% net margins reflect durable cost controls, pricing power, and operational efficiency. Healthy margins underpin free cash flow potential and reinvestment capacity, supporting long-term competitiveness and strategic initiatives.

Balance Sheet Strength and M&A Capacity

Management signals a strong balance sheet and available cash, enabling inorganic growth. Low leverage and explicit intent to fund M&A provide strategic optionality to buy capabilities, accelerate diversification, and capture technology-led opportunities over the medium term.

Negative Factors

Modest Revenue Growth

Sub-3% revenue growth indicates slow organic expansion relative to peers. Persistently modest top-line growth may limit operating leverage and the pace at which CTS can scale new product lines, increasing reliance on M&A or cyclical end-market recoveries for material growth.

Exposure to Transportation Downturns

A meaningful decline in transportation sales highlights vulnerability to heavy vehicle cycles and OEM capital spending. Continued weakness in commercial vehicles could pressure revenue and margins, and volatility in this segment can mute overall company growth despite diversification elsewhere.

Weaker Cash Flow Trends

Declining free cash flow and a drop in quarterly operating cash flow reduce internal funding for R&D, capex, dividends, and M&A. If the trend persists, CTS may face tighter financial flexibility or greater reliance on external financing, which could raise long-term cost and execution risk.

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: Negative
• RSI: Negative
• STOCH: Negative

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 46.87, below the 50-day MA of 44.71, and above the 200-day MA of 41.84, indicating a bullish trend. The MACD of 1.76 indicates Negative momentum. The RSI at 71.24 is Negative, neither overbought nor oversold. The STOCH value of 82.54 is Negative, 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	$1.46B	25.50	10.98%	0.36%	3.70%	1.68%
BHE	72 Outperform	$1.76B	48.17	3.37%	1.44%	-2.93%	-40.33%
DAKT	72 Outperform	$1.05B	162.09	2.64%	―	-6.13%	-76.92%
BELFB	71 Outperform	$2.56B	40.37	16.40%	0.16%	23.70%	14.78%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ROG	58 Neutral	$1.76B	-26.89	-5.34%	―	-4.87%	-235.48%
MEI	50 Neutral	$269.46M	-4.58	-8.87%	5.93%	-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.

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.

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.

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.

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.

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.