Cts Corp. (CTS)
NYSE:CTS
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CTS
(NYSE:CTS)
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Rating:68Neutral
Price Target:
$52.00
▲(22.12% Upside)
Action:DowngradedDate:02/25/26
The score is driven primarily by solid and improving financial performance (higher margins, low leverage, positive free cash flow) and supportive 2026 guidance highlighting continued diversification and profitability gains. Offsetting factors are mixed near-term technical signals and a valuation profile that offers limited yield and no clear discount, alongside ongoing transportation and timing-related demand risks.
Positive Factors
Margin expansion & improving profitability
Sustained gross-margin expansion (150bps year-over-year) and improving adjusted EBITDA margins reflect better product mix and pricing power. Durable margin gains increase operating leverage, support reinvestment and shareholder returns, and help buffer earnings through cyclical volume swings.
Negative Factors
Transportation exposure & China weakness
Material exposure to transportation markets leaves revenue sensitive to vehicle production cycles and regional slowdowns (notably China). Prolonged softness or delayed EV investment can pressure revenues and elongate product qualification timelines for new transportation offerings.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin expansion & improving profitability
Sustained gross-margin expansion (150bps year-over-year) and improving adjusted EBITDA margins reflect better product mix and pricing power. Durable margin gains increase operating leverage, support reinvestment and shareholder returns, and help buffer earnings through cyclical volume swings.
Read all positive factors
CTS (CTS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.63B
Dividend Yield0.36%
Average Volume (3M)206.01K
Price to Earnings (P/E)19.4
Beta (1Y)1.41
Revenue Growth5.16%
EPS Growth15.89%
CountryUS
Employees3,549
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.62
Shares Outstanding28,649,986
10 Day Avg. Volume262,823
30 Day Avg. Volume206,011
Financial Highlights & Ratios
PEG Ratio1.23
Price to Book (P/B)2.29
Price to Sales (P/S)2.34
P/FCF Ratio14.65
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue3.08
Enterprise Value/Gross Profit8.01
Enterprise Value/Ebitda13.53
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.4
Revenue Forecast (FY)$561.50M
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 indus...
How the Company Makes Money
CTS makes money primarily by selling engineered components and subsystems to original equipment manufacturers (OEMs) and other customers. Revenue is generated from product sales across its operating segments: (1) Sensors, which includes various se...
CTS Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
Overall the call emphasized clear progress on diversification, margin expansion, strong cash generation, and robust growth in medical and industrial end markets. These positives were tempered by transportation headwinds (notably in China and commercial vehicles), timing-related softness in SideQuest/defense bookings, and modest sequential revenue softness. Management provided modestly positive guidance for 2026 while acknowledging macro and supply-chain risks.Positive Updates
Quarterly and Full-Year Revenue Growth
Q4 sales of $137 million, up 9% year-over-year; full-year 2025 revenue of $541 million, up 5% versus $515 million in 2024.
Negative Updates
Transportation Revenue Decline
Transportation full-year sales were $234 million, down 7% versus $250 million in 2024 due to weak China market dynamics and commercial vehicle softness; Q4 transportation sales were essentially flat year-over-year.
Read all updates
Q4-2025 Updates
Positive
Negative
Quarterly and Full-Year Revenue Growth
Q4 sales of $137 million, up 9% year-over-year; full-year 2025 revenue of $541 million, up 5% versus $515 million in 2024.
Read all positive updates
Company Guidance
For full-year 2026, assuming continuation of current market conditions, management guided sales of $550 million to $580 million and adjusted diluted EPS of $2.30 to $2.45; they expect solid demand across diversified end markets (medical momentum with increased therapeutic volumes in 2026, aerospace & defense revenue growth supported by backlog and SideQuest normalization, and industrial/distribution to remain healthy), while transportation production volumes are forecast to be flat to marginally down in line with IHS light vehicle estimates (North America 15–16 million units, Europe 16–17 million, China ~32 million), commercial vehicle demand generally soft with potential improvement in H2, floor‑hinge revenue not expected until 2028, next‑generation smart actuator qualification is progressing with further enhancements planned for 2026, and management noted no significant immediate supply‑chain disruptions from rare earths or semiconductors.CTS Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
71
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 541.32M | 515.54M | 550.55M | 586.87M | 512.92M |
| Gross Profit | 208.03M | 188.21M | 188.19M | 209.61M | 183.24M |
| EBITDA | 122.58M | 108.17M | 109.50M | 113.22M | -32.58M |
| Net Income | 65.32M | 58.11M | 60.53M | 59.58M | -41.87M |
Balance Sheet | |||||
| Total Assets | 764.31M | 766.11M | 741.17M | 748.49M | 664.46M |
| Cash, Cash Equivalents and Short-Term Investments | 82.30M | 94.33M | 163.88M | 156.91M | 141.47M |
| Total Debt | 121.91M | 117.09M | 96.86M | 109.36M | 74.75M |
| Total Liabilities | 212.53M | 235.26M | 214.34M | 242.26M | 200.88M |
| Stockholders Equity | 551.79M | 530.85M | 526.82M | 506.22M | 463.58M |
Cash Flow | |||||
| Free Cash Flow | 86.37M | 80.64M | 74.07M | 106.86M | 70.50M |
| Operating Cash Flow | 102.11M | 99.29M | 88.81M | 121.20M | 86.14M |
| Investing Cash Flow | -18.51M | -140.56M | -18.10M | -111.19M | -15.90M |
| Financing Cash Flow | -98.44M | -27.93M | -65.40M | 4.34M | -20.71M |
CTS Technical Analysis
Positive
42.58
Price Trends
51.34
Positive
48.66
Positive
44.85
Positive
Market Momentum
1.56
Negative
66.92
Neutral
79.71
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 50.77, below the 50-day MA of 51.34, and below the 200-day MA of 44.85, indicating a bullish trend. The MACD of 1.56 indicates Negative momentum. The RSI at 66.92 is Neutral, neither overbought nor oversold. The STOCH value of 79.71 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 38 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $3.45B | 5.83 | 15.06% | 0.16% | 26.30% | 42.31% | |
68 Neutral | $1.63B | 19.37 | 11.94% | 0.36% | 5.16% | 15.89% | |
68 Neutral | $2.34B | 91.57 | -5.07% | ― | -2.33% | -338.28% | |
66 Neutral | $964.51M | 93.63 | 9.64% | ― | 0.36% | 1138.56% | |
62 Neutral | $2.48B | 63.85 | 2.25% | 1.44% | 0.11% | -60.58% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
51 Neutral | $297.26M | -4.46 | -9.42% | 5.93% | -8.43% | 30.33% |
* Technology Sector Average
CTS
CTS
56.77
17.12
43.16%
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CTS Corporate Events
Business Operations and StrategyFinancial Disclosures
CTS Delivers Strong Q4 2025 Results Amid Diversification
Positive
Feb 10, 2026
On February 10, 2026, CTS reported strong fourth-quarter and full-year 2025 results, underscoring the success of its diversification strategy as sales to industrial, aerospace and defense, and medical end markets grew 16% and reached 57% of total ...
Business Operations and StrategyFinancial Disclosures
CTS Highlights Growth Strategy in February 2026 Investor Update
Positive
Feb 10, 2026
CTS Corporation has presented an investor update for February 2026 outlining its financial profile and strategic positioning, highlighting last-12-month revenue of $541 million as of December 2025, an adjusted EBITDA margin of 23%, adjusted dilute...
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.