Cts Corp. (CTS)
NYSE:CTS
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CTS
(NYSE:CTS)
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Rating:74Outperform
Price Target:
$64.00
▲(50.31% Upside)
Action:Reiterated
Date:05/20/26
The score is led by solid underlying financial quality (profitability, cash generation, and manageable leverage) and a constructive earnings update with narrowed guidance and strong bookings/backlog. Technicals are supportive but not strongly bullish, while valuation is fair with a low dividend yield, limiting the upside contribution.
Positive Factors
Diversified end-market exposure
A sustained shift toward industrial, medical and defense reduces reliance on cyclical automotive volumes. This broader end-market mix supports steadier demand, improves resilience to single-market shocks, and enables CTS to leverage engineering capabilities across higher-growth, higher-content applications over the medium term.
Negative Factors
Choppy revenue growth
Top-line volatility and modest multi-year growth limit operating leverage and make long-term margin expansion harder to sustain without consistent volume gains. Irregular revenue trends increase sensitivity to timing of program ramps and make forecasting for capacity investment and returns less reliable over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified end-market exposure
A sustained shift toward industrial, medical and defense reduces reliance on cyclical automotive volumes. This broader end-market mix supports steadier demand, improves resilience to single-market shocks, and enables CTS to leverage engineering capabilities across higher-growth, higher-content applications over the medium term.
Read all positive factors
CTS (CTS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.70B
Dividend Yield0.36%
Average Volume (3M)206.01K
Price to Earnings (P/E)19.9
Beta (1Y)1.41
Revenue Growth7.80%
EPS Growth18.75%
CountryUS
Employees3,549
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)2.37
Shares Outstanding28,592,910
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)2.33
P/FCF Ratio14.65
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue3.06
Enterprise Value/Gross Profit7.91
Enterprise Value/Ebitda13.82
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.41
Revenue Forecast (FY)$565.68M
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:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Positive
The call emphasized strong execution against the diversification strategy with broad-based revenue growth (notably in medical and industrial), margin expansion (250 bps YoY), improved profitability (adjusted EPS +~41% YoY), solid bookings/backlog (~$1.1B) and active capital returns. Headwinds include A&D booking timing, input-cost inflation (precious metals, resin, transportation), tariff/policy uncertainty, and geopolitical risks that could soften light-vehicle demand in H2. Management highlighted actions to mitigate cost pressures and a narrowed full-year guidance, indicating confidence but caution. Overall, positives (revenue, margin, bookings, cash returns, narrowed guidance) materially outweigh the manageable and outlined risks.Positive Updates
Revenue Growth
Q1 sales of $139 million, up 11% year-over-year and up 1% sequentially; diversified end markets sales up 18% and transportation sales up 3%.
Negative Updates
Aerospace & Defense Booking Weakness
A&D bookings were down year-over-year and book-to-bill was less than one in Q1; timing and lumpiness of government funding delayed orders, with expectations for bookings to pick up in H2.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth
Q1 sales of $139 million, up 11% year-over-year and up 1% sequentially; diversified end markets sales up 18% and transportation sales up 3%.
Read all positive updates
Company Guidance
Management narrowed full‑year 2026 guidance to sales of $560–$580 million and adjusted diluted EPS of $2.35–$2.45 (assuming current market conditions), with a full‑year tax rate expected at 21–23%; this follows Q1 results of $139 million in sales (up 11% YoY), adjusted diluted EPS of $0.62, adjusted gross margin of 39.5% (up 250 bps YoY), and overall book‑to‑bill of 1.1 (medical 1.2, industrial 1.29, A&D <1), with total booked business/backlog of about $1.1 billion. Management expects diversified end‑market demand to be solid (medical sales to grow double‑digits, industrial steady), transportation volumes to be slightly down overall (IHS: North America ~15M LV, Europe 16–17M, China ~32M) with commercial vehicle improvement in H2, and A&D bookings/funding to normalize in the second half. On the balance sheet and cash flow, Q1 generated $17M operating cash flow, cash of $91M, borrowings of $63M, $10M returned to shareholders year‑to‑date and ~$82M remaining on the repurchase authorization.CTS Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 555.85M | 542.16M | 515.54M | 550.55M | 586.87M | 512.92M |
| Gross Profit | 215.15M | 208.73M | 188.21M | 188.19M | 209.61M | 183.24M |
| EBITDA | 123.21M | 119.28M | 108.17M | 109.50M | 113.22M | -32.58M |
| Net Income | 69.15M | 65.32M | 58.11M | 60.53M | 59.58M | -41.87M |
Balance Sheet | ||||||
| Total Assets | 777.15M | 764.31M | 766.11M | 741.17M | 748.49M | 664.46M |
| Cash, Cash Equivalents and Short-Term Investments | 90.85M | 82.30M | 94.33M | 163.88M | 156.91M | 141.47M |
| Total Debt | 94.96M | 121.91M | 117.09M | 96.86M | 109.36M | 74.75M |
| Total Liabilities | 219.68M | 212.53M | 235.26M | 214.34M | 242.26M | 200.88M |
| Stockholders Equity | 557.48M | 551.79M | 530.85M | 526.82M | 506.22M | 463.58M |
Cash Flow | ||||||
| Free Cash Flow | 87.62M | 86.37M | 80.64M | 74.07M | 106.86M | 70.50M |
| Operating Cash Flow | 103.88M | 102.11M | 99.29M | 88.81M | 121.20M | 86.14M |
| Investing Cash Flow | -16.16M | -18.51M | -140.56M | -18.10M | -111.19M | -15.90M |
| Financing Cash Flow | -88.98M | -98.44M | -27.93M | -65.40M | 4.34M | -20.71M |
CTS Technical Analysis
Positive
42.58
Price Trends
53.33
Positive
51.86
Positive
46.70
Positive
Market Momentum
1.41
Positive
57.37
Neutral
31.58
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 58.00, below the 50-day MA of 53.33, and below the 200-day MA of 46.70, indicating a bullish trend. The MACD of 1.41 indicates Positive momentum. The RSI at 57.37 is Neutral, neither overbought nor oversold. The STOCH value of 31.58 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 76 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $3.57B | 53.78 | 12.97% | 0.16% | 25.54% | 17.25% | |
74 Outperform | $1.70B | 19.92 | 12.53% | 0.36% | 7.80% | 18.75% | |
66 Neutral | $944.71M | 93.63 | 9.64% | ― | 0.36% | 1138.56% | |
64 Neutral | $2.37B | 109.72 | -4.66% | ― | 1.68% | -431.99% | |
62 Neutral | $2.99B | 38.49 | 3.10% | 1.44% | 3.53% | -34.92% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $384.42M | -4.46 | -9.42% | 5.93% | -8.43% | 30.33% |
* Technology Sector Average
CTS
CTS
59.41
18.56
45.43%
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CTS Corporate Events
Executive/Board ChangesShareholder Meetings
CTS Shareholders Reinforce Governance, Executive Pay and Auditor
Positive
May 19, 2026
CTS reported the results of its Annual Meeting of Shareholders held on May 14, 2026, where all eight director nominees were elected with substantial support, reaffirming the company’s existing governance structure. Shareholders also approved...
Business Operations and StrategyFinancial Disclosures
CTS Delivers Strong Q1 2026 Results, Narrows Guidance
Positive
Apr 29, 2026
On April 29, 2026, CTS reported strong first‑quarter 2026 results, with sales rising 11% year over year to $139 million, driven by an 18% increase in diversified end‑market revenue and a 3% gain in transportation sales. Net income grew...
Business Operations and StrategyFinancial Disclosures
CTS Highlights Diversified Growth Strategy in April Presentation
Positive
Apr 29, 2026
In an April 2026 investor presentation, CTS reported last-12-month revenue of $555 million as of March 2026, with an adjusted EBITDA margin of 23%, adjusted diluted EPS of $2.41 and a 10% revenue CAGR supported by a strong balance sheet. The compa...
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.