CTS Co., Ltd. (4345) AI Stock Analysis

• Market Cap: ¥41.76B
• Dividend Yield: 2.6%
• Average Volume (3M): 38.80K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.59
• Revenue Growth: 5.57%
• EPS Growth: 27.50%
• Country: JP
• Employees: 272
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): N/A
• Shares Outstanding: 42,000,000
• 10 Day Avg. Volume: 31,500
• 30 Day Avg. Volume: 38,803
• PEG Ratio: 0.75
• Price to Book (P/B): 2.50
• Price to Sales (P/S): 2.73
• P/FCF Ratio: 11.93
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 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: 74 Outperform
• Price Target: ¥1,141.00 ▲(8.87% Upside)

CTS Co., Ltd. demonstrates strong financial performance with consistent growth and a stable balance sheet, which is the most significant factor in its overall score. The stock's valuation is reasonable, supported by a fair P/E ratio and an attractive dividend yield. Technical analysis indicates neutral momentum, with no significant bullish or bearish signals. The absence of earnings call data and corporate events did not impact the score.

Positive Factors

Consistent Revenue Growth

A multiyear upward revenue trend indicates durable demand for CTS's products and services, supporting scalable operations and reinvestment. Sustained top-line growth helps absorb fixed costs, underpins margin stability, and funds long-term strategic initiatives like R&D and network deployments.

Improving Profitability Margins

Robust gross margins coupled with improving net margins point to structural operational efficiency and pricing power. Persistent margin improvement supports cash generation and the ability to finance investments or dividends, making earnings more resilient through industry cycles.

Healthy Balance Sheet and Low Leverage

Low leverage and a strong equity ratio provide long-term financial flexibility to fund capex, absorb demand shocks, and pursue strategic opportunities without heavy reliance on external financing. This reduces solvency risk and supports sustainable capital allocation.

Negative Factors

Free Cash Flow Conversion Needs Improvement

If accounting earnings are not consistently converting into free cash flow, the company may face limits on internally funding growth, dividends, or returns of capital. Persistent weak conversion reduces financial optionality and could increase reliance on external funding over time.

Customer Concentration Risk

Heavy reliance on a limited set of large telecom partners ties revenue to their capital expenditure cycles and procurement decisions. This client concentration can create durable demand volatility and reduce pricing leverage, constraining predictable long-term revenue diversification.

Limited Scale Compared to Global Peers

A relatively small employee base suggests limited scale and resources versus larger global equipment suppliers. That can constrain capacity for large multi-region deployments, breadth of R&D, and after-sales support, increasing execution risk as the company pursues larger contracts.

CTS Co., Ltd. Business Overview & Revenue Model

Company Description

CTS Co., Ltd. primarily provides ICT construction services for the construction industry in Japan. The company also offers IT infrastructures systems for construction sites; cloud storage services; mobaden mobile fixed IP phone service; outdoor network construction; network camera; remote work support; multifunction device and cloud scan; and provides AI face recognition and non-contact temperature detector. In addition, it offers 3D and one-man survey, 3D design data, ICT construction, construction management, electronic delivery, and other surveying and measuring equipment, such as lasers; and inspects and repair surveying instruments. Further, the company sells unit houses, office furniture, home appliances, air conditioners, and heating equipment; and rents and sells office desks, meeting tables, chairs, bookshelves, etc., as well as provides sterilization cleaning services. Additionally, it also engages in the lane marking and road sign construction activity; installation of guard fences; and designing and construction of disaster prevention shelters, solar lights, and playground equipment. CTS Co., Ltd. was founded in 1972 and is headquartered in Ueda, Japan.

How the Company Makes Money

CTS Co., Ltd. generates revenue through multiple streams, including the sale of telecommunications equipment, software licenses, and service contracts. The company partners with major telecom operators and enterprises to provide customized solutions that address specific communication needs. Additionally, CTS Co., Ltd. earns income from ongoing maintenance and support services for its products, ensuring a steady flow of recurring revenue. Key partnerships with technology firms and regional telecom providers also bolster its market presence and contribute to its financial performance.

CTS Co., Ltd. Financial Statement Overview

Summary

CTS Co., Ltd. exhibits strong financial health with consistent revenue and profit growth, efficient operations, and a stable balance sheet. The company has a robust gross profit margin and improved net profit margin, indicating effective cost management and enhanced profitability. The balance sheet is healthy with a low debt-to-equity ratio and strong equity ratio, reflecting financial stability. Cash flow is positive, supporting operations and investments, though there is room for improvement in the free cash flow to net income ratio.

Income Statement

CTS Co., Ltd. has shown strong revenue growth with a consistent upward trend from 2020 to 2025. The gross profit margin has remained robust, indicating effective cost management. The net profit margin has improved, reflecting enhanced profitability. EBIT and EBITDA margins are solid, showcasing operational efficiency.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio, suggesting prudent leverage management. The return on equity has improved, indicating efficient use of shareholders' funds. The equity ratio is strong, reflecting financial stability and a solid asset base.

Cash Flow

CTS Co., Ltd. demonstrates positive free cash flow growth, supporting its ability to fund operations and investments. The operating cash flow to net income ratio is favorable, indicating good cash generation relative to earnings. However, the free cash flow to net income ratio shows room for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.00B	11.82B	11.09B	10.80B	10.54B	9.97B
Gross Profit	6.17B	6.08B	5.71B	5.45B	5.23B	4.68B
EBITDA	4.32B	4.21B	3.80B	3.64B	3.51B	3.06B
Net Income	2.35B	2.19B	1.86B	1.76B	1.73B	1.46B
Balance Sheet
Total Assets	16.69B	17.08B	16.71B	14.74B	14.36B	13.12B
Cash, Cash Equivalents and Short-Term Investments	4.02B	4.53B	6.95B	6.27B	5.17B	6.22B
Total Debt	985.00M	1.81B	1.81B	1.95B	2.40B	2.30B
Total Liabilities	3.70B	4.21B	4.48B	4.16B	4.62B	4.33B
Stockholders Equity	12.99B	12.87B	12.23B	10.58B	9.74B	8.79B
Cash Flow
Free Cash Flow	663.00M	2.70B	2.76B	2.55B	2.72B	1.93B
Operating Cash Flow	686.00M	2.84B	2.98B	2.61B	2.90B	2.33B
Investing Cash Flow	-823.00M	-2.45B	-553.00M	222.00M	-2.26B	-377.00M
Financing Cash Flow	-648.00M	-2.82B	-1.75B	-1.74B	-1.69B	-1.27B

CTS Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1048.00
• 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 JP:4345, the sentiment is Neutral. The current price of 1048 is below the 20-day moving average (MA) of 1059.25, above the 50-day MA of 1005.56, and above the 200-day MA of 885.72, indicating a neutral trend. The MACD of 4.62 indicates Positive momentum. The RSI at 44.77 is Neutral, neither overbought nor oversold. The STOCH value of 22.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4345.

CTS Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9763	81 Outperform	¥15.33B	9.94	―	3.57%	6.66%	13.62%
9619	78 Outperform	¥49.43B	6.95	―	3.57%	3.70%	-43.85%
9991	77 Outperform	¥53.44B	9.00	―	4.09%	-6.09%	31.18%
4345	74 Outperform	¥41.76B	16.10	―	2.60%	5.57%	27.50%
2393	72 Outperform	¥41.13B	19.12	―	3.01%	9.62%	23.26%
7081	72 Outperform	¥15.36B	7.44	―	3.03%	5.72%	60.38%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

CTS Co., Ltd. Corporate Events

CTS Co., Ltd. Delivers Double-Digit Profit Growth and Confirms Strong FY2025 Outlook

CTS Co., Ltd. reported solid growth for the nine months ended December 31, 2025, with net sales rising 7.6% year on year to ¥9.6 billion and profit attributable to owners of parent jumping 26.4% to ¥2.0 billion, driving basic earnings per share up to ¥49.18 and pushing the equity ratio to 76.4% on an expanded asset base. The company reaffirmed its full-year forecast for the fiscal year ending March 31, 2026, targeting 9.0% growth in net sales and a 15.4% increase in bottom-line profit, while also signaling continued shareholder returns through a planned dividend hike to a total of ¥29 per share and ongoing share repurchases, underscoring confidence in earnings visibility and balance-sheet strength.

The most recent analyst rating on (JP:4345) stock is a Buy with a Yen1159.00 price target. To see the full list of analyst forecasts on CTS Co., Ltd. stock, see the JP:4345 Stock Forecast page.

CTS Revamps Leadership to Drive Next-Stage Growth in Construction ICT Business

CTS Co., Ltd. has announced a planned leadership transition and overhaul of its business execution structure to support the next phase of its digital transformation strategy in the construction ICT field. As the company’s three-year medium-term management plan nears completion and its SAP-based business model begins to gain traction, CTS will promote Senior Executive Officer and Head of Corporate Strategy Division Ren Yokoshima to President and Representative Director, with current President and CEO Taizo Yokoshima becoming Chairman of the Board, effective June 19, 2026. The management reshuffle, including an emphasis on younger leadership, is intended to create a more flexible and agile governance framework to respond swiftly to rapid ICT advances and to drive sustainable growth as CTS deepens its content offerings and executes its next medium-term plan.

The most recent analyst rating on (JP:4345) stock is a Buy with a Yen1204.00 price target. To see the full list of analyst forecasts on CTS Co., Ltd. stock, see the JP:4345 Stock Forecast page.

CTS Completes ¥46 Million Treasury Share Buyback Program

CTS Co., Ltd. has completed a share buyback program authorized by its board on November 21, 2025, repurchasing 48,000 common shares between December 1 and December 30, 2025, at a total cost of 46.08 million yen. The buyback, conducted via market purchases including ToSTNeT-3 transactions on the Tokyo Stock Exchange, fell slightly below the maximum authorized 50,000 shares and 50 million yen, and signals the company’s ongoing use of treasury stock repurchases as a shareholder return and capital allocation measure that may support earnings per share and optimize its capital structure.

The most recent analyst rating on (JP:4345) stock is a Buy with a Yen982.00 price target. To see the full list of analyst forecasts on CTS Co., Ltd. stock, see the JP:4345 Stock Forecast page.

CTS Co., Ltd. Completes Share Buyback to Enhance Capital Efficiency

CTS Co., Ltd. has completed a repurchase of 48,000 common shares for 46,080,000 yen through the Tokyo Stock Exchange’s off-auction purchase system. This move is aimed at implementing flexible capital policies and improving capital efficiency, reflecting the company’s strategic response to changes in the business environment.

The most recent analyst rating on (JP:4345) stock is a Buy with a Yen982.00 price target. To see the full list of analyst forecasts on CTS Co., Ltd. stock, see the JP:4345 Stock Forecast page.

CTS Co., Ltd. Announces Treasury Share Buyback

CTS Co., Ltd. has announced a strategic move to repurchase up to 48,000 of its common shares through the Tokyo Stock Exchange’s off-auction trading system, ToSTNeT-3, at a closing price of 960 yen per share. This decision, made by the Board of Directors, is part of the company’s ongoing efforts to manage its capital structure and enhance shareholder value, with the total purchase amount capped at 46,080,000 yen.

The most recent analyst rating on (JP:4345) stock is a Buy with a Yen982.00 price target. To see the full list of analyst forecasts on CTS Co., Ltd. stock, see the JP:4345 Stock Forecast page.

CTS Co., Ltd. Announces Share Buyback to Enhance Capital Efficiency

CTS Co., Ltd. announced its decision to acquire up to 50,000 of its own shares, aiming to enhance capital efficiency and adapt to the changing business environment. This move, approved by the Board of Directors, reflects the company’s strategic focus on flexible capital policies and could impact shareholder value and market perception.

The most recent analyst rating on (JP:4345) stock is a Buy with a Yen982.00 price target. To see the full list of analyst forecasts on CTS Co., Ltd. stock, see the JP:4345 Stock Forecast page.