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

• Market Cap: ¥36.43B
• Dividend Yield: 2.85%
• Average Volume (3M): 80.20K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.58
• Revenue Growth: 6.71%
• EPS Growth: 26.33%
• Country: JP
• Employees: 272
• Sector: Industrials
• Sector Strength: 87
• Industry: Rental & Leasing Services
• EPS (TTM): 14.25
• Shares Outstanding: 42,000,000
• 10 Day Avg. Volume: 98,820
• 30 Day Avg. Volume: 80,203
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥922.00
• Price Target Upside: 9.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: ¥974.00 ▲(15.40%Upside)

CTS Co., Ltd. has a strong financial foundation with consistent growth and efficient operations, which significantly contributes to its overall score. The technical analysis shows positive momentum, though caution is advised due to potential overbought conditions. Valuation metrics suggest the stock is fairly priced, with a moderate dividend yield adding to its attractiveness.

CTS Co., Ltd. Business Overview & Revenue Model

Company Description

CTS Co., Ltd. (4345) is a diversified technology company based in Japan, primarily engaged in the development and manufacturing of electronic components and systems. The company operates in various sectors including telecommunications, automotive, and consumer electronics. Its core products include precision connectors, sensors, and integrated circuits, which are designed to enhance connectivity and functionality in a wide range of applications.

How the Company Makes Money

CTS Co., Ltd. generates revenue through the sale of its electronic components and systems to a variety of industries. The company's revenue model is primarily based on direct sales to original equipment manufacturers (OEMs) and distributors. Key revenue streams include the production and supply of high-performance connectors and sensors, which are essential for modern electronic devices. Additionally, CTS has established significant partnerships with leading technology firms in the automotive and telecommunications sectors, enabling it to secure long-term contracts and steady income. The company's focus on innovation and quality also allows it to command premium prices for its products, contributing to its overall profitability.

CTS Co., Ltd. Financial Statement Overview

Summary

CTS Co., Ltd. presents a solid financial position with consistent revenue and profit growth, strong margins, and a stable balance sheet. The company effectively manages its financial leverage and generates substantial cash flow. While the overall outlook is positive, maintaining growth in operating cash flow will be crucial to sustaining financial health.

Income Statement

CTS Co., Ltd. has demonstrated consistent revenue growth with a 6.58% increase in the latest reported period, reflecting strong market demand. The gross profit margin stands at 51.39%, indicating robust operational efficiency. Net profit margin at 18.52% showcases solid profitability. EBIT and EBITDA margins at 26.04% and 35.61%, respectively, underscore strong earnings performance. Overall, the income statement reflects a healthy financial trajectory.

Balance Sheet

The company's balance sheet is strong, with a low debt-to-equity ratio of 0.14, indicating prudent financial leverage. Return on equity is robust at 17.01%, reflecting efficient use of shareholders' funds. The equity ratio of 75.36% highlights a solid capital structure with a substantial portion of assets financed by equity. The balance sheet is stable, supporting long-term growth.

Cash Flow

Operating cash flow is strong at 2.84 billion, significantly covering net income, with an operating cash flow to net income ratio of 1.30. Free cash flow growth is steady, and the free cash flow to net income ratio of 1.23 indicates effective cash generation. While cash flow from operations remains robust, a decline in operating cash flow year-over-year suggests potential areas for improvement.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	11.82B	11.09B	10.80B	10.54B	9.97B
Gross Profit	6.08B	5.71B	5.45B	5.23B	4.68B
EBITDA	4.21B	3.80B	3.64B	3.53B	3.06B
Net Income	2.19B	1.86B	1.76B	1.73B	1.46B
Balance Sheet
Total Assets	17.08B	16.71B	14.74B	14.36B	13.12B
Cash, Cash Equivalents and Short-Term Investments	4.53B	6.95B	6.27B	5.17B	6.22B
Total Debt	1.81B	1.81B	1.95B	2.40B	2.30B
Total Liabilities	4.21B	4.48B	4.16B	4.62B	4.33B
Stockholders Equity	12.87B	12.23B	10.58B	9.74B	8.79B
Cash Flow
Free Cash Flow	2.70B	2.76B	2.55B	2.72B	1.93B
Operating Cash Flow	2.84B	2.98B	2.61B	2.90B	2.33B
Investing Cash Flow	-2.45B	-553.00M	222.00M	-2.26B	-377.00M
Financing Cash Flow	-2.82B	-1.75B	-1.74B	-1.69B	-1.27B

CTS Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 844.00
• 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 JP:4345, the sentiment is Positive. The current price of 844 is above the 20-day moving average (MA) of 835.15, above the 50-day MA of 825.00, and above the 200-day MA of 834.93, indicating a bullish trend. The MACD of 13.35 indicates Negative momentum. The RSI at 72.76 is Negative, neither overbought nor oversold. The STOCH value of 93.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4345.

CTS Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9991	80 Outperform	¥44.90B	9.07		3.61%	-9.58%	13.22%
4345	77 Outperform	¥36.43B	15.71		2.85%	6.71%	26.33%
9619	75 Outperform	¥40.66B	6.19		1.96%	12.06%	-45.04%
7081	71 Outperform	¥12.08B	8.13		3.66%	2.12%	-6.76%
9763	71 Outperform	¥10.85B	8.48		3.99%	6.95%	4.92%
Sector *	64 Neutral	$10.61B	16.56	6.55%	2.15%	2.87%	-30.79%
2393	63 Neutral	¥32.29B	17.03		3.35%	11.34%	15.91%

CTS Co., Ltd. Corporate Events

CTS Co., Ltd. Reports Strong Q1 2025 Financial Results and Positive Outlook

CTS Co., Ltd. reported a positive financial performance for the three months ended June 30, 2025, with net sales increasing by 6.5% and profit attributable to owners rising by 37.8% compared to the previous year. The company also announced a forecast for the fiscal year ending March 31, 2026, with anticipated growth in net sales and profits, indicating a strong market position and potential positive implications for stakeholders.