CTS Corp (CTS) stock analysis

P/E above its 5-year median

CTS's P/E of 24.5 is above its own 5-year median of 24.2.

P/E below the industry

CTS's P/E of 24.5 is below the Electronic Components and Accessories median of 34.8.

EV/EBITDA above its 5-year median

CTS's EV/EBITDA of 12.3 is above its 5-year median of 10.9.

P/B below the industry

CTS's price-to-book of 3.01 is below the Electronic Components and Accessories median of 3.49.

Trading below fair value

The share price of $62.07 is below our fair value estimate of $68.27.

Margin of safety under 20%

The price is 9.1% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -2.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 5.8% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 29.2% over the last twelve months, against a 5-year average of 13.5% a year.

Growing slower than the industry

Revenue grew 7.6% over the last twelve months; the Electronic Components and Accessories median is 17.3%.

Guidance raised

CTS raised its 2026 sales outlook on Oct 27, 2026.

Gross margin improving

Gross margin was 40.6% over the last twelve months, against 37.9% a year earlier.

Return on equity under 15%

Return on equity was 13.0% over the last twelve months and averaged 7.4% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 14.7%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

CTS's return on equity of 13.0% is above the Electronic Components and Accessories median of 4.8%.

Earnings grew over 5 years

Net income grew 13.5% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 12.9% over the last twelve months, against a 5-year average of 7.2%.

Net margin above the industry

CTS's net margin of 12.9% is above the Electronic Components and Accessories median of 2.9%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt coverage

Needs operating cash flow.

Interest well covered

Operating income covers interest expense 32.9 times.

Short-term assets cover short-term debts

Current assets are 2.59 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 7.19; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

CTS paid dividends worth 0.3% of the share price over the last twelve months.

Yield below Treasuries

The 0.3% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; CTS yields 0.3%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 6.2% of net income.

Covered by free cash flow

Dividends take 4.3% of free cash flow.