CTS Corporation
CTS Corporation Fundamental Analysis
CTS Corporation (CTS) shows moderate financial fundamentals with a PE ratio of 23.87, profit margin of 12.06%, and ROE of 11.94%. The company generates $0.6B in annual revenue with moderate year-over-year growth of 5.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CTS's fundamental strength across five key dimensions:
Efficiency Score
WeakCTS struggles to generate sufficient returns from assets.
Valuation Score
ModerateCTS shows balanced valuation metrics.
Growth Score
ExcellentCTS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentCTS maintains a strong and stable balance sheet.
Profitability Score
WeakCTS struggles to sustain strong margins.
Key Financial Metrics
Is CTS Expensive or Cheap?
P/E Ratio
CTS trades at 23.87 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CTS's PEG of 2.06 indicates potential overvaluation.
Price to Book
The market values CTS Corporation at 2.83 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.86 times EBITDA. This signals the market has high growth expectations.
How Well Does CTS Make Money?
Net Profit Margin
For every $100 in sales, CTS Corporation keeps $12.06 as profit after all expenses.
Operating Margin
Core operations generate 15.52 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.94 in profit for every $100 of shareholder equity.
ROA
CTS Corporation generates $8.55 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
CTS Corporation produces operating cash flow of $100.66M, showing steady but balanced cash generation.
Free Cash Flow
CTS Corporation generates strong free cash flow of $81.68M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.77 in free cash annually.
FCF Yield
CTS converts 5.05% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.87
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.83
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.93
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.22
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.30
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How CTS Stacks Against Its Sector Peers
| Metric | CTS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.87 | 35.19 | Better (Cheaper) |
| ROE | 11.94% | 1155.00% | Weak |
| Net Margin | 12.06% | -127067.00% (disorted) | Strong |
| Debt/Equity | 0.22 | 0.41 | Strong (Low Leverage) |
| Current Ratio | 2.30 | 4.71 | Strong Liquidity |
| ROA | 8.55% | -314918.00% (disorted) | Weak |
CTS outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews CTS Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
39.76%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
106.24%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
-100.00%
Industry Style: Growth, Innovation, High Beta
Declining