📊 CTS Key Takeaways
Is Cts Corp. (CTS) a Good Investment?
CTS Corp demonstrates solid fundamental strength with robust profitability metrics, excellent liquidity position, and strong free cash flow generation. The company benefits from healthy operating margins and conservative leverage, though modest revenue growth and flat net income growth warrant monitoring in a capital-intensive industry.
CTS Corp shows strong core fundamentals with healthy 38.4% gross margin, 15.3% operating margin, and robust free cash flow generation equal to 16.0% of revenue. The balance sheet is conservatively structured with low leverage, strong liquidity, and high interest coverage, although flat net income against modest revenue growth suggests execution should continue to be monitored for operating leverage.
Why Buy Cts Corp. Stock? CTS Key Strengths
- Strong free cash flow generation of $86.4M with 16.0% FCF margin provides financial flexibility
- Excellent liquidity with 2.30x current ratio and 1.82x quick ratio indicating strong short-term solvency
- Conservative capital structure with 0.14x debt-to-equity ratio and exceptional 50.5x interest coverage ratio
- Solid profitability across all margins: 38.4% gross margin, 15.3% operating margin, 12.1% net margin
- Strong absolute return metrics with 11.8% ROE and 8.5% ROA demonstrating efficient capital deployment
- Strong profitability profile with double-digit operating and net margins
- Excellent financial health supported by 2.30x current ratio and just 0.14x debt-to-equity
- High-quality cash generation with $86.37M of free cash flow and 16.0% FCF margin
CTS Stock Risks: Cts Corp. Investment Risks
- Modest revenue growth of 5.2% YoY indicates slowing top-line momentum in a cyclical PCB industry
- Flat net income growth (0.0% YoY) despite revenue increases suggests operating leverage constraints
- Capital-intensive industry (PCB manufacturing) requires sustained capex of $15.7M annually to maintain competitiveness
- Exposure to electronics sector cyclicality and potential macroeconomic headwinds affecting end-market demand
- 12 insider Form 4 filings in 90 days warrants monitoring for unusual trading patterns or signaling concerns
- Net income was flat year over year despite revenue growth, indicating limited earnings conversion
- Top-line growth of 5.2% is solid but not high, which could constrain future earnings acceleration
- EPS growth outpaced net income growth materially, suggesting per-share gains may rely partly on share count reduction rather than operating expansion
Key Metrics to Watch
- Revenue growth acceleration - need improvement beyond current 5.2% YoY trajectory
- Operating margin sustainability - monitor if 15.3% level can be maintained or expanded
- Free cash flow conversion - track if FCF/Operating Cash Flow ratio remains healthy above 85%
- Debt levels - watch if leverage increases materially given capital intensity of business
- Return on equity trends - assess if 11.8% ROE can expand with improving operational efficiency
- Operating margin and net income growth versus revenue growth
- Free cash flow consistency and cash conversion from earnings
Cts Corp. (CTS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.30x current ratio provides a solid financial cushion.
CTS Profit Margin, ROE & Profitability Analysis
CTS vs Market Sector: How Cts Corp. Compares
How Cts Corp. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Cts Corp. Stock Overvalued? CTS Valuation Analysis 2026
Based on fundamental analysis, Cts Corp. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Cts Corp. Balance Sheet: CTS Debt, Cash & Liquidity
CTS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Cts Corp.'s revenue has shown modest growth of 7% over the 5-year period. The most recent EPS of $1.92 reflects profitable operations.
CTS Revenue Growth, EPS Growth & YoY Performance
CTS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $132.4M | $11.1M | $0.46 |
| Q2 2025 | $130.2M | $11.1M | $0.48 |
| Q1 2025 | $125.8M | $11.1M | $0.36 |
| Q3 2024 | $132.4M | $11.1M | $0.44 |
| Q2 2024 | $130.2M | $11.1M | $0.41 |
| Q1 2024 | $125.8M | $11.1M | $0.36 |
| Q3 2023 | $134.6M | $11.8M | $0.37 |
| Q2 2023 | $145.0M | $12.6M | $0.39 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Cts Corp. Dividends, Buybacks & Capital Allocation
CTS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Cts Corp. (CIK: 0000026058)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CTS
What is the AI rating for CTS?
Cts Corp. (CTS) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 79% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CTS's key strengths?
Claude: Strong free cash flow generation of $86.4M with 16.0% FCF margin provides financial flexibility. Excellent liquidity with 2.30x current ratio and 1.82x quick ratio indicating strong short-term solvency. ChatGPT: Strong profitability profile with double-digit operating and net margins. Excellent financial health supported by 2.30x current ratio and just 0.14x debt-to-equity.
What are the risks of investing in CTS?
Claude: Modest revenue growth of 5.2% YoY indicates slowing top-line momentum in a cyclical PCB industry. Flat net income growth (0.0% YoY) despite revenue increases suggests operating leverage constraints. ChatGPT: Net income was flat year over year despite revenue growth, indicating limited earnings conversion. Top-line growth of 5.2% is solid but not high, which could constrain future earnings acceleration.
What is CTS's revenue and growth?
Cts Corp. reported revenue of $541.3M.
Does CTS pay dividends?
Cts Corp. pays dividends, with $4.8M distributed to shareholders in the trailing twelve months.
Where can I find CTS SEC filings?
Official SEC filings for Cts Corp. (CIK: 0000026058) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CTS's EPS?
Cts Corp. has a diluted EPS of $2.19.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CTS a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Cts Corp. has a BUY rating with 79% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is CTS stock overvalued or undervalued?
Valuation metrics for CTS: ROE of 11.8% (sector avg: 15%), net margin of 12.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy CTS stock in 2026?
Our dual AI analysis gives Cts Corp. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is CTS's free cash flow?
Cts Corp.'s operating cash flow is $102.1M, with capital expenditures of $15.7M. FCF margin is 16.0%.
How does CTS compare to other Market stocks?
Vs Default sector averages: Net margin 12.1% (avg: 12%), ROE 11.8% (avg: 15%), current ratio 2.30 (avg: 1.8).