📊 CPSH Key Takeaways
Is Cps Technologies Corp./DE/ (CPSH) a Good Investment?
CPS Technologies is growing revenue at 54% YoY, but this masks severe operational issues. The company is burning cash unsustainably with negative operating cash flow (-$292K) and free cash flow (-$768K), indicating operations cannot self-fund. While the balance sheet currently provides a buffer with $5.7M cash and minimal debt, continued losses without profitability will eventually erode this advantage.
CPS Technologies shows strong top-line growth and a sharp year-over-year improvement in net income, supported by an exceptionally clean balance sheet and ample liquidity. However, profitability remains very thin, returns on capital are modest, and free cash flow is negative, which suggests the recent earnings improvement still needs to prove it is durable and scalable.
Why Buy Cps Technologies Corp./DE/ Stock? CPSH Key Strengths
- Strong topline growth of 54.3% YoY demonstrates market demand
- Fortress balance sheet with negligible debt (debt/equity 0.00x, only $8.1K long-term debt)
- Excellent liquidity (current ratio 5.29x, quick ratio 3.72x) providing operational flexibility
- Reasonable cash position of $5.7M relative to $29.1M total assets
- Revenue growth is strong at 54.3% year over year, indicating improving demand or contract execution
- Balance sheet is very conservative with minimal long-term debt, high current liquidity, and substantial equity relative to liabilities
- Earnings turned meaningfully stronger year over year, with net income and diluted EPS both more than doubling
CPSH Stock Risks: Cps Technologies Corp./DE/ Investment Risks
- Significant negative free cash flow of -$767.8K indicating unsustainable cash burn rate
- Negative operating cash flow (-$292K) reveals operations cannot fund themselves from revenue
- Operating losses (-$522.6K) with negative operating margin of -7.4%
- Dangerously thin gross margins (8.6%) suggest fundamental pricing pressure or operational inefficiency
- At current burn rate (~$768K annually), cash runway is only 7-8 years despite growth
- Margins remain weak, with only 1.4% operating margin and 1.3% net margin, leaving little room for execution error
- Free cash flow is negative despite positive net income, which raises questions about cash conversion and capital intensity
- ROE and ROA are low, indicating the business is not yet generating strong returns from its asset and equity base
Key Metrics to Watch
- Operating cash flow - must turn positive for sustainability
- Gross margin expansion - critical to assess if 8.6% can improve via pricing or efficiency
- Free cash flow path to breakeven - essential milestone for viability
- Operating income trajectory toward profitability
- Operating margin and gross margin progression
- Operating cash flow and free cash flow consistency
Cps Technologies Corp./DE/ (CPSH) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 5.29x current ratio provides a solid financial cushion.
CPSH Profit Margin, ROE & Profitability Analysis
CPSH vs Market Sector: How Cps Technologies Corp./DE/ Compares
How Cps Technologies Corp./DE/ compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Cps Technologies Corp./DE/ Stock Overvalued? CPSH Valuation Analysis 2026
Based on fundamental analysis, Cps Technologies Corp./DE/ 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.
Cps Technologies Corp./DE/ Balance Sheet: CPSH Debt, Cash & Liquidity
CPSH Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Cps Technologies Corp./DE/'s revenue has grown significantly by 45% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.22 indicates the company is currently unprofitable.
CPSH Revenue Growth, EPS Growth & YoY Performance
CPSH Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $7.0M | $96.0K | $0.01 |
| Q3 2025 | $4.2M | $208.0K | $0.01 |
| Q2 2025 | $5.0M | $103.8K | $0.01 |
| Q1 2025 | $5.9M | $96.0K | $-0.01 |
| Q3 2024 | $4.2M | $171.1K | $0.01 |
| Q2 2024 | $5.0M | $600.5K | $0.04 |
| Q1 2024 | $5.9M | -$143.2K | $-0.01 |
| Q3 2023 | $6.3M | $171.1K | $0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Cps Technologies Corp./DE/ Dividends, Buybacks & Capital Allocation
CPSH SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Cps Technologies Corp./DE/ (CIK: 0000814676)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CPSH
What is the AI rating for CPSH?
Cps Technologies Corp./DE/ (CPSH) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 73% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CPSH's key strengths?
Claude: Strong topline growth of 54.3% YoY demonstrates market demand. Fortress balance sheet with negligible debt (debt/equity 0.00x, only $8.1K long-term debt). ChatGPT: Revenue growth is strong at 54.3% year over year, indicating improving demand or contract execution. Balance sheet is very conservative with minimal long-term debt, high current liquidity, and substantial equity relative to liabilities.
What are the risks of investing in CPSH?
Claude: Significant negative free cash flow of -$767.8K indicating unsustainable cash burn rate. Negative operating cash flow (-$292K) reveals operations cannot fund themselves from revenue. ChatGPT: Margins remain weak, with only 1.4% operating margin and 1.3% net margin, leaving little room for execution error. Free cash flow is negative despite positive net income, which raises questions about cash conversion and capital intensity.
What is CPSH's revenue and growth?
Cps Technologies Corp./DE/ reported revenue of $7.0M.
Does CPSH pay dividends?
Cps Technologies Corp./DE/ does not currently pay dividends.
Where can I find CPSH SEC filings?
Official SEC filings for Cps Technologies Corp./DE/ (CIK: 0000814676) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CPSH's EPS?
Cps Technologies Corp./DE/ has a diluted EPS of $-0.02.
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 CPSH a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Cps Technologies Corp./DE/ has a SELL rating with 73% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is CPSH stock overvalued or undervalued?
Valuation metrics for CPSH: ROE of -1.2% (sector avg: 15%), net margin of -4.2% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy CPSH stock in 2026?
Our dual AI analysis gives Cps Technologies Corp./DE/ a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CPSH's free cash flow?
Cps Technologies Corp./DE/'s operating cash flow is $-292.0K, with capital expenditures of $475.8K. FCF margin is -10.9%.
How does CPSH compare to other Market stocks?
Vs Default sector averages: Net margin -4.2% (avg: 12%), ROE -1.2% (avg: 15%), current ratio 5.29 (avg: 1.8).