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CPSH Stock Analysis - CPS TECHNOLOGIES CORP/DE/ AI Rating

CPSH Nasdaq Pottery & Related Products MA CIK: 0000814676
Recently Updated • Analysis: Mar 22, 2026 • SEC Data: 2025-12-27
AI Rating
HOLD
45% Confidence

📊 CPSH Key Takeaways

Revenue: $32.6M
Net Margin: 1.3%
Free Cash Flow: $-487.0K
Current Ratio: 5.30x
Debt/Equity: 0.00x
EPS: $0.03
AI Rating: HOLD with 45% confidence

Investment Thesis

CPS Technologies demonstrates strong revenue growth (+54.3% YoY) and improved profitability (+113.4% net income growth), supported by exceptional liquidity and minimal debt. However, profitability remains fragile with margins below 2%, negative free cash flow despite operational gains, and minimal returns on assets/equity, raising concerns about sustainable growth quality.

CPSH Strengths

  • + Exceptional revenue growth of 54.3% year-over-year indicates strong market demand
  • + Doubled net income with 113.4% YoY growth showing improving operational efficiency
  • + Outstanding liquidity position with 5.30x current ratio and 4.10x quick ratio
  • + Negligible debt burden with 0.00x debt-to-equity ratio and only $8.1K long-term debt
  • + Strong interest coverage of 231.6x with minimal debt service obligations

CPSH Risks

  • ! Negative free cash flow of -$487.0K despite positive operating cash flow signals working capital or capital allocation issues
  • ! Extremely low profitability margins (Net: 1.3%, Operating: 1.4%, Gross: 16.2%) leave minimal room for error
  • ! Minimal returns on assets (1.4%) and equity (1.7%) indicate poor capital efficiency despite $29.5M in assets
  • ! Heavy capital expenditure ($730.7K) relative to operating cash flow ($243.6K) may not be generating sufficient returns
  • ! Limited earnings visibility with only $420.4K net income on $32.6M revenue suggests vulnerability to operational disruptions

Key Metrics to Watch

CPSH Financial Metrics

Revenue
$32.6M
Net Income
$420.4K
EPS (Diluted)
$0.03
Free Cash Flow
$-487.0K
Total Assets
$29.5M
Cash Position
$4.5M

💡 AI Analyst Insight

Strong liquidity with a 5.30x current ratio provides a solid financial cushion.

CPSH Profitability Ratios

Gross Margin 16.2%
Operating Margin 1.4%
Net Margin 1.3%
ROE 1.7%
ROA 1.4%
FCF Margin -1.5%

CPSH vs Default Sector

How CPS TECHNOLOGIES CORP/DE/ compares to Default sector averages

Net Margin
CPSH 1.3%
vs
Sector Avg 12.0%
CPSH Sector
ROE
CPSH 1.7%
vs
Sector Avg 15.0%
CPSH Sector
Current Ratio
CPSH 5.3x
vs
Sector Avg 1.8x
CPSH Sector
Debt/Equity
CPSH 0.0x
vs
Sector Avg 0.7x
CPSH Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

CPSH Balance Sheet & Liquidity

Current Ratio
5.30x
Quick Ratio
4.10x
Debt/Equity
0.00x
Debt/Assets
16.5%
Interest Coverage
231.60x
Long-term Debt
$8.1K

CPSH 5-Year Financial Trend

CPSH 5-year financial data: Year 2021: Revenue $22.4M, Net Income $908.1K, EPS $0.07. Year 2022: Revenue $26.6M, Net Income $3.2M, EPS $0.22. Year 2023: Revenue $27.6M, Net Income $2.1M, EPS $0.15. Year 2024: Revenue $27.6M, Net Income $1.4M, EPS $0.09. Year 2025: Revenue $32.6M, Net Income -$3.1M, EPS $-0.22.
Revenue
Net Income
EPS (right axis)

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 Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-1.5%
Free cash flow / Revenue

CPSH Quarterly Performance

Quarterly financial performance data for CPS TECHNOLOGIES CORP/DE/ including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
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
Q2 2023 $7.1M $455.1K $0.03

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

CPSH Capital Allocation

Operating Cash Flow
$243.6K
Cash generated from operations
Stock Buybacks
$10.0K
Shares repurchased (TTM)
Capital Expenditures
$730.7K
Investment in assets
Dividends
None
No dividend program

CPSH SEC Filings

Access official SEC EDGAR filings for CPS TECHNOLOGIES CORP/DE/ (CIK: 0000814676)

📋 Recent SEC Filings

Date Form Document Action
Mar 20, 2026 DEF 14A cpsh20260311_def14a.htm View →
Mar 16, 2026 4 xslF345X05/primary_doc.xml View →
Mar 5, 2026 4 xslF345X05/primary_doc.xml View →
Mar 4, 2026 8-K cpsh20260304_8k.htm View →
Mar 3, 2026 10-K cpsh20251227_10k.htm View →

Frequently Asked Questions about CPSH

What is the AI rating for CPSH?

CPS TECHNOLOGIES CORP/DE/ (CPSH) has an AI rating of HOLD with 45% confidence, based on fundamental analysis of SEC EDGAR filings.

What are CPSH's key strengths?

Exceptional revenue growth of 54.3% year-over-year indicates strong market demand. Doubled net income with 113.4% YoY growth showing improving operational efficiency.

What are the risks of investing in CPSH?

Negative free cash flow of -$487.0K despite positive operating cash flow signals working capital or capital allocation issues. Extremely low profitability margins (Net: 1.3%, Operating: 1.4%, Gross: 16.2%) leave minimal room for error.

What is CPSH's revenue and growth?

CPS TECHNOLOGIES CORP/DE/ reported revenue of $32.6M.

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 $0.03.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 22, 2026 | Data as of: 2025-12-27 | Powered by Claude AI