📊 CTS Key Takeaways
Investment Thesis
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 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
CTS 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
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
CTS Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.30x current ratio provides a solid financial cushion.
CTS Profitability Ratios
CTS vs Default Sector
How CTS CORP compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CTS Balance Sheet & Liquidity
CTS 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 Growth Metrics (YoY)
CTS Quarterly 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 Capital Allocation
CTS SEC Filings
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 an AI rating of BUY with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CTS's 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.
What are the risks of investing in CTS?
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.
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?
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.