📊 CTS Key Takeaways
Is Cts Corp. (CTS) a Good Investment?
CTS exhibits fortress-like financial health with 2.52x current ratio, 0.13x debt/equity, and 13.4x interest coverage, coupled with solid 39.5% gross margins and 5.2% revenue growth. However, critically low returns on equity (3.1%) and assets (2.2%) indicate poor capital efficiency—the company generates substantial margins but fails to deploy its $777.2M asset base effectively, while net income stagnates despite revenue growth.
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
- Fortress balance sheet with excellent liquidity (2.52x current ratio, 1.98x quick ratio) and conservative leverage (0.13x debt/equity)
- Solid operational profitability with 15.8% operating margin and 39.5% gross margin indicating pricing power and cost control
- Positive free cash flow generation ($12.3M, 8.8% FCF margin) with manageable capex ($5.0M) reducing financial distress risk
- Strong interest coverage ratio (13.4x) enables debt flexibility and financial resilience
- 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
- Critically low return on equity (3.1%) and return on assets (2.2%) indicate the company is not generating adequate economic returns on its $777.2M asset base despite profitability
- Stagnant net income growth (0% YoY) despite 5.2% revenue growth suggests margin compression, rising costs, or operational deleverage in competitive PCB sector
- FCF margin (8.8%) significantly trails net margin (12.4%), indicating high capital intensity and limited cash generation relative to profits for reinvestment or shareholder returns
- Cyclical exposure in printed circuit boards sector with commodity-like pricing and intense competition limiting margin expansion potential
- 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
- Return on Equity and Return on Assets trend—improvement toward 6%+ ROE would validate capital efficiency improvements
- Net income growth acceleration—key indicator of whether revenue growth can convert to earnings growth or if margins continue compressing
- Operating cash flow sustainability and capex requirements—monitor if capex trends toward higher levels, eroding free cash flow generation
- Gross margin maintenance—track ability to hold 39.5% margins amid cost inflation and competitive pricing pressures in PCB industry
- 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 2.52x 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 |
|---|---|---|---|
| Q1 2026 | $125.8M | $13.4M | $0.44 |
| 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 |
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 (HOLD) and ChatGPT (BUY) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CTS's key strengths?
Claude: Fortress balance sheet with excellent liquidity (2.52x current ratio, 1.98x quick ratio) and conservative leverage (0.13x debt/equity). Solid operational profitability with 15.8% operating margin and 39.5% gross margin indicating pricing power and cost control. 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: Critically low return on equity (3.1%) and return on assets (2.2%) indicate the company is not generating adequate economic returns on its $777.2M asset base despite profitability. Stagnant net income growth (0% YoY) despite 5.2% revenue growth suggests margin compression, rising costs, or operational deleverage in competitive PCB sector. 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 $139.2M.
Does CTS pay dividends?
Cts Corp. pays dividends, with $1.2M 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 $0.59.
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 May 2026, Cts Corp. has a BUY rating with 74% 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 3.1% (sector avg: 15%), net margin of 12.4% (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 $17.3M, with capital expenditures of $5.0M. FCF margin is 8.8%.
How does CTS compare to other Market stocks?
Vs Default sector averages: Net margin 12.4% (avg: 12%), ROE 3.1% (avg: 15%), current ratio 2.52 (avg: 1.8).