CPS Technologies Corporation
$7.86
-17%CPS Technologies Corporation produces and sells advanced material solutions to the transportation, automotive, energy, computing/internet, telecommunication, aerospace, defense, and oil and gas markets. It primarily offers metal matrix composites that are a combination of metal and ceramic, such as baseplates for various applications, including motor controllers used in electric trains, subway cars, wind turbines, and hybrid and electric vehicles; hermetic packages for use in radar, satellite, and avionics applications; baseplates and housings used in modules built with wide band gap semiconductors; and lids and heatspreaders used with integrated circuits for use in internet switches and routers. The company also assembles housings and packages for hybrid circuits. It primarily sells its products to microelectronics systems companies in the United States, Europe, and Asia. The company was formerly known as Ceramics Process Systems Corporation and changed its name to CPS Technologies Corporation in March 2007. CPS Technologies Corporation was incorporated in 1984 and is headquartered in Norton, Massachusetts.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is elevated (P/E 262.0).
Valuation inputs: P/E 262.0, earnings yield +0.4%, momentum -16.8%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE +1.7%, ROIC +1.1%).
Profitability stack: net margin +1.3%, ROE +1.7%, ROIC +1.1%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +16.5%, momentum -16.8%, net margin +1.3%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
CPS Technologies Corporation Market vs Earnings Trajectory
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CPS Technologies Corporation Fair Value Envelope
CPS Technologies Corporation Profit Bridge
Profitability Analysis
Gross Margin
Thin margins leave little room for error. Cost management and pricing strategy are critical.
Operating Margin
Minimal operating profit suggests high operating costs or pricing challenges. Scalability is concerning.
Net Profit Margin
Minimal profitability after all expenses. Limited financial flexibility for reinvestment or shareholder returns.
Effective Tax Rate
Higher tax burden may reflect limited tax optimization or operations in high-tax jurisdictions.
Profitability Insight
Efficient profit conversion: Minimal margin compression from gross to net indicates lean operations and favorable tax/interest environment.
CPS Technologies Corporation Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.
CapEx Intensity
Very high capital intensity consumes most operating cash flow. Limited flexibility for dividends or debt reduction.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Significant working capital drain. Growth may be consuming cash through inventory buildup or receivables extension—monitor closely.
Cash Flow Quality Insight
Cash flow concerns: Despite profitability, the company is burning cash. Review working capital management, CapEx levels, and sustainability of current operations.
CPS Technologies Corporation Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.
Debt-to-Equity Ratio
Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
Financial Health Insight
Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.
CPS Technologies Corporation Street Expectations Map
Wall Street analysts project that CPSH stock may decline over the coming 12 months. The consensus 1-year price target stands at 6.00, with estimates ranging from a low of 6.00 to a high of 6.00.
The consensus 1-year price target stands at 6.00, with estimates ranging from a low of 6.00 to a high of 6.00.
Analyst Consensus Analysis
Upside Potential
Significant downside risk. Stock trading well above analyst consensus suggests elevated valuation concerns and potential correction.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Risk-Reward Profile
Balanced risk-reward. Upside and downside potential relatively symmetric. Suitable for moderate risk tolerance with conviction in thesis.
Analyst Conviction
Bearish or uncertain outlook. Limited upside or poor consensus suggests challenges ahead or fundamental concerns.
Market Sentiment Insight
Consensus overvaluation: Analysts agree the stock is richly valued with limited upside. Consider booking profits or defensive positioning unless you have contrarian conviction in unrecognized catalysts.
CPS Technologies Corporation Insider Positioning
During the last 12 months, insiders have purchased $324K and sold $234K worth of CPSH shares, resulting in $90K of net buying activity.
3 Months
17.3K
73.42K
80.0K
234.40K
-161K
-$161K
3-6 Months
0
0.00
0
0.00
+0
+$0
6-9 Months
68.7K
206.62K
0
0.00
+207K
+$207K
9-12 Months
16.3K
44.00K
0
0.00
+44K
+$44K
Top Buyers
Cavoli Ivo James
Director
$133K
Fraser Christopher Stuart
Officer: Chief Financial Officer
$65K
Hughes Francis J Jr
Director
$55K
Mackey Brian T
Officer: President & Ceo
$50K
Griffith Charles Kellogg Jr
Officer: Cfo
$12K
Top Sellers
Mackey Brian T
Officer: Ceo
$234K
Insider Activity Analysis
Net Insider Sentiment
Moderately bullish with $90K net buying. Insiders show cautious optimism through measured share purchases.
Buy/Sell Ratio
Positive buy/sell ratio. Buying exceeds or matches selling, indicating net positive insider sentiment.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
5 insider buyers vs. 1 sellers. Broad-based buying across management team suggests widespread confidence.
Insider Activity Insight
Broad-based insider buying: When multiple insiders independently decide to purchase shares, it often reflects genuine confidence rather than coordinated optics. This pattern deserves attention, especially if buying followed a price decline.
No Dividend Yield Data
CPSH has not reported any dividend yield values in the available annual periods.
cpsh Dividend History
Learning Layer
Related Guides
Build conviction on CPSH by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.