CTS Corporation

CTS Corporation

CTSยทNYSE

$66.72

+4.9%
TechnologyHardware, Equipment & Parts

CTS Corporation manufactures and sells sensors, actuators, and connectivity components in North America, Europe, and Asia. The company provides sensors and actuators for use in passenger or commercial vehicles; connectivity components for telecommunications infrastructure, information technology, and other high-speed applications; switches, temperature sensors, and potentiometers supplied to multiple markets; and fabricated piezoelectric materials and substrates used primarily in medical, industrial, aerospace and defense, and information technology markets. In addition, the company sells and markets its products through its sales engineers, independent manufacturers' representatives, and distributors. CTS Corporation was founded in 1896 and is headquartered in Lisle, Illinois.

At a Glance

Live Snapshot
Market Cap$1.91B
EPS2.2100
P/E Ratio19.37
Earnings Date07/23/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is mid-range (P/E 19.4).

Valuation inputs: P/E 19.4, earnings yield +5.2%, momentum +4.9%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is acceptable (ROE +11.8%, ROIC +9.8%).

Profitability stack: net margin +12.0%, ROE +11.8%, ROIC +9.8%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Downside profile looks controlled across current risk inputs.

Risk factors: liabilities/assets +27.8%, momentum +4.9%, net margin +12.0%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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CTS Corporation Market vs Earnings Trajectory

CTS ยท NYSE

Loading price and EPS data...

CTS Corporation

CTS Corporation Fair Value Envelope

CTS ยท NYSE

Our analysis suggests that CTS has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $66.72, this represents a potential HIDDEN relative to our calculated worth for CTS Corporation.

Intrinsic Value
Current Price: $66.72
3Y+19.0%
5Y+107.0%
10Y+110.0%
3Y-8.0%
5Y+28.0%
10Y+37.0%
3Y+10.0%
5Y+88.0%
10Y+90.0%
3Y-16.0%
5Y+33.0%
10Y+116.0%
3Y-19.0%
5Y+39.0%
10Y+223.0%
3Y+2.0%
5Y+22.0%
10Y+48.0%
CTS Corporation

CTS Corporation Profit Bridge

CTS ยท NYSE
Revenue542.16M
Cost of Goods Sold (333.43M)
Gross Profit208.73M
Operating Expenses (123.99M)
Operating Income84.74M
Interest Expense (5.50M)
Other Income/Expense-971.00K
Pretax Income83.77M
Income Tax (18.45M)
Net Income65.32M
Net Income
65.32M

Profitability Analysis

Gross Margin

38.5%

Strong gross margins indicate healthy pricing and efficient production or service delivery.

Operating Margin

15.6%

Healthy operating margins demonstrate effective cost control and strong business fundamentals.

Net Profit Margin

12.0%

Strong net margins indicate efficient operations and favorable tax/interest management.

Effective Tax Rate

22.0%

Moderate tax rate typical for most corporations. Represents standard tax burden on profits.

Profitability Insight

Room for improvement: Moderate profitability with opportunities to enhance margins through better cost management or pricing strategy.

38.50%
Gross Profit Margin
5%
3Y+8.0%
5Y+17.0%
10Y+9.0%
15.63%
Operating Profit Margin
5%
3Y-2.0%
5Y+39.0%
10Y-2.0%
12.05%
Net Profit Margin
7%
3Y+19.0%
5Y+47.0%
10Y+39.0%
11.84%
Return on Equity
8%
3Y+1.0%
5Y+45.0%
10Y+9.0%
8.55%
Return on Assets
13%
3Y+7.0%
5Y+54.0%
10Y+29.0%
9.78%
Return on Invested Capital
5%
3Y-10.0%
5Y+41.0%
10Y+8.0%
CTS

CTS Corporation Cash Conversion Engine

CTS ยท NYSE
Net Income65.32M
Depreciation & Amortization34.54M
Stock-Based Compensation4.89M
Change in Working Capital3.69M
Others-5.92M
Capital Expenditures-15.73M
Free Cash Flow86.37M

Cash Flow Quality Analysis

FCF Conversion Rate

132.2%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

CapEx Intensity

15.4%

Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.

FCF Growth Trend

+7.1%

Steady FCF growth indicates consistent cash generation improvement. On a positive trajectory.

Working Capital Impact

+$3.69M

Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.

Cash Flow Quality Insight

Asset-light with strong cash conversion: Low capital requirements combined with efficient cash generation creates significant shareholder value through dividends, buybacks, or strategic investments.

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CTS Corporation Funding & Solvency Profile

CTS ยท NYSE
Cash & Cash Equivalents90.85M
Net Receivables99.16M
Inventory57.27M
Other Current Assets18.73M
Total Current Assets266 M
Property, Plant & Equipment119.13M
Goodwill & Intangible Assets357.29M
Long-Term Investments317.00K
Other Non-Current Assets10.09M
Total Non-Current Assets130 M
Total Assets
777.15M

Financial Health Analysis

Current Ratio

2.52x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Debt-to-Equity Ratio

0.39x

Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.

Working Capital

161 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

34% Current

Capital-intensive business with significant long-term investments in property, equipment, or intangibles.

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.

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CTS Corporation Street Expectations Map

CTS ยท NYSE

No Target Data

No analyst price targets available for cts.

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CTS Corporation Insider Positioning

CTS ยท NYSE

During the last 12 months, insiders have sold $1.32M worth of CTS shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

0

0.00

Sold

25.0K

1.32M

Net Activity

-1.3M

-$1.32M

6-9 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

9-12 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

Top Buyers

No buying activity

Top Sellers

1
AA

Agrawal Ashish

Officer: Cfo

25.0K sharesโ€ข1 transactions

$1.32M

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $1.32M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Insider Participation

High Selling

1 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.

0.08%
Dividend Yield
-11%
3Y+3.0%
5Y-35.0%
10Y-62.0%
ย 

cts Dividend History

CTS
10Y CAGR +0%
Latest $0.04
Annual $0.2
Stable dividend payments
Last Period: +0%