CTS Corp. (CTS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Advanced Energy Industries, Inc.

Littelfuse, Inc.

Plexus Corp.

Flex Ltd.

CTS Corp.

Sonos, Inc.

Universal Display Corp.

Plug Power, Inc.

Veeco Instruments, Inc.

Aehr Test Systems

Vishay Intertechnology, Inc.

Why is CTS Corp. ?

Company has a low Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 4.51% over the last 5 years

Flat results in Jun 25

DIVIDEND PAYOUT RATIO(Y) Lowest at 6.47%
CASH AND EQV(HY) Lowest at USD 189.73 MM

With ROE of 11.35%, it has a fair valuation with a 4.26 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -18.38%, its profits have risen by 5.6% ; the PEG ratio of the company is 4.6

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 12.94% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -18.38% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to CTS Corp. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is CTS Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

CTS Corp.

-20.13%

-0.39

33.87%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.51%

EBIT Growth (5y)

14.60%

EBIT to Interest (avg)

25.47

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

0.88

Tax Ratio

18.08%

Dividend Payout Ratio

8.46%

Pledged Shares

Institutional Holding

99.86%

ROCE (avg)

17.51%

ROE (avg)

8.83%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.26

EV to EBIT

29.36

EV to EBITDA

20.81

EV to Capital Employed

4.26

EV to Sales

4.45

PEG Ratio

4.59

Dividend Yield

ROCE (Latest)

14.50%

ROE (Latest)

11.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

ROCE(HY)

Highest at 11.96%

INTEREST COVERAGE RATIO(Q)

Highest at 2,357.08

RAW MATERIAL COST(Y)

Fallen by -9.17% (YoY

NET SALES(Q)

Highest at USD 135.54 MM

OPERATING PROFIT(Q)

Highest at USD 32.13 MM

OPERATING PROFIT MARGIN(Q)

Highest at 23.7 %

PRE-TAX PROFIT(Q)

Highest at USD 23.04 MM

EPS(Q)

Highest at USD 0.62

-3What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 6.47%

CASH AND EQV(HY)

Lowest at USD 189.73 MM

Here's what is working for CTS Corp.

Interest Coverage Ratio

Highest at 2,357.08

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at USD 135.54 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 32.13 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 23.7 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD 23.04 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

EPS

Highest at USD 0.62

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Raw Material Cost

Fallen by -9.17% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 8.55 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for CTS Corp.

Dividend Payout Ratio

Lowest at 6.47% and Fallen

In each year in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Cash and Eqv

Lowest at USD 189.73 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents