CTS Corporation designs, manufactures, and sells sensors, electronic components, and actuators primarily to original equipment manufacturers and tier one suppliers for the aerospace and defense, industrial, information technology, medical, telecommunications, and transportation markets.
Flawless balance sheet with questionable track record.
Share Price & News
How has CTS's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: XT1's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: XT1 exceeded the German Electronic industry which returned -26.4% over the past year.
Return vs Market: XT1 underperformed the German Market which returned -17.5% over the past year.
Price Volatility Vs. Market
How volatile is CTS's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is CTS undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: XT1 (€21.2) is trading below our estimate of fair value (€24.55)
Significantly Below Fair Value: XT1 is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: XT1 is poor value based on its PE Ratio (21.3x) compared to the Electronic industry average (15.8x).
PE vs Market: XT1 is poor value based on its PE Ratio (21.3x) compared to the German market (16.5x).
Price to Earnings Growth Ratio
PEG Ratio: XT1 is poor value based on its PEG Ratio (1.3x)
Price to Book Ratio
PB vs Industry: XT1 is overvalued based on its PB Ratio (1.9x) compared to the DE Electronic industry average (1.1x).
How is CTS forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: XT1's forecast earnings growth (17% per year) is above the savings rate (-0.4%).
Earnings vs Market: XT1's earnings (17% per year) are forecast to grow faster than the German market (14.2% per year).
High Growth Earnings: XT1's earnings are forecast to grow, but not significantly.
Revenue vs Market: XT1's revenue (1.1% per year) is forecast to grow slower than the German market (4.2% per year).
High Growth Revenue: XT1's revenue (1.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: XT1's Return on Equity is forecast to be low in 3 years time (9%).
How has CTS performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: XT1 has high quality earnings.
Growing Profit Margin: XT1's current net profit margins (7.7%) are lower than last year (9.9%).
Past Earnings Growth Analysis
Earnings Trend: XT1's earnings have grown by 14.1% per year over the past 5 years.
Accelerating Growth: XT1's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: XT1 had negative earnings growth (-22.3%) over the past year, making it difficult to compare to the Electronic industry average (-7.4%).
Return on Equity
High ROE: XT1's Return on Equity (8.9%) is considered low.
How is CTS's financial position?
Financial Position Analysis
Short Term Liabilities: XT1's short term assets ($237.5M) exceed its short term liabilities ($96.9M).
Long Term Liabilities: XT1's short term assets ($237.5M) exceed its long term liabilities ($141.2M).
Debt to Equity History and Analysis
Debt Level: XT1's debt to equity ratio (24.6%) is considered satisfactory.
Reducing Debt: XT1's debt to equity ratio has reduced from 26% to 24.6% over the past 5 years.
Debt Coverage: XT1's debt is well covered by operating cash flow (64.5%).
Interest Coverage: XT1's interest payments on its debt are well covered by EBIT (67.2x coverage).
Inventory Level: XT1 has a high level of physical assets or inventory.
Debt Coverage by Assets: XT1's debt is covered by short term assets (assets are 2.4x debt).
What is CTS's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: XT1's dividend (0.68%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.71%).
High Dividend: XT1's dividend (0.68%) is low compared to the top 25% of dividend payers in the German market (4.98%).
Stability and Growth of Payments
Stable Dividend: XT1 is not paying a notable dividend for the German market, therefore no need to check if payments are stable.
Growing Dividend: XT1 is not paying a notable dividend for the German market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: XT1 is not paying a notable dividend for the German market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of XT1's dividend in 3 years as they are not forecast to pay a notable one for the German market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Kieran O'Sullivan (57yo)
Mr. Kieran M. O'Sullivan has been the Chief Executive Officer and President of CTS Corporation since November 2012. Mr. O'Sullivan has over twenty-five years of executive leadership experience in high-grow ...
CEO Compensation Analysis
Compensation vs Market: Kieran's total compensation ($USD3.44M) is above average for companies of similar size in the German market ($USD1.40M).
Compensation vs Earnings: Kieran's compensation has been consistent with company performance over the past year.
|VP & CFO||6.33yrs||US$1.28m||0.27% $1.9m|
|VP, General Counsel & Secretary||4.58yrs||US$1.05m||0.11% $784.9k|
|Chief Accounting Officer||no data||no data||no data|
|Director of Investor Relations||no data||no data||no data|
Experienced Management: XT1's management team is seasoned and experienced (6.3 years average tenure).
|Independent Director||9.25yrs||US$191.17k||0.14% $959.1k|
|Independent Director||5yrs||US$196.17k||0.067% $465.8k|
|Lead Independent Director||no data||US$201.17k||0.24% $1.7m|
|Independent Director||9yrs||US$191.17k||0.13% $895.4k|
|Independent Director||17.17yrs||US$193.67k||0.23% $1.6m|
|Independent Director||1.92yrs||US$166.17k||0.021% $142.5k|
Experienced Board: XT1's board of directors are considered experienced (8.1 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: XT1 insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
CTS Corporation's company bio, employee growth, exchange listings and data sources
- Name: CTS Corporation
- Ticker: XT1
- Exchange: DB
- Founded: 1896
- Industry: Electronic Manufacturing Services
- Sector: Tech
- Market Cap: US$765.306m
- Listing Market Cap: US$690.229m
- Shares outstanding: 32.46m
- Website: https://www.ctscorp.com
Number of Employees
- CTS Corporation
- 4925 Indiana Avenue
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|CTS||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Jan 1968|
|XT1||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Jan 1968|
CTS Corporation designs, manufactures, and sells sensors, electronic components, and actuators primarily to original equipment manufacturers and tier one suppliers for the aerospace and defense, industrial, information technology, medical, telecommunications, and transportation markets. It offers sensors and actuators for use in passenger or commercial vehicles; electronic components for use in telecommunications infrastructure, information technology and other high-speed applications, switches, and potentiometers; and fabricated piezoelectric materials and substrates for use primarily in medical, industrial, aerospace and defense, and information technology markets. The company sells and markets its products through its sales engineers, independent manufacturers' representatives, and distributors in the United States, Singapore, Taiwan, China, the Czech Republic, and internationally. CTS Corporation was founded in 1896 and is headquartered in Lisle, Illinois.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/03/29 23:28|
|End of Day Share Price||2020/03/27 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.