DB:XT1

Stock Analysis Report

Executive Summary

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.


Snowflake Analysis

Flawless balance sheet with questionable track record.


Similar Companies

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.


Market Performance


7 Day Return

12.8%

XT1

4.2%

DE Electronic

7.3%

DE Market


1 Year Return

-18.6%

XT1

-26.3%

DE Electronic

-17.7%

DE Market

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.


Shareholder returns

XT1IndustryMarket
7 Day12.8%4.2%7.3%
30 Day-10.2%-20.8%-17.9%
90 Day-19.1%-24.0%-25.8%
1 Year-18.1%-18.6%-24.8%-26.3%-15.1%-17.7%
3 Year8.2%6.3%-2.4%-5.6%-18.7%-25.6%
5 Year32.2%27.7%55.0%43.6%-17.7%-29.0%

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

Valuation

Is CTS undervalued compared to its fair value and its price relative to the market?

13.8%

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).


Next Steps

Future Growth

How is CTS forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

17.0%

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%).


Next Steps

Past Performance

How has CTS performed over the past 5 years?

14.1%

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.


Next Steps

Financial Health

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).


Balance Sheet

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).


Next Steps

Dividend

What is CTS's current dividend yield, its reliability and sustainability?

0.68%

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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.3yrs

Average management tenure


CEO

Kieran O'Sullivan (57yo)

7.33s

Tenure

US$3,441,677

Compensation

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.


Leadership Team

NamePositionTenureCompensationOwnership
Kieran O'Sullivan
Chairman7.33yrsUS$3.44m1.03% $7.1m
Ashish Agrawal
VP & CFO6.33yrsUS$1.28m0.27% $1.9m
Luis Machado
VP, General Counsel & Secretary4.58yrsUS$1.05m0.11% $784.9k
William Cahill
Chief Accounting Officerno datano datano data
Mitchell Walorski
Director of Investor Relationsno datano datano data

6.3yrs

Average Tenure

56yo

Average Age

Experienced Management: XT1's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kieran O'Sullivan
Chairman7.33yrsUS$3.44m1.03% $7.1m
Diana Murphy
Independent Director9.25yrsUS$191.17k0.14% $959.1k
William Johnson
Independent Director5yrsUS$196.17k0.067% $465.8k
Robert Profusek
Lead Independent Directorno dataUS$201.17k0.24% $1.7m
Gordon Hunter
Independent Director9yrsUS$191.17k0.13% $895.4k
Patricia Vincent-Collawn
Independent Director17.17yrsUS$193.67k0.23% $1.6m
Alfonso Zulueta
Independent Director1.92yrsUS$166.17k0.021% $142.5k

8.1yrs

Average Tenure

62yo

Average Age

Experienced Board: XT1's board of directors are considered experienced (8.1 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

CTS Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • CTS Corporation
  • 4925 Indiana Avenue
  • Lisle
  • Illinois
  • 60532
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CTSNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
XT1DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968

Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 23:28
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.