NasdaqCM:CPSH

Stock Analysis Report

Executive Summary

CPS Technologies Corporation produces and sells advanced material solutions to the transportation, automotive, energy, computing/Internet, telecommunication, aerospace, defense, and oil and gas markets.

Rewards

Trading at 70.7% below its fair value

Risk Analysis

Earnings have declined by -69.07% per year over past 5 years

Currently unprofitable and not forecast to become profitable over the next 3 years

Does not have a meaningful market cap ($13M)



Snowflake Analysis

Flawless balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has CPS Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CPSH has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.7%

CPSH

1.8%

US Electronic

1.7%

US Market


1 Year Return

-29.7%

CPSH

27.4%

US Electronic

23.6%

US Market

Return vs Industry: CPSH underperformed the US Electronic industry which returned 30.2% over the past year.

Return vs Market: CPSH underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

CPSHIndustryMarket
7 Day-0.7%1.8%1.7%
30 Day4.1%3.0%3.5%
90 Day0%10.4%11.7%
1 Year-29.7%-29.7%28.7%27.4%26.2%23.6%
3 Year-41.4%-41.4%54.6%50.2%53.2%43.3%
5 Year-64.6%-64.6%89.9%80.4%75.5%56.1%

Price Volatility Vs. Market

How volatile is CPS Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CPSH ($1) is trading below our estimate of fair value ($3.42)

Significantly Below Fair Value: CPSH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CPSH is unprofitable, so we can't compare its PE Ratio to the Electronic industry average.

PE vs Market: CPSH is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CPSH's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CPSH is overvalued based on its PB Ratio (2.7x) compared to the US Electronic industry average (2.1x).


Next Steps

Future Growth

How is CPS Technologies forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

23.0%

Forecasted Tech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as CPS Technologies has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has CPS Technologies performed over the past 5 years?

-69.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CPSH is currently unprofitable.

Growing Profit Margin: CPSH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CPSH is unprofitable, and losses have increased over the past 5 years at a rate of -69.1% per year.

Accelerating Growth: Unable to compare CPSH's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CPSH is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (53.6%).


Return on Equity

High ROE: CPSH has a negative Return on Equity (-77.6%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CPS Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: CPSH's short term assets ($6.2M) exceed its short term liabilities ($2.7M).

Long Term Liabilities: CPSH's short term assets ($6.2M) exceed its long term liabilities ($59.0K).


Debt to Equity History and Analysis

Debt Level: CPSH's debt to equity ratio (8.3%) is considered satisfactory.

Reducing Debt: CPSH had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet

Inventory Level: CPSH has a high level of physical assets or inventory.

Debt Coverage by Assets: CPSH's debt is covered by short term assets (assets are 15.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable CPSH has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: CPSH is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 11.8% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate CPSH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CPSH's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CPSH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CPSH's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CPSH's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of CPS Technologies's salary, the management and board of directors tenure and is there insider trading?

6.3yrs

Average management tenure


CEO

Grant Bennett (64yo)

27.3yrs

Tenure

US$178,542

Compensation

Mr. Grant C. Bennett has been the President, Chief Executive Officer and Treasurer of CPS Technologies Corp. (formerly Ceramics Process Systems Corp.) since September 1992. Mr. Bennett served as the Princi ...


CEO Compensation Analysis

Compensation vs Market: Grant's total compensation ($USD178.54K) is below average for companies of similar size in the US market ($USD519.76K).

Compensation vs Earnings: Grant's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

6.3yrs

Average Tenure

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


Board Age and Tenure

5.3yrs

Average Tenure

67yo

Average Age

Experienced Board: CPSH's board of directors are considered experienced (5.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Management Team

  • Grant Bennett (64yo)

    CEO, President

    • Tenure: 27.3yrs
    • Compensation: US$178.54k
  • Charles Da Rosa

    Vice-President of Operations

    • Susan April

      Vice President of Administration

      • Tenure: 12yrs
    • Tom Breen (57yo)

      Consultant

      • Tenure: 0.3yrs
      • Compensation: US$229.46k
    • Chuck Griffith

      Chief Financial Officer

      • Tenure: 0.7yrs

    Board Members

    • Francis Hughes (68yo)

      Chairman

      • Tenure: 1.6yrs
      • Compensation: US$29.11k
    • Grant Bennett (64yo)

      CEO, President

      • Tenure: 27.3yrs
      • Compensation: US$178.54k
    • Tom Culligan (67yo)

      Independent Director

      • Tenure: 5.3yrs
      • Compensation: US$29.60k
    • Ralph Norwood (75yo)

      Director

      • Tenure: 0.4yrs
      • Compensation: US$164.79k
    • Daniel Snow (47yo)

      Independent Director

      • Tenure: 11.6yrs
      • Compensation: US$30.47k

    Company Information

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


    Key Information

    • Name: CPS Technologies Corporation
    • Ticker: CPSH
    • Exchange: NasdaqCM
    • Founded: 1984
    • Industry: Electronic Components
    • Sector: Tech
    • Market Cap: US$13.472m
    • Shares outstanding: 13.21m
    • Website: https://www.alsic.com

    Number of Employees


    Location

    • CPS Technologies Corporation
    • 111 South Worcester Street
    • Norton
    • Massachusetts
    • 2766
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    CPSHNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJul 1987

    Biography

    CPS Technologies Corporation produces and sells advanced material solutions to the transportation, automotive, energy, computing/Internet, telecommunication, aerospace, defense, and oil and gas markets. Its products are used in applications that involve energy use or energy generation. The company 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; baseplates and housings for use in radar, satellite, and avionics applications, as well as in modules built with wide band gap semiconductors; and lids and heatspreaders used with integrated circuits for use in Internet switches and routers. It also assembles housings and packages for hybrid circuits. CPS Technologies Corporation 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 founded in 1984 and is headquartered in Norton, Massachusetts. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/20 00:01
    End of Day Share Price2020/01/17 00:00
    Earnings2019/09/28
    Annual Earnings2018/12/29


    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.