NYSE:CTS

Stock Analysis Report

Executive Summary

CTS Corporation designs, manufactures, and sells a range of sensors, electronic components, and actuators primarily to original equipment manufacturers for the aerospace and defense, industrial, information technology, medical, telecommunications, and transportation markets.

Snowflake

Fundamentals

Flawless balance sheet with solid 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


Market Performance


7 Day Return

2.3%

CTS

2.4%

US Electronic

0.07%

US Market


1 Year Return

22.5%

CTS

16.3%

US Electronic

8.9%

US Market

Return vs Industry: CTS exceeded the US Electronic industry which returned 16.3% over the past year.

Return vs Market: CTS exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

CTSIndustryMarket
7 Day2.3%2.4%0.07%
30 Day4.3%3.7%-0.3%
90 Day6.9%2.3%-1.6%
1 Year23.2%22.5%17.5%16.3%11.3%8.9%
3 Year101.6%98.1%55.8%51.4%46.3%36.8%
5 Year93.1%86.4%83.7%74.7%62.1%44.3%

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

Valuation

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

2.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CTS ($33.77) is trading below our estimate of fair value ($34.76)

Significantly Below Fair Value: CTS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CTS is poor value based on its PE Ratio (21.7x) compared to the Electronic industry average (19.6x).

PE vs Market: CTS is poor value based on its PE Ratio (21.7x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: CTS is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: CTS is overvalued based on its PB Ratio (2.8x) compared to the US Electronic industry average (2x).


Next Steps

Future Growth

How is CTS forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

9.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTS's forecast earnings growth (9.2% per year) is above the savings rate (2.7%).

Earnings vs Market: CTS's earnings (9.2% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: CTS's earnings are forecast to grow, but not significantly.

Revenue vs Market: CTS's revenue (4.4% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: CTS's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CTS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has CTS performed over the past 5 years?

11.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CTS's earnings have grown by 11.4% per year over the past 5 years.

Accelerating Growth: CTS's earnings growth over the past year (246.6%) exceeds its 5-year average (11.4% per year).

Earnings vs Industry: CTS earnings growth over the past year (246.6%) exceeded the Electronic industry 58.6%.


Return on Equity

High ROE: CTS's Return on Equity (12.9%) is considered low.


Return on Assets

ROA vs Industry: CTS has a higher Return on Assets than the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: CTS has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is CTS's financial position?


Financial Position Analysis

Short Term Liabilities: CTS's short term assets ($250.4M) exceeds its short term liabilities ($96.3M)

Long Term Liabilities: CTS's short term assets (250.4M) exceeds its long term liabilities (88.8M)


Debt to Equity History and Analysis

Debt Level: CTS's debt to equity ratio (12.6%) is considered satisfactory

Reducing Debt: CTS's debt to equity ratio has reduced from 25.4% to 12.6% over the past 5 years.

Debt Coverage: CTS's debt is well covered by operating cash flow (109.2%).

Interest Coverage: CTS's interest payments on its debt are well covered by EBIT (430x coverage).


Balance Sheet

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

Debt Coverage by Assets: CTS's debt is covered by short term assets (assets are 5x debt).


Next Steps

Dividend

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

0.47%

Current Dividend Yield


Dividend Yield vs Market

company0.5%marketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CTS's dividend (0.47%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: CTS's dividend (0.47%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: CTS is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: CTS is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: CTS is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CTS'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 CTS's salary, the management and board of directors tenure and is there insider trading?

5.9yrs

Average management tenure


CEO

Kieran O'Sullivan (57yo)

6.9yrs

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 ($USD3.44M) is about average for companies of similar size in the US market ($USD2.67M).

Compensation vs Earnings: Kieran's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.9yrs

Average Tenure

56.5yo

Average Age

Experienced Management: CTS's management team is seasoned and experienced (5.9 years average tenure).


Board Age and Tenure

7.7yrs

Average Tenure

62yo

Average Age

Experienced Board: CTS's board of directors are considered experienced (7.7 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.


Recent Insider Transactions

BuyUS$1,18206 Nov 18
Ashish Agrawal
EntityIndividual
Role
Chief Financial Officer
VP & CFO
Shares43
Max PriceUS$27.49

Ownership Breakdown


Management Team

  • Bob Profusek (69yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$201.17k
  • Kieran O'Sullivan (57yo)

    Chairman

    • Tenure: 6.9yrs
    • Compensation: US$3.44m
  • Mitchell Walorski

    Director of Investor Relations

    • Tenure: 0yrs
  • Ashish Agrawal (48yo)

    VP & CFO

    • Tenure: 5.9yrs
    • Compensation: US$1.28m
  • Luis Machado (56yo)

    VP, General Counsel & Secretary

    • Tenure: 4.2yrs
    • Compensation: US$1.05m

Board Members

  • Diana Murphy (62yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$191.17k
  • Bill Johnson (62yo)

    Director

    • Tenure: 4.7yrs
    • Compensation: US$196.17k
  • Bob Profusek (69yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$201.17k
  • Gordon Hunter (67yo)

    Independent Director

    • Tenure: 8.7yrs
    • Compensation: US$191.17k
  • Pat Vincent-Collawn (60yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$193.67k
  • Chito Zulueta (56yo)

    Director

    • Tenure: 1.5yrs
    • Compensation: US$166.17k
  • Kieran O'Sullivan (57yo)

    Chairman

    • Tenure: 6.9yrs
    • Compensation: US$3.44m

Company Information

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


Key Information

  • Name: CTS Corporation
  • Ticker: CTS
  • Exchange: NYSE
  • Founded: 1896
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: US$1.103b
  • Shares outstanding: 32.67m
  • 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 a range of sensors, electronic components, and actuators primarily to original equipment manufacturers for the aerospace and defense, industrial, informatio ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 23:32
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.