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

-3.5%

CTS

-2.3%

US Electronic

-0.6%

US Market


1 Year Return

-11.6%

CTS

-2.8%

US Electronic

0.7%

US Market

CTS underperformed the Electronic industry which returned -2.9% over the past year.

CTS underperformed the Market in United States of America which returned 0.7% over the past year.


Share holder returns

CTSIndustryMarket
7 Day-3.5%-2.3%-0.6%
30 Day14.4%7.8%4.9%
90 Day16.3%0.7%1.7%
1 Year-11.1%-11.6%-1.8%-2.8%3.0%0.7%
3 Year71.7%68.9%49.7%45.5%44.8%35.4%
5 Year101.3%94.5%70.0%61.5%62.0%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

1 week ago | Simply Wall St

Does CTS Corporation (NYSE:CTS) Create Value For Shareholders?

Valuation

Is CTS undervalued based on future cash flows and its price relative to the stock market?

19%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

CTS's share price is below the future cash flow value, but not at a moderate discount (< 20%).

CTS's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

CTS is overvalued based on earnings compared to the US Electronic industry average.

CTS is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

CTS is poor value based on expected growth next year.


Price Based on Value of Assets

CTS is overvalued based on assets compared to the US Electronic industry average.


Next Steps

Future Growth

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

12.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

CTS's revenue is expected to grow by 4.5% yearly, however this is not considered high growth (20% yearly).

CTS's earnings are expected to grow by 12% yearly, however this is not considered high growth (20% yearly).

CTS's revenue growth is positive but not above the United States of America market average.

CTS's earnings growth is positive but not above the United States of America market average.

CTS's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if CTS will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

CTS's year on year earnings growth rate has been positive over the past 5 years.

CTS's 1-year earnings growth exceeds its 5-year average (246.6% vs 11.4%)

CTS's earnings growth has exceeded the US Electronic industry average in the past year (246.6% vs 49.8%).


Return on Equity

CTS has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

CTS used its assets more efficiently than the US Electronic industry average last year based on Return on Assets.


Return on Capital Employed

CTS has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is CTS's financial position?


Financial Position Analysis

CTS is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

CTS's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

CTS's level of debt (12.6%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (25.4% vs 12.6% today).

Debt is well covered by operating cash flow (109.2%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 430x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

0.50%

Current Dividend Yield


Upcoming Dividend Payment

Purchase CTS before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

CTS's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

CTS's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

CTS is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.

CTS is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of CTS's dividends as it is not paying a notable one for United States of America.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

Kieran O'Sullivan (57yo)

6.8yrs

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

Kieran's remuneration is about average for companies of similar size in United States of America.

Kieran's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.8yrs

Average Tenure

56.5yo

Average Age

The average tenure for the CTS management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

7.6yrs

Average Tenure

62yo

Average Age

The tenure for the CTS board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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: 6.8yrs
    • Compensation: US$3.44m
  • Mitchell Walorski

    Director of Investor Relations

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

    VP & CFO

    • Tenure: 5.8yrs
    • Compensation: US$1.28m
  • Luis Machado (56yo)

    VP, General Counsel & Secretary

    • Tenure: 4.1yrs
    • Compensation: US$1.05m

Board Members

  • Diana Murphy (62yo)

    Director

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

    Director

    • Tenure: 4.6yrs
    • Compensation: US$196.17k
  • Bob Profusek (69yo)

    Lead Director

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

    Director

    • Tenure: 8.6yrs
    • Compensation: US$191.17k
  • Pat Vincent-Collawn (60yo)

    Director

    • Tenure: 16.7yrs
    • Compensation: US$193.67k
  • Chito Zulueta (56yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: US$166.17k
  • Kieran O'Sullivan (57yo)

    Chairman

    • Tenure: 6.8yrs
    • 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$1.053b
  • 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 Analysis2019/09/22 23:32
End of Day Share Price2019/09/20 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.