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CPS Technologies
(NASDAQ:CPSH)
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Rating:47Neutral
Price Target:
$3.50
▼(-7.89% Downside)
Action:Reiterated
Date:08/25/26
CPSH scores low primarily due to weak recent operating performance and especially poor recent cash flow generation, which outweigh a strong, low-debt balance sheet. Technicals are also negative with the stock trading below key moving averages and a negative MACD. Valuation is a further drag given the extremely high P/E. The earnings call and recent corporate actions provide some support via improved liquidity and sequential margin improvement, but execution and facility-move risks remain significant.
Positive Factors
Conservative balance sheet
Very low leverage reduces financial risk and preserves flexibility to fund operations, facility investment, and product development without relying heavily on borrowing. The substantial growth in equity and assets also provides a stronger capital base as CPS pursues expansion.
Negative Factors
Revenue and profitability deterioration
The deterioration in revenue, gross margin and operating profitability indicates limited earnings resilience and weak current operating leverage. Near-breakeven net income leaves little buffer if demand softens further or production costs remain elevated, constraining internally funded growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage reduces financial risk and preserves flexibility to fund operations, facility investment, and product development without relying heavily on borrowing. The substantial growth in equity and assets also provides a stronger capital base as CPS pursues expansion.
Read all positive factors
CPS Technologies (CPSH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$68.25M
Dividend YieldN/A
Average Volume (3M)190.13K
Price to Earnings (P/E)765.2
Beta (1Y)0.53
Revenue Growth25.56%
EPS GrowthN/A
CountryUS
Employees117
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)<0.01
Shares Outstanding19,387,941
10 Day Avg. Volume168,886
30 Day Avg. Volume190,127
Financial Highlights & Ratios
PEG Ratio-0.94
Price to Book (P/B)1.89
Price to Sales (P/S)1.43
P/FCF Ratio-90.88
Enterprise Value/Market Cap1.29
Enterprise Value/Revenue2.73
Enterprise Value/Gross Profit19.35
Enterprise Value/Ebitda294.73
Forecast
1Y Price Target
$6.00Price Target Upside57.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.04
Revenue Forecast (FY)$34.98M
CPS Technologies Business Overview & Revenue Model
Company Description
Headquartered in Norton, Massachusetts, and established in 1984, CPS Technologies Corporation is a provider of cutting-edge material solutions. The company's core offering consists of metal matrix composites, innovative blends of metal and ceramic...
How the Company Makes Money
CPS Technologies makes money primarily by selling advanced material products and engineered components to customers who need thermal-management and high-reliability performance. Key revenue streams include: (1) Product sales of metal-matrix compos...
CPS Technologies Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Neutral
The call conveyed a mixed but constructive tone: operationally the company showed sequential margin recovery (620 basis points vs Q1), modest YoY revenue growth, strengthened liquidity via a $9.6M secondary offering and promising commercial and government-driven product opportunities (tungsten alloys, HybridTech Armor, multiple SBIR-funded projects). Counterbalancing these positives are YoY margin pressure, an operating loss and lower net income vs prior year, substantial inventory buildup in advance of a facility move, a longer-than-expected and multi-million dollar upfit timeline with associated execution and requalification risks, and uncertainties around timing of government funding decisions. Overall, the positives and negatives are roughly balanced, yielding cautious optimism but notable execution and timing risks.Positive Updates
Stable Revenue with Modest Year-over-Year Growth
Revenue of $8.3M in Q2 2026 versus $8.1M in Q2 2025, reflecting a slight YoY increase (~2.5%) and growth versus Q1 2026 (company noted increased shipments and robust demand).
Negative Updates
Gross Margin Decline Year-over-Year
Gross profit was $1.2M (14.8% of revenue) versus $1.3M (16.5% of revenue) in Q2 2025 — a YoY margin decline of 170 basis points attributed in part to higher material and plating costs.
Read all updates
Q2-2026 Updates
Positive
Negative
Stable Revenue with Modest Year-over-Year Growth
Revenue of $8.3M in Q2 2026 versus $8.1M in Q2 2025, reflecting a slight YoY increase (~2.5%) and growth versus Q1 2026 (company noted increased shipments and robust demand).
Read all positive updates
Company Guidance
Management guided that shipments should continue at a similar pace to Q2 (Q2 revenue $8.3M) given the current order backlog, while they near-finalize a lease for a new facility roughly twice the size of the current site—design/engineering ~3–4 months followed by ~7–8 months for construction and equipment installation, with the current lease running through February 2028 and a phased relocation and equipment qualification planned to position the company for improved performance in 2027 and beyond. They said liquidity is strong after a May secondary that raised $9.6M, ending the quarter with $15.4M cash and $3.8M marketable securities ($19.2M combined), inventories have been built to $8.6M to support the move, and additional CapEx in the “millions” is expected to upfit the site and add capacity (notably for metal matrix composites, AlMax and tungsten/QuickSet). Q2 operating metrics cited were $1.2M gross profit (14.8% margin, a 620‑bp improvement from Q1’s 8.6%), SG&A $1.5M, operating loss ≈ $200k, and net income ≈ $40k ($0.00/sh); management also highlighted government-funded programs (Army tungsten work through fall 2027, an ACV option exercised through December with potential Phase II), expected HybridTech Armor awards later this year, and SBIR/STTR reauthorization through FY2031 amid a backlog of proposals.CPS Technologies Financial Statement Overview
Summary
Income Statement
48
Neutral
Balance Sheet
78
Positive
Cash Flow
15
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 32.35M | 32.60M | 21.12M | 27.55M | 26.59M | 22.45M |
| Gross Profit | 4.56M | 5.29M | -118.64K | 6.83M | 7.30M | 4.79M |
| EBITDA | 299.25K | 1.28M | -3.55M | 2.45M | 3.34M | 1.01M |
| Net Income | 37.09K | 420.35K | -3.14M | 1.37M | 2.13M | 3.22M |
Balance Sheet | ||||||
| Total Assets | 38.44M | 29.51M | 18.88M | 21.60M | 21.68M | 18.80M |
| Cash, Cash Equivalents and Short-Term Investments | 19.16M | 13.24M | 4.31M | 8.81M | 8.27M | 5.05M |
| Total Debt | 264.00K | 336.00K | 194.13K | 386.89K | 564.56K | 740.59K |
| Total Liabilities | 4.78M | 4.88M | 4.36M | 4.28M | 5.97M | 5.63M |
| Stockholders Equity | 33.66M | 24.64M | 14.51M | 17.32M | 15.71M | 13.17M |
Cash Flow | ||||||
| Free Cash Flow | -2.39B | -513.13K | -4.47M | 549.18K | 3.11M | 1.49M |
| Operating Cash Flow | -2.23B | 243.64K | -3.48M | 1.27M | 3.55M | 2.01M |
| Investing Cash Flow | 2.83B | -8.50M | -2.01M | -718.27K | -436.37K | -512.27K |
| Financing Cash Flow | 9.04B | 9.44M | -46.76K | -2.31K | 101.41K | 3.36M |
CPS Technologies Technical Analysis
Negative
3.80
Price Trends
3.94
Negative
5.01
Negative
4.74
Negative
Market Momentum
-0.12
Positive
36.17
Neutral
16.41
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPSH, the sentiment is Negative. The current price of 3.8 is above the 20-day moving average (MA) of 3.77, below the 50-day MA of 3.94, and below the 200-day MA of 4.74, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 36.17 is Neutral, neither overbought nor oversold. The STOCH value of 16.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CPSH.
CPS Technologies Risk Analysis
CPS Technologies disclosed 21 risk factors in its most recent earnings report. CPS Technologies reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CPS Technologies Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.79B | 57.97 | 9.43% | 0.14% | 10.62% | 98.88% | |
64 Neutral | $84.63M | -335.00 | -0.53% | ― | 26.35% | -130.90% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
49 Neutral | $50.44M | -7.91 | -13.57% | 2.64% | -2.20% | -297.64% | |
49 Neutral | $61.03M | -9.38 | -435.06% | 1.64% | 86.71% | 78.28% | |
48 Neutral | $20.64M | -9.54 | -168.53% | ― | -46.47% | -26.00% | |
47 Neutral | $68.25M | 765.22 | 0.15% | ― | 25.56% | ― |
* Technology Sector Average
CPSH
CPS Technologies
3.52
-0.88
-20.00%
ALNT
Allient
99.13
46.04
86.71%
ELTK
Eltek
7.20
-3.97
-35.54%
LGL
LGL Group
6.70
0.36
5.68%
GNSS
Genasys
1.25
-0.97
-43.69%
REFR
Research Frontiers
0.63
-1.15
-64.66%
CPS Technologies Corporate Events
Business Operations and Strategy
CPS Technologies Signs Long-Term Lease for New Facility
Positive
Aug 24, 2026
On August 19, 2026, CPS Technologies Corp. signed a lease for about 80,000 square feet of space at 523 Pleasant Street in Attleboro, Massachusetts, as it plans to move its corporate offices, manufacturing, and product development from Norton to th...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
CPS Technologies Posts Modest Q2 Growth Amid Margin Pressure
Neutral
Aug 6, 2026
On August 4, 2026, CPS Technologies reported fiscal second-quarter results for the period ended June 27, 2026, with revenue rising slightly to $8.3 million from $8.1 million a year earlier on robust product demand. Despite this, gross margin slipp...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.