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CTS (CTS) AI Stock Analysis
CTS
(NYSE:CTS)
CTS Corporation earns a strong overall score, primarily driven by its exceptional financial health and a highly positive earnings outlook. The company boasts expanding profit margins, a conservatively managed balance sheet with low debt, and raised full-year 2026 guidance fueled by diversified end-market momentum. While the stock's technical setup indicates support above key moving averages, its valuation is slightly constrained by a moderate P/E ratio and a very low dividend yield.
CTS (CTS) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $1.76B
- Dividend Yield
- 0.26%
- Average Volume (3M)
- 218.42K
- Price to Earnings (P/E)
- 24.1
- Beta (1Y)
- 1.39
- Revenue Growth
- 7.47%
- EPS Growth
- 29.54%
- Country
- US
- Employees
- 3,492
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Hardware, Equipment & Parts
CTS Business Overview & Revenue Model
Company Description
CTS Corporation is a global enterprise specializing in the production and distribution of vital electronic components, such as sensors, actuators, and connectivity solutions, with operations spanning North America, Europe, and Asia. Its extensive pro...
How the Company Makes Money
CTS primarily makes money by selling engineered electronic components and sensing solutions to OEMs and other manufacturers, with revenue recognized from product shipments (and, where applicable, under contract terms for engineered/custom products)....
CTS Earnings Call Summary
The call was strongly positive overall. CTS reported revenue growth, record gross margin and adjusted EPS, strong cash generation, healthy bookings, significant medical and industrial momentum, a substantial aerospace and defense backlog, progress in transportation initiatives, and raised full-year 2026 guidance. The main challenges were medical book-to-bill timing, a year-over-year Aerospace and Defense sales decline, expected normalization from unusually favorable gross-margin mix, transportation market uncertainty, and Millar EBITDA not initially being accretive.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Assuming the continuation of current market conditions for the full year 2026, sales are now expected in the range of $580 million-$590 million and adjusted diluted EPS in the range of $2.78-$2.88; the full-year tax rate is expected to be in the range of 20%-22%, excluding discrete items. Diversified end-market demand is expected to remain solid, medical is expected to show continued momentum, A&D revenue is expected to remain strong in the fourth quarter given the robust order backlog, industrial OEM and distribution demand is expected to remain healthy, and global light vehicle production volumes are forecasted to be flat to modestly down. Millar is expected to generate revenues of approximately $30 million on an annual basis, be accretive in the second half of 2027, and provide EPS accretion in the second half of 2027; gross margins are expected to be good in the next few quarters, but maybe not quite at the same level as the 42%.
CTS Financial Statement Overview
Summary
CTS exhibits excellent financial health with consistent profit margin expansion, robust cash generation, and a conservative balance sheet featuring very low leverage and a debt-to-equity ratio of 0.15.
Income Statement
85Very PositiveBalance Sheet
92Very PositiveCash Flow
88Very Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 571.16M | 542.16M | 515.54M | 550.55M | 586.87M | 512.92M |
| Gross Profit | 230.03M | 208.73M | 188.21M | 188.19M | 209.61M | 183.24M |
| EBITDA | 140.74M | 123.81M | 108.17M | 109.50M | 113.22M | -32.58M |
| Net Income | 73.86M | 65.32M | 58.11M | 60.53M | 59.58M | -41.87M |
Balance Sheet | ||||||
| Total Assets | 822.09M | 764.31M | 766.11M | 741.17M | 748.49M | 664.46M |
| Cash, Cash Equivalents and Short-Term Investments | 143.88M | 82.30M | 94.33M | 163.88M | 156.91M | 141.47M |
| Total Debt | 88.77M | 121.91M | 117.09M | 96.86M | 109.36M | 74.75M |
| Total Liabilities | 235.37M | 212.53M | 235.26M | 214.34M | 242.26M | 200.88M |
| Stockholders Equity | 586.72M | 551.79M | 530.85M | 526.82M | 506.22M | 463.58M |
Cash Flow | ||||||
| Free Cash Flow | 108.31M | 86.37M | 80.64M | 74.07M | 106.86M | 70.50M |
| Operating Cash Flow | 123.47M | 102.11M | 99.29M | 88.81M | 121.20M | 86.14M |
| Investing Cash Flow | -15.05M | -18.51M | -140.56M | -18.10M | -111.19M | -15.90M |
| Financing Cash Flow | -74.21M | -98.44M | -27.93M | -65.40M | 4.34M | -20.71M |
CTS Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTS, the sentiment is Positive. The current price of 61.91 is above the 20-day moving average (MA) of 57.72, above the 50-day MA of 57.95, and above the 200-day MA of 57.53, indicating a bullish trend. The MACD of 1.16 indicates Negative momentum. The RSI at 59.72 is Neutral, neither overbought nor oversold. The STOCH value of 82.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CTS.
CTS Risk Analysis
CTS disclosed 38 risk factors in its most recent earnings report. CTS reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
0 New RisksCTS Peers Comparison
Overall Rating
- CTS79Outperform
BELFB75Outperform
ST74Outperform
LFUS65Neutral
VPG55Neutral
MEI48Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| CTS | 79Outperform | $1.79B | 24.09 | 13.02% | 0.26% | 7.47% | 29.54% |
| BELFB | 75Outperform | $3.34B | 52.52 | 11.27% | 0.13% | 20.98% | -22.92% |
| ST | 74Outperform | $6.06B | 16.38 | 12.57% | 1.17% | 3.84% | ― |
| LFUS | 65Neutral | $10.48B | 286.27 | 1.47% | 0.79% | 18.72% | -74.52% |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| VPG | 55Neutral | $722.50M | -197.48 | -1.10% | ― | 11.28% | ― |
| MEI | 48Neutral | $535.75M | -12.78 | -5.46% | 1.51% | 1.36% | 32.69% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| CTS | CTS Corporation | 61.91 | 21.31 | 52.50% | |
| BELFB | Bel Fuse B | 217.43 | 56.10 | 34.77% | |
| LFUS | Littelfuse | 386.47 | 145.69 | 60.51% | |
| MEI | Methode Electronics | 13.27 | 6.78 | 104.34% | |
| ST | Sensata Technologies | 41.12 | 10.48 | 34.22% | |
| VPG | Vishay Precision | 49.37 | 16.41 | 49.79% |
CTS Corporate Events
CTS showcases strong growth and diversified market momentum
PositiveIn an investor presentation dated October 2026, CTS reported last-12-month revenue of $571 million as of September 2026, a 10% compound annual growth rate since 2019, with adjusted EBITDA margin at 24% and adjusted diluted EPS at $2.75, reflecting st...
CTS boosts guidance on strong Q3 2026 performance
PositiveOn October 27, 2026, CTS reported third-quarter 2026 results showing sales of $149.6 million, up 5% year over year, with diversified end-market revenue growing 7% and transportation sales rising 2%, while net income climbed to $17.8 million and adjus...
CTS Lifts 2026 Outlook on Strong Q2 Results
PositiveCTS Corporation reported on July 28, 2026, that second-quarter 2026 sales rose 7% year over year to $144.8 million, with diversified end-market revenue up 15% and now accounting for 59% of total sales, while transportation revenue slipped 2%. Net inc...
CTS Highlights Growth Strategy in July 2026 Investor Presentation
PositiveIn July 2026, CTS released an investor presentation outlining its financial profile and growth strategy, highlighting last-twelve-month revenue of $564 million, an adjusted EBITDA margin of 24% and adjusted diluted EPS of $2.58, supported by a 10% co...
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.
Date of analysis: Oct 28, 2026