CTS Co., Ltd. (4345) AI Stock Analysis

• Market Cap: ¥36.47B
• Dividend Yield: 2.73%
• Average Volume (3M): 47.20K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.58
• Revenue Growth: 6.71%
• EPS Growth: 26.33%
• Country: JP
• Employees: 272
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 14.25
• Shares Outstanding: 42,000,000
• 10 Day Avg. Volume: 53,220
• 30 Day Avg. Volume: 47,203
• PEG Ratio: 0.75
• Price to Book (P/B): 2.50
• Price to Sales (P/S): 2.73
• P/FCF Ratio: 11.93
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥997.00
• Price Target Upside: 15.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥997.00 ▲(15.80% Upside)

CTS Co., Ltd. scores well due to its strong financial performance, characterized by consistent revenue and profit growth, and a stable balance sheet. The technical analysis suggests mixed signals with short-term weakness but longer-term strength. The valuation is reasonable, with a fair P/E ratio and an attractive dividend yield. The absence of earnings call and corporate events data did not impact the overall score.

CTS Co., Ltd. Business Overview & Revenue Model

Company Description

CTS Co., Ltd. primarily provides ICT construction services for the construction industry in Japan. The company also offers IT infrastructures systems for construction sites; cloud storage services; mobaden mobile fixed IP phone service; outdoor network construction; network camera; remote work support; multifunction device and cloud scan; and provides AI face recognition and non-contact temperature detector. In addition, it offers 3D and one-man survey, 3D design data, ICT construction, construction management, electronic delivery, and other surveying and measuring equipment, such as lasers; and inspects and repair surveying instruments. Further, the company sells unit houses, office furniture, home appliances, air conditioners, and heating equipment; and rents and sells office desks, meeting tables, chairs, bookshelves, etc., as well as provides sterilization cleaning services. Additionally, it also engages in the lane marking and road sign construction activity; installation of guard fences; and designing and construction of disaster prevention shelters, solar lights, and playground equipment. CTS Co., Ltd. was founded in 1972 and is headquartered in Ueda, Japan.

How the Company Makes Money

CTS Co., Ltd. generates revenue through the sale of its electronic components and systems to a variety of industries. The company's revenue model is primarily based on direct sales to original equipment manufacturers (OEMs) and distributors. Key revenue streams include the production and supply of high-performance connectors and sensors, which are essential for modern electronic devices. Additionally, CTS has established significant partnerships with leading technology firms in the automotive and telecommunications sectors, enabling it to secure long-term contracts and steady income. The company's focus on innovation and quality also allows it to command premium prices for its products, contributing to its overall profitability.

CTS Co., Ltd. Financial Statement Overview

Summary

CTS Co., Ltd. exhibits strong financial health with consistent revenue and profit growth, efficient operations, and a stable balance sheet. The company maintains a low debt-to-equity ratio and demonstrates positive free cash flow growth, although there is room for improvement in the free cash flow to net income ratio.

Income Statement

CTS Co., Ltd. has shown strong revenue growth with a consistent upward trend from 2020 to 2025. The gross profit margin has remained robust, indicating effective cost management. The net profit margin has improved, reflecting enhanced profitability. EBIT and EBITDA margins are solid, showcasing operational efficiency.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio, suggesting prudent leverage management. The return on equity has improved, indicating efficient use of shareholders' funds. The equity ratio is strong, reflecting financial stability and a solid asset base.

Cash Flow

CTS Co., Ltd. demonstrates positive free cash flow growth, supporting its ability to fund operations and investments. The operating cash flow to net income ratio is favorable, indicating good cash generation relative to earnings. However, the free cash flow to net income ratio shows room for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.00B	11.82B	11.09B	10.80B	10.54B	9.97B
Gross Profit	6.17B	6.08B	5.71B	5.45B	5.23B	4.68B
EBITDA	4.32B	4.21B	3.80B	3.64B	3.51B	3.06B
Net Income	2.35B	2.19B	1.86B	1.76B	1.73B	1.46B
Balance Sheet
Total Assets	16.69B	17.08B	16.71B	14.74B	14.36B	13.12B
Cash, Cash Equivalents and Short-Term Investments	4.02B	4.53B	6.95B	6.27B	5.17B	6.22B
Total Debt	985.00M	1.81B	1.81B	1.95B	2.40B	2.30B
Total Liabilities	3.70B	4.21B	4.48B	4.16B	4.62B	4.33B
Stockholders Equity	12.99B	12.87B	12.23B	10.58B	9.74B	8.79B
Cash Flow
Free Cash Flow	663.00M	2.70B	2.76B	2.55B	2.72B	1.93B
Operating Cash Flow	686.00M	2.84B	2.98B	2.61B	2.90B	2.33B
Investing Cash Flow	-823.00M	-2.45B	-553.00M	222.00M	-2.26B	-377.00M
Financing Cash Flow	-648.00M	-2.82B	-1.75B	-1.74B	-1.69B	-1.27B

CTS Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 861.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4345, the sentiment is Negative. The current price of 861 is below the 20-day moving average (MA) of 905.65, below the 50-day MA of 895.35, and above the 200-day MA of 827.87, indicating a neutral trend. The MACD of 1.50 indicates Positive momentum. The RSI at 35.74 is Neutral, neither overbought nor oversold. The STOCH value of 12.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4345.

CTS Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9991	80 Outperform	¥46.11B	9.30	6.85%	3.96%	-9.58%	13.22%
9619	75 Outperform	¥45.93B	6.75	10.27%	3.83%	7.39%	-46.08%
4345	74 Outperform	¥36.47B	15.73	―	2.73%	6.71%	26.33%
7081	71 Outperform	¥12.86B	7.14	14.00%	3.44%	1.58%	28.43%
9763	71 Outperform	¥11.03B	8.41	7.24%	4.11%	9.16%	6.01%
2393	63 Neutral	¥33.30B	17.57	10.24%	3.27%	11.34%	15.91%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

CTS Co., Ltd. Corporate Events

CTS Co., Ltd. Reports Strong Q1 2025 Financial Results and Positive Outlook

CTS Co., Ltd. reported a positive financial performance for the three months ended June 30, 2025, with net sales increasing by 6.5% and profit attributable to owners rising by 37.8% compared to the previous year. The company also announced a forecast for the fiscal year ending March 31, 2026, with anticipated growth in net sales and profits, indicating a strong market position and potential positive implications for stakeholders.