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

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CTS Co., Ltd.

(TSE/TYO:4345)

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Rating:72Outperform

Price Target:JPY 869.00▲(8.08% Upside)

Action:reiterated

Date:11/07/26

Strong financial performance with revenue growth, high margins, and robust cash flow is the main driver, partially offset by weak technical signals from price action below moving averages and negative MACD; attractive valuation with low P/E and solid yield provides additional support.

Positive Factors

Steady revenue and earnings growthSustained revenue expansion alongside rising operating profit and net income indicates ongoing business progress rather than reliance on a single period. Continued growth can strengthen the company’s earnings base and provide resources for reinvestment over the next several quarters.

Negative Factors

Moderate revenue growth paceAlthough growth is consistent, the reported mid-single-digit pace is moderate and may limit how quickly CTS can expand its earnings base. Maintaining attractive long-term returns will therefore depend on sustaining growth while protecting its established profitability.

CTS Co., Ltd. (4345) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 32.95B
Dividend Yield: 3.73%
Average Volume (3M): 72.65K
Price to Earnings (P/E): 12.3
Beta (1Y): 0.53
Revenue Growth: 4.68%
EPS Growth: 9.89%
Country: Japan
Employees: 286
Sector: Industrials
Sector Strength: 63
Industry: Rental & Leasing Services

CTS Co., Ltd. Business Overview & Revenue Model

Company Description

CTS Co., Ltd. primarily engages in the provision of ICT construction services for the construction industry in Japan. The company also offers cloud storage services; mobaden, a mobile fixed IP phone service for on-site offices; outdoor network constr...

CTS Co., Ltd. Financial Statement Overview

Summary

CTS Co., Ltd. shows strong financial performance with revenue growth to 12.75 billion yen, gross margins around 51%, net margins over 21%, low debt-to-equity of 0.12, and free cash flow surging 360.78%.

Income Statement

85Very Positive

Balance Sheet

78Positive

Cash Flow

82Very Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	12.77B	12.75B	11.82B	11.09B	10.80B	10.54B
Gross Profit	6.65B	6.55B	6.08B	5.71B	5.45B	5.23B
EBITDA	4.29B	4.77B	4.21B	3.79B	3.65B	3.51B
Net Income	2.70B	2.69B	2.19B	1.86B	1.76B	1.73B
Balance Sheet
Total Assets	23.60B	20.61B	17.08B	16.71B	14.74B	14.36B
Cash, Cash Equivalents and Short-Term Investments	3.64B	4.17B	4.53B	6.95B	6.27B	5.17B
Total Debt	1.29B	1.83B	1.81B	1.81B	1.95B	2.40B
Total Liabilities	5.83B	4.90B	4.21B	4.48B	4.16B	4.62B
Stockholders Equity	17.77B	15.71B	12.87B	12.23B	10.58B	9.74B
Cash Flow
Free Cash Flow	0	3.06B	2.70B	2.85B	2.56B	2.84B
Operating Cash Flow	0	3.34B	2.84B	2.98B	2.61B	2.90B
Investing Cash Flow	0	-1.77B	-2.45B	-553.00M	222.00M	-2.26B
Financing Cash Flow	0	-1.93B	-2.82B	-1.75B	-1.74B	-1.69B

CTS Co., Ltd. Technical Analysis

Technical Analysis SentimentNeutral

Last Price804.00

Price Trends

50DMA813.15Negative

100DMA821.79Negative

200DMA857.30Negative

Market Momentum

MACD-5.08Negative

RSI50.50Neutral

STOCH72.57Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4345, the sentiment is Neutral. The current price of 804.00 is above the 20-day moving average (MA) of 799.60, below the 50-day MA of 813.15, and below the 200-day MA of 857.30, indicating a neutral trend. The MACD of -5.08 indicates Negative momentum. The RSI at 50.50 is Neutral, neither overbought nor oversold. The STOCH value of 72.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4345.

CTS Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:4345 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:9699	75Outperform	JPY 124.75B	10.24	―	2.94%	0.17%	3.63%
JP:4345	72Outperform	JPY 32.82B	12.28	―	3.73%	4.68%	9.89%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JP:5834	61Neutral	JPY 40.66B	5.85	―	4.77%	47.13%	16.70%
JP:8596	59Neutral	JPY 34.09B	7.26	―	4.06%	16.65%	29.40%
JP:8424	57Neutral	JPY 373.82B	10.09	―	3.97%	21.37%	37.39%
JP:8439	57Neutral	JPY 1.31T	15.20	―	3.55%	10.62%	-35.62%

* Industrials Sector Average

Performance Comparison

JP:4345 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4345	CTS Co., Ltd.	804.00	-39.96	-4.74%
JP:5834	SBI Leasing Services Co.,Ltd.	2515.00	72.86	2.98%
JP:8424	Fuyo General Lease Co., Ltd.	4161.00	297.71	7.71%
JP:8439	Tokyo Century Corporation	2704.00	859.84	46.63%
JP:8596	Kyushu Leasing Service Co., Ltd.	1503.00	261.23	21.04%
JP:9699	NISHIO HOLDINGS CO. LTD.	4630.00	481.21	11.60%

CTS Co., Ltd. Corporate Events

CTS Co., Ltd. Confirms Higher Interim Dividend Under Progressive Payout Policy

Oct 29, 2026

CTS Co., Ltd. has approved an interim dividend of ¥15 per share for the six months ended September 30, 2026, with a total payout of ¥614 million, to be paid on December 1, 2026, sourced from retained earnings. The payout represents an increase from t...

CTS Posts Steady First-Half Results and Confirms Full-Year Outlook With Enhanced Shareholder Returns

Oct 29, 2026

CTS Co., Ltd. reported consolidated net sales of ¥6,205 million for the six months ended September 30, 2026, a slight 0.3% increase year on year, with operating profit up 1.5% to ¥1,545 million and profit attributable to owners of the parent rising 0...

CTS Reports Progress on Ongoing Share Buyback Program

Oct 8, 2026

CTS Co., Ltd. reported interim results of its ongoing share repurchase program, disclosing that it bought 56,300 common shares on the Tokyo Stock Exchange between September 1 and September 30, 2026, at a total cost of 46,963,000 yen. These purchases...

CTS Co., Ltd. Reports Progress on Ongoing Share Buyback Program

Sep 9, 2026

CTS Co., Ltd., a Tokyo Stock Exchange Prime Market-listed company, is pursuing an active treasury share acquisition strategy under Japanese corporate law. The company’s capital management approach, centered on repurchasing its own common shares via t...

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.

Date of analysis: Nov 05, 2026

CTS Co., Ltd. AI Stock Analysis