One-glance verdict
Within fair range
$66.63 our estimate vs market $57.85
Wall Street consensus: $70.67 (6.1% higher than our fair-value estimate)
13% below our estimate
Fundamentals snapshot
CTS Corporation
CTS · NYQ · Technology · Electronic Components
Current price
$57.85
52-week range
$36.03 - $69.55
Market cap
$1.65B
Balance sheet
Healthy
19.50x Strong cushion
Net cash $18.15M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 2.5% last year.
- Reward Returns 12.4% on equity, ahead of 83% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Stock trades 2.7% above its 5-year average P/E.
What this company does
CTS Corporation
CTS Corporation makes essential electronic components, like sensors and pedals, that go into products made by other companies. It earns most of its money by selling these parts to the transportation industry for use in cars and trucks. Therefore, the company's performance is closely tied to the health of the auto industry and can be a signal for broader trends in manufacturing.
How the company got here
CTS Corporation began its journey in 1896 as Chicago Telephone Supply Company, originally making telephones and switchboards. The company showed an early ability to adapt, shifting its focus to radio parts in the 1920s as radios became popular. This pattern continued over the decades, as CTS moved into making essential components for televisions in the 1940s and later developed sensors for cars in the 1970s to help control emissions. To better reflect its diverse technology offerings, the company officially changed its name to CTS Corporation in 1960 and became a publicly traded company on the New York Stock Exchange in 1962.
What it actually does
CTS doesn't make products you'd buy in a store, but it creates critical electronic components that go inside the products other companies sell. These components fall into three main categories: sensors that detect things like temperature, speed, or position; connectivity parts that help electronic devices communicate with each other; and actuators that create small, precise movements. Think of them as the tiny, smart building blocks inside cars, medical devices, and industrial equipment that make them work. CTS sells these essential parts directly to other manufacturers, known as original equipment manufacturers (OEMs).
Transportation
This is the company's largest business, making up a little less than half of its sales. CTS creates sensors and controls for cars, trucks, and other vehicles. For example, they make the sensors in your gas pedal that tell the engine how fast to go, as well as components that are critical for safety systems, fuel efficiency, and emissions control. As vehicles become more electric, CTS is also providing sensors that help manage the battery and motor systems.
Industrial
This segment, which accounts for over a quarter of the company's revenue, provides components for a wide range of industrial equipment. This includes sensors for factory automation, controls for heating and air conditioning (HVAC) systems, and components for test and measurement devices. Companies in the industrial sector buy these parts to make their machinery smarter, more efficient, and more reliable. This part of the business also includes components for telecommunications equipment, like filters that ensure clear signals in wireless base stations.
Medical
A fast-growing part of the business, this segment provides highly reliable components for medical devices. You might find CTS technology inside ultrasonic imaging machines, helping to create clear pictures for doctors, or in patient monitoring equipment and drug delivery systems. Medical device manufacturers are the customers here, and they rely on CTS for precise and dependable components where quality is critical for patient health and safety.
Aerospace & Defense
This is a smaller but important slice of the company's business. CTS supplies highly durable sensors and electronic components for use in aircraft and military equipment. These parts are designed to work reliably in very harsh environments and are used in applications like satellite communications and defense systems. The customers are large aerospace and defense contractors who need components that meet strict performance and quality standards.
What management is betting on now
The company's main strategy is to continue diversifying its business beyond its traditional focus on the transportation industry. Management is focusing on growing its industrial, medical, and aerospace & defense segments, which they believe offer better opportunities for growth and higher margins (a measure of profitability). They are concentrating on key technology trends like electrification (the shift to electric vehicles and systems), automation in factories, and innovation in healthcare diagnostics. This plan, called "Evolution 2030," aims to make the company's sales less dependent on the cycles of the auto industry and more aligned with these long-term growth areas.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q2
$14.99M
FY2024 Q3
$69.46M
FY2024 Q4
$92.14M
FY2025 Q1
$11.05M
FY2025 Q2
$25.07M
FY2025 Q3
$24.23M
FY2025 Q4
$26.02M
FY2026 Q1
$12.30M
Revenue
$139.23M
Net income
$17.20M
Diluted EPS
0.59
Operating cash flow
$17.30M
Free cash flow
$12.30M
Fetching…
Sources
Revenue
$137.27M
Net income
$19.74M
Diluted EPS
0.67
Operating cash flow
$29.21M
Free cash flow
$26.02M
Fetching…
Sources
Revenue
$142.97M
Net income
$13.69M
Diluted EPS
0.46
Operating cash flow
$29.02M
Free cash flow
$24.23M
Fetching…
Sources
Revenue
$135.31M
Net income
$18.53M
Diluted EPS
0.62
Operating cash flow
$28.35M
Free cash flow
$25.07M
Fetching…
Sources
Revenue
$125.77M
Net income
$13.37M
Diluted EPS
0.44
Operating cash flow
$15.52M
Free cash flow
$11.05M
Fetching…
Sources
Revenue
$514.76M
Net income
$55.47M
Diluted EPS
1.81
Operating cash flow
$98.24M
Free cash flow
$92.14M
Fetching…
Sources
Revenue
$132.42M
Net income
$18.68M
Diluted EPS
0.61
Operating cash flow
$73.33M
Free cash flow
$69.46M
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Sources
Revenue
$130.16M
Net income
$14.71M
Diluted EPS
0.48
Operating cash flow
$19.63M
Free cash flow
$14.99M
Fetching…
Sources
Is it cheap or expensive?
Fair value $66.63 vs current price $57.85
Wall Street consensus is the average analyst price target: $70.67 (6.1% higher than our fair-value estimate).
Our most-likely fair value is $66.63 a share — about 15.2% away from today's price of $57.85, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $18.1M - more cash than debt. Interest coverage 19.5x.
Net debt
$-18.15M
Interest coverage
19.50x
CTS Corporation's profit covers its interest bill about 19.5 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
CTS
BASELINE
CTS Corporation
Total debt $89.89M Interest coverage 19.50x This is the baseline the peer rows are being compared against.
Total debt $197.63M Interest coverage 3.65x -81% vs CTS Carries about 5.4x less debt cushion than CTS.
Total debt $150.20M Interest coverage 5.64x -71% vs CTS Carries about 3.5x less debt cushion than CTS.
Total debt $34.26M Interest coverage 7.30x -63% vs CTS Carries about 2.7x less debt cushion than CTS.
Total debt $28.50M Interest coverage 43.42x +123% vs CTS Carries about 2.2x more debt cushion than CTS.
Total debt $709.39M Interest coverage 10.42x -47% vs CTS Carries about 1.9x less debt cushion than CTS.
What you should know
The case for and against CTS
3 Rewards
1 Risk
Rewards
-
Revenue grew 2.5% last year.
-
Returns 12.4% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 2.7% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
23.52x
Forward P/E
20.18x
P/B
2.88x
P/S
2.93x
EV/EBITDA
12.89x
PEG ratio
1.18x
Profitability
How much profit each dollar creates
Gross margin
39.7%
Operating margin
17.4%
Net margin
12.4%
ROE
12.4%
ROA
7.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.16x
Current ratio
2.61x
Quick ratio
1.88x
Total debt
$89.89M
Total cash
$108.04M
Growth
How the business has been compounding
Revenue TTM
$554.78M
Revenue 5Y CAGR
1.4%
EPS TTM
2.46
EPS 5Y CAGR
5.8%
Cash flow
How much cash the business throws off
Operating CF TTM
$103.88M
Free CF TTM
$86.37M
FCF margin
15.6%
Dividend
Shareholder payout
Yield
0.3%
Payout ratio
6.7%
Last ex-div date
2026-09-25