CTS Corp (CTS) Stock Analysis
Verdict: WATCH (do not buy)
High-margin piezo components and strong earnings momentum offset Wall Street skepticism and insider selling at a reasonable 24x P/E.
Investment score: 59/100
Analysis as of
Is CTS Corp stock worth reviewing? The TradeMates thesis
CTS Corporation displays strong fundamental profitability and balance sheet quality with a 39.3% gross margin and low net debt. However, negative analyst consensus distribution and insider selling offset strong earnings beats, placing the investment score at 59/100.
7-factor investment score
- Valuation: 68/100 (weight 20%)
- Financial Health: 75/100 (weight 15%)
- Technical Momentum: 45/100 (weight 15%)
- Earnings Quality: 75/100 (weight 15%)
- Insider Sentiment: 35/100 (weight 10%)
- Analyst Consensus: 30/100 (weight 10%)
- Risk-Adjusted Return: 62/100 (weight 15%)
CTS Corp opportunities and risks
What speaks for CTS
- Superior Gross and Operating Margins vs Peers
What speaks against CTS
- Overwhelmingly Cautious Analyst Consensus
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| CTS | 24.0x | 2.9x | 12.6x | 39.3% | 12.4% | 5.5% |
| SANM | 35.4x | 0.8x | 17.0x | 9.0% | 2.4% | 5.5% |
| PLXS | 35.9x | 1.4x | 26.6x | 10.0% | 4.0% | 0.9% |
| IPGP | 120.7x | 3.2x | 24.4x | 38.4% | 2.6% | 0.6% |
| BHE | 50.9x | 1.0x | 18.6x | 10.2% | 1.9% | 4.7% |
| NLST | 6012.5x | 4.8x | 59.2x | 16.2% | 0.2% | -1.0% |
| Peer median | 50.9x | 1.4x | 24.4x | 10.2% | 2.4% | 0.9% |
Frequently asked questions about CTS Corp (CTS)
Is CTS stock a good investment?
The TradeMates model rates CTS Corp as WATCH (do not buy) with an investment score of 59/100. CTS Corporation displays strong fundamental profitability and balance sheet quality with a 39.3% gross margin and low net debt. However, negative analyst consensus distribution and insider selling offset strong earnings beats, placing the investment score at 59/100. This is algorithmic model output, not personal investment advice.
Is CTS stock a buy?
The TradeMates model verdict for CTS is WATCH (do not buy) with an investment score of 59/100. Treat this as a model signal to review, not a personal buy recommendation.