CTS Corporation
Find Ratings ReportsCTS CORP's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. CTS CORP is extremely liquid. Currently, the Quick Ratio is 2.53 which clearly shows the ability to cover any short-term cash needs. CTS managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 4.06% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 124.69 | 142.28 |
EBITDA ($mil) | 25.35 | 30.84 |
EBIT ($mil) | 18.07 | 22.81 |
Net Income ($mil) | 15.32 | 14.94 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 163.88 | 156.91 |
Total Assets ($mil) | 741.17 | 748.49 |
Total Debt ($mil) | 96.86 | 109.36 |
Equity ($mil) | 526.82 | 506.22 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 40.03 | 41.98 |
EBITDA Margin | 20.33 | 21.67 |
Operating Margin | 14.49 | 16.03 |
Sales Turnover | 0.74 | 0.78 |
Return on Assets | 8.16 | 7.95 |
Return on Equity | 11.49 | 11.77 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 3.29 | 2.89 |
Debt/Capital | 0.16 | 0.18 |
Interest Expense | 0.92 | 0.99 |
Interest Coverage | 19.58 | 23.09 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 30.82 | 31.68 |
Div / share | 0.04 | 0.04 |
EPS | 0.49 | 0.47 |
Book value / share | 17.09 | 15.98 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 190830.0 | 176347.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 53.34 for the Computer and Electronic Product Manufacturing subsector and a discount compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 2.61 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 23.59. The price-to-sales ratio is below the S&P 500 average and is well below the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, CTS CORP proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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CTS 23.24 | Peers 53.34 | CTS 15.49 | Peers 44.47 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. CTS is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. CTS is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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CTS 16.74 | Peers 26.06 | CTS 1.30 | Peers 1.95 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. CTS is trading at a discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. CTS trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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CTS 2.61 | Peers 23.59 | CTS 3.22 | Peers 123.02 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. CTS is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, CTS is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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CTS 2.50 | Peers 14.13 | CTS -6.22 | Peers 27.20 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. CTS is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. CTS significantly trails its peers on the basis of sales growth. |
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