Quality Investor

CTS Corporation

Rank #268Capital ReturnWatchlistCompare with other stocks

CTS · NYSE · Technology

CTS Corporation (CTS) — Rank #268 by gross profitability (GP/assets 0.25) · ROE 11.1% · Piotroski F-Score N/A.

As-of 2026-10-30 · CIK 0000026058 · all metrics point-in-time as of the filing date.

About

CTS Corporation designs, manufactures, and sells sensors, connectivity components, and actuators in North America, Europe, and Asia.

Show more

The company offers controls, pedals, sensors, switches, transducers, and piezo sensing products; EMI/RFI filters, capacitors, resistors, RF filters, and frequency control products; and piezo microactuators and rotary actuators. In addition, it designs, develops, and manufactures advanced pressure sensing technologies for medical devices, life sciences, and industrial applications. It serves transportation, industrial, medical, aerospace, and defense industries. The company sells and markets its products through its sales engineers, independent manufacturer representatives, and distributors.

CTS Corporation was founded in 1896 and is headquartered in Lisle, Illinois.

Industry
Electronic Components
Sector
Technology
State
IN
Filer Category
Large accelerated filer
Fiscal Year End
December 31

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

3,492

Industry

Electronic Components

Exchange

NYSE

10/10

Flags passed

CTS passes 10/10 quality flags

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Revenue not declining
  • PASS
    Operating margin holding
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    No competitive retreat
  • PASS
    No valuation convergence

Strengths Revenue growth accelerating · Operating leverage expanding · Deferred revenue growing · Sequential beat (rev + EPS)

No data Balance sheet · SBC and margin — not counted as a pass.

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

Quality Profile

Profitability

1/1 pass
GP / assets
0.25
Return on equity
11.1%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.40
Current ratio
2.59×
Net cash
$143.88M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
—

Growth

2/2 pass
Revenue growth
5.2%
Piotroski F-Score
N/A
Share dilution
-3.0%

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Does it make money well?

No warning flags · GP/assets 48th percentile of 47 SIC 36 peers

Gross profitability (GP / assets)

0.25

Primary signal (Novy-Marx).

48th pctl of 47 SIC 36 peers

Return on equity

11.1%

Gross margin

38.4%

33rd pctl of 47 SIC 36 peers

Revenue growth (YoY)

5.2%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

-2.7%

Revenue CAGR (5Y)

5.0%

Earnings CAGR (3Y)

3.1%

FCF CAGR (3Y)

-6.8%

Cash Flow Health

Is the cash real?

No warning flags · FCF 32% above net income

Free cash flow

$86.37M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

32.2%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

—

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

No warning flags · net cash $143.88M

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.40

68th pctl of 45 SIC 36 peers (best = lowest)

Current ratio

2.59×

48th pctl of 47 SIC 36 peers

Quick ratio

1.87×

Net cash

$143.88M

Cash & equivalents minus total debt.

Piotroski F-Score

N/A

Only 8/9 components determinable.

Valuation

Is the price reasonable?

No warning flags

Dividend safety

Composite score

3.0 / 5

Good
Payout ratio
7.3%5/5 Strong
FCF coverage
18.18×5/5 Strong
Dividend growth streak
0 yr0/5 Weak
Balance-sheet health
D/E 0.40 · IC N/A2/5 Fair

Capital allocation quality

Composite score

2.3 / 5

Fair
Share count trend(net buybacks)
-3.0%4/5 Strong
Buyback timing
N/AN/A
Dividend growth consistency(non-payer or broken streak)
0 yr0/5 Weak
Net debt trajectory
-1.6%3/5 Good

Lifecycle Phase History

20202025
Decline
Hypergrowth
Capital Return
Value

Price History

CTS+87.9% · +13.4% CAGRSPY+82.9% · +12.8% CAGR