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what it is
CTS makes electronic parts and sensors for cars, factories, planes, hospitals, and telecom gear.
how it gets paid
Last year Cts made $541M in revenue.
why it's growing
Revenue grew 5.2% last year. These factors, combined with steady demand across industrial markets and strategic diversification efforts, contributed to the 8% revenue growth and higher adjusted earnings per share.
what just happened
Revenue hit $404M, while EPS missed by 3.13%.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
70/100 earnings predictability — reasonably predictable
21.3x trailing p/e — priced about right
0.4% dividend yield — cash in your pocket every quarter
10.5% return on capital — nothing to write home about
xvary composite: 61/100 — average
What they do
CTS makes electronic parts and sensors for cars, factories, planes, hospitals, and telecom gear.
CTS sells into five end markets: automotive, communications, aerospace and defense, medical, and industrial. That is five revenue pipes, not one buyer. In 2025, 44% of sales came from outside the U.S., so your business is spread out and your supply chain gets a bigger map.
How they make money
$541M
annual revenue · their business grew +5.2% last year
total revenue
$541M
+5.2%
The products that matter
electronic components and sensors
Core manufacturing business
$0.5B revenue · +5.2% growth
this is the whole business as shown in the dataset: $0.5B of revenue with 12.7% net margin. the missing segment split is the quiet part — you are underwriting the company without a clean product mix on this page.
entire business
Key numbers
$541M
annual revenue
This is the size of the business. It is also smaller than one weirdly huge quarter, which is why the year looks lumpy.
22.0%
operating margin
Operating margin means profit before interest and taxes. At 22.0%, CTS keeps 22 cents of every sales dollar.
$59
price target
sees the stock at $59, which is about 24% above the current $47.48 price.
44%
international sales
Almost half the revenue lives outside the U.S., so tariffs, freight, and currency swings matter.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 55 / 100
- long-term debt $79M (5% of capital)
- net profit margin 12.3% — keeps 12 cents of every dollar in revenue
- return on equity 12% — $0.12 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in CTS 3 years ago → it's now worth $10,850.
The index would have given you $14,540.
source: institutional data · total return
What just happened
missed estimates
Revenue hit $404M, while EPS missed by 3.13%.
Sales were $404M, up 183% vs. prior year, and gross margin was 38.2%. EPS came in at $0.62 versus $0.64 expected, so the quarter looked much better on revenue than on per-share profit.
$135M
revenue
$0.62
eps
38.2%
gross margin
the number that mattered
The 183% revenue jump mattered most because $404M in one quarter is absurd next to $541M for the year.
-
fourth-quarter revenue and earnings were driven by strong growth in diversified end markets, which increased 16% from a year ago, particularly in the medical sector with a 41% sales boost due to robust demand for therapeutic applications.operational improvements and a favorable end-market mix helped expand gross margins by 150 basis points. additionally, the company secured significant new business awards in transportation, including accelerator modules and products like floor hinge technology.
-
these factors, combined with steady demand across industrial markets and strategic diversification efforts, contributed to the 8% revenue growth and higher adjusted earnings per share of $0.62.
-
the future looks bright.
-
management expects 2026 sales to range between $550 million and $580 million.this growth will likely be driven by solid demand across diversified end markets, including medical, aerospace and defense, and industrial sectors. in transportation, while production volumes are expected to be flat to slightly down, new product launches and advancements in powertrain-agnostic solutions ought to support long-term growth prospects.
-
for 2027, cts is preparing for potential activity in commercial vehicles due to new emission standards, which could positively impact sales.
source: company earnings report, 2026
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What could go wrong
the #1 risk is end-market demand slowing across aerospace, defense, and automotive.
med
demand slows where CTS sells
CTS generated $0.5B of revenue last year from electronics tied to aerospace, defense, and automotive programs. if those markets soften together, the 5.2% growth story can disappear quickly.
the hit shows up in revenue first and makes a 12.7% net margin harder to defend.
med
margin compression after a mixed quarter
Q4 2025 revenue rose 8% from a year ago, but earnings fell 22%. that's a reminder that volume growth does not automatically mean better economics.
for a stock trading at 21.3x trailing earnings, margin pressure matters more than a modest sales beat.
med
thin segment visibility
this page shows the company as one $0.5B revenue stream without a clean product or end-market split. that is a disclosure gap for you as an investor, not just a formatting issue.
when mix data is thin, surprises get bigger because you find out what mattered after the quarter, not before it.
$0.5B of revenue and a 12.7% net margin leave less room for error than the B++ balance sheet might suggest.
source: institutional data · regulatory filings · risk analysis
Pay attention to
risk
whether earnings keep lagging revenue
Q4 2025 gave you +8% revenue growth and a 22% drop in earnings. if that gap repeats, the valuation story gets worse fast.
metric
net margin vs. 12.7%
CTS is solid because it keeps about 13 cents of every revenue dollar. if that slips, the stock stops looking merely average and starts looking expensive.
trend
revenue growth vs. 5.2%
last year's growth was positive but not special. you want to see whether CTS can move above that pace, not just defend it.
calendar
the next earnings print
one more quarter with better sales and weaker earnings would tell you the Q4 margin issue was not a one-off.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts do not see a strong short-term edge here.
risk profile
average
stability score 3 — this sits around the middle of the pack on risk, not in bunker territory and not in chaos either.
chart momentum
top 20%
technical score 2 — the chart looks better than the fundamentals do right now. welcome to why price and business are not the same thing.
earnings predictability
70 / 100
earnings are reasonably stable, but the latest quarter showed why you should still expect the occasional surprise.
source: institutional data
Institutional activity
80 buyers vs. 81 sellers in 4q2025. total institutional holdings: 28.5M shares.
source: institutional data
Price targets
3-5 year target range
$37
$80
$47
current price
$59
target midpoint · +24% from current · 3-5yr high: $70 (+45% · 11% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive