CTS Corporation (CTS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+49.0%

$94.44

vs $63.40 price

Levered DCF

$50.05

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

7.2

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	19.4×	27.61×	22.66×	21.19×	-28.25×	32.08×	27.04×	18.36×
P/B	2.29×	3.02×	2.6×	2.49×	2.56×	2.62×	2.42×	2.26×
P/S	2.33×	3.11×	2.49×	2.15×	2.31×	2.62×	2.09×	1.82×
EV / EBITDA	10.54×	15.03×	11.91×	10.71×	-34.38×	14.65×	12.93×	9.67×
Gross margin	38.5%	36.5%	34.2%	35.7%	35.7%	33.0%	33.4%	35.9%
Operating margin	15.6%	14.8%	14.4%	16.0%	15.0%	11.3%	12.8%	14.9%
Net margin	12.0%	11.3%	11.0%	10.2%	-8.2%	8.2%	7.7%	9.9%
Current ratio	2.3×	2.5×	3.29×	2.89×	2.53×	2.22×	2.45×	2.3×
Debt / equity	0.22×	0.22×	0.18×	0.22×	0.16×	0.19×	0.31×	0.13×
Interest coverage	15.4×	18.07×	23.85×	42.88×	36.37×	14.62×	22.75×	33.51×
Dividend yield	0.4%	0.3%	0.4%	0.4%	0.4%	0.5%	0.5%	0.6%
Payout ratio	7.3%	8.4%	8.3%	8.6%	-12.4%	14.9%	14.5%	11.4%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	11.8%	10.9%	11.5%	11.8%	-9.0%	8.2%	8.9%	12.3%
Return on invested capital	9.8%	9.3%	9.9%	10.8%	9.5%	7.0%	7.9%	12.6%
Return on assets	8.5%	7.6%	8.2%	8.0%	-6.3%	5.5%	5.6%	8.5%
Free cash flow yield	6.8%	5.0%	5.4%	8.5%	5.9%	5.6%	4.3%	3.5%
Earnings yield	5.2%	3.6%	4.4%	4.7%	-3.5%	3.1%	3.7%	5.4%
Enterprise value	$1.3B	$1.6B	$1.3B	$1.2B	$1.1B	$1.1B	$1B	$804.1M
Net debt / EBITDA	0.32×	0.21×	-0.61×	-0.42×	2.05×	-0.14×	0.35×	-0.61×
Cash conversion cycle (days)	64	67	69	65	52	64	54	51