Investors Wonder: Is CTS Corporation a Risky Bet?
December 13, 2023
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Investors are facing a difficult question: is CTS ($NYSE:CTS) Corporation a worthwhile investment? CTS Corporation is a manufacturer of electronic components, providing solutions such as sensors, switches, and connectors. It operates in the automotive, industrial, communications, consumer, and medical markets. As with any investment, investors must weigh the potential risks associated with investing in CTS Corporation. A major risk to consider is market volatility. CTS operates in multiple industries, so if any of these markets suffer a downturn, it could have an effect on the company’s bottom line.
Additionally, there is the potential for supply chain disruptions, since CTS sources components from many different suppliers. A disruption of any sort could cause delays and missed deadlines, resulting in a loss of revenue. Furthermore, investors must consider geopolitical risks. As CTS Corporation does business throughout the world, there is always a risk of tariffs or other international policies that could reduce its profits. Any changes to the regulatory landscape could also affect the company’s profitability. All of these risks must be balanced against the potential rewards that come with investing in CTS Corporation. If the company is able to navigate the uncertain markets successfully and continue to provide innovative solutions to its customers, there is potential for significant returns on investment. Investors must carefully evaluate all of these factors before deciding to invest in CTS Corporation.
Market Price
Investors are questioning the risk associated with investing in CTS Corporation, as the stock opened on Tuesday at $41.3 and closed at $40.5, falling by 2.0% from its previous closing price. This has led to many investors wondering if this stock is worth the risk of investing in it. Some of the factors that may have contributed to the decrease in stock prices include an uncertain economic outlook, a decrease in consumer spending and the potential for lower sales and profits for the company.
Additionally, investors must consider any changes in management or corporate strategy that may occur and how those changes could impact the stock price. Given the current market conditions, investors should weigh the risks and potential rewards associated with investing in CTS Corporation before making a decision. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cts Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 568.01 | 60.15 | 11.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cts Corporation. More…
| Operations | Investing | Financing |
| 82.2 | -20 | -51.22 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cts Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 753.96 | 231.29 | 16.77 |
Key Ratios Snapshot
Some of the financial key ratios for Cts Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.9% | 25.5% | 14.3% |
| FCF Margin | ROE | ROA |
| 11.6% | 9.8% | 6.8% |
Analysis
GoodWhale conducted an analysis of CTS CORPORATION‘s financials and based on the Star Chart, we classified the company as ‘rhino’, which implies that it has achieved moderate revenue or earnings growth. We believe that CTS CORPORATION is an attractive company for a variety of different investors. The company is strong in asset, dividend, and profitability, and medium in growth. Furthermore, the company has a high health score of 10/10 which suggests that it is capable to safely ride out any crisis without the risk of bankruptcy. We believe that these aspects make CTS CORPORATION an attractive option for investors who are looking for a stable and profitable company that is capable of providing consistent returns. More…
Peers
The company’s products are used in a wide range of industries, including automotive, consumer, industrial, medical, and telecommunications. CTS Corp has a strong competitive position in the market, with a broad product portfolio and a large customer base. The company’s main competitors are Alps Alpine Co Ltd, Concraft Holding Co Ltd, and Man Yue Technology Holdings Ltd.
– Alps Alpine Co Ltd ($TSE:6770)
Alps Alpine Co Ltd is a Japanese company that manufactures and sells electronic equipment and components. The company has a market cap of 273.42B as of 2022 and a ROE of 8.73%. Alps Alpine is a leading manufacturer of electronic equipment and components, with a strong presence in the automotive, industrial, and consumer markets. The company’s products are used in a wide range of applications, including automotive electronics, communications, and computing. Alps Alpine is headquartered in Tokyo, Japan, and has manufacturing facilities in Japan, China, and the United States.
– Concraft Holding Co Ltd ($TWSE:4943)
Concraft Holding Co Ltd is a construction company that operates in the Chinese market. The company has a market capitalization of 1.19 billion as of 2022 and a return on equity of -142.04%. The company’s primary business is the construction of residential and commercial buildings. The company also provides construction management services.
– Man Yue Technology Holdings Ltd ($SEHK:00894)
Man Yue Technology Holdings Ltd is a Hong Kong-based investment holding company principally engaged in the provision of electronics manufacturing services. The Company operates its businesses through two segments. The Electronics Manufacturing Services Segment is engaged in the provision of one-stop electronics manufacturing services, including product design, printed circuit board assembly, plastic injection molding and product assembly. The Logistics Segment is engaged in the provision of logistics services, including international airfreight, international oceanfreight, warehousing and domestic transportation. As of December 31, 2011, the Company operated a total of 20 subsidiaries.
Summary
CTS Corporation is a publicly traded company operating in the electronic components and assemblies market. Investing in CTS Corporation requires close analysis, since the company’s stock price has fluctuated widely in recent years. Factors that may influence the stock price include CTS’ financial performance, the demand for its products, macroeconomic conditions, and the overall outlook of the electronics parts industry.
Additionally, investors should consider company-specific risks such as its dependence on a small number of customers, its high debt levels, and the impact of changes in government regulations. Overall, CTS is a risky investment and potential investors should closely evaluate their potential risk exposure before investing.
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