CTS Corp Dossier
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SectorInformation Technology IndustryElectronic Components Beta (adjusted)1.04 Intrinsic Value $50.10median of 6 methods · middle span $45-$96based on filings through 31 Mar 2026 Market Price $59.81Price as of 1 Oct 2026 OvervaluedIntrinsic value is 16% below the market price −50% · IV below pricenear fair value ±15%IV above price · +50% Data confidence Sign in to view data confidence Market Cap $1.7B Enterprise Value $1.7B Shares Outstanding 28.5M diluted Moat Rating Narrow Next Earnings Date30 Oct 2026 Last ex-dividend25 Sep 2026 All prices and values are periodic snapshots, not live quotes. Source dates are shown for reference. ThesisStreet consensus, scenarios, merits, risks, and invalidation triggers Thesis Summary CTS Corporation (NYSE: CTS) is successfully executing its 'Evolution 2030' strategy, shifting its business mix away from highly cyclical, lower-margin automotive markets toward high-growth, high-margin diversified end markets (industrial, medical, and aerospace/defense). This strategic pivot is driving significant margin expansion, as evidenced by the 250 basis point year-over-year improvement in adjusted gross margin to 39.5% in Q1 2026. Backed by a robust balance sheet, strong cash conversion, and a solid pipeline of booked business, CTS is well-positioned to deliver sustainable long-term earnings growth. This section is the 12-month view: analyst targets and the probability-weighted scenarios built from them. The intrinsic value at the top of this page answers a different question: what the business is worth today. Street view · analyst 12-month targets Low · most bearish analyst$65.00 Mean target$65.00 High · most bullish analyst$65.00 Street targets sit above today's price; our intrinsic value sits below it. Different horizons, different questions. Our research · scenarios, merits, risks, and invalidation triggersResearch as of 18 Sep 2026 Scenarios · 12-month scenario targets Bear CaseDownside scenario $65.0020% A broader macroeconomic slowdown severely impacts industrial and medical capital expenditures, halting diversified market growth. Simultaneously, prolonged automotive supply chain disruptions or deeper-than-expected commercial vehicle softness drag down transportation sales, forcing management to lower full-year guidance. Base CaseCentral scenario $65.0050% Matches the consensus meanDiversified end markets continue to grow at a double-digit pace (12-15% YoY), offsetting soft commercial vehicle demand and flat light-vehicle production. Adjusted gross margins remain stable around 38.5-39.5%, and the company achieves its narrowed full-year 2026 guidance of $560-$580 million in sales and adjusted diluted EPS of $2.35-$2.45. Bull CaseUpside scenario $65.0030% Accelerated adoption of medical and industrial automation solutions drives diversified end-market growth above 20% YoY. Gross margins expand past 40% due to favorable product mix and operational efficiencies. Automotive segments stabilize faster than expected, leading to full-year revenue and EPS exceeding the high end of management's guidance. Scenarios are anchored to street consensus at the research date, with our probabilities and rationale. Key Investment Merits
Key Investment Risks
Thesis Invalidation Triggers
All scenarios are estimates and subject to change. Past performance is not indicative of future results. Quality Pillars MembersThis section is available to registered members. Create a free account or sign in to unlock the full breakdown. Explore this dossierValuationIntrinsic value, the six-method breakdown, peer medians, and your assumptions sandbox.Financial SnapshotRevenue, profitability, returns, balance sheet, dividends, and the filing-level detail.Qualitative AnalysisBusiness overview, strategic initiatives, and mergers, acquisitions & partnerships.Outlook & Key DatesForward estimates, reporting calendar, and the monitoring framework. |