Earnings quality remains high as evidenced by an OCF/NI ratio frequently exceeding 1.5x, though free cash flow margins have shown volatility, ranging between 8.8% and 23.8% over the last ten quarters.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 103.88M | 102.11M | 99.29M | 88.81M | 121.2M | 86.14M | 76.78M | 64.41M | 58.15M | 58.05M | 47.2M | 38.62M | 32.42M | 37.57M | 41.65M | 22.19M | 19.32M | 46.6M | 34.1M | 48.6M | 47.19M | 44.52M | 13.97M | 25.1M | 22.45M | 65.85M | 110.86M | 55.7M | 52.4M | 58.9M | 35.1M |
| Operating CF Margin % | - | 18.83% | 19.26% | 16.13% | 20.65% | 16.79% | 18.1% | 13.73% | 12.37% | 13.71% | 11.9% | 10.1% | 8.03% | 9.18% | 7.22% | 3.77% | 3.5% | 9.34% | 4.93% | 7.09% | 7.2% | 7.21% | 2.63% | 5.42% | 4.9% | 11.4% | 12.79% | 8.23% | 14.15% | 14.19% | 10.92% |
| Operating CF Growth % | 50.44% | 2.84% | 11.8% | -26.72% | 40.7% | 12.19% | 19.22% | 10.75% | 0.18% | 22.98% | 22.21% | 19.13% | -13.7% | -9.8% | 87.71% | 14.84% | -58.53% | 36.65% | -29.84% | 3.01% | 5.99% | 218.74% | -44.35% | 11.8% | -65.91% | -40.6% | 99.02% | 6.3% | -11.04% | 67.81% | 30.48% |
| Net Income | 69.15M | 65.32M | 58.11M | 60.53M | 59.58M | -41.87M | 34.69M | 36.15M | 46.53M | 14.45M | 34.38M | 6.95M | 26.52M | -3.93M | 20.33M | 20.97M | 22.04M | -34.05M | 29.89M | 25.41M | 24.2M | 22.23M | 19.96M | 12.57M | -17.85M | -45.38M | 83.8M | 51.5M | 37.5M | 22.8M | 21.2M |
| Depreciation & Amortization | 34.85M | 34.54M | 30.92M | 28.71M | 29.75M | 26.93M | 26.67M | 24.62M | 22.51M | 20.67M | 18.99M | 16.25M | 16.97M | 21.17M | 19.61M | 17.55M | 17.57M | 19.53M | 24.18M | 26.76M | 24.9M | 27.06M | 26.08M | 33.6M | 43.37M | 51.67M | 44.33M | 33.9M | 19.2M | 17M | 12.5M |
| Stock-Based Compensation | 5.25M | 4.89M | 5.65M | 5.18M | 7.73M | 6.11M | 3.42M | 5.01M | 5.26M | 4.18M | 2.74M | 3.19M | 2.66M | 4.22M | 4.1M | 3.75M | 4.04M | 3.56M | 3.38M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 851K | -412K | -2.79M | -4.05M | 492K | -30.98M | -2.05M | 2.41M | -1.01M | 16.71M | 10.3M | -8.92M | 4.9M | 12.57M | -201K | 1.17M | 2.58M | 5.99M | -4.69M | 1.57M | 1.89M | 9.14M | 153K | 313K | -10.8M | -26.2M | 3.08M | -5.3M | 6.2M | -1.5M | 3.2M |
| Other Non-Cash Items | -5.95M | -5.92M | 49K | 1.97M | 2.04M | 132.62M | 3.99M | 2.75M | 340K | 12.37M | -10.04M | 30.12M | 3.24M | 7.19M | -3.77M | -9.14M | -2.7M | 32.21M | -3.2M | -3.43M | 4.07M | -383K | 1.19M | 1.83M | -2.29M | 4.56M | 7.24M | -1.3M | -600K | 14.9M | -1M |
| Working Capital Changes | -276K | 3.69M | 7.35M | -3.54M | 21.61M | -6.66M | 10.06M | -6.54M | -15.48M | -10.34M | -9.17M | -8.98M | -21.87M | -3.65M | 1.58M | -12.1M | -24.2M | 19.37M | -15.45M | -1.76M | -4.8M | -4.43M | -18.63M | -27.49M | -8.33M | 37.47M | -27.59M | -34.8M | -12.7M | 5M | -600K |
| Change in Receivables | -10.37M | -7.44M | 27K | 12.59M | -5.91M | -928K | -343K | 3.78M | -9.88M | -5.2M | -7.12M | 1.04M | 4.36M | -6.08M | 9.5M | 8.35M | -23.66M | 24.02M | 7.38M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -2.29M | 1.38M | 11.89M | 2.35M | -8.21M | -3.57M | -578K | 4.37M | -7.52M | -5.4M | -2.29M | 2.23M | 3.44M | -2.51M | 18.83M | -16.13M | -21.88M | 17.08M | 9.59M | -12.81M | 87K | -3.58M | -10.81M | 4.34M | 13.89M | 44.78M | -26.28M | -24.9M | 1.9M | 10.1M | 100K |
| Change in Payables | 6.17M | 4.18M | -1.77M | -9.75M | -2.29M | 3.14M | 3.86M | -4.66M | 5.11M | 5.39M | 537K | -5.13M | -2.69M | 4.72M | -17.52M | 3.17M | 22.19M | -19.76M | -16.18M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -16.16M | -18.51M | -140.56M | -18.1M | -111.19M | -15.9M | -23.17M | -95.5M | -28.48M | -36.67M | -81.27M | -9.13M | -8M | 62.79M | -74.08M | -16.4M | -12.23M | -5.93M | -38.39M | -17.02M | -1.3M | -44.48M | 7.1M | -5.05M | -10.02M | -66.91M | -126.34M | -104.6M | -6.2M | -90.8M | -16.4M |
| Capital Expenditures | -16.26M | -15.73M | -18.64M | -14.74M | -14.33M | -15.64M | -14.86M | -21.73M | -28.49M | -18.09M | -20.5M | -9.72M | -12.95M | -13.98M | -16.32M | -20.31M | -13.27M | -6.54M | -17.65M | -16.06M | -15.79M | -15.01M | -12.71M | -9.04M | -12.83M | -77.65M | -130.42M | -130.3M | -21.3M | -22.4M | -17.2M |
| CapEx % of Revenue | 2.93% | 2.9% | 3.62% | 2.68% | 2.44% | 3.05% | 3.5% | 4.63% | 6.06% | 4.27% | 5.17% | 2.54% | 3.21% | 3.41% | 2.83% | 3.45% | 2.4% | 1.31% | 2.55% | 2.34% | 2.41% | 2.43% | 2.39% | 1.95% | 2.8% | 13.44% | 15.05% | 19.24% | 5.75% | 5.39% | 5.35% |
| Acquisitions | 0 | 0 | -121.91M | -3.36M | -96.86M | -255K | -8.31M | -73.77M | 3K | -18.58M | -60.77M | 593K | 4.95M | 76.77M | -77.69M | 3.91M | 1.54M | 1.36M | -20.75M | -963K | 14.48M | -29.47M | 19.81M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 19.93M | 0 | -500K | -750K | 0 | 0 | 0 | 0 | 0 | 3.99M | 2.81M | 10.74M | 4.08M | 25.7M | 15.1M | -68.4M | 800K |
| Cash from Financing | -88.98M | -98.44M | -27.93M | -65.4M | 4.34M | -20.71M | -61.33M | 30.06M | -42.49M | -20.81M | -8.64M | -7.3M | -15.01M | -86.57M | 65.81M | -2.62M | 15.55M | -34.59M | -2.09M | -17.52M | -22.14M | -45.89M | 12.72M | -5.37M | -18.23M | -6.32M | 12.57M | 57.4M | -69.9M | 27.3M | -12.3M |
| Debt Issued (Net) | -24.2M | -34.8M | 23.75M | -16.17M | 33.64M | -4.6M | -45.1M | 49.7M | -26.3M | -13.95M | -1.6M | 15.7M | 0 | -78.5M | 79.1M | 4.4M | 19.6M | -30.1M | 9.73M | 6.72M | -15.63M | -17.14M | 21.58M | -19.47M | -57.16M | -42.88M | 21M | 69M | -5.2M | 41.3M | -8.9M |
| Equity Issued (Net) | -18.73M | -56.18M | -42.6M | -40.93M | -21.45M | -8.79M | -8.08M | -11.75M | -9.44M | 0 | 0 | -18.02M | -8M | -6.21M | -10.37M | -3.1M | 0 | 0 | -7.04M | -20.34M | -2.2M | -11.4M | -1.92M | 18.18M | 42.88M | 39.99M | -5.06M | -9.2M | -61.6M | -10.1M | 0 |
| Dividends Paid | -4.7M | -4.75M | -4.88M | -5.04M | -5.13M | -5.17M | -5.18M | -5.24M | -5.29M | -5.26M | -5.23M | -5.29M | -5.37M | -4.87M | -4.76M | -4.12M | -4.09M | -4.06M | -4.06M | -4.28M | -4.31M | -4.34M | -4.54M | -4.09M | -3.95M | -3.43M | -3.34M | -3.3M | -3.4M | -3.8M | -3.4M |
| Share Repurchases | -18.73M | -56.18M | -42.6M | -40.93M | -21.45M | -8.79M | -8.08M | -11.75M | -9.44M | -1.6M | -1.81M | -18.09M | -8M | -6.21M | -10.37M | -3.58M | 0 | 0 | -7.04M | -20.34M | -2.31M | -11.4M | -2M | 0 | 170K | 0 | -9.28M | -9.2M | -61.6M | -10.1M | -100K |
| Other Financing | -41.35M | -2.71M | -4.21M | -3.26M | -2.72M | -2.15M | -2.97M | -2.66M | -1.47M | -1.6M | -1.81M | -214K | -2.56M | 3.02M | 1.84M | 206K | 42K | -438K | -719K | 381K | 0 | -13.01M | -2.41M | 0 | 0 | 0 | -31K | 900K | 300K | -100K | 0 |
| Net Change in Cash | 563K | -12.04M | -69.54M | 6.97M | 15.45M | 49.69M | -8.47M | -692K | -12.64M | -233K | -43.12M | 22.42M | 10.14M | 14.8M | 33.16M | 3.1M | 22.15M | 6.54M | -8.24M | 14.24M | 26.6M | -48.98M | 35.66M | 16.12M | -4.03M | -7.31M | -3.65M | 7.9M | -23.6M | -5.1M | 7.7M |
| Free Cash Flow | 87.62M | 86.37M | 80.64M | 74.07M | 106.86M | 70.5M | 61.92M | 42.67M | 29.66M | 39.95M | 26.7M | 28.9M | 19.47M | 23.59M | 25.33M | 1.88M | 6.05M | 40.06M | 16.45M | 32.55M | 31.4M | 29.51M | 1.26M | 16.05M | 9.62M | -11.8M | -19.56M | -74.6M | 31.1M | 36.5M | 17.9M |
| FCF Margin % | 15.76% | 15.93% | 15.64% | 13.45% | 18.21% | 13.74% | 14.6% | 9.1% | 6.31% | 9.43% | 6.73% | 7.56% | 4.82% | 5.76% | 4.39% | 0.32% | 1.1% | 8.03% | 2.38% | 4.74% | 4.79% | 4.78% | 0.24% | 3.47% | 2.1% | -2.04% | -2.26% | -11.02% | 8.4% | 8.79% | 5.57% |
| FCF Growth % | 13.17% | 7.1% | 8.87% | -30.68% | 51.58% | 13.85% | 45.12% | 43.85% | -25.75% | 49.63% | -7.61% | 48.41% | -17.44% | -6.88% | 1244.53% | -68.87% | -84.89% | 143.49% | -49.45% | 3.65% | 6.4% | 2249.52% | -92.18% | 66.95% | 181.48% | 39.67% | 73.78% | -339.87% | -14.79% | 103.91% | 14.01% |
| FCF per Share | 3.02 | 2.90 | 2.63 | 2.35 | 3.31 | 2.18 | 1.90 | 1.29 | 0.88 | 1.20 | 0.80 | 0.86 | 0.57 | 0.69 | 0.73 | 0.05 | 0.17 | 1.18 | 0.43 | 0.81 | 0.82 | 0.75 | 0.03 | 0.46 | 0.29 | -0.42 | -0.68 | -2.61 | 1.06 | 1.14 | 0.57 |
| FCF Conversion (FCF/Net Income) | 1.27x | 1.56x | 1.71x | 1.47x | 2.03x | -2.06x | 2.21x | 1.78x | 1.25x | 4.02x | 1.37x | 5.55x | 1.22x | 30.82x | 2.05x | 1.06x | 0.88x | -1.37x | 1.14x | 1.91x | 1.95x | 2.14x | 0.70x | 2.00x | -1.26x | -1.45x | 1.32x | 1.08x | 1.40x | 2.58x | 1.66x |
| Interest Paid | 2.15M | 0 | 4.23M | 3.13M | 2.02M | 1.95M | 2.6M | 1.96M | 1.58M | 2.13M | 2.94M | 2.42M | 2.11M | 3.1M | 2.26M | 1.76M | 926K | 1.06M | 3.31M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 9.54M | 0 | 16.6M | 20.23M | 20.08M | 16.89M | 11.97M | 11.11M | 9.92M | 10.88M | 10.47M | 6.78M | 7.99M | 6.43M | 6.79M | 4.73M | 3.77M | 8.48M | 4.82M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Automotive production cyclicality
Based on reported financial statements, CTS consistently generates operating cash flow in excess of net income, with an OCF/NI ratio frequently exceeding 1.5x, which suggests that the company's reported earnings are supported by high-quality cash inflows rather than aggressive accounting accruals or non-cash adjustments.
The persistent gap between net income and operating cash flow indicates that non-cash charges, such as depreciation and amortization, are significant contributors to the company's cash-generating profile. Investors should interpret this as a sign of conservative accounting, as the firm does not appear to rely on earnings manipulation to mask operational cash shortfalls.
As reported in recent quarterly filings, FCF margins have fluctuated between 8.8% and 23.8%, reflecting the inherent sensitivity of the company's cash generation to working capital swings and the timing of capital expenditures required to support its specialized manufacturing footprint across global markets.
While the trajectory of free cash flow remains positive, the variance in margins suggests that the company's cash conversion is highly dependent on the efficiency of its production cycles. The recent dip in FCF margin to 8.8% in 2026Q1 warrants further investigation into whether this represents a structural shift or a temporary timing mismatch in customer payments.
According to the provided cash flow data, working capital changes have been inconsistent, swinging from a $11.4M inflow in 2023Q4 to an $11.7M outflow in 2026Q1, which suggests that the company's cash position is highly susceptible to inventory build-ups and the timing of accounts receivable collections.
The volatility in working capital appears to be a primary driver of the quarter-to-quarter fluctuations in operating cash flow. This pattern may indicate that the company is managing inventory levels to accommodate the long-cycle nature of its medical and aerospace design wins, which can lead to periodic cash absorption.
Based on historical cash flow statements, CTS has utilized its robust cash generation to fund consistent share repurchases and dividends, while maintaining a fortress balance sheet that provides significant optionality for future strategic acquisitions in the high-margin piezoelectric and industrial sensor markets.
The company's capital deployment strategy appears focused on returning value to shareholders while preserving liquidity for potential bolt-on acquisitions. This conservative approach to leverage and cash management suggests that management prioritizes long-term stability over aggressive, debt-funded growth, which may be a prudent strategy given the cyclical nature of its automotive segment.
Quick answers to the most common questions about buying CTS stock.
CTS Corporation (CTS) generated $102.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
CTS Corporation (CTS) generated $86.4M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
CTS Corporation (CTS) spent $15.7M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, CTS Corporation (CTS) returned $4.8M to shareholders via cash dividends and spent $56.2M on share repurchases. This shows the company's commitment to returning capital to its equity investors.