CTS Corporation (CTS) exhibits 38.4% gross margins and 13.9% return on invested capital within Technology (Electrical Products), balanced against a 20.9x enterprise multiple and 4.8% implied options volatility.
Sustained 38.4% gross profitability converts into 15.3% operating margin and 13.9% ROIC, outpacing sector cost of capital.
ROIC: 13.9% // GM: 38.4%YoY revenue trajectory of +5.2% paired with 5.65% free cash flow yield supports self-funded R&D and capital return.
REV YOY: +5.2% // FCF YLD: 5.65%Altman Z-Score of 7.70 and Piotroski F-Score of 8/9 indicate low near-term refinancing stress.
ALTMAN Z: 7.70 // F-SCORE: 8/9Trading at 27.7x trailing P/E (25.8x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 27.7x // EV/EBITDA: 20.9xOptions market prices a ±5.2% implied move with a 0.85 put/call ratio around $61.26 max pain.
IMPL MOVE: ±5.2% // P/C: 0.85Elevated industry capital intensity and customer concentration in Electrical Products require continuous execution to defend 12.1% net margins.
NET MARGIN: 12.1% // D/E: 0.45x| FILER | SIDE | $ VALUE |
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| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
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| INSPECT GEX & CHAIN IN OPT <GO> | ||
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