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CTS Corporation (CTS)

Company Dividend Discount ModelIndustry: Hardware, Equipment & PartsSector: Technology

Valuation Snapshot

Stable Growth$17.00 - $25.62$21.07
Multi-Stage$23.77 - $26.11$24.92
Blended Fair Value$22.99
Current Price$39.94
Upside-42.43%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-1.39%-0.95%0.160.170.170.170.170.170.170.170.170.17
YoY Growth---3.08%-1.77%-0.81%-0.12%-1.13%-0.89%0.48%0.50%-1.08%-1.54%
Dividend Yield--0.39%0.36%0.34%0.48%0.55%0.69%0.59%0.64%0.81%1.11%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)59.19
(-) Cash Dividends Paid (M)4.79
(=) Cash Retained (M)54.40
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)11.847.404.44
Cash Retained (M)54.4054.4054.40
(-) Cash Required (M)-11.84-7.40-4.44
(=) Excess Retained (M)42.5647.0049.96
(/) Shares Outstanding (M)30.3030.3030.30
(=) Excess Retained per Share1.401.551.65
LTM Dividend per Share0.160.160.16
(+) Excess Retained per Share1.401.551.65
(=) Adjusted Dividend1.561.711.81
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-0.09%0.91%1.91%
Fair Value$17.00$21.07$25.62
Upside / Downside-57.45%-47.25%-35.85%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)59.1959.7360.2760.8261.3761.9363.79
Payout Ratio8.09%24.48%40.86%57.24%73.62%90.00%92.50%
Projected Dividends (M)4.7914.6224.6234.8145.1855.7459.00

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-0.09%0.91%1.91%
Year 1 PV (M)13.2713.4013.53
Year 2 PV (M)20.2820.6921.10
Year 3 PV (M)26.0226.8127.61
Year 4 PV (M)30.6531.8933.18
Year 5 PV (M)34.3136.0637.89
PV of Terminal Value (M)595.64626.05657.69
Equity Value (M)720.16754.90791.00
Shares Outstanding (M)30.3030.3030.30
Fair Value$23.77$24.92$26.11
Upside / Downside-40.48%-37.61%-34.63%

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