Post by
retiredcf on Aug 12, 2024 7:18am
Assessment
I can't believe that CTS is sitting at $3.84 after two green days and the quarterly report. It was at this price when it had 190 million more debt and 40 million more shares. What would be a theoretical price based off company metrics?
EPS of 19c beat estimates of 12c; Revenue of $651M matched estimates. EBITDA of $45M was 2% better than expected. But CTS did cut its 2024 EBITDA forecast, from $185M+ to $176M+. Gross profit forecast was also lowered by a slim amount. Q2 revenue saw a small increase, but service revenue did decline 12%. But organic growth was 'double digits'. The balance sheet is much improved, and strong EPS growth is still expected next year. But in investors' eyes, a lowered forecast is a lowered forecast. It is 7X earnings. We think it could trade at 10x to 12X with some growth consistency, which would imply a price range of $5.70 to above $6.00. (5iResearch)