Company Overview
CPS Technologies Corporation functions as a manufacturer and distributor of advanced material solutions serving diverse sectors including transportation, automotive, energy, computing, telecommunications, aerospace, defense, and oil and gas across the United States, Europe, Asia, and international markets. Operating within the Technology sector and the Electronic Components industry, the company focuses on producing specialized metal solutions that are critical for these high-performance industrial applications. The entity currently maintains a market capitalization of $64.83M and reported annual revenue of $32.60M over the trailing twelve months, employing a workforce of 117 individuals to support its global operations. These financial figures indicate that CPS Technologies is a mid-sized enterprise with a relatively small employee base relative to its revenue, suggesting a highly specialized operational model rather than a mass-scale manufacturing footprint.
Financial Health
The company reported revenue of $32.60M for the trailing twelve months, generating a net income of $420,354 and an EBITDA of $1.05M, a disparity that reveals a significant gap between top-line sales and bottom-line profitability. This substantial difference between revenue and net income highlights a cost structure where operating expenses, likely driven by the specialized nature of electronic components, consume the majority of gross revenue before reaching the net profit line. The firm reported free cash flow of $-902,468, indicating a net cash outflow from operations and investing activities that constrains immediate financial flexibility for capital expansion or debt reduction. Despite the negative cash flow, the company holds cash reserves of $13.24M against a total debt load of $336,000, resulting in a debt-to-equity ratio of 1.36 which suggests a moderate level of leverage relative to its equity base. Three distinct margin metrics further characterize the financial performance: a gross margin of 16.2% indicates the pricing power and production efficiency at the manufacturing level, an operating margin of -1.2% signals that operating costs currently exceed operating income, and a profit margin of 1.3% reflects the final net profitability after all expenses. The current ratio stands at 5.30, a figure that indicates robust short-term liquidity as the company possesses more than five times the current assets required to cover its current liabilities. Additionally, the return on equity is 2.1% and the return on assets is 1.1%, metrics that reveal that management effectiveness in generating returns on shareholder capital and total assets is currently low, consistent with the early-stage or turnaround nature often seen in companies with negative operating margins.
Valuation Assessment
The trailing twelve-month P/E ratio is 120.00, while the forward P/E is listed as N/A, implying that analysts do not have sufficient data to project future earnings or that the market is pricing the stock based on historical earnings rather than expected growth. The price-to-book ratio is 2.63, indicating that the market values the company at a significant premium of 163% above its tangible book value, which often reflects intangible assets or growth expectations not fully captured on the balance sheet. Alternative valuation metrics such as the price-to-sales ratio of 1.99 and an EV/EBITDA of 49.63 suggest that investors are willing to pay a high multiple for sales and earnings, likely driven by the high revenue growth rate rather than current profitability. The stock has traded between a 52-week low of $1.40 and a 52-week high of $6.85, meaning the current price sits at the upper end of its recent trading range relative to the low, reflecting recent market volatility. The beta value is 1.43, which means the stock exhibits higher price volatility than the broader market, moving 43% more aggressively than the overall market index during periods of fluctuation.
Growth & Income
CPS Technologies Corporation achieved a revenue growth rate of 38.3% year-over-year, while earnings growth is listed as N/A, indicating that revenue expansion is currently outpacing the realization of bottom-line profitability. Since the company does not pay a dividend, with a dividend yield of N/A and a payout ratio of 0.0%, it retains all of its earnings to reinvest into growth initiatives rather than distributing cash to shareholders. The absence of a dividend payout aligns with the company's strategy of prioritizing capital expenditure and operational scaling to drive future revenue increases rather than providing immediate income to investors. Overall, the company presents a growth-oriented profile characterized by accelerating sales but limited current earnings retention, relying on future profitability to support long-term value creation.