Bedrijfsoverzicht
CPS Technologies Corporation is engaged in the production and sale of advanced material solutions, serving a diverse range of sectors including transportation, automotive, energy, computing, telecommunications, aerospace, defense, and oil and gas across the United States, Germany, Europe, Asia, and other international markets. The company operates within the Technology sector, specifically the Electronic Components industry, which positions it as a supplier of critical physical goods rather than software or digital services. This entity employs 117 individuals and holds a market capitalization of $84.99M, while reporting trailing twelve-month revenue of $32.60M. These valuation and revenue figures indicate that CPS Technologies operates as a small-cap enterprise with a relatively modest revenue base compared to large-cap technology peers, suggesting a niche market position where scale is currently limited. The combination of a high P/E ratio and low absolute revenue underscores that the market is pricing in significant future potential or specific growth expectations that are not yet reflected in current earnings per share.
Financiële gezondheid
The company reported trailing twelve-month revenue of $32.60M and net income of $420,354, resulting in an EBITDA of $1.05M. The substantial gap between the total revenue figure and the relatively small net income reveals a cost structure where operating expenses, likely driven by material costs or R&D in the electronic components industry, absorb the majority of top-line growth before reaching the bottom line. Free cash flow stands at -$902,468, indicating a negative cash generation capability that limits the company's immediate financial flexibility for capital expenditures or debt repayment without external financing. Margins reflect this pressure, with a gross margin of 16.2% showing moderate efficiency in production, an operating margin of -1.2% signaling that operating costs exceed operating income, and a profit margin of 1.3% indicating the final profitability after all expenses. On the balance sheet, the company holds $13.24M in cash against $336,000 in debt, supported by a debt-to-equity ratio of 1.36 and a current ratio of 5.30. The high current ratio suggests strong short-term liquidity and an ability to cover short-term obligations easily, though the negative free cash flow and negative operating margin raise questions about the sustainability of this liquidity position over time. Return on Equity is 2.1% and Return on Assets is 1.1%, metrics that reveal limited management effectiveness in generating returns on the capital invested by shareholders and in utilizing assets to generate profit.
Waarderingsbeoordeling
The trailing twelve-month P/E ratio is 157.33, while the forward P/E is not available, implying that analysts or the market cannot currently project a normalized earnings trajectory due to the absence of expected future earnings growth or negative earnings expectations. The price-to-book ratio is 3.45, indicating that the market values the company at a significant premium over its book value, likely reflecting the perceived value of its intangible assets or future growth potential despite current losses. Alternative valuation metrics show a price-to-sales ratio of 2.61 and an EV/EBITDA of 68.91, suggesting that investors are willing to pay a high multiple for sales and earnings before interest, taxes, depreciation, and amortization, which is typical for small-cap growth stocks with volatile earnings. The stock has traded between a 52-week high of $6.85 and a 52-week low of $1.43, with the current market capitalization of $84.99M reflecting a price that fluctuates significantly within this wide range. The beta value of 1.47 indicates that the stock's price volatility is 47% higher than the broader market, meaning it experiences amplified price swings during periods of market turbulence.
Growth & Income
Revenue growth year-over-year is 38.3%, whereas earnings growth year-over-year is not available, suggesting that top-line expansion is outpacing the ability to convert sales into bottom-line profit, a common scenario in companies scaling operations or investing heavily in growth initiatives. As a non-dividend payer, the company does not distribute a dividend yield or maintain a payout ratio, as indicated by the 0.0% payout ratio figure, which means all available earnings are theoretically reinvested into the business rather than distributed to shareholders. The overall growth and income profile is characterized by rapid revenue expansion coupled with a lack of current profitability and dividend income, creating a high-risk, high-reward scenario where shareholder value creation depends entirely on future operational improvements. This profile distinguishes the company from mature firms that prioritize steady income distributions, instead focusing on capturing market share through aggressive revenue growth in the electronic components sector.