Disclosures

CTS Corporation

Disclosure

  • B. Riley & Co., LLC does and seeks to do business with companies covered in its research reports.
  • A portion of this analyst’s compensation is based on the sales, trading and investment banking activities of B. Riley & Co., LLC.
  • This report may be distributed by FBR Capital Markets & Co., an affiliate of B. Riley & Co., LLC and as such constitutes third party research. For additional information, please visit http://www.fbr.com/disclosures.
Disclosure Chart

Ratings Distribution as of June 27, 2017 % with Investment Banking Relationships
Rating Number of Companies Percent of Total
Buy 149 73.8%
Neutral 52 25.7%
Sell 1 0.5%
Total 202 100%
Ratings Distribution as of October 4, 2016 % with Investment Banking Relationships
Rating Number of Companies Percent of Total
Buy 22 95.7%
Neutral 1 4.3%
Sell 0 0.0%
Total 23 100%

Explanation of B. Riley & Co. LLC's Rating System

  • Buy: We generally expect "Buy" rated stocks to materially outperform both the S&P 500 and Russell 2000 as well as other stocks in their sector. Further, we believe that the potential reward relative to the potential risk is particularly attractive.
  • Neutral: We generally believe "Neutral" rated stocks will perform roughly in line with the S&P 500 and Russell 2000 over the intermediate and long term.
  • Sell: We generally expect "Sell" rated stocks to materially underperform both the S&P 500 and Russell 2000 as well as other stocks in their sector. Further, we believe that the potential reward relative to the potential risk is particularly unattractive.

Risks and Considerations

Additional Risks and Considerations

    • CTS’ top 3 customers represent 31% of total revenues.  A sharp downturn in any of these customers’ sales can have a negative impact on CTS’ financial results.
    • Due to competition and commodity nature of certain products, the electronics component industry typically suffers approximately 1-3% average selling price erosion per year.
    • Approximately 70% exposure CTS’ revenues is exposed to the auto industry (light & commercial vehicles) which tends to be very cyclical in nature.  Any prolonged downturn within the auto market could have serious negative impact on CTS’ financial results.
    • CTS plans to achieve 10% long term revenue growth through both organic growth and acquisition.  In the event that CTS has difficulty integrating an acquisition or the market faces headwinds in the midst of integrating an acquisition, this could have a negative impact on CTS’ financial results.