Disclosures

CTS Corporation

Disclosure

  • B. Riley & Co., LLC, or any of its affiliates, 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 August 22, 2017
Rating Number of Companies Percent of Total
Buy 146 74.9%
Neutral 48 24.6%
Sell 1 0.5%
Total 195 100%
% with Investment Banking Relationships
Rating Number of Companies Percent of Total
Buy 23 88.5%
Neutral 3 11.5%
Sell 0 0.0%
Total 26 100%

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

  • Buy: We generally expect “Buy” rated stocks to have an above-average risk-adjusted total return over the next 12 months. We recommend that investors buy the securities at the current valuation.
  • Neutral: We generally believe “Neutral” rated stocks will have an average risk-adjusted total return over the next 12 months.
  • Sell: We generally expect “Sell” rated stocks to have a below-average risk-adjusted total return over the next 12 months. We recommend that investors reduce their positions until the valuation or fundamentals become more compelling.

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.