CTS
Through the investors’ lenses
Each of these investors has said in public what they look at before buying. Click a name to see how this company measures up — a tick where it passes one of their tests, a cross where it does not.
Warren Buffett 3/3
| Measure | CTS | Checked against | |
|---|---|---|---|
| Owner earnings | $84.12m | positive | ✓ |
| Return on equity | 11.8% | median 11.7% | ✓ |
| Debt to equity | — | median 0.79x | — |
| Operating margin | 15.3% | median 15.0% | ✓ |
Passes 3 of 3. To be clear: Warren Buffett has never said anything about CTS. These are the company’s own figures put through the tests he described. What he looks at, and why →
Terry Smith 1/2
| Measure | CTS | Checked against | |
|---|---|---|---|
| Return on capital employed | — | median 10.1% | — |
| Cash conversion | 1.56x | median 1.78x | ✗ |
| Operating margin | 15.3% | median 15.0% | ✓ |
| Debt to equity | — | median 0.79x | — |
Passes 1 of 2. To be clear: Terry Smith has never said anything about CTS. These are the company’s own figures put through the tests he described. What he looks at, and why →
Charlie Munger 2/2
| Measure | CTS | Checked against | |
|---|---|---|---|
| Return on capital employed | — | median 10.1% | — |
| Return on equity | 11.8% | median 11.7% | ✓ |
| Operating margin | 15.3% | median 15.0% | ✓ |
Passes 2 of 2. To be clear: Charlie Munger has never said anything about CTS. These are the company’s own figures put through the tests he described. What he looks at, and why →
Chuck Akre 1/3
| Measure | CTS | Checked against | |
|---|---|---|---|
| Return on equity | 11.8% | median 11.7% | ✓ |
| Debt to equity | — | median 0.79x | — |
| Cash conversion | 1.56x | median 1.78x | ✗ |
| Return on equity, sustained | 3 of 10 | 8 of 10 above median | ✗ |
Passes 1 of 3. To be clear: Chuck Akre has never said anything about CTS. These are the company’s own figures put through the tests he described. What he looks at, and why →
Philip Fisher 3/3
| Measure | CTS | Checked against | |
|---|---|---|---|
| Operating margin | 15.3% | median 15.0% | ✓ |
| Net margin | 12.1% | median 10.2% | ✓ |
| Return on capital employed | — | median 10.1% | — |
| Operating margin, held or improving | 15.3% | 10-yr median 13.6% | ✓ |
Passes 3 of 3. To be clear: Philip Fisher has never said anything about CTS. These are the company’s own figures put through the tests he described. What he looks at, and why →
Walter Schloss 1/1
| Measure | CTS | Checked against | |
|---|---|---|---|
| Current ratio | 2.30x | median 1.25x | ✓ |
| Debt to equity | — | median 0.79x | — |
Passes 1 of 1. To be clear: Walter Schloss has never said anything about CTS. These are the company’s own figures put through the tests he described. What he looks at, and why →
Benjamin Graham 1/2
| Measure | CTS | Checked against | |
|---|---|---|---|
| Current ratio | 2.30x | 2.00x published | ✓ |
| Long-term debt to working capital | — | 1.00x published | — |
| Positive earnings, ten years running | 4 yrs | 10 published | ✗ |
Passes 1 of 2. To be clear: Benjamin Graham has never said anything about CTS. These are the company’s own figures put through the tests he described. What he looks at, and why →
Peter Lynch 1/1
| Measure | CTS | Checked against | |
|---|---|---|---|
| Debt to equity | — | median 0.79x | — |
| Net margin | 12.1% | median 10.2% | ✓ |
Passes 1 of 1. To be clear: Peter Lynch has never said anything about CTS. These are the company’s own figures put through the tests he described. What he looks at, and why →
| Basis | Payout | Why |
|---|---|---|
| GAAP earnings | 7.3% | whyThe figure most screeners publish. |
| Operating cash flow | 4.7% | whyBefore capital spending. |
| Free cash flow | 5.5% | whyAfter maintaining the business. |
Spread between highest and lowest: 2.7 percentage points. Same filings, different denominators.
Coverage rating 80 / 100 — Comfortable. ? Peer standing 46/50Direction 18/30Stability 15/20
Free cash flow payout, last 6 years
| Fiscal year | Payout |
|---|---|
| 2025-12-31 | 5.5% |
| 2024-12-31 | 6.1% |
| 2023-12-31 | 6.8% |
| 2022-12-31 | 4.8% |
| 2021-12-31 | 7.3% |
| 2020-12-31 | 8.4% |
93% of the 42 technology here pay out more — comfortable for the sector.
The arithmetic
- GAAP earnings — dividends declared per share $0.160 ÷ diluted EPS $2.19
- Operating cash flow — dividends paid $4.75m ÷ operating cash flow $102m
- Free cash flow — dividends paid $4.75m ÷ (operating cash flow $102m − capex $15.7m)
Where the figures came from
- 10-K filed 2026-02-24 · accession 0001193125-26-067039
All public at sec.gov — you should not have to take our word for it.
Computed straight from SEC XBRL. A number that looks wrong to you is more useful to us than agreement — tell us.
What the free cash flow payout ratio measures, and where every company here sits on it.
Also on: rated comfortable · when it files.
When this changes
Every figure above is recomputed whenever CTS files. The monthly letter carries what filed, what moved, and one finding computed across every company here.