CPS Technologies Corporation (CPSH) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

CPS Technologies Corporation (CPSH) Technology Profile & Competitive Position

CPS Technologies Corporation provides advanced material solutions, focusing on metal matrix composites for diverse sectors like transportation, energy, and aerospace. With a market capitalization of $63.7M and a P/E ratio of 856.52, the company caters to microelectronics systems companies across the United States, Europe, and Asia.

What Is the Investment Thesis for CPSH?

CPS Technologies Corporation presents a focused investment opportunity within the advanced materials sector. The company's metal matrix composites cater to high-growth markets such as electric vehicles, renewable energy, and aerospace. A gross margin of 14.5% indicates potential for improvement through economies of scale and product mix optimization. With a market capitalization of $63.7M and a P/E ratio of 856.52, the company's valuation reflects its growth potential and niche market position. Key catalysts include increasing demand for high-performance materials in electric vehicles and renewable energy infrastructure. Potential risks include competition from alternative materials and reliance on key customer relationships. Investors should closely monitor the company's ability to scale production, expand its customer base, and maintain its technological edge.

Based on FMP financials and quantitative analysis

CPSH Key Highlights

Market capitalization of $63.7M, reflecting its position as a smaller player in the advanced materials market.

• P/E ratio of 856.52, suggesting high growth expectations despite current profitability levels.
• Gross margin of 14.5%, indicating potential for improvement through increased efficiency and higher value-added products.
• Employs 92 people, indicating a relatively small but specialized workforce.
• Beta of 1.47, suggesting higher volatility compared to the overall market.

Who Are CPSH's Competitors?

CPSH is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are CPSH's Key Strengths?

Specialized expertise in metal matrix composites.

• Strong relationships with key customers in demanding industries.
• Proprietary manufacturing processes.
• Focus on high-performance applications.

What Are CPSH's Weaknesses?

Relatively small size and limited resources.

• Concentrated customer base.
• Dependence on specific end markets.
• Limited brand recognition.

What Could Drive CPSH Stock Higher?

Increasing adoption of electric vehicles driving demand for MMC baseplates in motor controllers.

• Expansion of renewable energy infrastructure boosting demand for MMC components in wind turbines.
• Growth of the wide band gap semiconductor market increasing demand for MMC packaging solutions.
• Potential new contracts with aerospace and defense companies for hermetic packages.

What Are the Key Risks for CPSH?

Weak fundamentals — a Piotroski F-Score of 3/9 flags soft profitability, leverage or efficiency.

• Rich valuation — a P/E of 856.52 runs well above the Technology sector’s ~32.70x, leaving little room for a miss.
• Competition from alternative materials, such as aluminum and polymers.
• Economic downturns affecting key end markets, such as automotive and aerospace.
• Technological obsolescence of MMC solutions.
• Dependence on a limited number of key customers.
• Fluctuations in raw material prices impacting profitability.

What Are the Growth Opportunities for CPSH?

• Electric Vehicle Market Expansion: The increasing adoption of electric vehicles (EVs) presents a significant growth opportunity for CPS Technologies. Their metal matrix composites are used in baseplates for motor controllers in EVs, offering superior thermal management and durability. As the EV market grows, projected to reach $800 billion by 2027, the demand for these components will increase. CPS Technologies can capitalize on this trend by expanding its production capacity and securing partnerships with leading EV manufacturers. Success hinges on demonstrating the superior performance and cost-effectiveness of their MMC solutions compared to traditional materials.
• Renewable Energy Infrastructure Development: The growth of renewable energy, particularly wind and solar power, creates demand for advanced materials. CPS Technologies' baseplates are used in wind turbines, providing efficient heat dissipation and structural support. With global investments in renewable energy projected to reach $1 trillion annually by 2030, the company can benefit from this expansion. Securing contracts with wind turbine manufacturers and developing new MMC solutions for solar energy applications are key strategies. The ability to meet the stringent performance and reliability requirements of the renewable energy sector is crucial.
• Aerospace and Defense Applications: The aerospace and defense industries require high-performance materials for various applications, including radar systems, satellites, and avionics. CPS Technologies' hermetic packages are used in these systems, providing reliable protection and thermal management. The global aerospace and defense market is expected to grow steadily, driven by increasing demand for advanced military and commercial aircraft. CPS Technologies can expand its presence in this sector by developing new MMC solutions for emerging applications, such as unmanned aerial vehicles (UAVs) and space exploration. Maintaining strong relationships with defense contractors and securing government contracts are essential.
• Wide Band Gap Semiconductor Market: The increasing use of wide band gap (WBG) semiconductors in power electronics applications drives demand for advanced packaging solutions. CPS Technologies' baseplates and housings are used in modules built with WBG semiconductors, providing efficient heat dissipation and electrical insulation. The WBG semiconductor market is projected to grow rapidly, driven by the increasing adoption of silicon carbide (SiC) and gallium nitride (GaN) devices. CPS Technologies can capitalize on this trend by developing new MMC solutions specifically tailored to WBG semiconductor packaging requirements. Collaborating with WBG semiconductor manufacturers and demonstrating the superior performance of their MMC solutions are key strategies.
• Computing and Internet Infrastructure: The growth of cloud computing and internet infrastructure creates demand for high-performance materials in data centers and telecommunication equipment. CPS Technologies' lids and heatspreaders are used with integrated circuits in internet switches and routers, providing efficient thermal management. The global data center market is expected to continue growing, driven by increasing demand for cloud services and data storage. CPS Technologies can expand its presence in this sector by developing new MMC solutions for high-density computing applications. Focusing on energy efficiency and thermal management performance will be critical.

What Are CPSH's Competitive Advantages?

• Specialized expertise in metal matrix composite materials.
• Proprietary manufacturing processes for producing high-performance components.
• Established relationships with key customers in demanding industries.
• Focus on niche applications with high barriers to entry.

What Does CPSH Do?

CPS Technologies Corporation, established in 1984 and headquartered in Norton, Massachusetts, specializes in the production and sale of advanced material solutions. Originally named Ceramics Process Systems Corporation, the company rebranded in 2007 to reflect its evolving focus. The company's core offering revolves around metal matrix composites (MMCs), which combine metals and ceramics to deliver enhanced performance characteristics. These MMCs are integral to various applications across diverse sectors. Key products include baseplates for motor controllers used in electric trains, subway cars, wind turbines, and hybrid/electric vehicles. Additionally, CPS Technologies provides hermetic packages for radar, satellite, and avionics systems, as well as baseplates and housings for wide band gap semiconductor modules. The company also produces lids and heatspreaders for integrated circuits used in internet switches and routers. CPS Technologies serves microelectronics systems companies in the United States, Europe, and Asia, providing assembled housings and packages for hybrid circuits. With 92 employees, CPS Technologies maintains a niche position in the advanced materials market, focusing on specialized solutions for demanding applications.

What Products and Services Does CPSH Offer?

• Produces metal matrix composites (MMCs) combining metal and ceramic materials.
• Manufactures baseplates for motor controllers used in electric trains, subway cars, wind turbines, and hybrid/electric vehicles.
• Creates hermetic packages for radar, satellite, and avionics applications.
• Supplies baseplates and housings for modules built with wide band gap semiconductors.
• Produces lids and heatspreaders for integrated circuits used in internet switches and routers.
• Assembles housings and packages for hybrid circuits.

How Does CPSH Make Money?

• Designs and manufactures advanced material solutions, primarily metal matrix composites.
• Sells its products to microelectronics systems companies in the United States, Europe, and Asia.
• Focuses on specialized applications in transportation, energy, aerospace, and computing markets.

What Industry Does CPSH Operate In?

CPS Technologies Corporation operates within the advanced materials industry, a sector driven by the increasing demand for high-performance materials in various applications. The market is characterized by technological innovation, intense competition, and stringent quality standards. Key trends include the growing adoption of metal matrix composites in electric vehicles, renewable energy, and aerospace. The industry is also influenced by government regulations and environmental concerns. CPS Technologies competes with larger material science companies and specialized composite manufacturers. The company's success depends on its ability to maintain a technological edge, secure key customer relationships, and adapt to changing market demands.

Who Are CPSH's Key Customers?

• Microelectronics systems companies
• Manufacturers of electric trains and subway cars
• Wind turbine manufacturers
• Hybrid and electric vehicle manufacturers
• Aerospace and defense companies

Company Profile

CPS Technologies Corporation operates in the Hardware, Equipment & Parts industry within the Technology sector. It is headquartered in Norton, US. The company is led by CEO Brian T. Mackey. CPSH has traded publicly since 1994.

Return on equity for CPS Technologies Corporation stands at 0.2%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 0.1%, showing how much profit it generates from its asset base. Its free cash flow yield is 0.1%, a gauge of the cash the business throws off relative to its market value. A current ratio of 5.29 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 0.0%, the inverse of the P/E and a quick read on earnings relative to price.

CPSH Valuation & Market Position

With a $63.7M market cap, CPS Technologies Corporation sits in the micro-cap segment of the market. Analyst price targets span from $6.00 to $6.00, with a consensus of $6.00. At the current price of $3.94, that implies approximately 52% upside potential. Relative to its peer group, CPSH's quantitative score of 40/100 is below the peer average of 57/100.

Quarterly Financial Performance: CPS Technologies Corporation

Revenue for CPS Technologies Corporation came in at $8.3M during Q2 FY2026, a 18.2% improvement versus the preceding quarter. The company recorded net income of $111K, with diluted EPS of $0.01. Quarter-over-quarter revenue has been mixed, typical for a micro-cap company operating in Technology. Across the four most recent quarters, CPSH averaged $0.00 in diluted EPS.

CPS Technologies Corporation's Piotroski F-Score is 3/9, a 9-point checklist of profitability, leverage and efficiency — flagging fundamental weakness worth scrutiny. Its Altman Z-Score of 8.76 places it in the safe zone, indicating low near-term bankruptcy risk.

CPS Technologies Corporation has missed Wall Street's EPS estimate in 2 of its last 3 reported quarters — a recurring pattern of falling short of estimates. Reported results have landed about 113.3% below estimates on average.

Over the past six months, CPS Technologies Corporation insiders filed 32 SEC Form 4 transactions — 8 sales and 24 purchases. On net that is roughly 182K shares acquired (about $663K) — insiders putting money in tends to read as conviction.

CPSH Financials

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CPSH Analyst Consensus

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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