Is CTS CORP (CTS) Halal?

NYSE Technology United States $1.4B
✓ HALAL
Confidence: 95/100
CTS CORP (CTS) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 5.9% against the AAOIFI threshold of 30%, CTS CORP comfortably passes the key financial ratio tests. The company operates in the Technology sector (Electronic Components), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 5.9%
/ 30%
5.9%
/ 30%
6.3%
/ 30%
0.39%
/ 5%
✓ HALAL
DJIM 5.9%
/ 33%
5.9%
/ 33%
6.3%
/ 33%
0.39%
/ 5%
✓ HALAL
MSCI 10.8%
/ 33%
10.8%
/ 33%
11.5%
/ 33%
0.39%
/ 5%
✓ HALAL
S&P 5.9%
/ 33%
5.9%
/ 33%
6.3%
/ 33%
0.39%
/ 5%
✓ HALAL
FTSE 10.8%
/ 33%
10.8%
/ 33%
11.5%
/ 50%
0.39%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
21.8
Forward: 17.7
EPS
$2.19
Dividend Yield
33.0%
Payout: 7.3%
P/B Ratio
2.5
EV/EBITDA
11.6
EV: $1.4B
Revenue
$541M
Growth: 8.5%
Beta
0.9
Average volatility
Current Ratio
2.3

Profitability

Gross Margin 38.4%
Operating Margin 16.6%
Net Margin 12.1%
Return on Equity (ROE) 12.1%
Return on Assets (ROA) 6.8%

Cash Flow & Balance Sheet

Operating Cash Flow$102M
Free Cash Flow$86M
Total Debt$83M
Debt-to-Equity15.0
Current Ratio2.3
Total Assets$764M

Price & Trading

Last Close$48.62
50-Day MA$51.10
200-Day MA$44.27
Avg Volume200K
Beta0.9
52-Week Range
$34.02
$59.66

About CTS CORP (CTS)

CEO
Mr. Kieran M. O'Sullivan
Employees
3,492
Sector
Technology
Industry
Electronic Components
Country
United States
Exchange
NYSE
Market Cap
$1.4B
Currency
USD

CTS Corporation designs, manufactures, and sells sensors, connectivity components, and actuators in North America, Europe, and Asia. The company offers controls, pedals, sensors, switches, transducers, and piezo sensing products; EMI/RFI filters, capacitors, resistors, RF filters, and frequency control products; and piezo microactuators and rotary actuators. It serves transportation, industrial, medical, aerospace, and defense industries. The company sells and markets its products through its sales engineers, independent manufacturer representatives, and distributors. CTS Corporation was founded in 1896 and is headquartered in Lisle, Illinois.

Purification Calculator

As a halal stock with 0.39% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is CTS CORP (CTS) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), CTS CORP is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is CTS CORP's debt ratio?

CTS CORP's debt ratio is 5.9% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 10.8%.

Does CTS CORP require dividend purification?

Yes, CTS CORP has an impermissible income ratio of 0.39%, which means 0.39% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are CTS CORP's key financial metrics?

CTS CORP has a market capitalization of $1.4B, trailing P/E ratio of 21.8, and revenue of $541M. The company maintains a gross margin of 38.4% and a net margin of 12.1%. Return on equity stands at 12.1%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.