CPS Technologies Corp. Common Stock (CPSH)

FairStock Score: 43/100 — MIXED

Key Financials

Strengths

• Conservative balance sheet with debt-to-equity of just 0.01, providing financial flexibility
• Altman Z-Score of 11.4 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 38.3% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($1) with negative 440% margin of safety—limited downside protection
• Weak Piotroski F-Score of 3/9 suggests deteriorating financial quality across multiple dimensions

AI Analysis

CPS Technologies Corp. Common Stock is a micro-cap technology company valued at $93 million. The business generates $33 million in annual revenue with a 0.0% net margin. From a quality standpoint, CPS shows weak Piotroski F-Score of 3/9 signaling deteriorating fundamentals and Altman Z-Score of 11.4 confirms fortress-level solvency. On valuation, the stock is commanding a steep 169.3x multiple, with trades far above its Graham Number ($1) with no margin of safety. Growth dynamics show revenue growing at 38.3% and profit growth of 101.3%. Our composite FairStock Score of 43/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

CPS's 38% revenue growth trajectory could accelerate as it captures additional market share in the technology sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 169x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer