How similar is its business to GIB.A, if at all? Does it make sense to hold both?
Do you have a good feel for its resiliency (i.e. competition and poor economy)?
Is there any vision or plan on this company growing going forward?
Are there odds of a takeover in the future?
CTS is a global IT solutions provider, alongside GIB.A. They both offer services in areas like business consulting, systems integration, IT outsourcing, IT management, advanced analytics and cloud modernization. Although, GIB.A uses more of an organic growth business model, while CTS acquires IT solution providers and integrates them into their network. GIB.A focuses on holistic enterprise digitization, automation, hybrid and cloud management, while CTS focuses on digital infrastructure and digital workplace solutions.
CTS is a small company ($800M market cap), and while forward growth looks good, and its historical growth rates have been strong, its acquisitive business model has been hindered by higher rates. In a lower interest rate environment, we see CTS performing better. At a 6.6X forward P/E, it might be a viable acquisition target for larger IT provider companies.