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ZYBERNO

Stock Report

Updated Aug 31, 2026

CPS TECHNOLOGIES CORP. (CPSH)

Materials • NASDAQ

$3.82

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

38.0/100

WEAK BUSINESS

CPS TECHNOLOGIES CORP. (CPSH) scores 38/100 — weak fundamentals with mixed indicators requiring careful analysis before acting.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full CPSH quality analysis & detailed breakdown

VALUATION SIGNAL

MARGIN OF SAFETY

Is this stock cheap or expensive relative to what the business has historically generated for owners?

-100.0%

Overvalued

Growth gap unavailable — insufficient data for reverse DCF calculation.

🎯 Expected Annual Return →

-56.3%

5-year annualised assuming price converges to intrinsic value

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full CPSH valuation analysis · → View full CPSH Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):CRITICAL (-0.1%)

Debt-to-Equity (Solvency Risk):EXCELLENT (0.02x)

Operating Margin (Operational Efficiency):CRITICAL (-1.0%)

Return on Capital (Capital Efficiency):CRITICAL (-1.4%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

CPS TECHNOLOGIES CORP. (CPSH) stock report — Zyberno Score 38/100 (WEAK BUSINESS), Margin of Safety -100.0%, -56% expected annual return. Full financial analysis on Zyberno.

According to Zyberno's DCF model, CPS TECHNOLOGIES CORP. (CPSH) trades at $3.82 against an estimated intrinsic value per share of $0.17 — a -100.0% Margin of Safety based on Owner Earnings of $616.76K TTM, projected at -17.0% growth for 10 years with a 2.5% terminal growth rate. Zyberno's model translates this into a 5-year expected return of -56.3% annually.

Over the trailing twelve months, CPSH generated $616.76K in Owner Earnings. Capital was deployed as follows: $1.11M invested in capital expenditures. Owner Earnings have declined at 17.0% annually over the trailing five years using log-linear regression.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:3.82

Market Cap:$70.52M

Valuation Multiples (3)

P/B Ratio:2.10x

P/S Ratio:2.18x

Peg Ratio:-999.00x

Enterprise Metrics (3)

Enterprise Value:$55.43M

Ev Ebitda Ratio:221.30x

Pfcf Ratio:868.43x

Price Action & Momentum (3)

12-1 Momentum:

+30.3% (91th pctile)

📈 Click to view full CPSH Momentum analysis →

Momentum Percentile:91 / 100

% of 52-Week High:26.5%

B. Profitability Assessment

Return Metrics (3)

ROE:

-0.1%

📊 Click to view full CPSH ROE analysis →

ROA:-0.1%

Roic:

-1.4%

📊 Click to view full CPSH ROIC analysis →

Margin Analysis (3)

Operating Margin Ttm:-1.0%

Net Margin Ttm:-0.1%

Ebitda Margin:0.8%

TTM Performance (3)

Gross Margin Ttm:14.1%

Operating Margin Ttm:-1.0%

Net Margin Ttm:-0.1%

Yield Metrics (3)

Earnings Yield:-$0.23

Owner Earnings Yield:$0.78

Dividend Yield:0.0%

C. Log-Linear Regression Growth Trends

Earnings Surprise (SUE) (3)

Earnings Surprise (SUE):

+0.09

📊 Click to view full CPSH Earnings Surprise analysis →

EPS Surprise vs Expected:100.0%

Latest Earnings Filed:2026-08-11

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):6.2%

Earnings Growth (Linear) (1)

Net Income Growth Rate (Linear):-50.0%

Cash Flow Growth (Linear) (2)

Free Cash Flow Growth Rate (Linear):-7.2%

Operating Cash Flow Growth Rate (Linear):-10.7%

Operating Growth (Linear) (1)

Operating Income Growth Rate (Linear):-31.8%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:7.14x

Quick Ratio:5.28x

Cash Ratio:3.30x

Leverage Analysis (3)

Debt To Equity Ttm:0.02x

Debt-to-Equity Ratio:0.02x

Debt To Ebitda:1.05x

Coverage Ratios (2)

Interest Coverage Ratio:74.98x

Times Interest Earned:74.98

Capital Structure (4)

Working Capital:28,529,564.00

Cash And Cash Equivalents:15,354,564.00

Long Term Debt:$101.00K

Net Debt:-$15.09M

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $32.35M

Linear Growth: 6.2%

📊 Click to view full CPSH Revenue analysis & methodology →

Cost Of Revenue Ttm:$27.79M

Profitability Breakdown (2)

Gross profit TTM: $4.56M

Linear Growth: -15.0%

📊 Click to view full CPSH Gross Profit analysis & methodology →

Operating income TTM: -$337.19K

Linear Growth: -31.8%

📊 Click to view full CPSH Operating Income analysis & methodology →

Bottom Line Performance (3)

Net income TTM: -$35.87K

Linear Growth: -50.0%

📊 Click to view full CPSH Net Income analysis & methodology →

Income Before Tax:-$142.23K

Ebitda Ttm:250,464.00

Operating Expenses (5)

Operating Expenses:0.00

R And D Expense:216,914.00

Sga Expense:5,161,474.00

Income Tax Expense:-$106.36K

Interest Expense:5,921.00

Expense Ratios (3)

R And D To Revenue Percentage:2.6%

Sga To Revenue Percentage:62.1%

Ebitda Margin:0.8%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$38.44M

Current Assets:$33.18M

Ppe Net:2,475,180.00

Goodwill:0.00

Intangible Assets:$19.35K

Liability Structure (4)

Total Liabilities:4,780,484.00

Current Liabilities:4,648,207.00

Long Term Debt:$101.00K

Short Term Debt:$163.00K

Equity & Capital (3)

Equity:$33.66M

Retained Earnings:-$25.73M

Common Stock:25,000,000.00

Working Capital Items (3)

Accounts Receivable:3,654,549.00

Inventory:8,649,437.00

Accounts Payable:3,496,532.00

Special Items (2)

Contract Liabilities:487,240.00

Stock Based Compensation:48,249.00

C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: $1.20M

Linear Growth: -10.7%

Free cash flow TTM: $90.98K

Linear Growth: -7.2%

📊 Click to view full CPSH Free Cash Flow analysis & methodology →

Investment Activities (2)

Investing Cash Flow:$1.52M

Capital Expenditures Ttm:1,113,428.00

Financing Activities (3)

Financing Cash Flow:$30.61K

Dividends Paid Ttm:0.00

Stock Repurchase:0.00

Capital Transactions (3)

Common Stock Issuance:11,835.00

Long Term Debt Issuance:$0.00

Long Term Debt Repayments:$0.00

Non-Cash Items (1)

Depreciation Amortization Ttm:587,651.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (3)

EPS (Basic TTM):-0.01

Eps diluted TTM: -$0.01

Linear Growth: -39.1%

📊 Click to view full CPSH EPS analysis & methodology →

Earnings Per Share Ttm:-$0.00

Revenue & Cash Per Share (3)

Sales Per Share Ttm:1.75

Operating Cash Flow Per Share:$0.01

Fcf Per Share Ttm:0.00

Book Value & Capital (2)

Book Value Per Share:$1.82

Cash Per Share:0.83

Dividend Policy (1)

Dividend Payout Ratio:-999.00x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:1.10x

Working Capital Turnover Ttm:1.13x

Receivables Management (2)

Receivables Turnover Ttm:8.85x

Days Sales Outstanding Ttm:41.23

Inventory Management (2)

Inventory Turnover Ttm:3.21x

Days Inventory Outstanding Ttm:113.60

Payables & Cash Cycle (2)

Days Payable Outstanding:45.92

Cash Conversion Cycle:108.91

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:100.00

Quality Score:75.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Owner Earnings Analysis (3)

Owner earnings TTM: $616.76K

Linear Growth: -17.0%

📊 Click to view full CPSH Owner Earnings analysis & methodology →

Owner Earnings Per Share:$0.03

Owner Earnings Yield:$0.78

Growth Assessment (1)

Owner Earnings Growth Rate:-$17.05

Intrinsic Value Models (1)

Intrinsic Value:

$3.19M

📊 Click to view full CPSH DCF valuation →

Margin of Safety (1)

Margin Of Safety:

-100.0%

📊 Click to view full CPSH valuation analysis →

Return Scenarios (1)

Theoretical 5-Year Return:

-56.3%

📊 Click to view full CPSH expected return analysis →

Investment Assessment (1)

Buffett Assessment:Overvalued

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (3)

Revenue Growth Rate (Linear):6.2%

Net Income Growth Rate (Linear):-50.0%

Operating Income Growth Rate (Linear):-31.8%

Cash Flow Growth Rates (2)

Free Cash Flow Growth Rate (Linear):-7.2%

Operating Cash Flow Growth Rate (Linear):-10.7%

Other Growth Rates (3)

Gross Profit Growth Rate (Linear):-15.0%

Book Value Growth Rate (Linear):12.7%

Owner Earnings Growth Rate:-$17.05

C. Company Profile & Context

Corporate Information (6)

Symbol:CPSH

Company Name:CPS TECHNOLOGIES CORP.

Sector:Materials

Industry:Pottery & Related Products

Exchange:NASDAQ

Country:United States

Market Classification (3)

Market Cap Category:N/A

Price Category:low

Volume Category:N/A

Share Structure (3)

Shares Outstanding:18.46M

Shares Outstanding Basic:18.46M

Shares Outstanding Diluted:18.85M

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-08-31 14:32:25 UTC

Data Timestamp:2026-08-19T10:07:28.209525