What is CPS Technologies Probability of Financial Distress (%)?
Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, CPS Technologies's Probability of Financial Distress (%) is 0.04%.
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Competitive Comparison of CPS Technologies's Probability of Financial Distress (%)
For the Electronic Components subindustry, CPS Technologies's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
CPS Technologies's Probability of Financial Distress (%) Distribution in the Hardware Industry
For the Hardware industry and Technology sector, CPS Technologies's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where CPS Technologies's Probability of Financial Distress (%) falls into.
CPS Technologies Probability of Financial Distress (%) Calculation
Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.
The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:
| LPFD | = | -20.12 * NIMTAAVG | + | 1.60 * TLMTA | - | 7.88 * EXRETAVG | + | 1.55 * SIGMA | - | 0.005 * RSIZE | - | 2.27 * CASHMTA | + | 0.070 * MB | - | 0.09 * PRICE | - | 8.87 |
| = | -7.77 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.04% |
The eight explanatory variables are:
1. NIMTAAVG = Net Income to Market Total Assets
*Note that for companies reported quarterly, geometrically declining weighted quarterly Net Income data in latest four quarters are used.
2. TLMTA = Total liabilities to Market Total Assets
3. CASHMTA = Cash to Market Total Assets
For non-financial companies, CASHMTA is measured as:
4. EXRETAVG = Excess Return compared to the S&P 500
EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.
5. SIGMA = Standard Deviation of Daily Returns
For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).
6. RSIZE = Relative Size
| RSIZE | = | log (Market Cap | / | Total Market Cap of S&P 500 companies) |
7. MB = Market to Adjusted Book Equity Ratio
8. PRICE
PRICE is measured as the log of the stock price, capped at log(15).
CPS Technologies (CPS Technologies) Business Description
Traded in Other Exchanges
N/A
Address
111 South Worcester Street, Norton, MA, USA, 02766-2102
CPS Technologies Corp provides material solutions to the transportation, automotive, energy, computing/Internet, telecommunications, aerospace, defense, and oil and gas end markets. Its primary material solution is metal matrix composites (MMCs), which are a class of materials consisting of a combination of metal and ceramic. The company designs, manufactures and sells custom MMC components, which manages the performance and reliability of systems in the end markets. It also provides baseplates and housings used in radar, satellite and avionics applications. The company provides lids and heat spreaders used with integrated circuits in Internet switches and routers.
Executives
| Brian T Mackey |
officer: CEO |
792 WEST STREET, C108, MANSFIELD MA 02048 |
| Ralph M Norwood |
officer: Chief Financial Officer |
111 SOUTH WORCESTER STREET, NORTON MA 02766 |
| Peregrine Financial Corp |
10 percent owner |
222 ROSEWOOD DRIVE, SUITE 530, DANVERS MA 01923 |
| Peregrine Trust Company, Llc |
10 percent owner |
222 ROSEWOOD DRIVE, SUITE 530, DANVERS MA 01923 |
| Peregrine Holdings Llc |
10 percent owner |
222 ROSEWOOD DRIVE, SUITE 530, DANVERS MA 01923 |
| Phoenix Venture Partners, Inc. |
10 percent owner |
222 ROSEWOOD DRIVE, SUITE 530, DANVERS MA 01923 |
| Ard Master Lp |
10 percent owner |
|
| Grant C Bennett |
director, 10 percent owner, officer: President & CEO |
|
| Griffith Charles Kellogg Jr |
officer: Chief Financial Officer |
111 SOUTH WORCESTER STREET, NORTON MA 02766 |
| Daniel C Snow |
director |
5 LODGE RD., BELMONT MA 02478 |
| Thomas M Culligan |
director |
3000 TAFT STREET, HOLLYWOOD FL 33021 |
| Michael E Mccormack |
officer: Chief Operating Officer |
111 SOUTH WORCESTER STREET, NORTON MA 02766 |
| Thomas E Breen |
officer: SVP, Sales & Marketing |
111 SOUTH WORCESTER STREET, NORTON MA 02766 |
| Richard W Adams |
officer: Senior Vice-President & CTO |
111 S. WORCESTER ST., NORTON MA 02766 |
| Charles Darosa |
officer: Vice-President, Operations |
111 S. WORCESTER STREET, NORTON MA 02766 |
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