Kimball Electronics (KE) AI Stock Analysis

• Market Cap: $332.22M
• Dividend Yield: N/A
• Average Volume (3M): 151.29K
• Price to Earnings (P/E): 43.4
• Beta (1Y): 1.21
• Revenue Growth: -13.77%
• EPS Growth: -85.22%
• Country: US
• Employees: 7,000
• Sector: Industrials
• Sector Strength: 66
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.32
• Shares Outstanding: 24,554,663
• 10 Day Avg. Volume: 151,512
• 30 Day Avg. Volume: 151,293
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.26
• Price to Cash Flow (P/CF): 3.50
• P/FCF Ratio: 3.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $24.50
• Price Target Upside: 70.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Kimball Electronics faces significant challenges with declining revenues and profitability, which are partially offset by strong cash flow and liquidity management. Technical analysis indicates bearish trends, while the high P/E ratio raises concerns about valuation. The earnings call highlighted some operational successes but overall painted a cautious outlook, contributing to a moderate overall stock score.

Kimball Electronics Business Overview & Revenue Model

Company Description

Kimball Electronics, Inc. provides contract electronics manufacturing services and diversified manufacturing services to customers in the automotive, medical, industrial, and public safety end markets. The company's manufacturing services include design services and support, supply chain services and support, and rapid prototyping and product introduction support services, as well as product design, and process validation and qualification services. Its manufacturing services also comprise industrialization and automation of manufacturing processes; reliability testing, including testing of products under a series of environmental conditions; production and testing of printed circuit board assemblies; assembly, production, and packaging of medical devices and disposables, and other non-electronic products; drug delivery devices and solutions with and without electronics; design engineering and manufacturing of automation equipment, test and inspection equipment, and precision molded plastics; software design services; and product life cycle management services. The company operates in the United States, China, Mexico, Poland, Romania, Thailand, and Vietnam. Kimball Electronics, Inc. was founded in 1961 and is headquartered in Jasper, Indiana.

How the Company Makes Money

Kimball Electronics generates revenue primarily through its provision of contract manufacturing services. The company partners with original equipment manufacturers (OEMs) to produce electronic components and assemblies, leveraging its expertise in engineering, design, and manufacturing capabilities. Its key revenue streams include the production of circuit boards, electronic assemblies, and other related components tailored to the requirements of its diverse clientele. Kimball Electronics benefits from long-term partnerships and contracts with global OEMs, ensuring a steady and recurring income stream. Additionally, the company's focus on quality and innovation helps maintain its competitive advantage and fosters growth in its target markets.

Kimball Electronics Financial Statement Overview

Summary

Kimball Electronics shows mixed financial performance with strong cash flow but declining revenue and profitability. The company's liquidity is solid, though there's unclear equity status, and operational efficiency is challenged with decreasing profit margins.

Income Statement

The company's gross profit margin is relatively low at 7.2% TTM, indicating tight cost management or competitive pricing. Net profit margin has decreased to 0.5% TTM, showing reduced profitability compared to prior periods. Revenue growth is negative, with TTM revenue of $1.59 billion down from $1.71 billion in the previous annual period, marking a -7.43% decline. EBIT and EBITDA margins are moderate at 3.35% and 3.82% TTM, respectively, suggesting operational efficiency challenges.

Balance Sheet

The balance sheet reflects a strong liquidity position with net debt negative at $53.87 million TTM, but stockholders' equity is reported as zero, indicating potential financial restructuring or accounting adjustments. The lack of liabilities and equity data TTM presents risks in assessing leverage and capital structure stability. Historical data shows a declining equity base, suggesting potential financial pressure.

Cash Flow

Cash flow is strong with positive operating cash flow of $165.92 million TTM and free cash flow growth has rebounded significantly from negative to $143.43 million TTM. The operating cash flow to net income ratio is very high, indicating strong cash conversion. However, significant financing outflows TTM suggest a focus on debt reduction or shareholder returns, which may impact future liquidity.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
1.59B	1.71B	1.82B	1.35B	1.29B	1.20B
	Gross Profit
114.27M	140.26M	156.14M	104.60M	118.03M	83.84M
	EBIT
53.14M	49.28M	87.73M	23.14M	31.68M	16.97M
	EBITDA
69.21M	90.34M	124.91M	82.43M	100.98M	72.69M
	Net Income Common Stockholders
8.05M	20.51M	55.83M	31.25M	56.79M	18.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
67.64M	77.97M	42.95M	49.85M	106.44M	64.99M
	Total Assets
1.26B	1.21B	1.26B	1.04B	814.06M	774.83M
	Total Debt
321.52M	294.84M	281.45M	180.58M	66.21M	118.14M
	Net Debt
254.18M	216.87M	238.50M	130.73M	-40.23M	53.15M
	Total Liabilities
721.77M	667.46M	735.73M	581.80M	372.09M	395.46M
	Stockholders Equity
539.06M	540.46M	523.99M	453.97M	441.97M	379.37M
Cash Flow		Free Cash Flow
123.57M	26.18M	-103.17M	-157.89M	90.74M	34.06M
	Operating Cash Flow
165.92M	73.22M	-13.80M	-83.18M	130.09M	72.81M
	Investing Cash Flow
-23.37M	-46.52M	-90.47M	-74.80M	-38.80M	-38.48M
	Financing Cash Flow
-126.99M	8.97M	99.18M	103.74M	-53.08M	-17.93M

Kimball Electronics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KE, the sentiment is Negative. The current price of 14.33 is below the 20-day moving average (MA) of 14.37, below the 50-day MA of 16.06, and below the 200-day MA of 18.39, indicating a bearish trend. The MACD of -0.86 indicates Negative momentum. The RSI at 39.75 is Neutral, neither overbought nor oversold. The STOCH value of 42.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KE.

Kimball Electronics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESP	82 Outperform	$81.36M	11.87	15.49%	3.26%	18.62%	34.63%
PLPC	70 Outperform	$680.72M	18.37	8.85%	0.58%	-11.34%	-41.23%
ULBI	66 Neutral	$71.19M	11.74	4.87%	―	3.66%	-13.65%
Sector *	63 Neutral	$4.14B	11.23	5.47%	215.40%	4.10%	-8.63%
KE	54 Neutral	$332.22M	43.40	1.48%	―	-13.77%	-85.22%
SKYX	49 Neutral	$112.83M	―	-283.03%	―	46.76%	19.94%
AMPX	44 Neutral	$255.90M	―	-70.24%	―	166.95%	-3.40%

Kimball Electronics Corporate Events

Kimball Electronics Promotes Douglas Hass to Key Role

On March 24, 2025, Kimball Electronics, Inc. announced the promotion of Douglas A. Hass to Chief Legal and Administrative Officer and Secretary. Mr. Hass, who has been with the company since 2020, will continue to participate in existing executive compensation plans, with no new arrangements made in connection with his promotion.