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Kimball Electronics (KE)
NASDAQ:KE
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Kimball Electronics
(NASDAQ:KE)
51Neutral
Kimball Electronics (KE) vs. S&P 500 (SPY)
Market Cap
$398.52M
Dividend YieldN/A
Average Volume (3M)143.04K
Price to Earnings (P/E)50.2
Beta (1Y)1.09
Revenue Growth-13.77%
EPS Growth-85.22%
CountryUS
Employees7,000
SectorIndustrials
Sector Strength65
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)0.32
Shares Outstanding24,554,663
10 Day Avg. Volume148,841
30 Day Avg. Volume143,043
Financial Highlights & Ratios
PEG RatioN/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 Ratio3.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$24.50Price Target Upside78.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Kimball Electronics Business Overview & Revenue Model
Company DescriptionKimball Electronics, Inc. is a global contract electronics manufacturing services (EMS) provider, specializing in designing and manufacturing electronic components for a variety of industries, including automotive, medical, industrial, and public safety. The company delivers high-quality, customized solutions and services that meet the stringent demands of its clients across these sectors.
How the Company Makes MoneyKimball 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.65
Positive
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.40
Negative
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.75
Positive
| 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
Negative
13.71
Price Trends
17.26
Negative
18.21
Negative
18.93
Negative
Market Momentum
-0.22
Positive
36.92
Neutral
21.99
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 13.71 is below the 20-day moving average (MA) of 16.59, below the 50-day MA of 17.26, and below the 200-day MA of 18.93, indicating a bearish trend. The MACD of -0.22 indicates Positive momentum. The RSI at 36.92 is Neutral, neither overbought nor oversold. The STOCH value of 21.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KE.
Kimball Electronics Risk Analysis
Kimball Electronics disclosed 26 risk factors in its most recent earnings report. Kimball Electronics reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Kimball Electronics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $12.78B | 13.79 | 18.45% | ― | -12.94% | 47.70% | |
74 Outperform | $4.13B | 18.95 | 10.55% | ― | -8.92% | -12.11% | |
73 Outperform | $3.45B | 30.15 | 9.27% | ― | -3.53% | -3.90% | |
63 Neutral | $14.94B | 32.64 | 24.10% | 0.23% | -14.45% | -64.32% | |
62 Neutral | $8.08B | 13.63 | 3.82% | 3.13% | 3.58% | -14.35% | |
61 Neutral | $2.10B | 38.93 | 3.66% | ― | 9.41% | ― | |
51 Neutral | $398.52M | 50.24 | 1.48% | ― | -13.77% | -85.22% |
* Industrials Sector Average
Performance Comparison
KE
Kimball Electronics
13.71
-7.75
-36.11%
FLEX
Flex
29.32
0.73
2.55%
JBL
Jabil
138.75
3.22
2.38%
PLXS
Plexus
116.03
20.44
21.38%
SANM
Sanmina-Sci
69.16
9.82
16.55%
TTMI
TTM Technologies
18.78
4.19
28.72%
Kimball Electronics Earnings Call Summary
Earnings Call Date: Feb 4, 2025 | % Change Since: -23.28% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Negative
The earnings call indicated significant challenges with a notable decline in overall revenue and specific struggles in the medical and industrial segments. Despite these challenges, the company showed strong debt reduction and effective inventory management, alongside positive performance in the automotive sector in China and recognition for customer service excellence. The sentiment is slightly negative due to the significant revenue decline and reduced fiscal guidance, although there are positive aspects in financial management and customer service.Highlights
Debt Reduction
Borrowings were reduced by 40% year-over-year, with a $41 million reduction from the first quarter and down $90 million or 30% from the beginning of the fiscal year.
Inventory Management
Cash inventory levels were reduced for the fourth consecutive quarter, with a $29 million reduction compared to Q1 and $149 million or 33% lower than a year ago.
Strong Automotive Performance in China
Despite declines in North America and Europe, the automotive segment in China showed strong results with record high monthly production rates.
Customer Service Excellence
Kimball Electronics was honored by Circuit's Assembly Service Excellence Awards, achieving the highest customer ratings in all seven categories.
Lowlights
Overall Revenue Decline
Net sales in the second quarter totaled $357 million, a 13% decrease, with declines in all three verticals: automotive, medical, and industrial.
Medical Segment Challenges
Net sales in the medical sector were down 22% year-over-year due to end-of-life programs and adjacent impacts of an FDA recall.
Industrial Segment Decline
Industrial net sales were down 20% year-over-year due to declines in smart metering programs and reductions in climate controls and public safety.
Reduced Fiscal Guidance
Updated guidance for fiscal year 2025 now expects net sales to be in the range of $1.4 to $1.44 billion, compared to the previous guidance of $1.44 to $1.554 billion.
Company Guidance
During the Kimball Electronics, Inc. Second Quarter Fiscal 2025 Earnings Conference Call, the company provided updated guidance for the full fiscal year. Net sales are expected to be in the range of $1.4 to $1.44 billion, down from the previous expectation of $1.44 to $1.554 billion, reflecting a 13% decrease in Q2 year-over-year. Adjusted operating income is now projected at 3.4% to 3.6% of net sales, compared to the previous 4% to 4.5%. The company reported a fourth consecutive quarter of positive cash flow, generating $29.5 million from operating activities, and reduced borrowings to $205 million, which is 40% lower year-over-year. Inventory levels were reduced by $29 million from Q1, aiming to improve cash conversion days, which stood at 107 days compared to 117 days in Q2 fiscal 2024. Capital expenditures are maintained at $40 to $50 million, with exit costs for the Tampa facility expected to range from $6.5 to $8.5 million. The restructuring plan includes a focus on medical CMO and divestiture of non-core assets, aiming for long-term growth.Kimball Electronics Corporate Events
Executive/Board Changes
Kimball Electronics Promotes Douglas Hass to Key Role
Neutral
Mar 26, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.