Kimball Electronics (KE) AI Stock Analysis

• Market Cap: $700.46M
• Dividend Yield: N/A
• Average Volume (3M): 165.92K
• Price to Earnings (P/E): 30.1
• Beta (1Y): 1.24
• Revenue Growth: -10.46%
• EPS Growth: 88.34%
• Country: US
• Employees: 7,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.49
• Shares Outstanding: 24,338,364
• 10 Day Avg. Volume: 122,367
• 30 Day Avg. Volume: 165,920
• PEG Ratio: -1.64
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.32
• P/FCF Ratio: 3.17
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 0.55
• Enterprise Value/Gross Profit: 7.43
• Enterprise Value/Ebitda: 9.76
• 1Y Price Target: $34.50
• Price Target Upside: 18.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.24
• Revenue Forecast (FY): $1.40B

• Rating: 61 Neutral
• Price Target: $30.00 ▲(2.74% Upside)

Kimball Electronics' overall stock score reflects challenges in financial performance, particularly in revenue growth and profitability. While the earnings call highlighted positive developments in the Medical segment and improved cash flows, these were counterbalanced by declines in other segments and valuation concerns. Technical analysis suggests potential bearish momentum, further impacting the stock's attractiveness.

Positive Factors

Medical Segment Growth

The strong growth in the Medical segment highlights Kimball Electronics' ability to capture market share in a high-margin industry, supporting long-term revenue stability and diversification.

Cash Flow and Debt Reduction

Consistent positive cash flow and significant debt reduction enhance financial flexibility, allowing Kimball Electronics to invest in growth opportunities and weather economic downturns.

Gross Margin Improvement

Improved gross margins indicate effective cost management and operational efficiency, which can lead to sustained profitability in competitive markets.

Negative Factors

Overall Sales Decline

A decline in overall sales suggests challenges in maintaining market momentum, potentially impacting long-term revenue growth and market position.

Automotive Segment Decline

The significant decline in the Automotive segment reflects sector-specific challenges and could hinder Kimball Electronics' ability to leverage its diversified industry exposure.

Tariff and Restructuring Costs

Tariff impacts and expected restructuring costs could pressure margins and operational efficiency, affecting long-term profitability and strategic flexibility.

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 contract manufacturing services, where it partners with companies to produce electronic components and systems. This revenue model is driven by long-term contracts with clients that secure steady income streams. Key revenue streams include the manufacturing of printed circuit board assemblies (PCBAs), complete product assemblies, and value-added services like design and engineering support. Additionally, KE benefits from strategic partnerships with leading technology firms in various sectors, which not only enhance its market reach but also lead to the development of specialized products that command higher margins. By focusing on diverse industries, KE mitigates risks associated with market fluctuations in any single sector, thereby strengthening its overall financial performance.

Kimball Electronics Financial Statement Overview

Summary

Kimball Electronics faces challenges in revenue growth and profitability, as reflected in the declining income statement metrics. The balance sheet shows improved leverage but reduced profitability, while cash flow metrics indicate potential cash generation issues. The company needs to focus on enhancing revenue growth and maintaining cash flow stability to improve overall financial health.

Income Statement

Kimball Electronics shows a declining trend in revenue with a negative growth rate in the TTM period, indicating potential challenges in maintaining sales momentum. The gross profit margin has decreased over time, suggesting pressure on cost management. However, the company maintains a positive net profit margin, albeit lower than previous years, reflecting some profitability despite revenue challenges.

Balance Sheet

The company's debt-to-equity ratio has improved in the TTM period, indicating better leverage management. Return on equity has decreased, reflecting lower profitability relative to equity. The equity ratio remains stable, suggesting a balanced capital structure. Overall, the balance sheet shows stability with room for improvement in profitability.

Cash Flow

Kimball Electronics has experienced a decline in free cash flow growth, indicating potential cash generation challenges. The operating cash flow to net income ratio is positive, suggesting efficient cash conversion from earnings. However, the free cash flow to net income ratio has decreased, highlighting potential issues in sustaining free cash flow levels.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.48B	1.49B	1.71B	1.82B	1.35B	1.29B
Gross Profit	109.79M	104.40M	140.26M	156.16M	104.60M	118.03M
EBITDA	83.55M	77.97M	86.07M	123.42M	75.80M	106.24M
Net Income	23.92M	16.98M	20.51M	55.83M	31.25M	56.79M
Balance Sheet
Total Assets	1.08B	1.08B	1.21B	1.26B	1.04B	814.06M
Cash, Cash Equivalents and Short-Term Investments	75.70M	88.78M	77.97M	42.95M	49.85M	106.44M
Total Debt	137.53M	147.05M	294.84M	281.45M	180.58M	66.21M
Total Liabilities	500.78M	507.43M	667.46M	735.73M	581.80M	372.09M
Stockholders Equity	577.14M	569.88M	540.46M	523.99M	453.97M	441.97M
Cash Flow
Free Cash Flow	115.81M	150.26M	27.14M	-104.49M	-157.89M	90.74M
Operating Cash Flow	146.53M	183.94M	73.22M	-13.80M	-83.18M	130.09M
Investing Cash Flow	-26.13M	-14.70M	-46.52M	-90.47M	-74.80M	-38.80M
Financing Cash Flow	-121.89M	-160.87M	8.97M	99.18M	103.74M	-53.08M

Kimball Electronics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KE, the sentiment is Positive. The current price of 29.2 is above the 20-day moving average (MA) of 28.21, above the 50-day MA of 28.80, and above the 200-day MA of 22.02, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 55.13 is Neutral, neither overbought nor oversold. The STOCH value of 89.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$113.79M	12.31	18.65%	2.44%	4.90%	31.13%
PLPC	67 Neutral	$1.00B	27.07	8.33%	0.37%	15.93%	12.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KE	61 Neutral	$700.46M	30.14	4.25%	―	-10.46%	88.34%
ULBI	55 Neutral	$92.24M	53.84	1.26%	―	12.94%	-81.09%
SKYX	55 Neutral	$237.74M	―	-1421.39%	―	7.06%	12.25%
AIRJ	43 Neutral	$279.23M	7.03	-0.34%	―	―	-100.27%

Kimball Electronics Corporate Events

Kimball Electronics Reports Strong Q1 Performance

Kimball Electronics, Inc. is a global provider of Electronics Manufacturing Services (EMS) and Contract Manufacturing Organization (CMO) solutions, serving a diverse range of industries from its operations in multiple countries, including the United States, China, and Mexico. The company is renowned for its commitment to quality, reliability, and ethical practices.

Kimball Electronics’ Earnings Call: Mixed Outlook with Medical Growth

Kimball Electronics Inc. recently held its earnings call, revealing a cautiously optimistic outlook for the company. The call highlighted strong growth in the Medical segment, improved cash flows, and significant debt reduction. However, these positives were tempered by declines in the Automotive and Industrial segments, an overall sales decline, and concerns over tariffs and restructuring costs. The balanced nature of these highlights and challenges suggests a focus on the Medical segment as a key driver for future growth.

Kimball Electronics Reports Mixed Earnings with Growth in Medical Segment

Kimball Electronics Inc. recently held its earnings call, presenting a mixed sentiment regarding its financial performance. While the company celebrated significant achievements in cash flow and growth in its Medical segment, it faced challenges with declining sales in the Automotive and Industrial segments, along with margin pressures.

Kimball Electronics Braces for Impact: Navigating Trade Policy Uncertainties and Tariff Risks

Kimball Electronics Inc. faces significant business risks due to potential changes in U.S. tariff measures and international trade relations. The company’s supply chain, heavily dependent on raw materials and components from countries like China, is vulnerable to disruptions and increased costs due to evolving trade policies and tariffs. The uncertainty surrounding future U.S. trade policies and international relations could adversely affect Kimball’s financial condition, cash flows, and operations, as these factors may lead to increased manufacturing costs, reduced demand for services, and restricted access to essential materials. Such developments could also impact global economic conditions, further exacerbating the challenges faced by Kimball Electronics.

Kimball Electronics Reports Strong Fiscal Year End

Kimball Electronics, Inc., a global provider of Electronics Manufacturing Services (EMS) and Contract Manufacturing Organization (CMO) solutions, operates across various industries from its facilities in the United States, China, Mexico, Poland, Romania, and Thailand. The company is known for its commitment to quality, reliability, and ethical behavior.