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Kimball Electronics (KE)
NASDAQ:KE
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Kimball Electronics
(NASDAQ:KE)
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Rating:59Neutral
Price Target:
$28.00
▼(-5.88% Downside)
Kimball Electronics' overall stock score reflects mixed financial performance with strong cash flow but declining sales and profitability. Technical indicators suggest potential overvaluation, while the earnings call indicates challenges ahead, particularly in the Automotive and Industrial segments.
Kimball Electronics (KE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$720.50M
Dividend YieldN/A
Average Volume (3M)316.42K
Price to Earnings (P/E)44.0
Beta (1Y)1.14
Revenue Growth-13.29%
EPS Growth-16.06%
CountryUS
Employees7,000
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)0.34
Shares Outstanding24,218,517
10 Day Avg. Volume311,257
30 Day Avg. Volume316,419
Financial Highlights & Ratios
PEG Ratio-1.77
Price to Book (P/B)0.84
Price to Sales (P/S)0.32
P/FCF Ratio2.59
Enterprise Value/Market Cap0.76
Enterprise Value/Revenue0.37
Enterprise Value/Gross Profit5.24
Enterprise Value/Ebitda7.88
Forecast
1Y Price Target
$28.17Price Target Upside-5.31% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Kimball Electronics Business Overview & Revenue Model
Company DescriptionKimball 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 MoneyKimball 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 Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 10, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook, with notable achievements in cash flow and Medical segment growth, but challenges in overall sales decline, particularly in the Automotive and Industrial segments, and margin pressure.Q4-2025 Updates
Positive Updates
Positive Cash Flow and Debt Reduction
The company achieved its sixth consecutive quarter of positive cash flow, used to pay down debt. Debt was reduced by $147.3 million or 50% from the beginning of the fiscal year.
Medical Segment Growth
The Medical business grew year-over-year for the second consecutive quarter, with sales of $107 million, up 5% compared to the same period last year.
Record Annual Cash Flow
Cash generated by operating activities for the year was $183.9 million, a record result for annual cash flow.
Negative Updates
Overall Decline in Net Sales
Net sales for the fourth quarter were $380.5 million, a 12% decrease year-over-year, primarily due to the divestment of AT&M and declines in Automotive and Industrial segments.
Automotive Segment Decline
Automotive net sales were $184 million, a 13% decrease compared to the fourth quarter of last year, driven by the loss of the electronic braking program.
Industrial Segment Decline
Industrial net sales were $90 million, down 12% year-over-year when excluding AT&M, with broad-based declines in North America and Europe.
Margin Pressure
Gross margin rate in Q4 was 8%, a 50-basis point decrease compared to 8.5% in the same period of fiscal 2024.
Company Guidance
During the fourth quarter fiscal 2025 earnings call, Kimball Electronics provided guidance for fiscal 2026, indicating a transition year with net sales expected to range between $1.35 billion and $1.45 billion, representing a 2% to 9% decrease compared to fiscal 2025. The adjusted operating income is projected to be between 4.0% and 4.25% of net sales, with capital expenditures forecasted at $50 million to $60 million, heavily focused on a new Indianapolis facility. The company anticipates modest growth in its Medical and Industrial segments, offset by a decline in Automotive sales. Despite an 8% decline in Q4 net sales to $381 million, excluding divested business, the Medical segment grew by 5% year-over-year, totaling $107 million, accounting for 28% of total revenue. The Automotive segment experienced a 13% decline, while the Industrial segment saw a 12% decrease, excluding the divested business. Positive cash flow continued for the sixth consecutive quarter, with cash conversion days improving to 85 days. The company remains optimistic about its medical CMO strategy, positioning itself for future growth with a focus on complex, high-reliability programs.Kimball Electronics Financial Statement Overview
Summary
Kimball Electronics shows mixed financial performance with declining revenue and profit margins, but strong cash flow generation and improved leverage management.Income Statement
Kimball Electronics has shown a declining revenue trend over the past few years, with a notable decrease in revenue growth rate in the most recent year. The gross profit margin and net profit margin have also decreased, indicating pressure on profitability. However, the company maintains a positive EBIT margin, suggesting operational efficiency.60
Neutral
Balance Sheet
The company's debt-to-equity ratio has improved, indicating better leverage management. Return on equity has decreased, reflecting lower profitability relative to equity. The equity ratio remains stable, suggesting a solid capital structure.70
Positive
Cash Flow
Kimball Electronics has shown significant improvement in free cash flow growth, indicating better cash generation capabilities. The operating cash flow to net income ratio has improved, reflecting efficient cash conversion. However, the free cash flow to net income ratio suggests potential volatility in cash flow relative to earnings.75
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.49B | 1.49B | 1.71B | 1.82B | 1.35B | 1.29B |
| Gross Profit | 104.40M | 104.40M | 140.26M | 156.14M | 104.60M | 118.03M |
| EBITDA | 69.40M | 40.97M | 90.34M | 128.22M | 77.40M | 107.44M |
| Net Income | 16.98M | 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 | 88.78M | 88.78M | 77.97M | 42.95M | 49.85M | 106.44M |
| Total Debt | 147.05M | 147.05M | 294.84M | 281.45M | 180.58M | 66.21M |
| Total Liabilities | 507.43M | 507.43M | 667.46M | 735.73M | 581.80M | 372.09M |
| Stockholders Equity | 569.88M | 569.88M | 540.46M | 523.99M | 453.97M | 441.97M |
Cash Flow | ||||||
| Free Cash Flow | 150.43M | 183.94M | 27.14M | -103.17M | -157.89M | 90.74M |
| Operating Cash Flow | 183.94M | 183.94M | 73.22M | -13.80M | -83.18M | 130.09M |
| Investing Cash Flow | -14.70M | -14.70M | -46.52M | -90.47M | -74.80M | -38.80M |
| Financing Cash Flow | -160.87M | -160.87M | 8.97M | 99.18M | 103.74M | -53.08M |
Kimball Electronics Technical Analysis
Neutral
29.75
Price Trends
25.83
Positive
22.34
Positive
19.64
Positive
Market Momentum
1.14
Positive
53.52
Neutral
9.00
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KE, the sentiment is Neutral. The current price of 29.75 is below the 20-day moving average (MA) of 30.60, above the 50-day MA of 25.83, and above the 200-day MA of 19.64, indicating a neutral trend. The MACD of 1.14 indicates Positive momentum. The RSI at 53.52 is Neutral, neither overbought nor oversold. The STOCH value of 9.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KE.
Kimball Electronics Risk Analysis
Kimball Electronics disclosed 27 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $114.64M | 12.98 | ― | 2.49% | 13.46% | 34.71% | |
78 Outperform | $981.82M | 23.29 | 9.19% | 0.40% | 7.95% | 4.48% | |
61 Neutral | $113.34M | 35.58 | 2.31% | ― | 5.86% | -68.66% | |
59 Neutral | $720.50M | 44.04 | 3.06% | ― | -13.29% | -16.06% | |
50 Neutral | $127.05M | -3.20 | -641.62% | ― | 5.71% | 7.97% | |
43 Neutral | $313.68M | 7.90 | ― | ― | ― | -85.17% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
KE
Kimball Electronics
29.75
11.24
60.72%
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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
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.