Kimball Electronics (KE) AI Stock Analysis

• Market Cap: $705.33M
• Dividend Yield: N/A
• Average Volume (3M): 158.63K
• Price to Earnings (P/E): 30.3
• Beta (1Y): 1.22
• 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: 188,142
• 30 Day Avg. Volume: 158,634
• 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: 18.60% 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 ▲(3.13% 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 clients to design, produce, and assemble electronic components and systems. Key revenue streams include the production of electronic assemblies for sectors like automotive and medical devices, which often involve long-term contracts with customers. Additionally, KE benefits from economies of scale and operational efficiencies in its manufacturing processes. Significant partnerships with major OEMs (original equipment manufacturers) and continuous investment in technology and innovation further enhance its revenue potential, allowing the company to meet diverse client needs and adapt to changing market demands.

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: 29.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 29.09 is below the 20-day moving average (MA) of 29.37, above the 50-day MA of 28.89, and above the 200-day MA of 22.93, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 49.33 is Neutral, neither overbought nor oversold. The STOCH value of 23.52 is Neutral, 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	$135.60M	14.67	18.65%	3.85%	4.90%	31.13%
PLPC	69 Neutral	$1.06B	28.61	8.33%	0.35%	15.93%	12.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KE	61 Neutral	$705.33M	30.35	4.25%	―	-10.46%	88.34%
SKYX	56 Neutral	$267.31M	-6.83	-1421.39%	―	7.06%	12.25%
ULBI	55 Neutral	$98.40M	57.43	1.26%	―	12.94%	-81.09%
AIRJ	43 Neutral	$234.22M	-193.97	-0.34%	―	―	-100.27%

Kimball Electronics Corporate Events

Kimball Electronics Shareholders Re-Elect Directors at Annual Meeting

At the Annual Meeting of Share Owners held on November 14, 2025, Kimball Electronics‘ Share Owners voted on several key items. The Share Owners re-elected Class II director nominees Michele A. M. Holcomb, Tom G. Vadaketh, and Holly A. Van Deursen with a high percentage of votes in favor. Deloitte & Touche, LLP was ratified as the independent registered public accounting firm for fiscal year 2026, and the compensation for the company’s Named Executive Officers was approved on a non-binding, advisory basis. Additionally, the Board maintained its Committee and Chairperson appointments, with Robert J. Phillippy continuing as Chairperson.