Kimball Electronics Inc (KE)
NASDAQ:KE
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Kimball Electronics
(NASDAQ:KE)
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Rating:66Neutral
Price Target:
$28.00
▲(4.44% Upside)
Action:Reiterated
Date:05/09/26
The score is supported most by strong balance-sheet quality and improved, positive cash generation, alongside reaffirmed FY2026 guidance and modest margin improvement. Offsetting this are thin profitability, recent revenue softness, mixed technical signals, and a relatively high P/E without dividend support, plus identified FY2027 margin headwinds and demand uncertainty in Automotive and Industrial.
Positive Factors
Strong balance sheet / low leverage
Materially lower leverage and stable equity provide lasting financial flexibility. A de‑risked balance sheet supports funding for capex, M&A tuck‑ins, and working capital through cycles, reducing refinancing risk and enabling strategic investments without pressuring liquidity.
Negative Factors
Thin profitability / low margins
Modest operating margins limit the company's ability to absorb cost inflation or to rapidly expand investment and returns. Low profitability makes cash flow and ROE sensitive to volume declines or ramp costs, requiring structural margin expansion to materially improve returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet / low leverage
Materially lower leverage and stable equity provide lasting financial flexibility. A de‑risked balance sheet supports funding for capex, M&A tuck‑ins, and working capital through cycles, reducing refinancing risk and enabling strategic investments without pressuring liquidity.
Read all positive factors
Kimball Electronics (KE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$643.31M
Dividend YieldN/A
Average Volume (3M)166.65K
Price to Earnings (P/E)25.2
Beta (1Y)1.24
Revenue Growth-6.26%
EPS Growth47.30%
CountryUS
Employees7,000
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)1.06
Shares Outstanding24,048,925
10 Day Avg. Volume197,489
30 Day Avg. Volume166,645
Financial Highlights & Ratios
PEG Ratio-1.64
Price to Book (P/B)0.84
Price to Sales (P/S)0.32
P/FCF Ratio3.17
Enterprise Value/Market Cap1.12
Enterprise Value/Revenue0.50
Enterprise Value/Gross Profit6.34
Enterprise Value/Ebitda8.24
Forecast
1Y Price Target
$30.00Price Target Upside11.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.38
Revenue Forecast (FY)$1.43B
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 ...
How the Company Makes Money
Kimball Electronics makes money primarily by selling manufacturing and related services to OEM customers under contract, recognizing revenue when it produces and delivers electronic assemblies and finished products that meet customer specification...
Kimball Electronics Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Aug 19, 2026
Earnings Call Sentiment Positive
The call conveyed a cautiously positive tone: the company reported sequential revenue growth, strong and accelerating Medical performance (now ~30% of revenue), margin improvement, continued positive operating cash flow, improved liquidity and affirmed full-year guidance. At the same time, management highlighted near-term pressures—reported YoY revenue decline (when unadjusted), soft Automotive and Industrial demand, margin headwinds from the Indianapolis ramp in FY'27, higher SG&A as a percent of sales, and macro/geopolitical risks. Strategic initiatives (Indianapolis facility, Medical CMO focus, active M&A pursuit) and solid balance sheet position offer upside, while the timing of CMO ramps and external demand trends represent meaningful near-term risks.Positive Updates
Medical Revenue Strength and Portfolio Milestone
Medical sales were $106 million (30% of company revenue), up 10% sequentially. Adjusting for a prior-year consigned inventory sale, Medical grew ~17% year-over-year in Q3 and is up 15% year-to-date, marking a third consecutive quarter of double-digit Medical growth. Asia Medical growth in Q3 exceeded 20%.
Negative Updates
Reported Year-over-Year Revenue Decline
Reported consolidated sales were down 6% year-over-year to $352.9 million; the decline was partially due to a nonrecurring $24 million consigned inventory sale in the prior-year period (when unadjusted).
Read all updates
Q3-2026 Updates
Positive
Negative
Medical Revenue Strength and Portfolio Milestone
Medical sales were $106 million (30% of company revenue), up 10% sequentially. Adjusting for a prior-year consigned inventory sale, Medical grew ~17% year-over-year in Q3 and is up 15% year-to-date, marking a third consecutive quarter of double-digit Medical growth. Asia Medical growth in Q3 exceeded 20%.
Read all positive updates
Company Guidance
Kimball affirmed fiscal 2026 revenue guidance of $1.40–$1.46 billion and said adjusted operating margin should come in at the high end of its 4.2%–4.5% range; management expects Q4 sales of $370–$380 million with a Q4 adjusted operating margin of roughly 4.4%–4.6%. Other metrics cited: Q3 net sales were $352.9 million (sequential +3.4%), Q3 adjusted operating income $14.8 million (4.2%), Q3 adjusted net income $8.0 million or $0.33 diluted, Q3 gross margin 7.9% (up 70 bps YoY), Q3 cash from operations $14.9 million (ninth consecutive quarter positive), cash & cash equivalents $82.5 million, short‑term liquidity $358.5 million with a renewed $300 million revolver, borrowings $163 million, inventory $273.3 million (down $8.4M QoQ, $23.3M YoY), cash conversion days 90 (‑1 day QoQ, ‑9 days YoY), capex expected $50–$60 million for the year, an expected FY tax rate ~30%, and management warned of a 40–50 bps gross‑margin headwind in FY‑27 from ramping the new Indianapolis CMO (with CMO ramp timelines of 18–36 months).Kimball Electronics Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
86
Very Positive
Cash Flow
68
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.44B | 1.49B | 1.71B | 1.82B | 1.35B | 1.29B |
| Gross Profit | 113.46M | 104.40M | 140.26M | 156.16M | 104.60M | 118.03M |
| EBITDA | 87.31M | 77.97M | 86.07M | 123.42M | 75.80M | 106.24M |
| Net Income | 26.02M | 16.98M | 20.51M | 55.83M | 31.25M | 56.79M |
Balance Sheet | ||||||
| Total Assets | 1.10B | 1.08B | 1.21B | 1.26B | 1.04B | 814.06M |
| Cash, Cash Equivalents and Short-Term Investments | 84.61M | 88.78M | 77.97M | 42.95M | 49.85M | 106.44M |
| Total Debt | 179.61M | 147.05M | 294.84M | 281.45M | 180.58M | 66.21M |
| Total Liabilities | 526.66M | 507.43M | 667.46M | 735.73M | 581.80M | 372.09M |
| Stockholders Equity | 577.64M | 569.88M | 540.46M | 523.99M | 453.97M | 441.97M |
Cash Flow | ||||||
| Free Cash Flow | 83.82M | 150.26M | 27.14M | -104.49M | -157.89M | 90.74M |
| Operating Cash Flow | 107.90M | 183.94M | 73.22M | -13.80M | -83.18M | 130.09M |
| Investing Cash Flow | -47.63M | -14.70M | -46.52M | -90.47M | -74.80M | -38.80M |
| Financing Cash Flow | -31.80M | -160.87M | 8.97M | 99.18M | 103.74M | -53.08M |
Kimball Electronics Technical Analysis
Neutral
26.81
Price Trends
25.58
Positive
26.09
Negative
27.58
Negative
Market Momentum
-0.03
Negative
51.35
Neutral
69.11
Neutral
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 26.81 is above the 20-day moving average (MA) of 25.43, above the 50-day MA of 25.58, and below the 200-day MA of 27.58, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 51.35 is Neutral, neither overbought nor oversold. The STOCH value of 69.11 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $173.31M | 14.97 | 20.38% | 3.00% | -8.09% | 42.56% | |
76 Outperform | $1.90B | 55.47 | 7.31% | 0.35% | 15.92% | -12.16% | |
66 Neutral | $643.31M | 25.15 | 4.52% | ― | -6.26% | 47.30% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $118.43M | -14.42 | -6.14% | ― | 8.42% | -254.85% | |
57 Neutral | $375.23M | -4.99 | -27.21% | ― | ― | -227.99% | |
48 Neutral | $168.11M | -4.81 | -432.85% | ― | 7.52% | 13.21% |
* Industrials Sector Average
KE
Kimball Electronics
26.75
8.10
43.43%
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Kimball Electronics Corporate Events
Business Operations and Strategy
Kimball Electronics Highlights Progress in 2025 Sustainability Report
Positive
Mar 19, 2026
On March 17, 2026, Kimball Electronics released its 2025 Guiding Principles Report, its seventh annual sustainability report, detailing progress on environmental, social, and governance initiatives under the theme “Building Tomorrow, Togethe...
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.