Kimball Electronics (KE) AI Stock Analysis

• Market Cap: $617.22M
• Dividend Yield: N/A
• Average Volume (3M): 170.59K
• Price to Earnings (P/E): 26.4
• Beta (1Y): 1.29
• Revenue Growth: -10.46%
• EPS Growth: 88.34%
• Country: US
• Employees: 7,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.28
• Shares Outstanding: 24,214,134
• 10 Day Avg. Volume: 188,744
• 30 Day Avg. Volume: 170,587
• 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: 1.13
• Enterprise Value/Revenue: 0.48
• Enterprise Value/Gross Profit: 6.10
• Enterprise Value/Ebitda: 8.18
• 1Y Price Target: $31.00
• Price Target Upside: 21.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.35
• Revenue Forecast (FY): $1.40B

• Rating: 61 Neutral
• Price Target: $28.00 ▲(9.85% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is driven primarily by mixed financial performance (thin margins and slightly declining TTM revenue, but solid recent free cash flow and improved leverage). The latest earnings call is a positive offset due to raised FY2026 guidance and improving margins/cash flow, while weak technical momentum and a relatively high P/E for the company’s current profitability keep the overall score in the low 60s.

Positive Factors

Diversified end-market exposure with Medical growth

Sustained Medical growth provides durable, higher-margin revenue less correlated with automotive cycles. Multi-region contributions (NA, Europe, Asia) and four consecutive quarters of medical expansion support steadier topline and reduce overall end-market concentration risk over a multi-quarter horizon.

Consistent cash generation and stronger liquidity

A multi-quarter streak of positive operating cash flow and sizeable available liquidity improves financial flexibility for capex, working-capital cycles, and strategic actions. Reduced borrowings and lower interest expense further lower refinancing risk and support long-term investment and shareholder returns.

Strategic capacity expansion and solutions repositioning

Adding a large U.S. medical CMO facility and repositioning toward 'solutions' strengthens end-to-end offerings and domestic capacity, improving competitive positioning in medical CMO. This structural move supports customer stickiness, new program wins, and longer-term margin expansion as ramps complete.

Negative Factors

Thin margins and modest profitability

Low gross and net margins leave limited buffer against input cost inflation or pricing pressure in contract manufacturing. Sustained thin profitability constrains reinvestment and return generation, meaning small adverse swings could materially reduce earnings over several quarters.

High exposure to cyclical Automotive market

Nearly half of sales tied to Automotive amplifies revenue cyclicality and program risk. Program transfers, tariff sensitivity, and regional softness (China, North America) can produce sustained revenue declines that offset gains in other verticals and challenge capacity utilization and fixed-cost absorption.

Historical cash-flow volatility and working-capital sensitivity

Although recent FCF is strong, past negative cash cycles demonstrate sensitivity to working capital and demand swings. This volatility limits forecasting confidence for capex, M&A or buybacks and increases execution risk during facility ramps or industry slowdowns.

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

Overall fundamentals are mixed: revenue is slightly down in TTM and margins remain thin (gross ~7.4%, net ~1.6%), limiting return potential. Offsetting this, recent cash generation is solid (TTM FCF $110M) and leverage appears improved versus prior years (debt-to-equity ~0.24–0.26).

Income Statement

TTM (Trailing-Twelve-Months) revenue is slightly down (-1.09%) versus the prior period, extending a softer top-line trend after prior declines, which weighs on the outlook. Profitability is positive but thin: TTM gross margin is ~7.4% and net margin is ~1.6%, indicating limited room for error in a cost-sensitive manufacturing model. Earnings improved from the weaker FY2025 level (annual net margin ~1.1%) but remain well below the stronger FY2023–FY2021 period when margins were materially higher.

Balance Sheet

Leverage appears moderate-to-improving versus the last few fiscal years, with the debt-to-equity ratio around 0.24–0.26 in the most recent periods (TTM and FY2025), down from ~0.54 in FY2024–FY2023. Returns on equity are positive but modest recently (TTM ~4.3% and FY2025 ~3.0%) versus stronger historical levels (e.g., FY2023 ~10.7% and FY2021 ~12.8%), suggesting profitability, rather than balance sheet structure, is the main limiter. Note: the TTM snapshot lists total debt and equity as 0, so the leverage assessment relies primarily on the provided debt-to-equity and ROE figures.

Cash Flow

Cash generation is a relative strength: TTM operating cash flow is $124M and free cash flow is $110M, following very strong FY2025 free cash flow of $150M. That said, free cash flow growth is slightly negative in TTM (-4.76%), and the company has shown meaningful volatility historically, including negative operating and free cash flow in FY2023 and FY2022. Overall, recent cash conversion is solid, but the track record suggests sensitivity to working-capital swings and/or cycle-driven demand shifts.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	1.46B	1.49B	1.71B	1.82B	1.35B	1.29B
Gross Profit	114.23M	104.40M	140.26M	156.16M	104.60M	118.03M
EBITDA	85.15M	77.97M	86.07M	123.42M	75.80M	106.24M
Net Income	24.12M	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	77.85M	88.78M	77.97M	42.95M	49.85M	106.44M
Total Debt	153.81M	147.05M	294.84M	281.45M	180.58M	66.21M
Total Liabilities	504.31M	507.43M	667.46M	735.73M	581.80M	372.09M
Stockholders Equity	579.16M	569.88M	540.46M	523.99M	453.97M	441.97M
Cash Flow
Free Cash Flow	110.30M	150.26M	27.14M	-104.49M	-157.89M	90.74M
Operating Cash Flow	123.95M	183.94M	73.22M	-13.80M	-83.18M	130.09M
Investing Cash Flow	-37.85M	-14.70M	-46.52M	-90.47M	-74.80M	-38.80M
Financing Cash Flow	-65.76M	-160.87M	8.97M	99.18M	103.74M	-53.08M

Kimball Electronics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 25.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 25.49 is below the 20-day moving average (MA) of 26.95, below the 50-day MA of 28.45, and above the 200-day MA of 25.48, indicating a bearish trend. The MACD of -1.31 indicates Positive momentum. The RSI at 40.40 is Neutral, neither overbought nor oversold. The STOCH value of 53.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$171.61M	16.78	19.61%	3.00%	4.90%	31.13%
PLPC	69 Neutral	$1.27B	33.78	8.33%	0.35%	15.93%	12.72%
ULBI	64 Neutral	$96.73M	56.46	1.26%	―	12.94%	-81.09%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KE	61 Neutral	$617.22M	26.44	4.32%	―	-10.46%	88.34%
SKYX	54 Neutral	$265.66M	-5.87	-1421.39%	―	7.06%	12.25%
AIRJ	47 Neutral	$213.87M	-160.80	-0.34%	―	―	-100.27%

Kimball Electronics Corporate Events

Kimball Electronics Unveils New Indianapolis Medical Manufacturing Facility

On January 8, 2026, Kimball Electronics announced it will hold a ribbon-cutting ceremony on February 6, 2026, to mark the opening of its new advanced medical manufacturing and innovation facility in Indianapolis, which will serve the medical and life sciences industries and is expected to expand the company’s manufacturing capacity and local community presence. The company also revealed plans to rebrand as Kimball Solutions, Inc., beginning with a phased global rollout in July 2026 subject to necessary approvals, a move that reflects its broadened capabilities and solutions-driven strategy and is intended to reinforce its long-term commitment to innovation, comprehensive customer solutions, and growth in the EMS and CMO markets.

The most recent analyst rating on (KE) stock is a Buy with a $32.00 price target. To see the full list of analyst forecasts on Kimball Electronics stock, see the KE Stock Forecast page.

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.

The most recent analyst rating on (KE) stock is a Buy with a $32.00 price target. To see the full list of analyst forecasts on Kimball Electronics stock, see the KE Stock Forecast page.