Kimball Electronics (KE)
NASDAQ:KE
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Kimball Electronics
(NASDAQ:KE)
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Rating:58Neutral
Price Target:
$25.00
▼(-1.19% Downside)
Action:ReiteratedDate:03/20/26
The score is held back primarily by thin profitability and slightly declining TTM revenue, plus weak technical momentum (below key moving averages with negative MACD). These are partially offset by solid recent cash flow and improved leverage, as well as a supportive earnings update with raised FY2026 guidance and continued positive operating cash flow.
Positive Factors
Cash generation & liquidity
Sustained positive operating cash flow and strong free cash flow provide durable financial flexibility for capex, facility ramps, and shareholder returns. Improved cash conversion days and $363M near-term liquidity reduce refinancing risk and support execution through demand cycles.
Negative Factors
Thin profitability and softer revenue
Persistently low gross and net margins constrain tolerance for cost inflation or pricing pressure in EMS. Slightly negative revenue trends indicate program churn risk; together these factors limit free-cash-flow durability and heighten sensitivity to volume shifts or supply‑chain cost volatility.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation & liquidity
Sustained positive operating cash flow and strong free cash flow provide durable financial flexibility for capex, facility ramps, and shareholder returns. Improved cash conversion days and $363M near-term liquidity reduce refinancing risk and support execution through demand cycles.
Read all positive factors
Kimball Electronics (KE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$612.62M
Dividend YieldN/A
Average Volume (3M)148.70K
Price to Earnings (P/E)47.1
Beta (1Y)1.22
Revenue Growth-10.46%
EPS Growth88.34%
CountryUS
Employees7,000
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)0.28
Shares Outstanding24,214,134
10 Day Avg. Volume126,685
30 Day Avg. Volume148,703
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 Cap1.15
Enterprise Value/Revenue0.48
Enterprise Value/Gross Profit6.14
Enterprise Value/Ebitda8.24
Forecast
1Y Price Target
$31.00Price Target Upside22.53% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.35
Revenue Forecast (FY)$1.40B
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:Feb 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
Balanced but cautiously optimistic. The company delivered clear progress on strategic initiatives — notably strong Medical growth (+15% YoY), improved gross and operating margins (+160 bps gross margin improvement; adjusted operating income up to 4.5% of sales), positive operating cash flow for eight consecutive quarters, reduced net debt versus prior year and raised FY26 revenue and margin guidance. Offsetting these positives are a 5% decline in consolidated sales, a material 13% decline in Automotive (48% of sales), near-term margin drag from the Indianapolis CMO ramp, and an unusually high Q2 tax rate. Given the combination of sustainable Medical momentum, raised guidance and improved margins and liquidity, tempered by near-term headwinds in Automotive/Industrial and facility ramp costs, the call skews positive overall.Positive Updates
Medical Vertical Strong Growth
Medical sales of $96.0M in Q2, up 15% year-over-year and representing 28% of company sales; fourth consecutive quarter of YoY revenue growth in Medical with growth driven by Poland and Thailand and balanced contributions across North America, Europe and Asia.
Negative Updates
Overall Sales Decline
Consolidated net sales of $341.3M in Q2, down 5% year-over-year. Sequentially sales fell just over 6% versus Q1, driven primarily by weakness in the Industrial vertical.
Read all updates
Q2-2026 Updates
Positive
Negative
Medical Vertical Strong Growth
Medical sales of $96.0M in Q2, up 15% year-over-year and representing 28% of company sales; fourth consecutive quarter of YoY revenue growth in Medical with growth driven by Poland and Thailand and balanced contributions across North America, Europe and Asia.
Read all positive updates
Company Guidance
Management raised fiscal 2026 guidance to net sales of $1.40–$1.46 billion (up from $1.35–$1.45B previously) and now expects adjusted operating income of 4.2%–4.5% of sales (prior 4.0%–4.25%); capital expenditures remain guided at $50–$60 million and the full‑year effective tax rate is expected in the high‑20s to low‑30s. They cited Q2 results of $341.3 million in sales (Medical $96M, Automotive $162M, Industrial $83M), eight consecutive quarters of positive operating cash flow, cash and cash equivalents of $77.9M, borrowings of $154M, total near‑term liquidity of $363M, cash conversion days of 91 (16‑day improvement YoY), inventory of $281.7M (down 8% YoY), and $10.5M remaining on the share‑repurchase authorization, while noting the Indianapolis CMO grand opening and other strategic investments will add near‑term depreciation and expense that will partially offset the benefits of higher sales.Kimball Electronics Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
62
Positive
Cash Flow
67
Positive
| 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
Positive
25.30
Price Trends
25.13
Positive
27.12
Negative
26.37
Negative
Market Momentum
-0.14
Negative
56.25
Neutral
48.87
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 25.3 is above the 20-day moving average (MA) of 23.93, above the 50-day MA of 25.13, and below the 200-day MA of 26.37, indicating a neutral trend. The MACD of -0.14 indicates Negative momentum. The RSI at 56.25 is Neutral, neither overbought nor oversold. The STOCH value of 48.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $171.11M | 11.56 | 19.09% | 3.00% | 4.90% | 31.13% | |
75 Outperform | $1.48B | 28.81 | 7.68% | 0.35% | 15.93% | 12.72% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $113.93M | -16.14 | -4.35% | ― | 12.94% | -81.09% | |
58 Neutral | $612.62M | 47.05 | 4.24% | ― | -10.46% | 88.34% | |
50 Neutral | $195.76M | -5.11 | -16.39% | ― | ― | -100.27% | |
46 Neutral | $155.94M | -7.06 | -1158.25% | ― | 7.06% | 12.25% |
* Industrials Sector Average
KE
Kimball Electronics
25.30
11.83
87.82%
ESP
Espey Mfg & Electronics
57.83
33.24
135.15%
PLPC
Preformed Line Products Company
303.16
166.87
122.44%
ULBI
Ultralife
6.84
2.19
47.10%
SKYX
SKYX Platforms
1.17
0.23
24.47%
AIRJ
Montana Technologies
2.86
-2.28
-44.36%
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...
Business Operations and Strategy
Kimball Electronics Unveils New Indianapolis Medical Manufacturing Facility
Positive
Jan 8, 2026
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 l...
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.