Kimball Electronics (KE) AI Stock Analysis

• Market Cap: $461.28M
• Dividend Yield: N/A
• Average Volume (3M): 194.72K
• Price to Earnings (P/E): 26.5
• Beta (1Y): 1.10
• Revenue Growth: -13.71%
• EPS Growth: -44.00%
• Country: US
• Employees: 7,000
• Sector: Industrials
• Sector Strength: 83
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.27
• Shares Outstanding: 24,380,394
• 10 Day Avg. Volume: 164,723
• 30 Day Avg. Volume: 194,721
• PEG Ratio: 0.15
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.67
• Enterprise Value/Market Cap: 2.01
• Enterprise Value/Revenue: 0.14
• Enterprise Value/Gross Profit: 8.48
• Enterprise Value/Ebitda: 2.85
• 1Y Price Target: $19.00
• Price Target Upside: 0.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 72 Outperform
• Price Target: $20.50 ▲(8.35%Upside)

Kimball Electronics presents a stable but cautious investment opportunity. Strengths include strong cash flow management and strategic initiatives, such as debt reduction and new facility investments. However, declining sales, low profitability, and high valuation raise concerns. Technical indicators suggest strong momentum, though caution is advised due to overbought signals. Overall, the company maintains a solid financial foundation but faces challenges that could impact future performance.

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 makes money through its contract manufacturing services where it partners with original equipment manufacturers (OEMs) to produce electronic assemblies and products. The company's revenue model is centered around long-term contracts with clients in diverse sectors such as automotive, medical, and industrial, where it provides end-to-end solutions from design to distribution. Key revenue streams include manufacturing services, engineering and design services, and after-market support. Significant factors contributing to its earnings include strategic relationships with major OEMs, a strong reputation for quality and reliability, and a global manufacturing footprint that allows it to efficiently serve international markets.

Kimball Electronics Financial Statement Overview

Summary

Kimball Electronics shows mixed financial results. While cash flow management and a stable balance sheet with conservative leverage are strengths, declining revenue and low profitability margins are significant concerns. The overall financial foundation remains stable despite these challenges.

Income Statement

Kimball Electronics has shown mixed performance in its income statement. The TTM gross profit margin stands at 7.11%, and the net profit margin is 1.17%, indicating thin profitability. Revenue declined from the previous year by 10.39%, signaling a challenge in maintaining growth. EBIT and EBITDA margins of 3.16% and 5.53% respectively highlight modest operating performance. While profitability is low, the company maintains consistent EBIT and EBITDA margins.

Balance Sheet

The balance sheet indicates a stable financial position with a debt-to-equity ratio of 0.33, reflecting conservative leverage. The equity ratio is 51.00%, suggesting a solid capital structure. ROE is relatively low at 3.27%, indicating limited return to shareholders compared to equity. Overall, the company maintains a healthy balance sheet despite low profitability.

Cash Flow

Cash flow analysis reveals a strong operating cash flow to net income ratio of 8.60, demonstrating excellent cash generation relative to net income. Free cash flow grew significantly, indicating improved cash management. The free cash flow to net income ratio is robust at 6.76, reflecting efficient cash use. Overall, cash flow management is a notable strength for Kimball Electronics.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
1.54B	1.71B	1.82B	1.35B	1.29B	1.20B
	Gross Profit
109.22M	140.26M	156.14M	104.60M	118.03M	83.84M
	EBIT
48.57M	49.28M	87.73M	23.14M	31.68M	16.97M
	EBITDA
84.99M	90.34M	124.91M	82.43M	100.98M	72.69M
	Net Income Common Stockholders
17.95M	20.51M	55.83M	31.25M	56.79M	18.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
51.38M	77.97M	42.95M	49.85M	106.44M	64.99M
	Total Assets
1.07B	1.21B	1.26B	1.04B	814.06M	774.83M
	Total Debt
178.28M	294.84M	281.45M	180.58M	66.21M	118.14M
	Net Debt
126.90M	216.87M	238.50M	130.73M	-40.23M	53.15M
	Total Liabilities
526.44M	667.46M	735.73M	581.80M	372.09M	395.46M
	Stockholders Equity
548.12M	540.46M	523.99M	453.97M	441.97M	379.37M
Cash Flow		Free Cash Flow
121.42M	26.18M	-103.17M	-157.89M	90.74M	34.06M
	Operating Cash Flow
154.37M	73.22M	-13.80M	-83.18M	130.09M	72.81M
	Investing Cash Flow
-13.98M	-46.52M	-90.47M	-74.80M	-38.80M	-38.48M
	Financing Cash Flow
-154.21M	8.97M	99.18M	103.74M	-53.08M	-17.93M

Kimball Electronics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.92
• 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 18.92 is above the 20-day moving average (MA) of 18.52, above the 50-day MA of 16.62, and above the 200-day MA of 17.71, indicating a bullish trend. The MACD of 0.56 indicates Positive momentum. The RSI at 58.95 is Neutral, neither overbought nor oversold. The STOCH value of 58.24 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	$115.95M	15.27	16.59%	2.44%	18.62%	34.63%
PLPC	78 Outperform	$768.11M	19.73	9.19%	0.51%	-4.36%	-24.20%
ULBI	76 Outperform	$138.05M	25.74	3.99%	―	2.74%	-50.31%
KE	72 Outperform	$461.28M	26.50	3.30%	―	-13.71%	-44.00%
Sector *	66 Neutral	$4.46B	12.11	5.38%	5.02%	4.17%	-11.82%
AMPX	52 Neutral	$454.46M	―	-68.88%	―	209.20%	4.24%
SKYX	43 Neutral	$126.16M	―	-395.45%	―	12.42%	23.63%

Kimball Electronics Corporate Events

Kimball Electronics Promotes Douglas Hass to Key Role

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.