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Key Tronic Corp. (KTCC)
NASDAQ:KTCC
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Key Tronic
(NASDAQ:KTCC)
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Rating:57Neutral
Price Target:
$3.50
▲(2.64% Upside)
Key Tronic's overall stock score is primarily impacted by its weak financial performance and poor valuation. While technical analysis shows positive momentum, the company's financial challenges and mixed earnings call sentiment weigh heavily on the score.
Key Tronic (KTCC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$36.74M
Dividend YieldN/A
Average Volume (3M)32.55K
Price to Earnings (P/E)―
Beta (1Y)0.48
Revenue Growth-16.49%
EPS Growth-198.42%
CountryUS
Employees4,122
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)-0.36
Shares Outstanding10,773,774
10 Day Avg. Volume19,990
30 Day Avg. Volume32,553
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)0.25
Price to Sales (P/S)0.06
P/FCF Ratio1.98
Enterprise Value/Market Cap3.99
Enterprise Value/Revenue0.30
Enterprise Value/Gross Profit3.78
Enterprise Value/Ebitda16.68
Forecast
1Y Price Target
$3.50Price Target Upside2.64% Upside
Rating ConsensusHold
Number of Analyst Covering0
Key Tronic Business Overview & Revenue Model
Company DescriptionKey Tronic Corporation provides contract manufacturing services to original equipment manufacturers in the United States and internationally. The company offers integrated electronic and mechanical engineering, assembly, sourcing and procurement, logistics, and new product testing services. Its services include product design; surface mount technologies and pin through hole capability for printed circuit board assembly; tool making; precision plastic molding; sheet metal fabrication and painting; liquid injection molding; complex assembly; automated tape winding; prototype design; and full product assembly services. The company also manufactures and sells keyboards and other input devices. It markets its products and services primarily through field sales people and distributors. Key Tronic Corporation was incorporated in 1969 and is headquartered in Spokane Valley, Washington.
How the Company Makes MoneyKey Tronic generates revenue through multiple streams primarily based on its electronic manufacturing services. The company earns money by providing contract manufacturing services, where it assembles electronic components for clients, including OEMs (Original Equipment Manufacturers) and other businesses. Revenue is derived from the manufacturing of circuit boards and complete product assemblies, with pricing typically based on the volume and complexity of the orders. Additionally, Key Tronic benefits from long-term partnerships with various industry players, which provide a steady flow of orders. Factors contributing to its earnings include operational efficiency, competitive pricing, and a reputation for high-quality production, which help to attract and retain customers.
Key Tronic Earnings Call Summary
Earnings Call Date:Aug 27, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant operational improvements and strategic investments aimed at positioning Key Tronic Corporation for future growth. However, these positive developments were overshadowed by substantial revenue declines, increased net losses, and challenges related to global tariffs and decreased demand from key customers. The call reflects a year of transition with mixed results, balancing optimism for future growth against current financial difficulties.Q4-2025 Updates
Positive Updates
Operational Efficiency Gains
Key Tronic Corporation achieved operational efficiency gains, which contributed to an increase in gross margins year over year, despite a revenue reduction of approximately $100 million in fiscal year 2025.
Inventory and Liability Reductions
The company reduced inventory by approximately $8 million or 7% and reduced total liabilities by $32.7 million or 14% from a year ago, reflecting improved financial management.
Improved Cash Flow from Operations
Cash flow provided by operations was $18.9 million, up from $13.8 million for fiscal 2024, marking two consecutive years of positive cash from operations.
New Facility Investments
Investments in new facilities in Arkansas and Vietnam are expected to enhance production capabilities and add significant capacity, positioning the company for future growth.
Increase in New Program Bids
The company reported an increase in new program bids, driven by cost competitiveness and strategic location expansions, indicating potential future growth.
Negative Updates
Revenue Decline
Total revenue for 2025 was $467.9 million, down from $566.9 million in fiscal year 2024, impacted by decreased demand from two large long-standing customers and global tariff fluctuations.
Increased Net Loss
Net loss for 2025 was $8.3 million or $0.77 per share, compared to a net loss of $2.8 million or $0.26 per share for fiscal year 2024, primarily due to large reductions in revenue.
Job Reductions
The company reduced its headcount by approximately 800 employees during fiscal year 2025, reflecting significant restructuring challenges.
Tariff-Related Challenges
The escalation and fluctuations in tariffs caused delays in new program launches and impacted the company's ability to replace reduced demand from existing programs.
Company Guidance
During the Key Tronic Corporation Q4 Fiscal Year 2025 Investor Call, CFO Tony Voorhees reported a significant decline in annual revenue to $467.9 million from $566.9 million in the previous fiscal year, primarily due to reduced demand from two major customers. The company's gross margin for 2025 was 7.8%, an improvement over the previous year's 7%, despite the revenue drop. This was achieved through operational efficiency gains and a significant workforce reduction of approximately 800 jobs. The operating margin, however, fell to 0.1% from 1.2% in fiscal 2024. The company ended the year with a net loss of $8.3 million, or $0.77 per share, compared to a net loss of $2.8 million, or $0.26 per share, in 2024. Inventory levels were reduced by $8 million, and total liabilities decreased by $32.7 million. Key Tronic also reported improved accounts receivable DSOs of 86 days, down from 95 days the previous year, and positive cash flow from operations of $18.9 million. Looking ahead, the company plans to invest $8 million in capital expenditures in 2026 to enhance production capabilities and expects growth in its US and Vietnam facilities. However, they declined to provide forward-looking guidance due to uncertainties surrounding new product launches.Key Tronic Financial Statement Overview
Summary
Key Tronic is experiencing financial difficulties with declining revenues and profitability issues. The balance sheet is moderately leveraged, providing some stability, while positive free cash flow growth offers a glimmer of hope. However, negative net income and poor return metrics indicate the need for strategic improvements.Income Statement
Key Tronic's income statement reflects a challenging period with declining revenues and negative net income in the TTM period. The gross profit margin stands at 7.91%, while the net profit margin is negative at -1.30%, indicating profitability issues. Revenue has decreased from previous periods, showing a -13.48% growth rate from the last annual report. The EBIT margin of 0.61% and EBITDA margin of 1.79% show weak operational performance.45
Neutral
Balance Sheet
The balance sheet indicates moderate financial leverage with a debt-to-equity ratio of 1.01. The company maintains a reasonable equity ratio of 36.40%, providing some buffer against liabilities. However, return on equity is negative at -5.33%, highlighting challenges in generating returns for shareholders.55
Neutral
Cash Flow
Cash flow analysis shows improvement in free cash flow, with a growth rate of 44.97% from the previous annual report. The operating cash flow to net income ratio is -2.79, indicating operational cash flow challenges, though the free cash flow to net income ratio of -2.23 suggests some level of cash flow resilience despite losses.60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 490.62M | 467.87M | 566.94M | 588.13M | 531.82M | 518.70M |
| Gross Profit | 38.79M | 36.43M | 39.88M | 47.47M | 43.21M | 42.04M |
| EBITDA | 8.78M | 562.00K | 17.89M | 21.56M | 16.36M | 16.38M |
| Net Income | -6.38M | -8.32M | -2.79M | 5.16M | 3.38M | 4.34M |
Balance Sheet | ||||||
| Total Assets | 328.56M | 315.87M | 355.34M | 418.27M | 406.92M | 361.85M |
| Cash, Cash Equivalents and Short-Term Investments | 2.47M | 1.38M | 4.75M | 3.60M | 1.71M | 3.47M |
| Total Debt | 121.25M | 112.01M | 129.82M | 135.70M | 119.72M | 111.84M |
| Total Liabilities | 208.96M | 198.74M | 231.35M | 287.66M | 282.05M | 238.14M |
| Stockholders Equity | 119.59M | 117.13M | 123.99M | 130.62M | 124.88M | 123.70M |
Cash Flow | ||||||
| Free Cash Flow | 14.23M | 14.83M | 9.82M | -21.08M | -11.72M | -25.65M |
| Operating Cash Flow | 17.81M | 18.93M | 13.78M | -11.31M | -4.91M | -15.05M |
| Investing Cash Flow | -4.09M | -4.20M | -2.11M | -4.53M | -8.05M | -10.60M |
| Financing Cash Flow | -16.50M | -18.10M | -10.52M | 17.74M | 11.19M | 28.57M |
Key Tronic Technical Analysis
Neutral
3.41
Price Trends
3.13
Positive
3.02
Positive
3.08
Positive
Market Momentum
0.09
Positive
53.00
Neutral
44.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KTCC, the sentiment is Neutral. The current price of 3.41 is below the 20-day moving average (MA) of 3.48, above the 50-day MA of 3.13, and above the 200-day MA of 3.08, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 53.00 is Neutral, neither overbought nor oversold. The STOCH value of 44.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KTCC.
Key Tronic Risk Analysis
Key Tronic disclosed 34 risk factors in its most recent earnings report. Key Tronic 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
Key Tronic Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $57.02M | ― | -24.73% | ― | -9.09% | -1586.89% | |
60 Neutral | $146.14M | ― | -44.58% | ― | 4.65% | -79.75% | |
57 Neutral | $36.74M | ― | -6.90% | ― | -16.49% | -198.42% | |
44 Neutral | $8.12M | ― | -16.13% | ― | -5.39% | -54.90% | |
43 Neutral | $98.35M | ― | -164.37% | ― | 1.90% | 93.50% | |
41 Neutral | $35.47M | ― | -7.04% | ― | 154.52% | 47.31% |
* Technology Sector Average
KTCC
Key Tronic
3.33
-2.30
-40.85%
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Key Tronic Corporate Events
Private Placements and Financing
Key Tronic Secures New Credit Facilities for Growth
Positive
Dec 5, 2024
Key Tronic Corporation has entered into a new $115 million asset-based senior secured revolving credit facility and a $28 million term loan, both maturing on December 3, 2029. These moves replace their prior credit agreements, allowing the company to settle past debts and support ongoing business needs. The new loans, led by BMO Bank and Callodine Commercial Finance, offer competitive interest rates and are secured by the company’s assets, ensuring robust financial management and growth opportunities.
Shareholder MeetingsBusiness Operations and Strategy
Key Tronic Shareholders Approve 2024 Incentive Plan
Positive
Dec 2, 2024
Key Tronic Corporation’s shareholders have approved the 2024 Incentive Plan, previously backed by the board, during the Annual Meeting on November 25, 2024. This plan aims to drive corporate growth and align shareholder interests, enhancing the company’s competitive edge in the financial market landscape.
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.