Key Tronic (KTCC) AI Stock Analysis

• Market Cap: $38.68M
• Dividend Yield: N/A
• Average Volume (3M): 22.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.51
• Revenue Growth: -16.49%
• EPS Growth: -198.42%
• Country: US
• Employees: 4,122
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): -0.36
• Shares Outstanding: 10,773,774
• 10 Day Avg. Volume: 13,116
• 30 Day Avg. Volume: 22,545
• PEG Ratio: -0.02
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 0.06
• P/FCF Ratio: 1.98
• Enterprise Value/Market Cap: 3.79
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 4.02
• Enterprise Value/Ebitda: 17.22
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 58 Neutral
• Price Target: $3.50 ▼(-2.51% Downside)

Key Tronic's stock score is primarily influenced by its weak financial performance, characterized by declining revenue and profitability. Technical analysis provides some positive momentum, but poor valuation metrics and mixed earnings call sentiment limit the overall score.

Key Tronic Business Overview & Revenue Model

Company Description

Key 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 Money

Key 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 Financial Statement Overview

Summary

Key Tronic's financial performance is challenged by declining revenue and profitability, with a negative net profit margin and return on equity. Despite improvements in cash flow, overall financial health remains weak.

Income Statement

Key Tronic's income statement shows a declining revenue trend with a negative revenue growth rate of -4.64% in the most recent year. The company has struggled with profitability, evidenced by a negative net profit margin of -1.78% and a low EBIT margin of 0.12%. Despite a slight improvement in gross profit margin to 7.79%, the overall profitability remains weak.

Balance Sheet

The balance sheet reflects a moderate financial position with a debt-to-equity ratio of 0.96, indicating a balanced leverage. However, the return on equity is negative at -7.10%, highlighting challenges in generating returns for shareholders. The equity ratio stands at a reasonable level, suggesting a stable asset base.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth rate of 4.22%, indicating improved cash generation. The operating cash flow to net income ratio of 0.21 suggests some efficiency in converting income into cash. However, the free cash flow to net income ratio of 0.78 indicates room for improvement in cash profitability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	467.87M	467.87M	566.94M	588.13M	531.82M	518.70M
Gross Profit	36.43M	36.43M	39.88M	47.47M	43.21M	42.04M
EBITDA	8.51M	562.00K	17.89M	21.56M	16.36M	16.38M
Net Income	-8.32M	-8.32M	-2.79M	5.16M	3.38M	4.34M
Balance Sheet
Total Assets	315.87M	315.87M	355.34M	418.27M	406.92M	361.85M
Cash, Cash Equivalents and Short-Term Investments	1.38M	1.38M	4.75M	3.60M	1.71M	3.47M
Total Debt	112.01M	112.01M	129.82M	135.70M	119.72M	111.84M
Total Liabilities	198.74M	198.74M	231.35M	287.66M	282.05M	238.14M
Stockholders Equity	117.13M	117.13M	123.99M	130.62M	124.88M	123.70M
Cash Flow
Free Cash Flow	7.10M	14.83M	9.82M	-21.08M	-11.72M	-25.65M
Operating Cash Flow	10.12M	18.93M	13.78M	-11.31M	-4.91M	-15.05M
Investing Cash Flow	-3.02M	-4.20M	-2.11M	-4.53M	-8.05M	-10.60M
Financing Cash Flow	-9.38M	-18.10M	-10.52M	17.74M	11.19M	28.57M

Key Tronic Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KTCC, the sentiment is Positive. The current price of 3.59 is above the 20-day moving average (MA) of 3.32, above the 50-day MA of 3.27, and above the 200-day MA of 3.00, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 63.38 is Neutral, neither overbought nor oversold. The STOCH value of 75.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KTCC.

Key Tronic Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KTCC	―	$38.68M	-4.64	-6.90%	―	-16.49%	-198.42%
TACT	―	$47.84M	-5.50	-24.73%	―	-9.09%	-1586.89%
ALOT	―	$70.58M	-4.10	-20.27%	―	0.63%	-364.33%
SCKT	―	$7.40M	-2.50	-17.53%	―	-13.01%	-65.20%
EBON	―	$29.32M	―	-7.04%	―	154.52%	47.31%
ZSPC	―	$26.44M	―	―	―	-9.92%	30.84%

Key Tronic Corporate Events

Key Tronic’s Earnings Call: A Year of Transition

In the recent earnings call, Key Tronic Corporation presented a mixed sentiment, with notable operational improvements and strategic investments aimed at future growth. However, these positive strides were overshadowed by significant revenue declines, increased net losses, and challenges related to global tariffs and decreased demand from key customers. The call reflects a transitional year, balancing optimism for future growth against current financial difficulties.

Key Tronic Reports Fiscal Year 2025 Earnings

Key Tronic Corporation is a prominent provider of electronic manufacturing services, specializing in value-added design and manufacturing solutions across various global facilities, including the United States, Mexico, China, and Vietnam. The company serves leading original equipment manufacturers with comprehensive engineering, materials management, and worldwide distribution services.

Key Tronic Sets 2026 Incentive Compensation Goals

On August 21, 2025, Key Tronic Corporation’s Board of Directors set performance goals and target payment percentages for its fiscal year 2026 incentive compensation plan, which includes executive officers and is based on profit goals. Additionally, the Board established long-term incentive plan performance measures for fiscal years 2026-2028, focusing on sales growth and return on invested capital, with potential cash awards for executives and directors based on performance.

The most recent analyst rating on (KTCC) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Key Tronic stock, see the KTCC Stock Forecast page.