Key Tronic (KTCC) AI Stock Analysis

• Market Cap: $29.32M
• Dividend Yield: N/A
• Average Volume (3M): 22.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: -20.03%
• EPS Growth: -485.19%
• Country: US
• Employees: 4,122
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): -0.21
• Shares Outstanding: 10,859,269
• 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: 5.00
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 4.67
• Enterprise Value/Ebitda: 31.82
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $2.50 ▼(-5.30% Downside)

KTCC scores 50 primarily due to weak financial performance (declining revenue, ongoing losses, pressured free cash flow) and only mixed technicals (below major moving averages with negative MACD). Offsetting factors include operational improvements and balance sheet/liability reduction discussed on the earnings call, plus restructuring initiatives aimed at meaningful cost savings, while valuation is not a clear positive because losses make the negative P/E less informative and no dividend yield is provided.

Positive Factors

Operational Improvements

The improvement in gross margin indicates better cost management and operational efficiency, which can enhance profitability over the long term.

Debt Reduction

Reducing liabilities strengthens the balance sheet, providing more financial flexibility and reducing risk, which is crucial for long-term stability.

Global Manufacturing Restructuring

Shifting production to Vietnam reduces geopolitical risks and aligns resources with strategic priorities, potentially lowering costs and enhancing competitiveness.

Negative Factors

Revenue Decline

A significant revenue decline reflects reduced demand and delays in new program launches, which could impact future growth and profitability.

Net Loss

Ongoing net losses indicate challenges in achieving profitability, which can strain financial resources and hinder long-term business sustainability.

Customer Bankruptcy Impact

The impact of a customer bankruptcy on financial results highlights vulnerability to client-specific risks, affecting revenue and financial stability.

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 faces significant financial challenges, with declining revenue and profitability issues. The balance sheet indicates high leverage and negative returns, while cash flow analysis reveals declining free cash flow and limited cash generation. These factors highlight the need for strategic improvements.

Income Statement

Key Tronic's income statement reveals declining revenue with a negative growth rate of -7.01% in the TTM period. The company is struggling with profitability, as evidenced by a negative net profit margin of -2.69% and a negative EBIT margin of -1.03%. The gross profit margin is relatively low at 7.21%, indicating challenges in cost management. Overall, the income statement suggests financial difficulties and a need for strategic improvements.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 1.06, indicating significant leverage. Return on equity is negative at -9.93%, reflecting poor profitability. However, the equity ratio is reasonable, suggesting some stability in asset management. The balance sheet highlights financial risk due to high leverage and negative returns.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by -34.70% in the TTM period. The operating cash flow to net income ratio is 0.18, indicating limited cash generation relative to earnings. The free cash flow to net income ratio is 0.58, suggesting some ability to cover net losses. Overall, cash flow management appears strained, with declining free cash flow and limited operational cash generation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	435.06M	467.87M	566.94M	605.32M	531.82M	518.70M
Gross Profit	31.38M	36.43M	39.95M	47.55M	43.21M	42.04M
EBITDA	4.60M	10.16M	17.89M	26.11M	16.36M	16.38M
Net Income	-11.70M	-8.32M	-2.79M	5.16M	3.38M	4.34M
Balance Sheet
Total Assets	324.56M	315.87M	355.34M	418.27M	406.92M	361.85M
Cash, Cash Equivalents and Short-Term Investments	1.12M	1.38M	4.75M	3.60M	1.71M	3.47M
Total Debt	121.12M	118.46M	137.02M	134.99M	114.51M	116.06M
Total Liabilities	209.76M	198.74M	231.35M	287.65M	282.05M	238.14M
Stockholders Equity	114.80M	117.13M	123.99M	130.62M	124.88M	123.70M
Cash Flow
Free Cash Flow	9.69M	14.83M	9.82M	-21.08M	-11.72M	-25.65M
Operating Cash Flow	16.59M	18.93M	13.78M	-11.31M	-4.91M	-15.05M
Investing Cash Flow	-7.00M	-4.20M	-2.11M	-4.53M	-8.05M	-10.60M
Financing Cash Flow	-15.01M	-18.10M	-10.52M	17.74M	11.19M	28.57M

Key Tronic Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 2.64 is above the 20-day moving average (MA) of 2.62, below the 50-day MA of 2.73, and below the 200-day MA of 2.87, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.53 is Neutral, neither overbought nor oversold. The STOCH value of 65.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KTCC.

Key Tronic Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ALOT	51 Neutral	$70.20M	-4.11	-19.92%	―	-2.07%	-535.26%
TACT	51 Neutral	$38.53M	-4.73	-23.00%	―	8.27%	-308.63%
KTCC	50 Neutral	$29.32M	-2.48	-9.78%	―	-20.03%	-485.19%
SCKT	47 Neutral	$8.22M	-2.77	-17.53%	―	-13.01%	-65.20%
EBON	46 Neutral	$22.94M	-1.19	-7.04%	―	154.52%	47.31%
ZSPC	42 Neutral	$14.88M	-0.55	―	―	-24.20%	1.31%

Key Tronic Corporate Events

Key Tronic advances global manufacturing restructuring and cost savings

On December 19, 2025, Key Tronic Corporation approved a plan to cease manufacturing at its China-based facility and convert its operations there to sourcing and procurement support for its other global locations, shifting most of the affected production to existing capacity in Vietnam and other plants. The restructuring, expected to be completed by the fourth fiscal quarter of 2026, is aimed at better aligning resources with strategic priorities, filling recently added Vietnam capacity, and reducing exposure to geopolitical risks, with anticipated savings of about $1.2 million per quarter after completion, offset by roughly $1.3 million in cash severance and compensation costs and an estimated $4.8 million to $5.8 million in non-cash write-offs. Separately, the company’s ongoing restructuring of its Juarez, Mexico facility toward higher-volume manufacturing is projected to generate approximately $2.1 million in quarterly savings after it incurs an additional $2.5 million to $3.5 million in severance charges during its second fiscal quarter, signaling a broader effort to streamline operations and enhance cost efficiency across its manufacturing footprint.

The most recent analyst rating on (KTCC) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Key Tronic stock, see the KTCC Stock Forecast page.