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Key Tronic Corp. (KTCC)
NASDAQ:KTCC
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Key Tronic
(NASDAQ:KTCC)
Rating:54Neutral
Price Target:
$3.00
▲(3.45%Upside)
Key Tronic (KTCC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$31.64M
Dividend YieldN/A
Average Volume (3M)58.84K
Price to Earnings (P/E)―
Beta (1Y)0.55
Revenue Growth-18.85%
EPS Growth-2549.17%
CountryUS
Employees4,122
SectorTechnology
Sector Strength81
IndustryComputer Hardware
Share Statistics
EPS (TTM)-0.06
Shares Outstanding10,761,871
10 Day Avg. Volume17,314
30 Day Avg. Volume58,841
Financial Highlights & Ratios
PEG Ratio0.22
Price to Book (P/B)0.47
Price to Sales (P/S)0.00
P/FCF Ratio-2.89
Enterprise Value/Market Cap6.10
Enterprise Value/Revenue0.09
Enterprise Value/Gross Profit4.98
Enterprise Value/Ebitda3.23
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Key Tronic Business Overview & Revenue Model
Company DescriptionKey Tronic Corporation (KTCC) is a leading provider of electronic manufacturing services (EMS) and original equipment manufacturing (OEM) solutions. The company specializes in designing, engineering, and producing a wide range of products, including printed circuit board assemblies, full product assemblies, and other related components for various sectors such as consumer electronics, industrial, medical, and automotive industries. With a focus on quality and innovation, Key Tronic offers a comprehensive suite of services that includes product development, testing, and supply chain management.
How the Company Makes MoneyKey Tronic makes money through its electronic manufacturing services and original equipment manufacturing solutions. The company's primary revenue streams come from manufacturing and assembling electronic products and components for its clients across diverse industries. By leveraging its expertise in design, engineering, and production, Key Tronic partners with customers to bring their products to market efficiently and cost-effectively. The company also derives income from value-added services such as design support, testing, and supply chain management. Significant partnerships and long-term contracts with major corporations contribute to its earnings, ensuring a steady flow of revenue.
Key Tronic Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q3-2025)
| % Change Since: 19.34%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
While there were significant challenges such as a decline in revenue and increased costs due to tariffs, the company showed improvement in gross margins, reduced net loss, and made notable reductions in inventory and liabilities. New business wins and expansion plans in the US and Vietnam also provide a positive outlook.Q3-2025 Updates
Positive Updates
Gross Margin Improvement
Gross margins improved to 7.7% in Q3 FY2025 from 5.7% in the same period of FY2024, reflecting cost-cutting and headcount reductions.
Reduction in Net Loss
Net loss was reduced to $0.6 million in Q3 FY2025 from $2.2 million in the same period of FY2024.
Inventory and Liabilities Reduction
Inventory levels were reduced by approximately $16 million, or 14%, and total liabilities by $34.3 million, or 14%, from a year ago.
New Business Wins
Key Tronic won new programs in telecommunications, pest control, energy storage, medical technology, and temperature-controlled shipping solutions.
Expansion Plans
Plans to expand production capacity in Arkansas and Vietnam, with $28 million investment in Arkansas expected to create over 400 new jobs.
Negative Updates
Revenue Decline
Total revenue for Q3 FY2025 was $112 million, down from $142.4 million in the same period of FY2024, impacted by global economic disruptions and tariffs.
Increased Year-to-Date Net Loss
Net loss for the first nine months of FY2025 was $4.4 million, compared to a net loss of $0.8 million in the same period of FY2024.
Challenges with Tariffs
Significant uncertainties about costs and margin performance due to tariffs on China, Mexico, and Vietnam.
Operational Challenges
Government-mandated severance expenses in Mexico and inventory adjustments impacted financials.
Company Guidance
During the Key Tronic Q3 Fiscal Year 2025 Investor Call, the company reported a total revenue of $112 million, a decrease from $142.4 million in the same period of fiscal 2024, mainly due to global economic disruptions and fluctuating tariffs. Despite this, gross margins improved to 7.7% from 5.7% in the previous year, attributed to cost-cutting measures. The net loss for the quarter was $0.6 million or $0.06 per share, compared to a loss of $2.2 million or $0.21 per share in fiscal 2024. For the first nine months, total revenue was $357.4 million, down from $440.4 million in the previous year, with a cumulative net loss of $4.4 million. Inventory levels were reduced by 14%, reflecting strategic initiatives, and operating cash flows increased to $10.1 million from $6.1 million. The company plans to invest $6-8 million in capital expenditures for expansions in Arkansas and Vietnam, despite uncertainties from tariffs. Although no revenue or earnings guidance was provided for Q4, Key Tronic remains focused on improving profitability and expanding production capabilities in the U.S. and Vietnam.Key Tronic Financial Statement Overview
Summary
Key Tronic's financial performance is challenged, with declining revenues and negative net income. While there is some positivity from free cash flow growth, the overall financial health remains weak due to profitability issues and poor return metrics.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 | Jun 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 490.62M | 566.94M | 588.13M | 531.82M | 518.70M | 449.48M | Gross Profit |
| 38.79M | 39.88M | 47.47M | 43.21M | 42.04M | 35.25M | EBIT |
| 2.98M | 6.76M | 12.02M | 8.79M | 9.53M | 6.83M | EBITDA |
| 8.78M | 17.89M | 21.56M | 16.36M | 16.38M | 12.42M | Net Income Common Stockholders |
| -6.38M | -2.79M | 5.16M | 3.38M | 4.34M | 4.76M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 2.47M | 4.75M | 3.60M | 1.71M | 3.47M | 553.00K | Total Assets |
| 328.56M | 355.34M | 418.27M | 406.92M | 361.85M | 304.86M | Total Debt |
| 121.25M | 129.82M | 135.70M | 119.72M | 111.84M | 83.48M | Net Debt |
| 118.78M | 125.07M | 132.09M | 118.01M | 108.37M | 82.93M | Total Liabilities |
| 208.96M | 231.35M | 287.66M | 282.05M | 238.14M | 189.30M | Stockholders Equity |
| 119.59M | 123.99M | 130.62M | 124.88M | 123.70M | 115.56M |
| Cash Flow | Free Cash Flow | ||||
| 14.23M | 9.82M | -21.08M | -11.72M | -25.65M | -39.63M | Operating Cash Flow |
| 17.81M | 13.78M | -11.31M | -4.91M | -15.05M | -31.00M | Investing Cash Flow |
| -4.09M | -2.11M | -4.53M | -8.05M | -10.60M | -3.58M | Financing Cash Flow |
| -16.50M | -10.52M | 17.74M | 11.19M | 28.57M | 34.53M |
Key Tronic Technical Analysis
Neutral
2.90
Price Trends
2.65
Positive
2.83
Positive
3.99
Negative
Market Momentum
0.07
Positive
53.62
Neutral
45.63
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 2.9 is below the 20-day moving average (MA) of 2.95, above the 50-day MA of 2.65, and below the 200-day MA of 3.99, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 53.62 is Neutral, neither overbought nor oversold. The STOCH value of 45.63 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
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $11.92B | 10.03 | -7.37% | 3.70% | 7.32% | -8.25% | |
57 Neutral | $98.99M | ― | -44.43% | ― | -4.34% | -82.08% | |
55 Neutral | $34.38M | ― | -25.34% | ― | -25.06% | -1624.61% | |
54 Neutral | $31.64M | ― | -5.11% | ― | -18.85% | -2549.17% | |
51 Neutral | $8.87M | ― | -14.72% | ― | 0.29% | -52.27% | |
47 Neutral | $21.31M | ― | -327.53% | ― | -3.17% | 90.94% | |
41 Neutral | $23.89M | ― | -7.51% | ― | 20.88% | ― |
* Technology Sector Average
Performance Comparison
KTCC
Key Tronic
2.90
-0.83
-22.25%
SCKT
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1.13
<0.01
0.89%
TACT
Transact Technologies
3.54
-0.07
-1.94%
UAVS
AgEagle Aerial Systems
1.26
-24.04
-95.02%
OSS
One Stop Systems
4.58
1.91
71.54%
EBON
Ebang International Holdings
3.64
-3.32
-47.70%
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.