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Key Tronic (KTCC)
:KTCC
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Key Tronic
(NASDAQ:KTCC)
Rating:54Neutral
Price Target:
$3.00
▼(-0.33%Downside)
Key Tronic (KTCC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$33.25M
Dividend YieldN/A
Average Volume (3M)60.09K
Price to Earnings (P/E)―
Beta (1Y)0.58
Revenue Growth-18.85%
EPS Growth-2549.17%
CountryUS
Employees4,122
SectorTechnology
Sector Strength80
IndustryComputer Hardware
Share Statistics
EPS (TTM)-0.06
Shares Outstanding10,761,871
10 Day Avg. Volume135,279
30 Day Avg. Volume60,095
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)0.22
Price to Sales (P/S)0.00
P/FCF Ratio1.84
Enterprise Value/Market Cap4.25
Enterprise Value/Revenue0.06
Enterprise Value/Gross Profit3.69
Enterprise Value/Ebitda2.13
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 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 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: 23.87%|
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 faces operational and profitability challenges, with declining revenue and negative net margins impacting the income statement. The balance sheet remains stable with manageable debt, but returns are under pressure. Cash flow shows signs of improvement, but historical volatility is a concern. Strategic focus on cost management and revenue stabilization could enhance financial health.Income Statement
The company's revenue has been volatile, with a significant decline in the TTM period compared to previous years. The gross profit margin is relatively low, indicating cost pressures. Net profit margin is negative, reflecting losses in recent periods. The EBIT and EBITDA margins have also decreased, pointing to challenges in operational efficiency.55
Neutral
Balance Sheet
The balance sheet shows moderate leverage, with a debt-to-equity ratio of approximately 0.11, indicating manageable debt levels. However, the equity ratio has slightly decreased, suggesting a higher reliance on liabilities. Return on equity has turned negative due to recent losses, posing a risk to shareholder returns.60
Neutral
Cash Flow
The company has shown improvement in operating cash flow, moving from negative to positive territory. Free cash flow is also positive in the TTM, reflecting better cash management. However, the free cash flow growth rate is uneven due to past negative cash flows, and the ratios to net income vary due to net losses.65
Positive
| Breakdown | |||||
| TTM | Jun 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 519.17M | 566.94M | 588.13M | 531.82M | 518.70M | 449.48M | Gross Profit |
| 38.26M | 39.88M | 47.47M | 43.21M | 42.04M | 35.25M | EBIT |
| 2.87M | 6.76M | 12.02M | 8.79M | 9.53M | 6.83M | EBITDA |
| 10.93M | 17.89M | 21.56M | 16.36M | 16.38M | 12.42M | Net Income Common Stockholders |
| -8.00M | -2.79M | 5.16M | 3.38M | 4.34M | 4.76M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 5.25M | 4.75M | 3.60M | 1.71M | 3.47M | 553.00K | Total Assets |
| 373.38M | 355.34M | 420.06M | 406.92M | 362.00M | 301.73M | Total Debt |
| 139.47M | 129.82M | 135.70M | 119.72M | 110.97M | 80.36M | Net Debt |
| 134.22M | 125.07M | 132.09M | 118.01M | 107.49M | 79.80M | Total Liabilities |
| 243.30M | 231.35M | 289.44M | 282.05M | 238.84M | 186.18M | Stockholders Equity |
| 130.07M | 123.99M | 130.62M | 124.88M | 123.17M | 115.56M |
| Cash Flow | Free Cash Flow | ||||
| 14.06M | 9.82M | -21.08M | -11.72M | -25.65M | -39.63M | Operating Cash Flow |
| 16.23M | 13.78M | -11.31M | -4.91M | -15.05M | -31.00M | Investing Cash Flow |
| -2.57M | -2.11M | -4.53M | -8.05M | -10.60M | -3.58M | Financing Cash Flow |
| -12.37M | -10.52M | 17.74M | 11.19M | 28.57M | 34.53M |
Key Tronic Technical Analysis
Positive
3.01
Price Trends
2.56
Positive
3.00
Positive
4.10
Negative
Market Momentum
0.16
Negative
63.93
Neutral
71.95
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 3.01 is above the 20-day moving average (MA) of 2.64, above the 50-day MA of 2.56, and below the 200-day MA of 4.10, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 63.93 is Neutral, neither overbought nor oversold. The STOCH value of 71.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 1 New Risks
1.
Q4, 2024
Key Tronic Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $11.51B | 10.19 | -6.93% | 2.94% | 7.57% | -9.20% | |
56 Neutral | $35.89M | ― | -25.34% | ― | -25.06% | -1624.61% | |
54 Neutral | $33.25M | ― | -5.11% | ― | -18.85% | -2549.17% | |
54 Neutral | $60.02M | ― | -44.43% | ― | -4.34% | -82.08% | |
47 Neutral | $8.79M | ― | -14.72% | ― | 0.29% | -52.27% | |
43 Neutral | $11.93M | ― | -327.53% | ― | -3.17% | 90.94% | |
41 Neutral | $24.62M | ― | -7.51% | ― | 20.88% | ― |
* Technology Sector Average
Performance Comparison
KTCC
Key Tronic
3.01
-1.18
-28.16%
SCKT
Socket Mobile
1.10
-0.18
-14.06%
TACT
Transact Technologies
3.76
0.30
8.67%
UAVS
AgEagle Aerial Systems
0.85
-32.15
-97.42%
OSS
One Stop Systems
2.76
0.54
24.32%
EBON
Ebang International Holdings
3.67
-4.77
-56.52%
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
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.