Key Tronic (KTCC) AI Stock Analysis

• Market Cap: $36.74M
• Dividend Yield: N/A
• Average Volume (3M): 22.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.48
• 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: 10,773,774
• 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: 3.99
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: $2.50 ▼(-6.72% Downside)

Key Tronic's overall stock score is driven by significant financial challenges, bearish technical indicators, and unattractive valuation metrics. The company's strategic initiatives and operational improvements are overshadowed by declining revenue, profitability issues, and market uncertainties.

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, including declining revenue and profitability issues, high leverage, and negative returns. Cash flow management is strained with declining free cash flow and limited operational cash generation.

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: Negative
• Last Price: 2.68
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KTCC, the sentiment is Negative. The current price of 2.68 is below the 20-day moving average (MA) of 3.00, below the 50-day MA of 3.23, and below the 200-day MA of 2.92, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 35.75 is Neutral, neither overbought nor oversold. The STOCH value of 37.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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%
TACT	51 Neutral	$43.60M	-5.01	-23.00%	―	8.27%	-308.63%
ALOT	48 Neutral	$69.05M	-4.01	-20.27%	―	0.63%	-364.33%
SCKT	47 Neutral	$8.35M	-2.81	-17.53%	―	-13.01%	-65.20%
KTCC	43 Neutral	$36.74M	-4.41	-9.78%	―	-20.03%	-485.19%
EBON	41 Neutral	$23.52M	―	-7.04%	―	154.52%	47.31%
ZSPC	40 Underperform	$13.36M	―	―	―	-24.20%	1.31%

Key Tronic Corporate Events

Key Tronic’s Earnings Call: Challenges Amid Improvements

In the latest earnings call, Key Tronic conveyed a mixed sentiment, highlighting strategic improvements and expanded capabilities. However, these positives were overshadowed by a significant revenue decline and a net loss. The company continues to face challenges from reduced customer demand and market uncertainties, which pose ongoing risks.

Key Tronic Reports Q1 2026 Financial Results

Key Tronic Corporation is a leading provider of electronic manufacturing services, offering design and manufacturing solutions from its facilities in the United States, Mexico, China, and Vietnam. The company serves some of the world’s top original equipment manufacturers.

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.