Key Tronic Corp. (KTCC)
NASDAQ:KTCC
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Key Tronic
(NASDAQ:KTCC)
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Rating:53Neutral
Price Target:
$2.50
▼(-7.06% Downside)
Action:ReiteratedDate:02/10/26
The score is primarily held back by weakened profitability (TTM losses, margin compression) and elevated risk from higher leverage amid negative returns. Partially offsetting this are materially improved operating/free cash flow and a constructive technical setup (price above key moving averages with positive MACD). Valuation is also constrained by losses (negative P/E), while the earnings call adds modest support from concrete cost-saving actions and early signs of stabilization despite no formal guidance.
Positive Factors
Improved cash generation
Sustained positive operating cash flow and FCF provide durable internal funding to support restructuring, capex for automation, and working-capital needs. This cash generation helps bridge losses, reduces reliance on external financing, and materially improves the company's ability to execute turnaround initiatives over months.
Negative Factors
Earnings and margin deterioration
Two recent periods of operating losses and compressed gross margins indicate structural pricing pressure or unfavorable program mix. Persistent low margins reduce the firm's buffer to absorb cost shocks, lengthen the time to durable profitability, and increase reliance on volume recovery or higher-value programs to restore sustainable returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved cash generation
Sustained positive operating cash flow and FCF provide durable internal funding to support restructuring, capex for automation, and working-capital needs. This cash generation helps bridge losses, reduces reliance on external financing, and materially improves the company's ability to execute turnaround initiatives over months.
Read all positive factors
Key Tronic (KTCC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$29.32M
Dividend YieldN/A
Average Volume (3M)22.55K
Price to Earnings (P/E)―
Beta (1Y)0.60
Revenue Growth-20.03%
EPS Growth-485.19%
CountryUS
Employees4,122
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)-0.79
Shares Outstanding10,859,269
10 Day Avg. Volume13,116
30 Day Avg. Volume22,545
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)0.25
Price to Sales (P/S)0.06
P/FCF Ratio1.98
Enterprise Value/Market Cap5.83
Enterprise Value/Revenue0.41
Enterprise Value/Gross Profit7.05
Enterprise Value/Ebitda-17.92
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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, ...
How the Company Makes Money
Key Tronic primarily makes money by providing contract manufacturing and related engineering/supply-chain services to OEM customers. Revenue is generated when customers place manufacturing orders for specific products or subassemblies, and Key Tro...
Key Tronic Key Performance Indicators (KPIs)
Key Tronic Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Neutral
The call presented a mix of material near-term challenges and tangible progress toward longer-term stabilization and growth. Short-term financials were adversely impacted by a $10.5M restructuring charge, a ~15–20% drop in revenue year-over-year, compressed gross and operating margins, and a wider net loss. Offsetting these negatives, the company reported significantly improved operating cash flow, meaningful debt reduction, lower inventory, improved receivables days, adjusted breakeven results (excluding charges), concrete program wins, and strategic capacity builds in the US and Vietnam that should support future growth and tariff mitigation. Management outlined clear cost-saving actions (China wind-down, Mexico right-sizing) with quantified quarterly savings and highlighted a high-potential consigned-materials opportunity (> $25M annual potential). Given the balance of significant current headwinds versus credible, actionable strategic initiatives and early operating improvements, the overall tone is cautious but constructive.Positive Updates
Cash Flow and Balance Sheet Improvement
Operating cash flow improved to $6.3M in the quarter from $1.3M a year ago (≈+385%), enabling a year-over-year debt reduction of approximately $13.4M and a 12% decline in inventory (down $12.3M).
Negative Updates
Quarterly Revenue Decline
Total revenue for the quarter was $96.3M versus $113.9M prior-year (decline of $17.6M, ≈-15.5%); first six months revenue was $195.1M vs $245.4M (decline of $50.3M, ≈-20.5%).
Read all updates
Q2-2026 Updates
Positive
Negative
Cash Flow and Balance Sheet Improvement
Operating cash flow improved to $6.3M in the quarter from $1.3M a year ago (≈+385%), enabling a year-over-year debt reduction of approximately $13.4M and a 12% decline in inventory (down $12.3M).
Read all positive updates
Company Guidance
The company said it will not provide formal forward guidance for FY2026 given macro uncertainty, but expects revenue growth and margin improvement toward breakeven by year‑end: Q2 revenue $96.3M (Q2 FY25 $113.9M), 6‑month revenue $195.1M (FY25 $245.4M), Q2 gross margin 0.6% (operating margin -10.7%) with adjusted Q2 gross margin ex‑charges 7.9% after a ~$10.5M charge, Q2 net loss $8.6M ($0.79/sh) and adjusted Q2 EPS $0.00; 6‑month net loss $10.9M ($1.00). Cash from operations ~$6.3M (vs $1.3M), inventory down $12.3M (‑12%), AR DSO 77 days (vs 99), current ratio 2.0x (vs 2.8x), debt reduced ~$13.4M, Q2 CapEx ~$3.3M (YTD $6.5M; FY guide $8–10M). Operational saves: China wind‑down ~ $1.2M/quarter (Q4), Mexico reductions ~ $1.5M/quarter (post‑Q3); consigned program potential >$25M annual revenue (~$100M turnkey equivalent); new wins: auto up to $5M, pest control $2M, industrial $2–5M; expect ~50% of manufacturing in US+Vietnam by year‑end and double‑digit growth in Arkansas in H2.Key Tronic Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
51
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jul 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 417.53M | 467.87M | 566.94M | 605.32M | 531.82M | 518.70M |
| Gross Profit | 24.23M | 36.43M | 39.95M | 47.55M | 43.21M | 42.04M |
| EBITDA | -9.54M | 10.16M | 17.89M | 26.11M | 16.36M | 16.38M |
| Net Income | -15.35M | -8.32M | -2.79M | 5.16M | 3.38M | 4.34M |
Balance Sheet | ||||||
| Total Assets | 325.27M | 315.87M | 355.34M | 418.27M | 406.92M | 361.85M |
| Cash, Cash Equivalents and Short-Term Investments | 788.00K | 1.38M | 4.75M | 3.60M | 1.71M | 3.47M |
| Total Debt | 142.40M | 118.46M | 137.02M | 134.99M | 114.51M | 116.06M |
| Total Liabilities | 219.09M | 198.74M | 231.35M | 287.65M | 282.05M | 238.14M |
| Stockholders Equity | 106.17M | 117.13M | 123.99M | 130.62M | 124.88M | 123.70M |
Cash Flow | ||||||
| Free Cash Flow | 11.61M | 14.83M | 9.82M | -21.08M | -11.72M | -25.65M |
| Operating Cash Flow | 21.37M | 18.93M | 13.78M | -11.31M | -4.91M | -15.05M |
| Investing Cash Flow | -9.87M | -4.20M | -2.11M | -4.53M | -8.05M | -10.60M |
| Financing Cash Flow | -14.96M | -18.10M | -10.52M | 17.74M | 11.19M | 28.57M |
Key Tronic Technical Analysis
Negative
2.69
Price Trends
2.87
Negative
2.76
Negative
2.94
Negative
Market Momentum
-0.04
Negative
42.28
Neutral
23.52
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 2.69 is below the 20-day moving average (MA) of 2.73, below the 50-day MA of 2.87, and below the 200-day MA of 2.94, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 42.28 is Neutral, neither overbought nor oversold. The STOCH value of 23.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $33.28M | -8.95 | -3.96% | ― | 8.27% | -308.63% | |
53 Neutral | $29.32M | -0.81 | -13.42% | ― | -20.03% | -485.19% | |
51 Neutral | $88.45M | 45.43 | -22.09% | ― | -2.07% | -535.26% | |
46 Neutral | $12.43M | -1.15 | -7.04% | ― | 154.52% | 47.31% | |
44 Neutral | $7.00M | -0.18 | -17.53% | ― | -13.01% | -65.20% | |
43 Neutral | $2.98M | -0.46 | 113.93% | ― | -24.20% | 1.31% |
* Technology Sector Average
KTCC
Key Tronic
2.70
0.44
19.47%
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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.