KIMBALL ELECTRONICS INC (KE) Stock Fundamental Analysis
NASDAQ:KE - Nasdaq - US49428J1097 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to KE. KE was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. KE has only an average score on both its financial health and profitability. KE has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year KE was profitable.
In the past year KE had a positive cash flow from operations.
Each year in the past 5 years KE has been profitable.
The reported operating cash flow has been mixed in the past 5 years: KE reported negative operating cash flow in multiple years.
1.2 Ratios
KE has a Return On Assets of 1.67%. This is comparable to the rest of the industry: KE outperforms 58.40% of its industry peers.
With a Return On Equity value of 3.27%, KE perfoms like the industry average, outperforming 58.40% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.60%, KE is in the better half of the industry, outperforming 70.40% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for KE is in line with the industry average of 9.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.67% | ||
| ROE | 3.27% | ||
| ROIC | 6.6% |
ROA(3y)3.04%
ROA(5y)3.69%
ROE(3y)7.1%
ROE(5y)7.78%
ROIC(3y)8.03%
ROIC(5y)8.35%
1.3 Margins
With a Profit Margin value of 1.17%, KE perfoms like the industry average, outperforming 54.40% of the companies in the same industry.
KE's Profit Margin has declined in the last couple of years.
KE has a Operating Margin (3.75%) which is comparable to the rest of the industry.
KE's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 7.20%, KE is not doing good in the industry: 84.80% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of KE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.75% | ||
| PM (TTM) | 1.17% | ||
| GM | 7.2% |
OM growth 3Y-5.1%
OM growth 5Y4.06%
PM growth 3Y-35.19%
PM growth 5Y-14.82%
GM growth 3Y-3.61%
GM growth 5Y1.81%
2. Health
2.1 Basic Checks
KE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for KE remains at a similar level compared to 1 year ago.
Compared to 5 years ago, KE has less shares outstanding
Compared to 1 year ago, KE has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.00 indicates that KE is not in any danger for bankruptcy at the moment.
KE has a Altman-Z score of 3.00. This is comparable to the rest of the industry: KE outperforms 44.80% of its industry peers.
The Debt to FCF ratio of KE is 1.47, which is an excellent value as it means it would take KE, only 1.47 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of KE (1.47) is better than 80.80% of its industry peers.
KE has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of KE (0.27) is worse than 60.00% of its industry peers.
Although KE does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.47 | ||
| Altman-Z | 3 |
ROIC/WACC0.68
WACC9.72%
2.3 Liquidity
KE has a Current Ratio of 2.14. This indicates that KE is financially healthy and has no problem in meeting its short term obligations.
KE has a Current ratio (2.14) which is in line with its industry peers.
A Quick Ratio of 1.24 indicates that KE should not have too much problems paying its short term obligations.
KE's Quick ratio of 1.24 is on the low side compared to the rest of the industry. KE is outperformed by 68.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.14 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
The earnings per share for KE have decreased strongly by -40.32% in the last year.
KE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.40% yearly.
The Revenue for KE has decreased by -30.75% in the past year. This is quite bad
The Revenue has been growing slightly by 7.73% on average over the past years.
EPS 1Y (TTM)-40.32%
EPS 3Y-13.64%
EPS 5Y-7.4%
EPS Q2Q%-20.59%
Revenue 1Y (TTM)-30.75%
Revenue growth 3Y9.9%
Revenue growth 5Y7.73%
Sales Q2Q%-11.86%
3.2 Future
The Earnings Per Share is expected to decrease by -14.76% on average over the next years. This is quite bad
Based on estimates for the next years, KE will show a decrease in Revenue. The Revenue will decrease by -5.90% on average per year.
EPS Next Y-32.83%
EPS Next 2Y-17.39%
EPS Next 3Y-14.76%
EPS Next 5YN/A
Revenue Next Year-16.78%
Revenue Next 2Y-10.26%
Revenue Next 3Y-5.9%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
KE is valuated rather expensively with a Price/Earnings ratio of 17.58.
KE's Price/Earnings ratio is rather cheap when compared to the industry. KE is cheaper than 84.80% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.41, KE is valued a bit cheaper.
A Price/Forward Earnings ratio of 20.00 indicates a rather expensive valuation of KE.
KE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KE is cheaper than 68.80% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of KE to the average of the S&P500 Index (35.19), we can say KE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.58 | ||
| Fwd PE | 20 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KE indicates a rather cheap valuation: KE is cheaper than 96.00% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KE indicates a rather cheap valuation: KE is cheaper than 97.60% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.92 | ||
| EV/EBITDA | 6.38 |
4.3 Compensation for Growth
A cheap valuation may be justified as KE's earnings are expected to decrease with -14.76% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-17.39%
EPS Next 3Y-14.76%
5. Dividend
5.1 Amount
KE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:KE (7/14/2025, 3:40:58 PM)
19.515
-0.02 (-0.13%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners79.42%
Inst Owner Change0%
Ins Owners1.71%
Ins Owner Change0%
Market Cap475.78M
Analysts81.67
Price Target20.15 (3.25%)
Short Float %1.24%
Short Ratio1.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)31.55%
Min EPS beat(2)25.13%
Max EPS beat(2)37.97%
EPS beat(4)2
Avg EPS beat(4)4.02%
Min EPS beat(4)-26.85%
Max EPS beat(4)37.97%
EPS beat(8)3
Avg EPS beat(8)-1.95%
EPS beat(12)3
Avg EPS beat(12)-7.71%
EPS beat(16)5
Avg EPS beat(16)-11.63%
Revenue beat(2)1
Avg Revenue beat(2)1.97%
Min Revenue beat(2)-3.63%
Max Revenue beat(2)7.58%
Revenue beat(4)1
Avg Revenue beat(4)-1.38%
Min Revenue beat(4)-6.41%
Max Revenue beat(4)7.58%
Revenue beat(8)2
Avg Revenue beat(8)-2.73%
Revenue beat(12)5
Avg Revenue beat(12)-1.4%
Revenue beat(16)6
Avg Revenue beat(16)-1.78%
PT rev (1m)0%
PT rev (3m)-7.06%
EPS NQ rev (1m)8.03%
EPS NQ rev (3m)-16.85%
EPS NY rev (1m)14.38%
EPS NY rev (3m)3.32%
Revenue NQ rev (1m)-1.7%
Revenue NQ rev (3m)-3.43%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)1.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.58 | ||
| Fwd PE | 20 | ||
| P/S | 0.31 | ||
| P/FCF | 3.92 | ||
| P/OCF | 3.08 | ||
| P/B | 0.87 | ||
| P/tB | 0.88 | ||
| EV/EBITDA | 6.38 |
EPS(TTM)1.11
EY5.69%
EPS(NY)0.98
Fwd EY5%
FCF(TTM)4.97
FCFY25.48%
OCF(TTM)6.33
OCFY32.45%
SpS63.02
BVpS22.48
TBVpS22.12
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.67% | ||
| ROE | 3.27% | ||
| ROCE | 7.75% | ||
| ROIC | 6.6% | ||
| ROICexc | 7.09% | ||
| ROICexgc | 7.18% | ||
| OM | 3.75% | ||
| PM (TTM) | 1.17% | ||
| GM | 7.2% | ||
| FCFM | 7.89% |
ROA(3y)3.04%
ROA(5y)3.69%
ROE(3y)7.1%
ROE(5y)7.78%
ROIC(3y)8.03%
ROIC(5y)8.35%
ROICexc(3y)8.67%
ROICexc(5y)9.51%
ROICexgc(3y)8.94%
ROICexgc(5y)10%
ROCE(3y)9.43%
ROCE(5y)9.8%
ROICexcg growth 3Y-16.84%
ROICexcg growth 5Y-1.04%
ROICexc growth 3Y-15.12%
ROICexc growth 5Y0.63%
OM growth 3Y-5.1%
OM growth 5Y4.06%
PM growth 3Y-35.19%
PM growth 5Y-14.82%
GM growth 3Y-3.61%
GM growth 5Y1.81%
F-Score5
Asset Turnover1.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.47 | ||
| Debt/EBITDA | 1.58 | ||
| Cap/Depr | 89.7% | ||
| Cap/Sales | 2.16% | ||
| Interest Coverage | 2.96 | ||
| Cash Conversion | 163.21% | ||
| Profit Quality | 676.36% | ||
| Current Ratio | 2.14 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 3 |
F-Score5
WACC9.72%
ROIC/WACC0.68
Cap/Depr(3y)219.24%
Cap/Depr(5y)179.77%
Cap/Sales(3y)4.42%
Cap/Sales(5y)3.91%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-40.32%
EPS 3Y-13.64%
EPS 5Y-7.4%
EPS Q2Q%-20.59%
EPS Next Y-32.83%
EPS Next 2Y-17.39%
EPS Next 3Y-14.76%
EPS Next 5YN/A
Revenue 1Y (TTM)-30.75%
Revenue growth 3Y9.9%
Revenue growth 5Y7.73%
Sales Q2Q%-11.86%
Revenue Next Year-16.78%
Revenue Next 2Y-10.26%
Revenue Next 3Y-5.9%
Revenue Next 5YN/A
EBIT growth 1Y-44.86%
EBIT growth 3Y4.29%
EBIT growth 5Y12.1%
EBIT Next Year20.27%
EBIT Next 3Y3.85%
EBIT Next 5YN/A
FCF growth 1Y182.04%
FCF growth 3Y-33.91%
FCF growth 5YN/A
OCF growth 1Y373.71%
OCF growth 3Y-17.44%
OCF growth 5YN/A