KIMBALL ELECTRONICS INC (KE) Stock Fundamental Analysis
NASDAQ:KE - Nasdaq - US49428J1097 - Common Stock - Currency: USD
Overall KE gets a fundamental rating of 4 out of 10. We evaluated KE against 124 industry peers in the Electronic Equipment, Instruments & Components industry. KE has an average financial health and profitability rating. KE is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year KE was profitable.
KE had a positive operating cash flow in the past year.
In the past 5 years KE has always been profitable.
In multiple years KE reported negative operating cash flow during the last 5 years.
1.2 Ratios
KE has a Return On Assets (0.75%) which is comparable to the rest of the industry.
The Return On Equity of KE (1.50%) is comparable to the rest of the industry.
The Return On Invested Capital of KE (6.86%) is better than 69.17% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KE is in line with the industry average of 8.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 1.5% | ||
| ROIC | 6.86% |
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
KE has a Profit Margin (0.51%) which is comparable to the rest of the industry.
KE's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 3.88%, KE is doing good in the industry, outperforming 60.83% of the companies in the same industry.
In the last couple of years the Operating Margin of KE has grown nicely.
With a Gross Margin value of 7.39%, KE is not doing good in the industry: 85.83% 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 | 3.88% | ||
| PM (TTM) | 0.51% | ||
| GM | 7.39% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KE is destroying value.
KE has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for KE has been reduced compared to 5 years ago.
Compared to 1 year ago, KE has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.03 indicates that KE is not in any danger for bankruptcy at the moment.
KE's Altman-Z score of 3.03 is in line compared to the rest of the industry. KE outperforms 50.83% of its industry peers.
The Debt to FCF ratio of KE is 1.66, which is an excellent value as it means it would take KE, only 1.66 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.66, KE is in the better half of the industry, outperforming 74.17% of the companies in the same industry.
KE has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.33, KE is doing worse than 63.33% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for KE, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.66 | ||
| Altman-Z | 3.03 |
ROIC/WACC0.78
WACC8.84%
2.3 Liquidity
KE has a Current Ratio of 2.28. This indicates that KE is financially healthy and has no problem in meeting its short term obligations.
KE has a Current ratio (2.28) which is in line with its industry peers.
A Quick Ratio of 1.29 indicates that KE should not have too much problems paying its short term obligations.
The Quick ratio of KE (1.29) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.28 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
The earnings per share for KE have decreased strongly by -45.62% in the last year.
The Earnings Per Share has been decreasing by -7.40% on average over the past years.
Looking at the last year, KE shows a very negative growth in Revenue. The Revenue has decreased by -30.35% in the last year.
The Revenue has been growing slightly by 7.73% on average over the past years.
EPS 1Y (TTM)-45.62%
EPS 3Y-13.64%
EPS 5Y-7.4%
EPS Q2Q%-12.12%
Revenue 1Y (TTM)-30.35%
Revenue growth 3Y9.9%
Revenue growth 5Y7.73%
Sales Q2Q%-15.16%
3.2 Future
The Earnings Per Share is expected to decrease by -4.08% on average over the next years.
KE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.66% yearly.
EPS Next Y-30.31%
EPS Next 2Y-4.08%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-14.14%
Revenue Next 2Y-5.66%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 15.47 indicates a correct valuation of KE.
Based on the Price/Earnings ratio, KE is valued cheaply inside the industry as 89.17% of the companies are valued more expensively.
KE is valuated rather cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.87, which indicates a correct valuation of KE.
Based on the Price/Forward Earnings ratio, KE is valued cheaply inside the industry as 88.33% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of KE to the average of the S&P500 Index (22.68), we can say KE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.47 | ||
| Fwd PE | 13.87 |
4.2 Price Multiples
97.50% of the companies in the same industry are more expensive than KE, based on the Enterprise Value to EBITDA ratio.
KE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. KE is cheaper than 97.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.63 | ||
| EV/EBITDA | 5.96 |
4.3 Compensation for Growth
A cheap valuation may be justified as KE's earnings are expected to decrease with -4.08% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.08%
EPS Next 3YN/A
5. Dividend
5.1 Amount
KE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
18.25
+0.19 (+1.05%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners80.52%
Inst Owner Change-1.64%
Ins Owners1.59%
Ins Owner Change3.73%
Market Cap448.04M
Analysts81.67
Price Target24.48 (34.14%)
Short Float %1.72%
Short Ratio3.33
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)1
Avg EPS beat(2)2.49%
Min EPS beat(2)-20.15%
Max EPS beat(2)25.13%
EPS beat(4)1
Avg EPS beat(4)-9.94%
Min EPS beat(4)-26.85%
Max EPS beat(4)25.13%
EPS beat(8)2
Avg EPS beat(8)-7.59%
EPS beat(12)3
Avg EPS beat(12)-10.1%
EPS beat(16)4
Avg EPS beat(16)-14.75%
Revenue beat(2)0
Avg Revenue beat(2)-3.34%
Min Revenue beat(2)-3.63%
Max Revenue beat(2)-3.06%
Revenue beat(4)0
Avg Revenue beat(4)-4.84%
Min Revenue beat(4)-6.41%
Max Revenue beat(4)-3.06%
Revenue beat(8)2
Avg Revenue beat(8)-3.18%
Revenue beat(12)4
Avg Revenue beat(12)-2.53%
Revenue beat(16)5
Avg Revenue beat(16)-2.64%
PT rev (1m)0%
PT rev (3m)3.23%
EPS NQ rev (1m)-27.41%
EPS NQ rev (3m)-48.6%
EPS NY rev (1m)-20.7%
EPS NY rev (3m)-21.13%
Revenue NQ rev (1m)-6.61%
Revenue NQ rev (3m)-21.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.47 | ||
| Fwd PE | 13.87 | ||
| P/S | 0.28 | ||
| P/FCF | 3.63 | ||
| P/OCF | 2.7 | ||
| P/B | 0.83 | ||
| P/tB | 0.85 | ||
| EV/EBITDA | 5.96 |
EPS(TTM)1.18
EY6.47%
EPS(NY)1.32
Fwd EY7.21%
FCF(TTM)5.03
FCFY27.58%
OCF(TTM)6.76
OCFY37.07%
SpS64.64
BVpS21.89
TBVpS21.53
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 1.5% | ||
| ROCE | 8.06% | ||
| ROIC | 6.86% | ||
| ROICexc | 7.38% | ||
| ROICexgc | 7.48% | ||
| OM | 3.88% | ||
| PM (TTM) | 0.51% | ||
| GM | 7.39% | ||
| FCFM | 7.79% |
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 Turnover1.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.66 | ||
| Debt/EBITDA | 1.8 | ||
| Cap/Depr | 111.22% | ||
| Cap/Sales | 2.68% | ||
| Interest Coverage | 2.57 | ||
| Cash Conversion | 166.54% | ||
| Profit Quality | 1537.17% | ||
| Current Ratio | 2.28 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 3.03 |
F-Score5
WACC8.84%
ROIC/WACC0.78
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)-45.62%
EPS 3Y-13.64%
EPS 5Y-7.4%
EPS Q2Q%-12.12%
EPS Next Y-30.31%
EPS Next 2Y-4.08%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-30.35%
Revenue growth 3Y9.9%
Revenue growth 5Y7.73%
Sales Q2Q%-15.16%
Revenue Next Year-14.14%
Revenue Next 2Y-5.66%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-45.19%
EBIT growth 3Y4.29%
EBIT growth 5Y12.1%
EBIT Next Year21.67%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y165.86%
FCF growth 3Y-33.91%
FCF growth 5YN/A
OCF growth 1Y268.43%
OCF growth 3Y-17.44%
OCF growth 5YN/A