KIMBALL ELECTRONICS INC (KE) Stock Fundamental Analysis
NASDAQ:KE - Nasdaq - US49428J1097 - Common Stock - Currency: USD
Taking everything into account, KE scores 4 out of 10 in our fundamental rating. KE was compared to 124 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.
KE had a positive operating cash flow in the past year.
Each year in the past 5 years KE has been profitable.
In multiple years KE reported negative operating cash flow during the last 5 years.
1.2 Ratios
KE's Return On Assets of 0.75% is in line compared to the rest of the industry. KE outperforms 52.42% of its industry peers.
Looking at the Return On Equity, with a value of 1.50%, KE is in line with its industry, outperforming 54.03% of the companies in the same industry.
KE has a better Return On Invested Capital (6.86%) than 69.35% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KE is in line with the industry average of 9.15%.
| 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.
In the last couple of years the Profit Margin of KE has declined.
With a decent Operating Margin value of 3.88%, KE is doing good in the industry, outperforming 61.29% of the companies in the same industry.
In the last couple of years the Operating Margin of KE has grown nicely.
KE has a Gross Margin of 7.39%. This is amonst the worse of the industry: KE underperforms 83.87% of its industry peers.
KE's Gross Margin has improved in the last couple of years.
| 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.
Compared to 1 year ago, KE has about the same amount of shares outstanding.
The number of shares outstanding for KE has been reduced compared to 5 years ago.
The debt/assets ratio for KE is higher compared to a year ago.
2.2 Solvency
KE has an Altman-Z score of 2.89. This is not the best score and indicates that KE is in the grey zone with still only limited risk for bankruptcy at the moment.
KE has a Altman-Z score of 2.89. This is comparable to the rest of the industry: KE outperforms 55.65% of its industry peers.
KE has a debt to FCF ratio of 1.66. This is a very positive value and a sign of high solvency as it would only need 1.66 years to pay back of all of its debts.
KE has a Debt to FCF ratio of 1.66. This is in the better half of the industry: KE outperforms 78.23% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that KE is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.33, KE is not doing good in the industry: 62.10% of the companies in the same industry are doing better.
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 | 0.33 | ||
| Debt/FCF | 1.66 | ||
| Altman-Z | 2.89 |
ROIC/WACC0.75
WACC9.13%
2.3 Liquidity
A Current Ratio of 2.28 indicates that KE has no problem at all paying its short term obligations.
The Current ratio of KE (2.28) is comparable to the rest of the industry.
KE has a Quick Ratio of 1.29. This is a normal value and indicates that KE is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.29, KE is not doing good in the industry: 65.32% of the companies in the same industry are doing better.
| 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.
KE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.40% yearly.
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
Based on estimates for the next years, KE will show a decrease in Earnings Per Share. The EPS will decrease by -8.79% on average per year.
KE is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -10.20% yearly.
EPS Next Y-36.8%
EPS Next 2Y-8.79%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-18.24%
Revenue Next 2Y-10.2%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.04, the valuation of KE can be described as reasonable.
Based on the Price/Earnings ratio, KE is valued cheaply inside the industry as 91.13% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of KE to the average of the S&P500 Index (28.29), we can say KE is valued rather cheaply.
KE is valuated reasonably with a Price/Forward Earnings ratio of 10.95.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KE indicates a rather cheap valuation: KE is cheaper than 87.10% of the companies listed in the same industry.
KE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.04 | ||
| Fwd PE | 10.95 |
4.2 Price Multiples
KE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. KE is cheaper than 96.77% of the companies 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 98.39% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.59 | ||
| EV/EBITDA | 4.76 |
4.3 Compensation for Growth
KE's earnings are expected to decrease with -8.79% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.79%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for KE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:KE (4/21/2025, 11:22:29 AM)
13.03
-0.15 (-1.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners77.6%
Inst Owner Change-0.44%
Ins Owners1.7%
Ins Owner Change2.03%
Market Cap319.89M
Analysts81.67
Price Target21.68 (66.39%)
Short Float %2.02%
Short Ratio3.77
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)-11.46%
EPS NQ rev (1m)-7.32%
EPS NQ rev (3m)-43.7%
EPS NY rev (1m)-9.3%
EPS NY rev (3m)-28.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.04 | ||
| Fwd PE | 10.95 | ||
| P/S | 0.2 | ||
| P/FCF | 2.59 | ||
| P/OCF | 1.93 | ||
| P/B | 0.6 | ||
| P/tB | 0.61 | ||
| EV/EBITDA | 4.76 |
EPS(TTM)1.18
EY9.06%
EPS(NY)1.19
Fwd EY9.13%
FCF(TTM)5.03
FCFY38.63%
OCF(TTM)6.76
OCFY51.92%
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 | 2.89 |
F-Score5
WACC9.13%
ROIC/WACC0.75
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-36.8%
EPS Next 2Y-8.79%
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-18.24%
Revenue Next 2Y-10.2%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-45.19%
EBIT growth 3Y4.29%
EBIT growth 5Y12.1%
EBIT Next Year9.94%
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