KIMBALL ELECTRONICS INC (KE) Stock Fundamental Analysis
USA - NASDAQ:KE - US49428J1097 - Common Stock
28.64 USD
+0.33 (+1.17%)
28.64 USD
0 (0%)
KE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 123 industry peers in the Electronic Equipment, Instruments & Components industry. KE is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. KE is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
KE had positive earnings in the past year.
KE had a positive operating cash flow in the past year.
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 (1.57%) which is comparable to the rest of the industry.
KE's Return On Equity of 2.98% is in line compared to the rest of the industry. KE outperforms 52.85% of its industry peers.
KE has a Return On Invested Capital of 5.52%. This is comparable to the rest of the industry: KE outperforms 59.35% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KE is below the industry average of 9.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.57% | ||
| ROE | 2.98% | ||
| ROIC | 5.52% |
ROA(3y)2.56%
ROA(5y)3.53%
ROE(3y)5.8%
ROE(5y)7.42%
ROIC(3y)7.03%
ROIC(5y)7.46%
1.3 Margins
Looking at the Profit Margin, with a value of 1.14%, KE is in line with its industry, outperforming 52.03% of the companies in the same industry.
In the last couple of years the Profit Margin of KE has declined.
KE has a Operating Margin of 3.64%. This is comparable to the rest of the industry: KE outperforms 57.72% of its industry peers.
In the last couple of years the Operating Margin of KE has grown nicely.
KE's Gross Margin of 7.02% is on the low side compared to the rest of the industry. KE is outperformed by 85.37% of its industry peers.
In the last couple of years the Gross Margin of KE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.64% | ||
| PM (TTM) | 1.14% | ||
| GM | 7.02% |
OM growth 3Y-1.3%
OM growth 5Y1.84%
PM growth 3Y-20.97%
PM growth 5Y-5.52%
GM growth 3Y-3.24%
GM growth 5Y0.12%
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 less 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 an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.22 indicates that KE is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.22, KE perfoms like the industry average, outperforming 46.34% of the companies in the same industry.
The Debt to FCF ratio of KE is 0.98, which is an excellent value as it means it would take KE, only 0.98 years of fcf income to pay off all of its debts.
KE has a Debt to FCF ratio of 0.98. This is amongst the best in the industry. KE outperforms 80.49% of its industry peers.
KE has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of KE (0.23) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 0.98 | ||
| Altman-Z | 3.22 |
ROIC/WACC0.59
WACC9.4%
2.3 Liquidity
KE has a Current Ratio of 2.20. This indicates that KE is financially healthy and has no problem in meeting its short term obligations.
KE has a Current ratio of 2.20. This is comparable to the rest of the industry: KE outperforms 47.97% of its industry peers.
A Quick Ratio of 1.34 indicates that KE should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.34, KE is doing worse than 62.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.2 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
The earnings per share for KE have decreased strongly by -21.68% in the last year.
Measured over the past years, KE shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.15% on average per year.
Looking at the last year, KE shows a very negative growth in Revenue. The Revenue has decreased by -30.93% in the last year.
KE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.37% yearly.
EPS 1Y (TTM)-21.68%
EPS 3Y-2.27%
EPS 5Y-1.15%
EPS Q2Q%3.03%
Revenue 1Y (TTM)-30.93%
Revenue growth 3Y3.28%
Revenue growth 5Y4.37%
Sales Q2Q%-11.55%
3.2 Future
The Earnings Per Share is expected to grow by 15.18% on average over the next years. This is quite good.
KE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.61% yearly.
EPS Next Y16.1%
EPS Next 2Y15.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.7%
Revenue Next 2Y0.61%
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.
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
With a Price/Earnings ratio of 25.57, KE can be considered very expensive at the moment.
Based on the Price/Earnings ratio, KE is valued a bit cheaper than the industry average as 69.92% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.69. KE is around the same levels.
KE is valuated rather expensively with a Price/Forward Earnings ratio of 22.02.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KE indicates a somewhat cheap valuation: KE is cheaper than 65.04% of the companies listed in the same industry.
KE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.18, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.57 | ||
| Fwd PE | 22.02 |
4.2 Price Multiples
92.68% of the companies in the same industry are more expensive than KE, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, KE is valued cheaper than 97.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.65 | ||
| EV/EBITDA | 8.22 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as KE's earnings are expected to grow with 15.18% in the coming years.
PEG (NY)1.59
PEG (5Y)N/A
EPS Next 2Y15.18%
EPS Next 3YN/A
5. Dividend
5.1 Amount
KE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
28.64
+0.33 (+1.17%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners79.35%
Inst Owner Change-0.04%
Ins Owners2.23%
Ins Owner Change7.6%
Market Cap698.53M
Analysts81.67
Price Target28.43 (-0.73%)
Short Float %2.18%
Short Ratio2.07
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)81.84%
Min EPS beat(2)37.97%
Max EPS beat(2)125.71%
EPS beat(4)3
Avg EPS beat(4)42.16%
Min EPS beat(4)-20.15%
Max EPS beat(4)125.71%
EPS beat(8)3
Avg EPS beat(8)12.65%
EPS beat(12)4
Avg EPS beat(12)5.39%
EPS beat(16)5
Avg EPS beat(16)-5.71%
Revenue beat(2)2
Avg Revenue beat(2)9.22%
Min Revenue beat(2)7.58%
Max Revenue beat(2)10.87%
Revenue beat(4)2
Avg Revenue beat(4)2.94%
Min Revenue beat(4)-3.63%
Max Revenue beat(4)10.87%
Revenue beat(8)2
Avg Revenue beat(8)-1.6%
Revenue beat(12)6
Avg Revenue beat(12)-0.18%
Revenue beat(16)7
Avg Revenue beat(16)-1.09%
PT rev (1m)0%
PT rev (3m)41.14%
EPS NQ rev (1m)-3.89%
EPS NQ rev (3m)33.08%
EPS NY rev (1m)0%
EPS NY rev (3m)33.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.57 | ||
| Fwd PE | 22.02 | ||
| P/S | 0.47 | ||
| P/FCF | 4.65 | ||
| P/OCF | 3.8 | ||
| P/B | 1.23 | ||
| P/tB | 1.24 | ||
| EV/EBITDA | 8.22 |
EPS(TTM)1.12
EY3.91%
EPS(NY)1.3
Fwd EY4.54%
FCF(TTM)6.16
FCFY21.51%
OCF(TTM)7.54
OCFY26.33%
SpS60.96
BVpS23.37
TBVpS23.01
PEG (NY)1.59
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.57% | ||
| ROE | 2.98% | ||
| ROCE | 7.13% | ||
| ROIC | 5.52% | ||
| ROICexc | 6.25% | ||
| ROICexgc | 6.33% | ||
| OM | 3.64% | ||
| PM (TTM) | 1.14% | ||
| GM | 7.02% | ||
| FCFM | 10.11% |
ROA(3y)2.56%
ROA(5y)3.53%
ROE(3y)5.8%
ROE(5y)7.42%
ROIC(3y)7.03%
ROIC(5y)7.46%
ROICexc(3y)7.68%
ROICexc(5y)8.47%
ROICexgc(3y)7.84%
ROICexgc(5y)8.83%
ROCE(3y)9.09%
ROCE(5y)9.64%
ROICexcg growth 3Y-4.11%
ROICexcg growth 5Y-3.6%
ROICexc growth 3Y-3%
ROICexc growth 5Y-2.41%
OM growth 3Y-1.3%
OM growth 5Y1.84%
PM growth 3Y-20.97%
PM growth 5Y-5.52%
GM growth 3Y-3.24%
GM growth 5Y0.12%
F-Score5
Asset Turnover1.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 0.98 | ||
| Debt/EBITDA | 1.42 | ||
| Cap/Depr | 91.03% | ||
| Cap/Sales | 2.27% | ||
| Interest Coverage | 2.98 | ||
| Cash Conversion | 201.85% | ||
| Profit Quality | 885.72% | ||
| Current Ratio | 2.2 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | 3.22 |
F-Score5
WACC9.4%
ROIC/WACC0.59
Cap/Depr(3y)164.89%
Cap/Depr(5y)172.92%
Cap/Sales(3y)3.33%
Cap/Sales(5y)3.71%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-21.68%
EPS 3Y-2.27%
EPS 5Y-1.15%
EPS Q2Q%3.03%
EPS Next Y16.1%
EPS Next 2Y15.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-30.93%
Revenue growth 3Y3.28%
Revenue growth 5Y4.37%
Sales Q2Q%-11.55%
Revenue Next Year-2.7%
Revenue Next 2Y0.61%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-42.42%
EBIT growth 3Y1.94%
EBIT growth 5Y6.29%
EBIT Next Year63.43%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y474.02%
FCF growth 3YN/A
FCF growth 5Y34.53%
OCF growth 1Y151.22%
OCF growth 3YN/A
OCF growth 5Y20.37%