KIMBALL ELECTRONICS INC (KE) Stock Fundamental Analysis
NASDAQ:KE - Nasdaq - US49428J1097 - Common Stock - Currency: USD
KE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 on the other hand it scores bad on growth.
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
The Return On Assets of KE (1.67%) is comparable to the rest of the industry.
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.
KE's Return On Invested Capital of 6.60% is fine compared to the rest of the industry. KE outperforms 69.60% of its industry peers.
KE had an Average Return On Invested Capital over the past 3 years of 8.03%. This is in line with the industry average of 9.38%.
| 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
KE's Profit Margin of 1.17% is in line compared to the rest of the industry. KE outperforms 55.20% of its industry peers.
KE's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 3.75%, KE is in line with its industry, outperforming 59.20% of the companies in the same industry.
In the last couple of years the Operating Margin of KE has grown nicely.
KE's Gross Margin of 7.20% is on the low side compared to the rest of the industry. KE is outperformed by 84.80% of its industry peers.
KE's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KE is destroying value.
The number of shares outstanding for KE remains at a similar level compared to 1 year ago.
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 2.99. 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 2.99. This is comparable to the rest of the industry: KE outperforms 48.00% 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.
A Debt/Equity ratio of 0.27 indicates that KE is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.27, KE is not doing good in the industry: 60.00% 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 | 0.27 | ||
| Debt/FCF | 1.47 | ||
| Altman-Z | 2.99 |
ROIC/WACC0.75
WACC8.84%
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.
The Current ratio of KE (2.14) is comparable to the rest of the industry.
KE has a Quick Ratio of 1.24. This is a normal value and indicates that KE is financially healthy and should not expect problems in meeting its short term obligations.
KE has a worse Quick ratio (1.24) than 68.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.14 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
KE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -40.32%.
Measured over the past years, KE shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.40% on average per year.
Looking at the last year, KE shows a very negative growth in Revenue. The Revenue has decreased by -30.75% in the last year.
Measured over the past years, KE shows a small growth in Revenue. The Revenue has been growing by 7.73% on average per year.
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
Based on estimates for the next years, KE will show a very negative growth in Earnings Per Share. The EPS will decrease by -14.76% on average per year.
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-41.28%
EPS Next 2Y-11.55%
EPS Next 3Y-14.76%
EPS Next 5YN/A
Revenue Next Year-17.12%
Revenue Next 2Y-10.48%
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.
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 17.39, the valuation of KE can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of KE indicates a rather cheap valuation: KE is cheaper than 81.60% of the companies listed in the same industry.
KE is valuated rather cheaply when we compare the Price/Earnings ratio to 26.65, which is the current average of the S&P500 Index.
KE is valuated rather expensively with a Price/Forward Earnings ratio of 17.25.
KE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KE is cheaper than 74.40% of the companies in the same industry.
KE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.27, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.39 | ||
| Fwd PE | 17.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KE is valued cheaply inside the industry as 96.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, KE is valued cheaper than 97.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.88 | ||
| EV/EBITDA | 6.3 |
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-11.55%
EPS Next 3Y-14.76%
5. Dividend
5.1 Amount
No dividends for KE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:KE (6/24/2025, 11:34:03 AM)
19.3
+0.06 (+0.31%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners79.42%
Inst Owner Change1.81%
Ins Owners1.71%
Ins Owner Change0.27%
Market Cap470.53M
Analysts81.67
Price Target20.15 (4.4%)
Short Float %1.72%
Short Ratio2.23
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)-7.06%
PT rev (3m)-7.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-23.03%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.39 | ||
| Fwd PE | 17.25 | ||
| P/S | 0.31 | ||
| P/FCF | 3.88 | ||
| P/OCF | 3.05 | ||
| P/B | 0.86 | ||
| P/tB | 0.87 | ||
| EV/EBITDA | 6.3 |
EPS(TTM)1.11
EY5.75%
EPS(NY)1.12
Fwd EY5.8%
FCF(TTM)4.97
FCFY25.77%
OCF(TTM)6.33
OCFY32.81%
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 | 2.99 |
F-Score5
WACC8.84%
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)-40.32%
EPS 3Y-13.64%
EPS 5Y-7.4%
EPS Q2Q%-20.59%
EPS Next Y-41.28%
EPS Next 2Y-11.55%
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-17.12%
Revenue Next 2Y-10.48%
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