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. Both the profitability and the financial health of KE get a neutral evaluation. Nothing too spectacular is happening here. 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.
In the past year KE had a positive cash flow from operations.
In the past 5 years KE has always 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 (1.67%) which is in line with its industry peers.
The Return On Equity of KE (3.27%) is comparable to the rest of the industry.
KE has a better Return On Invested Capital (6.60%) than 70.40% 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 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
KE's Profit Margin of 1.17% is in line compared to the rest of the industry. KE outperforms 54.40% of its industry peers.
KE's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 3.75%, KE perfoms like the industry average, outperforming 59.20% of the companies in the same industry.
KE's Operating Margin has improved in the last couple of years.
The Gross Margin of KE (7.20%) is worse than 84.80% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KE is destroying value.
The number of shares outstanding for KE remains at a similar level compared to 1 year ago.
KE has less shares outstanding than it did 5 years ago.
The debt/assets ratio for KE is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.98 indicates that KE is not a great score, but indicates only limited risk for bankruptcy at the moment.
KE has a Altman-Z score of 2.98. This is comparable to the rest of the industry: KE outperforms 43.20% of its industry peers.
KE has a debt to FCF ratio of 1.47. This is a very positive value and a sign of high solvency as it would only need 1.47 years to pay back of all of its debts.
KE has a Debt to FCF ratio of 1.47. This is amongst the best in the industry. KE outperforms 80.80% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that KE is not too dependend on debt financing.
KE has a Debt to Equity ratio of 0.27. This is in the lower half of the industry: KE underperforms 60.00% of its industry peers.
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 | 0.27 | ||
| Debt/FCF | 1.47 | ||
| Altman-Z | 2.98 |
ROIC/WACC0.67
WACC9.85%
2.3 Liquidity
A Current Ratio of 2.14 indicates that KE has no problem at all paying 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.
With a Quick ratio value of 1.24, KE is not doing good in the industry: 68.00% of the companies in the same industry are doing better.
| 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.
The Earnings Per Share has been decreasing by -7.40% on average over the past years.
KE shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -30.75%.
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
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 correctly with a Price/Earnings ratio of 16.82.
Compared to the rest of the industry, the Price/Earnings ratio of KE indicates a rather cheap valuation: KE is cheaper than 85.60% of the companies listed in the same industry.
KE is valuated rather cheaply when we compare the Price/Earnings ratio to 28.04, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 19.13, KE is valued on the expensive side.
Based on the Price/Forward Earnings ratio, KE is valued a bit cheaper than the industry average as 73.60% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 37.64. KE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.82 | ||
| Fwd PE | 19.13 |
4.2 Price Multiples
KE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. KE is cheaper than 96.00% of the companies in the same industry.
KE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. KE is cheaper than 98.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.75 | ||
| EV/EBITDA | 6.18 |
4.3 Compensation for Growth
KE's earnings are expected to decrease with -14.76% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-17.39%
EPS Next 3Y-14.76%
5. Dividend
5.1 Amount
No dividends for KE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
18.67
-0.11 (-0.59%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners79.42%
Inst Owner Change0.51%
Ins Owners1.71%
Ins Owner Change0%
Market Cap455.17M
Analysts81.67
Price Target20.15 (7.93%)
Short Float %1.5%
Short Ratio1.98
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)6.27%
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 | 16.82 | ||
| Fwd PE | 19.13 | ||
| P/S | 0.3 | ||
| P/FCF | 3.75 | ||
| P/OCF | 2.95 | ||
| P/B | 0.83 | ||
| P/tB | 0.84 | ||
| EV/EBITDA | 6.18 |
EPS(TTM)1.11
EY5.95%
EPS(NY)0.98
Fwd EY5.23%
FCF(TTM)4.97
FCFY26.64%
OCF(TTM)6.33
OCFY33.91%
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 | 2.98 |
F-Score5
WACC9.85%
ROIC/WACC0.67
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