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 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 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.
In the past year KE had a positive cash flow from operations.
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 (1.67%) which is comparable to the rest of the industry.
KE has a Return On Equity (3.27%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 6.60%, KE is in the better half of the industry, outperforming 68.80% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for KE is in line with the industry average of 9.32%.
| 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 has a Profit Margin (1.17%) which is in line with its industry peers.
In the last couple of years the Profit Margin of KE has declined.
KE has a Operating Margin of 3.75%. This is in the better half of the industry: KE outperforms 60.80% of its industry peers.
In the last couple of years the Operating Margin of KE has grown nicely.
KE has a worse Gross Margin (7.20%) than 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.
Compared to 5 years ago, KE has less shares outstanding
Compared to 1 year ago, KE has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.96 indicates that KE is not a great score, but indicates only limited risk for bankruptcy at the moment.
KE has a Altman-Z score (2.96) which is in line with 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.
With an excellent Debt to FCF ratio value of 1.47, KE belongs to the best of the industry, outperforming 80.80% of the companies in the same industry.
KE has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
KE's Debt to Equity ratio of 0.27 is on the low side compared to the rest of the industry. KE is outperformed by 60.00% of its industry peers.
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 | 2.96 |
ROIC/WACC0.7
WACC9.42%
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.
KE's Current ratio of 2.14 is in line compared to the rest of the industry. KE outperforms 44.00% of 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: 67.20% 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.
KE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.40% yearly.
The Revenue for KE has decreased by -30.75% in the past year. This is quite bad
KE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.73% yearly.
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
KE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.90% yearly.
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.
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 16.47.
Based on the Price/Earnings ratio, KE is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
KE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.29.
With a Price/Forward Earnings ratio of 16.34, KE is valued correctly.
Based on the Price/Forward Earnings ratio, KE is valued a bit cheaper than the industry average as 75.20% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.17, KE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.47 | ||
| Fwd PE | 16.34 |
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.
Based on the Price/Free Cash Flow ratio, KE is valued cheaply inside the industry as 97.60% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.68 | ||
| EV/EBITDA | 6.05 |
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
KE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:KE (6/3/2025, 10:27:42 AM)
18.28
+0.01 (+0.05%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners77.6%
Inst Owner Change1.81%
Ins Owners1.7%
Ins Owner Change0.27%
Market Cap445.67M
Analysts81.67
Price Target21.68 (18.6%)
Short Float %1.52%
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)0%
EPS NQ rev (1m)-23.03%
EPS NQ rev (3m)-37.73%
EPS NY rev (1m)-7.09%
EPS NY rev (3m)-15.74%
Revenue NQ rev (1m)-1.76%
Revenue NQ rev (3m)-4.49%
Revenue NY rev (1m)1.37%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.47 | ||
| Fwd PE | 16.34 | ||
| P/S | 0.29 | ||
| P/FCF | 3.68 | ||
| P/OCF | 2.89 | ||
| P/B | 0.81 | ||
| P/tB | 0.83 | ||
| EV/EBITDA | 6.05 |
EPS(TTM)1.11
EY6.07%
EPS(NY)1.12
Fwd EY6.12%
FCF(TTM)4.97
FCFY27.21%
OCF(TTM)6.33
OCFY34.64%
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 | 2.96 |
F-Score5
WACC9.42%
ROIC/WACC0.7
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