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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
KE had positive earnings in each of the past 5 years.
In multiple years KE reported negative operating cash flow during the last 5 years.
1.2 Ratios
KE's Return On Assets of 1.67% is in line compared to the rest of the industry. KE outperforms 58.40% of its industry peers.
KE has a Return On Equity (3.27%) which is comparable to the rest of the industry.
KE's Return On Invested Capital of 6.60% is fine compared to the rest of the industry. KE outperforms 70.40% 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 9.16%.
| 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 has a Profit Margin (1.17%) which is in line with its industry peers.
KE's Profit Margin has declined in the last couple of years.
KE's Operating Margin of 3.75% is in line compared to the rest of the industry. KE outperforms 59.20% of its industry peers.
KE's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 7.20%, KE is not doing good in the industry: 84.80% of the companies in the same industry are doing better.
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.
KE has about the same amout of shares outstanding than it did 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 indicates that KE is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 2.99, KE perfoms like the industry average, outperforming 43.20% of the companies in the same industry.
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 better Debt to FCF ratio (1.47) than 80.80% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that KE is not too dependend on debt financing.
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.
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 | 2.99 |
ROIC/WACC0.67
WACC9.8%
2.3 Liquidity
A Current Ratio of 2.14 indicates that KE has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.14, KE is in line with its industry, outperforming 44.00% of the companies in the same industry.
A Quick Ratio of 1.24 indicates that KE should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.24, KE is doing worse than 68.00% of the companies in the same industry.
| 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
The Revenue has been growing slightly by 7.73% on average over the past years.
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.
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
KE is valuated rather expensively with a Price/Earnings ratio of 17.48.
KE's Price/Earnings ratio is rather cheap when compared to the industry. KE is cheaper than 85.60% of the companies in the same industry.
KE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.53.
With a Price/Forward Earnings ratio of 19.88, KE is valued on the expensive side.
KE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KE is cheaper than 70.40% of the companies in the same industry.
KE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.48 | ||
| Fwd PE | 19.88 |
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.
98.40% of the companies in the same industry are more expensive than KE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.9 | ||
| EV/EBITDA | 6.34 |
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
KE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
19.4
+0.01 (+0.05%)
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 Cap472.97M
Analysts81.67
Price Target20.15 (3.87%)
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 | 17.48 | ||
| Fwd PE | 19.88 | ||
| P/S | 0.31 | ||
| P/FCF | 3.9 | ||
| P/OCF | 3.06 | ||
| P/B | 0.86 | ||
| P/tB | 0.88 | ||
| EV/EBITDA | 6.34 |
EPS(TTM)1.11
EY5.72%
EPS(NY)0.98
Fwd EY5.03%
FCF(TTM)4.97
FCFY25.64%
OCF(TTM)6.33
OCFY32.64%
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 | 2.99 |
F-Score5
WACC9.8%
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