KIMBALL ELECTRONICS INC (KE) Stock Fundamental Analysis
NASDAQ:KE - Nasdaq - US49428J1097 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to KE. KE was compared to 124 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 it does not seem to be growing.
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.
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.
The Return On Equity of KE (3.27%) is comparable to the rest of the industry.
The Return On Invested Capital of KE (6.60%) is better than 70.16% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KE is in line with the industry average of 9.31%.
| 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 of 1.17%. This is comparable to the rest of the industry: KE outperforms 53.23% of its industry peers.
In the last couple of years the Profit Margin of KE has declined.
Looking at the Operating Margin, with a value of 3.75%, KE is in line with its industry, outperforming 59.68% of the companies in the same industry.
KE's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 7.20%, KE is doing worse than 84.68% of the companies in the same industry.
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.
Compared to 1 year ago, KE has about the same amount of shares outstanding.
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 2.97 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 2.97. This is comparable to the rest of the industry: KE outperforms 47.58% 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.
KE has a Debt to FCF ratio of 1.47. This is amongst the best in the industry. KE outperforms 81.45% of its industry peers.
KE has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of KE (0.27) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.47 | ||
| Altman-Z | 2.97 |
ROIC/WACC0.81
WACC8.17%
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 has a Current ratio (2.14) which is comparable to the rest of the industry.
A Quick Ratio of 1.24 indicates that KE should not have too much problems paying its short term obligations.
The Quick ratio of KE (1.24) is worse than 66.94% of its industry peers.
| 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
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.
KE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.90% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 16.45, the valuation of KE can be described as correct.
Based on the Price/Earnings ratio, KE is valued cheaply inside the industry as 86.29% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of KE to the average of the S&P500 Index (26.82), we can say KE is valued slightly cheaper.
With a Price/Forward Earnings ratio of 18.71, 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 74.19% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.21, KE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.45 | ||
| Fwd PE | 18.71 |
4.2 Price Multiples
95.97% of the companies in the same industry are more expensive than KE, based on the Enterprise Value to EBITDA ratio.
KE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. KE is cheaper than 98.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.67 | ||
| EV/EBITDA | 6.18 |
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-17.39%
EPS Next 3Y-14.76%
5. Dividend
5.1 Amount
No dividends for KE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
18.26
-0.5 (-2.67%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners79.42%
Inst Owner Change0.29%
Ins Owners1.71%
Ins Owner Change0%
Market Cap445.18M
Analysts81.67
Price Target20.15 (10.35%)
Short Float %1.5%
Short Ratio2.25
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 | 16.45 | ||
| Fwd PE | 18.71 | ||
| P/S | 0.29 | ||
| P/FCF | 3.67 | ||
| P/OCF | 2.88 | ||
| P/B | 0.81 | ||
| P/tB | 0.83 | ||
| EV/EBITDA | 6.18 |
EPS(TTM)1.11
EY6.08%
EPS(NY)0.98
Fwd EY5.34%
FCF(TTM)4.97
FCFY27.24%
OCF(TTM)6.33
OCFY34.68%
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 | 2.97 |
F-Score5
WACC8.17%
ROIC/WACC0.81
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