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Kimball Electronics
(NASDAQ:KE)
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Rating:66Neutral
Price Target:
$28.00
▲(4.44% Upside)
Action:Reiterated
Date:07/01/26
The score is primarily supported by a de-risked balance sheet and generally improved cash generation, alongside constructive (but cautious) guidance and margin progress. It is held back by only moderate operating fundamentals (soft revenue trend and thin margins), mixed technical trend signals (still below the 200-day average), and a valuation that looks demanding without dividend support.
Positive Factors
De-risked balance sheet and low leverage
A very low-debt, stable-equity profile gives Kimball sustained financial flexibility to fund medically oriented growth, absorb cyclical dips, and execute tuck-in M&A without forcing dilutive financing. Over 2–6 months this underpins strategic optionality and resilience.
Negative Factors
Choppy top-line and recent revenue softness
A pattern of uneven revenue (TTM decline and recent YoY drops) signals limited durable demand momentum and raises execution risk for margin recovery. Over 2–6 months, inconsistent bookings hinder predictable capacity utilization and constrain sustainable operating leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
De-risked balance sheet and low leverage
A very low-debt, stable-equity profile gives Kimball sustained financial flexibility to fund medically oriented growth, absorb cyclical dips, and execute tuck-in M&A without forcing dilutive financing. Over 2–6 months this underpins strategic optionality and resilience.
Read all positive factors
Kimball Electronics (KE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$604.83M
Dividend YieldN/A
Average Volume (3M)196.05K
Price to Earnings (P/E)23.3
Beta (1Y)1.30
Revenue Growth-6.26%
EPS Growth47.30%
CountryUS
Employees5,700
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)1.06
Shares Outstanding24,048,925
10 Day Avg. Volume199,838
30 Day Avg. Volume196,051
Financial Highlights & Ratios
PEG Ratio-1.66
Price to Book (P/B)0.84
Price to Sales (P/S)0.32
P/FCF Ratio3.17
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$30.00Price Target Upside11.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.35
Revenue Forecast (FY)$1.52B
Kimball Electronics Business Overview & Revenue Model
Company Description
Kimball Electronics, Inc. specializes in providing comprehensive contract electronics manufacturing (CEM) and an array of diversified production solutions, catering to clients across the automotive, medical, industrial, and public safety sectors. ...
How the Company Makes Money
KE makes money by providing contract manufacturing services to OEM customers under supply agreements in which it builds electronic assemblies and finished devices to customer specifications. Its primary revenue stream is manufacturing sales: custo...
Kimball Electronics Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Aug 19, 2026
Earnings Call Sentiment Positive
The call conveyed a cautiously positive tone: the company reported sequential revenue growth, strong and accelerating Medical performance (now ~30% of revenue), margin improvement, continued positive operating cash flow, improved liquidity and affirmed full-year guidance. At the same time, management highlighted near-term pressures—reported YoY revenue decline (when unadjusted), soft Automotive and Industrial demand, margin headwinds from the Indianapolis ramp in FY'27, higher SG&A as a percent of sales, and macro/geopolitical risks. Strategic initiatives (Indianapolis facility, Medical CMO focus, active M&A pursuit) and solid balance sheet position offer upside, while the timing of CMO ramps and external demand trends represent meaningful near-term risks.Positive Updates
Medical Revenue Strength and Portfolio Milestone
Medical sales were $106 million (30% of company revenue), up 10% sequentially. Adjusting for a prior-year consigned inventory sale, Medical grew ~17% year-over-year in Q3 and is up 15% year-to-date, marking a third consecutive quarter of double-digit Medical growth. Asia Medical growth in Q3 exceeded 20%.
Negative Updates
Reported Year-over-Year Revenue Decline
Reported consolidated sales were down 6% year-over-year to $352.9 million; the decline was partially due to a nonrecurring $24 million consigned inventory sale in the prior-year period (when unadjusted).
Read all updates
Q3-2026 Updates
Positive
Negative
Medical Revenue Strength and Portfolio Milestone
Medical sales were $106 million (30% of company revenue), up 10% sequentially. Adjusting for a prior-year consigned inventory sale, Medical grew ~17% year-over-year in Q3 and is up 15% year-to-date, marking a third consecutive quarter of double-digit Medical growth. Asia Medical growth in Q3 exceeded 20%.
Read all positive updates
Company Guidance
Kimball affirmed fiscal 2026 revenue guidance of $1.40–$1.46 billion and said adjusted operating margin should come in at the high end of its 4.2%–4.5% range; management expects Q4 sales of $370–$380 million with a Q4 adjusted operating margin of roughly 4.4%–4.6%. Other metrics cited: Q3 net sales were $352.9 million (sequential +3.4%), Q3 adjusted operating income $14.8 million (4.2%), Q3 adjusted net income $8.0 million or $0.33 diluted, Q3 gross margin 7.9% (up 70 bps YoY), Q3 cash from operations $14.9 million (ninth consecutive quarter positive), cash & cash equivalents $82.5 million, short‑term liquidity $358.5 million with a renewed $300 million revolver, borrowings $163 million, inventory $273.3 million (down $8.4M QoQ, $23.3M YoY), cash conversion days 90 (‑1 day QoQ, ‑9 days YoY), capex expected $50–$60 million for the year, an expected FY tax rate ~30%, and management warned of a 40–50 bps gross‑margin headwind in FY‑27 from ramping the new Indianapolis CMO (with CMO ramp timelines of 18–36 months).Kimball Electronics Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
86
Very Positive
Cash Flow
68
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.44B | 1.49B | 1.71B | 1.82B | 1.35B | 1.29B |
| Gross Profit | 113.46M | 104.40M | 140.26M | 156.16M | 104.60M | 118.03M |
| EBITDA | 87.82M | 77.97M | 86.07M | 123.42M | 75.80M | 106.24M |
| Net Income | 26.02M | 16.98M | 20.51M | 55.83M | 31.25M | 56.79M |
Balance Sheet | ||||||
| Total Assets | 1.10B | 1.08B | 1.21B | 1.26B | 1.04B | 814.06M |
| Cash, Cash Equivalents and Short-Term Investments | 84.61M | 88.78M | 77.97M | 42.95M | 49.85M | 106.44M |
| Total Debt | 179.61M | 147.05M | 294.84M | 281.45M | 180.58M | 66.21M |
| Total Liabilities | 526.66M | 507.43M | 667.46M | 735.73M | 581.80M | 372.09M |
| Stockholders Equity | 577.64M | 569.88M | 540.46M | 523.99M | 453.97M | 441.97M |
Cash Flow | ||||||
| Free Cash Flow | 83.82M | 150.26M | 27.14M | -104.49M | -157.89M | 90.74M |
| Operating Cash Flow | 107.90M | 183.94M | 73.22M | -13.80M | -83.18M | 130.09M |
| Investing Cash Flow | -47.63M | -14.70M | -46.52M | -90.47M | -74.80M | -38.80M |
| Financing Cash Flow | -31.80M | -160.87M | 8.97M | 99.18M | 103.74M | -53.08M |
Kimball Electronics Technical Analysis
Negative
26.81
Price Trends
25.33
Negative
25.19
Negative
26.95
Negative
Market Momentum
-0.14
Positive
46.72
Neutral
28.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KE, the sentiment is Negative. The current price of 26.81 is above the 20-day moving average (MA) of 25.09, above the 50-day MA of 25.33, and below the 200-day MA of 26.95, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 46.72 is Neutral, neither overbought nor oversold. The STOCH value of 28.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KE.
Kimball Electronics Risk Analysis
Kimball Electronics disclosed 27 risk factors in its most recent earnings report. Kimball Electronics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Kimball Electronics Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $167.08M | 14.69 | 20.38% | 3.00% | -8.09% | 42.56% | |
76 Outperform | $1.69B | 49.52 | 7.31% | 0.35% | 15.92% | -12.16% | |
66 Neutral | $604.83M | 23.34 | 4.52% | ― | -6.26% | 47.30% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $94.28M | -11.56 | -6.14% | ― | 8.42% | -254.85% | |
54 Neutral | $290.33M | -2.24 | -27.21% | ― | ― | -227.99% | |
52 Neutral | $168.11M | -4.16 | -432.85% | ― | 7.52% | 13.21% |
* Industrials Sector Average
KE
Kimball Electronics
24.74
5.34
27.53%
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Kimball Electronics Corporate Events
Business Operations and StrategyM&A Transactions
Kimball Electronics Acquires Helvoet to Expand Medical Platform
Positive
Jul 1, 2026
On June 26, 2026, Kimball Electronics, through wholly owned subsidiaries, agreed to acquire Helvoet Polymer Technologies B.V. and its Indian affiliate from Hydratec Industries N.V., and the deal closed on July 1, 2026. The transaction, valued at a...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.