Key Tronic (KT1) AI Stock Analysis

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Key Tronic

(Frankfurt:KT1)

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Positive Factors

Backlog GrowthThe sharply higher backlog and greater share of firm purchase orders indicate stronger demand visibility for future production. If converted into shipments, this supports revenue growth, improves factory utilization, and provides a durable foundation for rebuilding operating leverage over the next several quarters.

Negative Factors

Severe Profitability DeteriorationDeeply negative margins and a sizable net loss show that current revenue is not covering manufacturing and operating costs. This weak earnings base reduces internal funding capacity, makes recovery dependent on successful execution, and leaves profitability vulnerable if volume or production efficiency improves more slowly than planned.

Key Tronic (KT1) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 14.83M
Dividend Yield: ―
Average Volume (3M): 500
Price to Earnings (P/E): -0.3
Beta (1Y): 0.36
Revenue Growth: -15.76%
EPS Growth: -327.78%
Country: Germany
Employees: 3,298
Sector: Technology
Sector Strength: 61
Industry: Computer Hardware

Key Tronic Business Overview & Revenue Model

Company Description

Key Tronic Corporation (KTCC) operates as a contract manufacturer, offering comprehensive services to original equipment manufacturers (OEMs) both within the United States and globally. The company provides an integrated suite of offerings, which inc...

Key Tronic Earnings Call Summary

Earnings Call Date:Nov 03, 2026(Q1-2027)|% Change Since:0.00%|Next Earnings Date:Aug 10, 2021

Earnings Call SentimentNeutral

The call had a mixed outlook. Near-term financial performance was weak, with flat revenue, substantially lower margins, larger losses, delayed shipments and tight liquidity. However, management emphasized strong underlying demand, a 76% backlog increase, more than $60 million of new program awards, growing Vietnam operations, customer-supported capital and planned cost reductions. The company expects revenue growth and a return to profitability in the second half of fiscal 2027, but the timing remains uncertain.

Positive Updates

Strong Demand and Backlog Growth

Backlog reached $245.9 million in Q1 fiscal 2027, up 76% year over year and 20% from the June quarter. Management said the increase reflects an 'incredibly strong' and more meaningful demand environment, with a larger portion of backlog consisting of firm purchase orders rather than forecasts.

Negative Updates

Revenue Remained Essentially Flat

Q1 fiscal 2027 revenue was $98.7 million, compared with $98.8 million in the same period of fiscal 2026. Revenue was constrained by tightening credit availability and liquidity pressures across the global supply chain.

Company Guidance

The company is not providing revenue or earnings guidance for the second quarter; it expects total capital expenditures for the full year of approximately $7 million to $10 million, U.S.-based workforce actions are expected to reduce labor costs by approximately $8 million annually, about 70% of that reduction is baked in and the remaining amount will be built in over periods five and six, with all $8 million of that cost out of current labor by January, and it continues to expect revenue growth and a return to profitability in the second half of fiscal 2027.

Key Tronic Risk Analysis

Key Tronic disclosed 34 risk factors in its most recent earnings report. Key Tronic 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

Key Tronic Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

DE:KT1 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TACT	59Neutral	$49.56M	-147.60	-1.25%	―	10.52%	95.37%
EBON	44Neutral	$9.92M	-0.82	-5.14%	―	-6.25%	32.66%
SCKT	40Underperform	$2.08M	-0.26	-480.09%	―	-11.67%	-383.13%
ZSPC	37Underperform	$2.33M	-0.00	97.69%	―	-34.31%	1.15%

* Technology Sector Average

Performance Comparison

DE:KT1 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:KT1	Key Tronic	1.81	-0.53	-22.65%
SCKT	Socket Mobile	0.46	-0.77	-62.28%
TACT	Transact Technologies	4.93	0.73	17.38%
EBON	Ebang International Holdings, Inc.	1.63	-2.14	-56.76%
ZSPC	zSpace, Inc.	0.06	-18.53	-99.67%

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.

Key Tronic AI Stock Analysis