Kimball Electronics (KE) AI Stock Analysis

• Market Cap: $695.04M
• Dividend Yield: N/A
• Average Volume (3M): 248.28K
• Price to Earnings (P/E): 43.6
• Beta (1Y): 1.16
• Revenue Growth: -13.29%
• EPS Growth: -16.06%
• Country: US
• Employees: 7,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.34
• Shares Outstanding: 24,387,270
• 10 Day Avg. Volume: 205,726
• 30 Day Avg. Volume: 248,284
• PEG Ratio: -1.77
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.32
• P/FCF Ratio: 2.59
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 5.24
• Enterprise Value/Ebitda: 7.88
• 1Y Price Target: $30.67
• Price Target Upside: 2.00% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 66 Neutral
• Price Target: $32.00 ▲(6.42% Upside)

Kimball Electronics' overall stock score reflects a balance of strengths and challenges. The company's robust cash flow and improved leverage management are significant positives. However, declining revenue, margin pressure, and high valuation pose risks. The technical indicators suggest a cautiously optimistic outlook, but the mixed earnings call guidance tempers enthusiasm.

Kimball Electronics Business Overview & Revenue Model

Company Description

Kimball Electronics, Inc. provides contract electronics manufacturing services and diversified manufacturing services to customers in the automotive, medical, industrial, and public safety end markets. The company's manufacturing services include design services and support, supply chain services and support, and rapid prototyping and product introduction support services, as well as product design, and process validation and qualification services. Its manufacturing services also comprise industrialization and automation of manufacturing processes; reliability testing, including testing of products under a series of environmental conditions; production and testing of printed circuit board assemblies; assembly, production, and packaging of medical devices and disposables, and other non-electronic products; drug delivery devices and solutions with and without electronics; design engineering and manufacturing of automation equipment, test and inspection equipment, and precision molded plastics; software design services; and product life cycle management services. The company operates in the United States, China, Mexico, Poland, Romania, Thailand, and Vietnam. Kimball Electronics, Inc. was founded in 1961 and is headquartered in Jasper, Indiana.

How the Company Makes Money

Kimball Electronics generates revenue primarily through its contract manufacturing services, where it partners with companies to produce electronic components and systems. This revenue model is driven by long-term contracts with clients that secure steady income streams. Key revenue streams include the manufacturing of printed circuit board assemblies (PCBAs), complete product assemblies, and value-added services like design and engineering support. Additionally, KE benefits from strategic partnerships with leading technology firms in various sectors, which not only enhance its market reach but also lead to the development of specialized products that command higher margins. By focusing on diverse industries, KE mitigates risks associated with market fluctuations in any single sector, thereby strengthening its overall financial performance.

Kimball Electronics Financial Statement Overview

Summary

Kimball Electronics shows mixed financial performance with declining revenue and profit margins, but strong cash flow generation and improved leverage management.

Income Statement

Kimball Electronics has shown a declining revenue trend over the past few years, with a notable decrease in revenue growth rate in the most recent year. The gross profit margin and net profit margin have also decreased, indicating pressure on profitability. However, the company maintains a positive EBIT margin, suggesting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved, indicating better leverage management. Return on equity has decreased, reflecting lower profitability relative to equity. The equity ratio remains stable, suggesting a solid capital structure.

Cash Flow

Kimball Electronics has shown significant improvement in free cash flow growth, indicating better cash generation capabilities. The operating cash flow to net income ratio has improved, reflecting efficient cash conversion. However, the free cash flow to net income ratio suggests potential volatility in cash flow relative to earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.49B	1.49B	1.71B	1.82B	1.35B	1.29B
Gross Profit	104.40M	104.40M	140.26M	156.14M	104.60M	118.03M
EBITDA	69.40M	40.97M	90.34M	128.22M	77.40M	107.44M
Net Income	16.98M	16.98M	20.51M	55.83M	31.25M	56.79M
Balance Sheet
Total Assets	1.08B	1.08B	1.21B	1.26B	1.04B	814.06M
Cash, Cash Equivalents and Short-Term Investments	88.78M	88.78M	77.97M	42.95M	49.85M	106.44M
Total Debt	147.05M	147.05M	294.84M	281.45M	180.58M	66.21M
Total Liabilities	507.43M	507.43M	667.46M	735.73M	581.80M	372.09M
Stockholders Equity	569.88M	569.88M	540.46M	523.99M	453.97M	441.97M
Cash Flow
Free Cash Flow	150.43M	183.94M	27.14M	-103.17M	-157.89M	90.74M
Operating Cash Flow	183.94M	183.94M	73.22M	-13.80M	-83.18M	130.09M
Investing Cash Flow	-14.70M	-14.70M	-46.52M	-90.47M	-74.80M	-38.80M
Financing Cash Flow	-160.87M	-160.87M	8.97M	99.18M	103.74M	-53.08M

Kimball Electronics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KE, the sentiment is Positive. The current price of 30.07 is above the 20-day moving average (MA) of 29.04, above the 50-day MA of 29.30, and above the 200-day MA of 20.56, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 57.56 is Neutral, neither overbought nor oversold. The STOCH value of 77.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KE.

Kimball Electronics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESP	82 Outperform	$108.12M	12.24	17.68%	2.62%	13.46%	34.71%
PLPC	76 Outperform	$1.09B	27.33	9.66%	0.34%	7.95%	4.48%
KE	66 Neutral	$695.04M	43.57	3.06%	―	-13.29%	-16.06%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ULBI	59 Neutral	$110.68M	35.21	2.35%	―	5.86%	-68.66%
SKYX	51 Neutral	$172.19M	―	-481.19%	―	5.71%	7.97%
AIRJ	43 Neutral	$307.64M	7.90	14.69%	―	―	-85.17%

Kimball Electronics Corporate Events

Kimball Electronics Reports Mixed Earnings with Growth in Medical Segment

Kimball Electronics Inc. recently held its earnings call, presenting a mixed sentiment regarding its financial performance. While the company celebrated significant achievements in cash flow and growth in its Medical segment, it faced challenges with declining sales in the Automotive and Industrial segments, along with margin pressures.

Kimball Electronics Braces for Impact: Navigating Trade Policy Uncertainties and Tariff Risks

Kimball Electronics Inc. faces significant business risks due to potential changes in U.S. tariff measures and international trade relations. The company’s supply chain, heavily dependent on raw materials and components from countries like China, is vulnerable to disruptions and increased costs due to evolving trade policies and tariffs. The uncertainty surrounding future U.S. trade policies and international relations could adversely affect Kimball’s financial condition, cash flows, and operations, as these factors may lead to increased manufacturing costs, reduced demand for services, and restricted access to essential materials. Such developments could also impact global economic conditions, further exacerbating the challenges faced by Kimball Electronics.

Kimball Electronics Reports Strong Fiscal Year End

Kimball Electronics, Inc., a global provider of Electronics Manufacturing Services (EMS) and Contract Manufacturing Organization (CMO) solutions, operates across various industries from its facilities in the United States, China, Mexico, Poland, Romania, and Thailand. The company is known for its commitment to quality, reliability, and ethical behavior.