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Kimball Electronics
(NASDAQ:KE)
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Rating:63Neutral
Price Target:
$26.00
▲(9.01% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by solid financial resilience (notably lower leverage and positive cash flow) and a constructive FY2027 outlook supported by Medical momentum and the Helvoet acquisition. These positives are tempered by the sharp recent multi-year revenue decline and still-thin margins, while technicals and valuation are broadly neutral.
Positive Factors
Deleveraging and balance-sheet resilience
Lower leverage strengthens Kimball Electronics’ ability to withstand uneven end-market demand and fund customer programs or targeted expansion. The improved capital structure also reduces balance-sheet strain and supports greater flexibility for investment, acquisitions, and shareholder returns over the next several quarters.
Negative Factors
Multi-year revenue contraction
The extended sales decline indicates that Kimball Electronics has not yet fully restored the revenue base reached after 2023. Prolonged contraction can reduce operating leverage, weaken utilization across the manufacturing footprint, and make margin recovery more dependent on successful new programs and acquisitions.
Read all positive and negative factors
Positive Factors
Negative Factors
Deleveraging and balance-sheet resilience
Lower leverage strengthens Kimball Electronics’ ability to withstand uneven end-market demand and fund customer programs or targeted expansion. The improved capital structure also reduces balance-sheet strain and supports greater flexibility for investment, acquisitions, and shareholder returns over the next several quarters.
Read all positive factors
Kimball Electronics (KE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$697.45M
Dividend YieldN/A
Average Volume (3M)185.54K
Price to Earnings (P/E)25.3
Beta (1Y)1.47
Revenue Growth-3.72%
EPS Growth66.22%
CountryUS
Employees5,600
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)1.14
Shares Outstanding23,991,995
10 Day Avg. Volume180,382
30 Day Avg. Volume185,539
Financial Highlights & Ratios
PEG Ratio0.34
Price to Book (P/B)1.08
Price to Sales (P/S)0.44
P/FCF Ratio30.48
Enterprise Value/Market Cap0.96
Enterprise Value/Revenue0.47
Enterprise Value/Gross Profit5.79
Enterprise Value/Ebitda6.63
Forecast
1Y Price Target
$35.00Price Target Upside46.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.57
Revenue Forecast (FY)$1.54B
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
Kimball Electronics makes money primarily by providing contract manufacturing and related services to original equipment manufacturers (OEMs) and other customers. Revenue is generated from customer programs where KE builds electronic assemblies an...
Kimball Electronics Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 09, 2026
Earnings Call Sentiment Positive
The call was largely constructive: management highlighted stabilization of the base business, strong cash generation, meaningful balance sheet improvement, gross margin expansion, and an accretive acquisition (Helvoet) that supports FY2027 growth guidance of 7%–9%. Medical continues to be the primary growth engine. Offsetting these positives are persistent weakness in Automotive and Industrial segments, near-term margin pressure from ramping the Indianapolis CDMO facility (an estimated ~$6.5M–$7M drag), a very high Q4 effective tax rate that distorted adjusted results, and expected working capital headwinds and FX translation risk associated with Helvoet. Overall, the positives (cash, guidance, Medical momentum, acquisition synergies, and improved margins/interest costs) outweigh the negatives, though several risks remain in the near term.Positive Updates
Strong Cash Generation and Strengthened Balance Sheet
Operating cash flow of $42.4M in Q4 (10th consecutive quarter positive); cash & equivalents $88.9M; borrowings $116.6M (lowest in >4 years, down $30.9M or 21% YoY and down $46.4M QoQ); short-term liquidity (cash + unused credit) $411.3M.
Negative Updates
Overall Revenue Pressure in Q4
Company net sales in Q4 were $371.6M, down 2% YoY despite a 5% sequential increase, indicating persistent top-line pressure outside of Medical.
Read all updates
Q4-2026 Updates
Positive
Negative
Strong Cash Generation and Strengthened Balance Sheet
Operating cash flow of $42.4M in Q4 (10th consecutive quarter positive); cash & equivalents $88.9M; borrowings $116.6M (lowest in >4 years, down $30.9M or 21% YoY and down $46.4M QoQ); short-term liquidity (cash + unused credit) $411.3M.
Read all positive updates
Company Guidance
Guidance for fiscal 2027 calls for net sales of $1.535–$1.56 billion (up 7%–9% vs. FY2026) comprising 3%–5% organic growth plus roughly $60 million of Helvoet revenue, with Medical expected to approach ~35% of company sales and deliver high-single to low-double digit organic growth, Industrial roughly in line with the company average, and Automotive essentially flattish; adjusted operating income is forecast at 4.4%–4.7% of sales, capital expenditures $50–$60 million, an effective tax rate in the low‑30s, and revenue fairly evenly distributed quarter-to-quarter, while management expects the Indianapolis ramp to create roughly a $6.5–$7.0 million drag (production beginning late calendar year with an ~18‑month move completion) largely offset by Helvoet accretion — all against a balance sheet with $88.9 million cash, $116.6 million borrowings (lowest in >4 years), $411.3 million of short‑term liquidity, $72.3 million of FY26 operating cash flow, and $24.4 million remaining on the share‑repurchase authorization.Kimball Electronics Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
72
Positive
Cash Flow
60
Neutral
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.43B | 1.49B | 1.71B | 1.82B | 1.35B |
| Gross Profit | 122.78M | 104.40M | 140.26M | 156.16M | 104.60M |
| EBITDA | 49.70M | 77.97M | 86.07M | 123.42M | 75.80M |
| Net Income | 27.96M | 16.98M | 20.51M | 55.83M | 31.25M |
Balance Sheet | |||||
| Total Assets | 1.09B | 1.08B | 1.21B | 1.26B | 1.04B |
| Cash, Cash Equivalents and Short-Term Investments | 88.92M | 88.78M | 77.97M | 42.95M | 49.85M |
| Total Debt | 118.54M | 147.05M | 294.84M | 281.45M | 180.58M |
| Total Liabilities | 506.94M | 507.43M | 667.46M | 735.73M | 581.80M |
| Stockholders Equity | 585.13M | 569.88M | 540.46M | 523.99M | 453.97M |
Cash Flow | |||||
| Free Cash Flow | 20.78M | 150.26M | 27.14M | -104.49M | -157.89M |
| Operating Cash Flow | 72.27M | 183.94M | 73.22M | -13.80M | -83.18M |
| Investing Cash Flow | -25.95M | -14.70M | -46.52M | -90.47M | -74.80M |
| Financing Cash Flow | -47.05M | -160.87M | 8.97M | 99.18M | 103.74M |
Kimball Electronics Technical Analysis
Positive
23.85
Price Trends
25.64
Positive
25.36
Positive
25.90
Positive
Market Momentum
1.06
Negative
65.10
Neutral
89.48
Negative
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 23.85 is below the 20-day moving average (MA) of 26.87, below the 50-day MA of 25.64, and below the 200-day MA of 25.90, indicating a bullish trend. The MACD of 1.06 indicates Negative momentum. The RSI at 65.10 is Neutral, neither overbought nor oversold. The STOCH value of 89.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KE.
Kimball Electronics Risk Analysis
Kimball Electronics disclosed 26 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $184.67M | 14.75 | 20.22% | 2.94% | 4.95% | 28.35% | |
74 Outperform | $1.98B | 44.59 | 9.03% | 0.21% | 17.07% | 3.40% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $697.45M | 25.25 | 4.82% | ― | -3.72% | 66.22% | |
57 Neutral | $105.98M | -15.51 | -4.95% | ― | 4.69% | -304.68% | |
49 Neutral | $276.76M | -2.85 | -32.48% | ― | ― | -290.79% | |
44 Neutral | $154.39M | -4.03 | -299.98% | ― | 8.05% | 21.73% |
* Industrials Sector Average
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Kimball Electronics
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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.