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Key Tronic (KTCC) AI Stock Analysis
Key Tronic
(NASDAQ:KTCC)
KTCC faces profound fundamental distress, heavily weighed down by severe unprofitability, alarming equity erosion, and a deeply negative technical trend. While a robust 76% surge in backlog, new program awards, and newly aligned executive compensation offer some long-term recovery potential, immediate liquidity constraints and margin collapse make this a highly speculative turnaround play.
Key Tronic Key Performance Indicators (KPIs)
Revenue by Timing of Revenue RecognitionBreaks down revenue between amounts recognized at a single point (product shipments) and amounts recognized over time (long-term contracts, multi-deliverable projects, or ongoing services). For Key Tronic, a larger share of over-time revenue can mean steadier contract work and better forward visibility, while a heavier point-in-time mix can make reported sales more sensitive to order timing, inventory flows and supply-chain swings. Watch shifts over time and any impact from accounting changes (e.g., ASC 606) to judge whether reported trends reflect real business momentum or differences in recognition timing.
Over‑time revenue has softened materially since mid‑2023, signaling weaker recurring/long‑cycle contract activity and end‑of‑life program impacts, while point‑in‑time revenue’s late‑2023/early‑2024 spike reflects one‑off shipment/milestone recognition that has since faded. That lumpy revenue mix helps explain the year‑over‑year shortfall and losses; sustainable improvement depends on timely ramps of the new program wins and the China wind‑down cost savings—both of which create upside but leave near‑term recovery and profitability timing uncertain.
The FlyKey Tronic (KTCC) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $16.16M
- Dividend Yield
- ―
- Average Volume (3M)
- 32.48K
- Price to Earnings (P/E)
- -0.3
- Beta (1Y)
- 0.56
- Revenue Growth
- -11.14%
- EPS Growth
- -349.10%
- Country
- US
- 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
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.
Q1-2027 Updates
Positive Updates
Negative Updates
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 Financial Statement Overview
Summary
Financial health is severely distressed, marked by rapidly contracting revenue, widening net losses, and aggressive equity erosion. The company's highly negative profit margins and plunging operating cash flows drastically limit financial flexibility and heighten liquidity risks.
Income Statement
12Very NegativeBalance Sheet
22NegativeCash Flow
32Negative| Breakdown | TTM | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 386.67M | 386.67M | 467.87M | 566.94M | 605.32M | 531.82M |
| Gross Profit | 23.94M | 23.94M | 36.43M | 39.95M | 47.55M | 43.21M |
| EBITDA | -9.76M | -6.00M | 10.16M | 17.89M | 26.11M | 16.36M |
| Net Income | -47.79M | -47.79M | -8.32M | -2.79M | 5.16M | 3.38M |
Balance Sheet | ||||||
| Total Assets | 299.77M | 299.77M | 315.87M | 355.34M | 418.27M | 406.92M |
| Cash, Cash Equivalents and Short-Term Investments | 584.00K | 584.00K | 1.38M | 4.75M | 3.60M | 1.71M |
| Total Debt | 126.34M | 126.34M | 118.46M | 137.02M | 134.99M | 119.21M |
| Total Liabilities | 230.58M | 230.58M | 198.74M | 231.35M | 287.65M | 282.05M |
| Stockholders Equity | 69.18M | 69.18M | 117.13M | 123.99M | 130.62M | 124.88M |
Cash Flow | ||||||
| Free Cash Flow | -1.93M | -1.93M | 14.83M | 9.82M | -21.08M | -11.72M |
| Operating Cash Flow | 4.42M | 4.42M | 18.93M | 13.78M | -11.31M | -4.91M |
| Investing Cash Flow | -4.02M | -4.02M | -4.20M | -2.11M | -4.53M | -8.05M |
| Financing Cash Flow | -1.21M | -1.21M | -18.10M | -10.52M | 17.74M | 11.19M |
Key Tronic Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KTCC, the sentiment is Negative. The current price of 1.46 is below the 20-day moving average (MA) of 2.09, below the 50-day MA of 2.29, and below the 200-day MA of 3.06, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 14.52 is Positive, neither overbought nor oversold. The STOCH value of 0.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KTCC.
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.
Latest Risks Added
1 New RiskKey Tronic Peers Comparison
Overall Rating
TACT59Neutral
EBON44Neutral- KTCC43Neutral
ZSPC40Underperform
SCKT39Underperform
Financial Indicators
| 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 | $54.41M | -157.78 | -1.25% | ― | 10.52% | 95.37% |
| EBON | 44Neutral | $9.42M | -0.90 | -5.14% | ― | -6.25% | 32.66% |
| KTCC | 43Neutral | $22.80M | -0.30 | -62.36% | ― | -11.14% | -349.10% |
| ZSPC | 40Underperform | $3.02M | -0.00 | 97.69% | ― | -34.31% | 1.15% |
| SCKT | 39Underperform | $2.46M | -0.16 | -229.43% | ― | -17.40% | -403.07% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| KTCC | Key Tronic | 1.46 | -1.46 | -50.00% | |
| SCKT | Socket Mobile | 0.30 | -0.80 | -72.73% | |
| TACT | Transact Technologies | 5.27 | 0.97 | 22.56% | |
| EBON | Ebang International Holdings, Inc. | 1.78 | -2.48 | -58.15% | |
| ZSPC | zSpace, Inc. | 0.09 | -19.85 | -99.56% |
Key Tronic Corporate Events
Key Tronic Shareholders Approve Directors and Key Proposals
NeutralAt its October 29, 2026 Annual Meeting, Key Tronic Corporation shareholders elected all seven director nominees to serve until the next annual meeting and their successors qualify. Shareholders also approved executive compensation on a non-binding ad...
Key Tronic Sets New Performance-Linked Executive Incentive Plan
PositiveOn August 20, 2026, Key Tronic’s board set profit-based performance goals and target payout ranges for participants in its fiscal 2027 incentive compensation plan, including CEO Brett Larsen and senior executives, with payouts as a percentage o...
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.
Date of analysis: Nov 05, 2026