One-glance verdict
Within fair range
$22.79 our estimate vs market $24.84
Wall Street consensus: $34.25 (50.3% higher than our fair-value estimate)
9% above our estimate
Fundamentals snapshot
Kimball Electronics, Inc.
KE · NMS · Industrials · Electrical Equipment & Parts
Current price
$24.84
52-week range
$21.01 - $33.19
Market cap
$595.22M
Balance sheet
Watch
6.62x Adequate
Net debt $44.15M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Returns 4.8% on equity, ahead of 16% of its peers.
- Reward Free cash flow was positive in 7/10 years.
- Reward Trades at 22.0x P/E vs peer median 36.2x (39.2% cheaper).
- Risk Operating margin compressed from 4.8% to 4.2% over 3 years.
What this company does
Kimball Electronics, Inc.
Kimball Electronics is a manufacturing partner that builds crucial electronic parts for big companies, primarily in the automotive, medical, and industrial fields. The company makes money from long-term contracts to produce these components, meaning its financial health is closely tied to the success of its major clients and its ability to manage a global supply chain (the entire process of sourcing materials and delivering finished products).
How the company got here
Kimball Electronics started in 1961 as an internal division of a larger company, Kimball International. For decades, it focused on making electronic components for its parent company's products. A major turning point came in 2014 when it was spun off into its own publicly traded company. This separation allowed the company to focus entirely on what it does best: electronics manufacturing for other companies, a business model known as contract manufacturing.
What it actually does
Kimball Electronics is a behind-the-scenes manufacturing partner for other companies. It doesn't sell products under its own brand name; instead, it builds the complex electronic parts that go inside the products of well-known brands. Think of them as a highly skilled workshop that other companies hire to build crucial components for their products, especially for industries where quality and reliability are extremely important. They handle everything from helping design the product to managing the supply chain (the process of getting all the necessary parts) and assembling the final electronic systems.
Automotive
This is the company's largest business area, where they manufacture critical electronic parts for cars. These aren't things you'd see in a store, but rather the complex electronics that make modern cars work, such as systems for power steering, electronic braking, and automated driver assistance. Car companies and their main suppliers pay Kimball to produce these high-reliability components because safety and durability are essential. This segment is a major part of their business, driven by the increasing amount of electronics in new vehicles.
Medical
Kimball Electronics builds electronic components and finished devices for the healthcare industry. This includes parts for sleep therapy and respiratory care machines, as well as drug delivery devices and precision plastic components used in medical disposables. Medical device companies hire Kimball because they have the expertise to manufacture products that meet strict regulatory standards for safety and quality. This is a key growth area for the company, as they focus on more complex and higher-value medical products.
Industrial
In this segment, Kimball produces electronic systems for a wide range of industrial products. This includes things like climate and automation controls for buildings and factories, as well as electronics for public safety equipment. Companies that make complex industrial machinery and equipment pay Kimball to build the electronic brains of their products. This part of the business focuses on durable, long-lasting electronics for demanding environments.
What management is betting on now
The company's main focus is on expanding its work in highly regulated and complex industries, especially the medical field. They are investing in new facilities and capabilities to produce more advanced medical devices, which typically have higher profit margins (the amount of profit made per dollar of sales). Management is also focused on strengthening its global manufacturing footprint, allowing customers to have products built closer to where they are sold, which helps reduce supply chain (the network of companies involved in producing and distributing a product) risks. The goal is to become a more essential partner for companies that need a high degree of quality and reliability in their products.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q1
$32.12M
FY2025 Q2
$23.05M
FY2025 Q3
$27.04M
FY2025 Q4
$68.45M
FY2026 Q1
$-2.45M
FY2026 Q2
$-11.24M
FY2026 Q3
$494.00K
FY2026 Q4
$33.98M
Revenue
$371.57M
Net income
$8.52M
Diluted EPS
0.35
Operating cash flow
$42.43M
Free cash flow
$33.98M
Fetching…
Sources
Revenue
$352.92M
Net income
$5.72M
Diluted EPS
0.23
Operating cash flow
$14.89M
Free cash flow
$494.00K
Fetching…
Sources
Revenue
$341.28M
Net income
$3.64M
Diluted EPS
0.15
Operating cash flow
$6.88M
Free cash flow
$-11.24M
Fetching…
Sources
Revenue
$365.60M
Net income
$10.09M
Diluted EPS
0.40
Operating cash flow
$8.06M
Free cash flow
$-2.45M
Fetching…
Sources
Revenue
$380.47M
Net income
$6.58M
Diluted EPS
0.27
Operating cash flow
$78.07M
Free cash flow
$68.45M
Fetching…
Sources
Revenue
$374.61M
Net income
$3.82M
Diluted EPS
0.15
Operating cash flow
$30.94M
Free cash flow
$27.04M
Fetching…
Sources
Revenue
$357.39M
Net income
$3.43M
Diluted EPS
0.14
Operating cash flow
$29.46M
Free cash flow
$23.05M
Fetching…
Sources
Revenue
$374.26M
Net income
$3.15M
Diluted EPS
0.12
Operating cash flow
$45.47M
Free cash flow
$32.12M
Fetching…
Sources
Is it cheap or expensive?
Fair value $22.79 vs current price $24.84
Wall Street consensus is the average analyst price target: $34.25 (50.3% higher than our fair-value estimate).
Our most-likely fair value is $22.79 a share — about 8.2% away from today's price of $24.84, so the stock currently looks fairly priced.
Is it drowning in debt?
Watch
Net debt $44.1M. Interest coverage 6.6x.
Net debt
$44.15M
Interest coverage
6.62x
Kimball Electronics, Inc.'s profit covers its interest bill about 6.6 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
KE
BASELINE
Kimball Electronics, Inc.
Total debt $133.07M Interest coverage 6.62x This is the baseline the peer rows are being compared against.
Total debt $291.82M Interest coverage 5.24x -21% vs KE Carries about 1.3x less debt cushion than KE.
Total debt $306.96M Interest coverage 17.84x +169% vs KE Carries about 2.7x more debt cushion than KE.
Total debt $2.43B Interest coverage 19.60x +196% vs KE Carries about 3.0x more debt cushion than KE.
Total debt $981.20M Interest coverage 20.35x +207% vs KE Carries about 3.1x more debt cushion than KE.
Total debt $1.10B Interest coverage 5.90x -11% vs KE Has roughly the same debt cushion as KE.
What you should know
The case for and against KE
3 Rewards
1 Risk
Rewards
-
Returns 4.8% on equity, ahead of 16% of its peers.
-
Free cash flow was positive in 7/10 years.
-
Trades at 22.0x P/E vs peer median 36.2x (39.2% cheaper).
Risks
-
Operating margin compressed from 4.8% to 4.2% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
21.98x
Forward P/E
13.59x
P/B
1.02x
P/S
0.42x
EV/EBITDA
6.56x
PEG ratio
1.02x
Profitability
How much profit each dollar creates
Gross margin
8.2%
Operating margin
4.2%
Net margin
2.0%
ROE
4.8%
ROA
3.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.23x
Current ratio
2.09x
Quick ratio
1.14x
Total debt
$133.07M
Total cash
$88.92M
Growth
How the business has been compounding
Revenue TTM
$1.43B
Revenue 5Y CAGR
1.5%
EPS TTM
1.13
EPS 5Y CAGR
-20.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$72.27M
Free CF TTM
$20.78M
FCF margin
1.5%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
—