Kimball Electronics, Inc.
$25.95
-3.0%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.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is elevated (P/E 38.2).
Valuation inputs: P/E 38.2, earnings yield +2.6%, momentum -3.0%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE +3.0%, ROIC +3.8%).
Profitability stack: net margin +1.1%, ROE +3.0%, ROIC +3.8%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +47.1%, momentum -3.0%, net margin +1.1%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Kimball Electronics, Inc. Market vs Earnings Trajectory
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Kimball Electronics, Inc. Fair Value Envelope
Kimball Electronics, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Thin margins leave little room for error. Cost management and pricing strategy are critical.
Operating Margin
Minimal operating profit suggests high operating costs or pricing challenges. Scalability is concerning.
Net Profit Margin
Minimal profitability after all expenses. Limited financial flexibility for reinvestment or shareholder returns.
Effective Tax Rate
Higher tax burden may reflect limited tax optimization or operations in high-tax jurisdictions.
Profitability Insight
Efficient profit conversion: Minimal margin compression from gross to net indicates lean operations and favorable tax/interest environment.
Kimball Electronics, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.
Kimball Electronics, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.
Debt-to-Equity Ratio
Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Balanced asset mix between current and non-current assets, typical of many stable businesses.
Financial Health Insight
Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.
Kimball Electronics, Inc. Street Expectations Map
Wall Street analysts project that KE stock may experience modest gains over the coming 12 months. The consensus 1-year price target stands at 26.00, with estimates ranging from a low of 20.00 to a high of 32.00.
The consensus 1-year price target stands at 26.00, with estimates ranging from a low of 20.00 to a high of 32.00.
Analyst Consensus Analysis
Upside Potential
Fair value territory. Stock trading near consensus target suggests limited near-term catalysts. Focus on fundamental developments.
Analyst Agreement
Mixed analyst views. Wide target range suggests differing opinions on key value drivers, growth prospects, or risk factors.
Risk-Reward Profile
Balanced risk-reward. Upside and downside potential relatively symmetric. Suitable for moderate risk tolerance with conviction in thesis.
Analyst Conviction
Neutral sentiment. Fair value pricing with moderate agreement suggests wait-and-see approach or catalyst-driven opportunity.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
Kimball Electronics, Inc. Insider Positioning
During the last 12 months, insiders have sold $49K worth of KE shares, with no buying activity reported.
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3-6 Months
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6-9 Months
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9-12 Months
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1.8K
49.40K
-49K
-$49K
Top Buyers
No buying activity
Top Sellers
Baumann Adam M
Officer: Chief Accounting Officer
$49K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $49K net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Insider Participation
1 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.
No Dividend Yield Data
KE has not reported any dividend yield values in the available annual periods.
ke Dividend History
Learning Layer
Related Guides
Build conviction on KE by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.