Kimball Electronics, Inc. (KE) stock analysis
Close on Nov 11, 2026Market cap $468.08MP/E 23.3Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Weak7 of 30 checks passed
Kimball Electronics passes 7 of the 30 checks behind our score; 6 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 4/6
- Growth
- 1/6
- Past performance
- 0/6
- Financial health
- 2/6
- Dividend
- 0/6
What stands out
Margin of safety over 20%
The price is 46.9% below fair value, more than the 20% cushion we look for.
Trading below fair value
The share price of $19.53 is below our fair value estimate of $36.81.
Interest well covered
Operating income covers interest expense 6.6 times.
P/E below the industry
Kimball Electronics's P/E of 23.3 is below the Electronic Components and Accessories median of 34.8.
What to watch
Return on equity under 15%
Return on equity was 3.5% over the last twelve months and averaged 6.0% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 4.6%, below the 10% that usually covers the cost of capital.
High debt
Debt is 40.4% of shareholders' equity, above the 40% we consider low.
Earnings shrank over 5 years
Net income shrank 13.2% a year on average over the last five fiscal years.
Valuation4/6
P/E above its 5-year median
Kimball Electronics's P/E of 23.3 is above its own 5-year median of 16.9.
P/E below the industry
Kimball Electronics's P/E of 23.3 is below the Electronic Components and Accessories median of 34.8.
EV/EBITDA above its 5-year median
Kimball Electronics's EV/EBITDA of 6.0 is above its 5-year median of 6.0.
P/B below the industry
Kimball Electronics's price-to-book of 0.80 is below the Electronic Components and Accessories median of 3.49.
Trading below fair value
The share price of $19.53 is below our fair value estimate of $36.81.
Margin of safety over 20%
The price is 46.9% below fair value, more than the 20% cushion we look for.
Growth1/6
Revenue growing under 10% a year
Revenue grew -7.8% a year over the last three fiscal years, short of the 10% we look for.
EPS growing under 10% a year
Diluted EPS grew -20.2% a year over the last three fiscal years.
Earnings growth not accelerating
Net income grew -14.2% over the last twelve months, against a 5-year average of -13.2% a year.
Growing slower than the industry
Revenue grew -1.5% over the last twelve months; the Electronic Components and Accessories median is 17.3%.
Guidance lowered
Kimball Electronics lowered its fiscal 2027 Helvoet sales outlook on Aug 12, 2026.
Gross margin improving
Gross margin was 8.2% over the last twelve months, against 7.4% a year earlier.
Past performance0/6
Return on equity under 15%
Return on equity was 3.5% over the last twelve months and averaged 6.0% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 4.6%, below the 10% that usually covers the cost of capital.
Return on equity below the industry
Kimball Electronics's return on equity of 3.5% is below the Electronic Components and Accessories median of 4.8%.
Earnings shrank over 5 years
Net income shrank 13.2% a year on average over the last five fiscal years.
Net margin below its 5-year average
Net margin was 1.4% over the last twelve months, against a 5-year average of 1.9%.
Net margin below the industry
Kimball Electronics's net margin of 1.4% is below the Electronic Components and Accessories median of 2.9%.
Financial health2/6
High debt
Debt is 40.4% of shareholders' equity, above the 40% we consider low.
Debt trend
Needs a balance sheet from five years ago with positive equity.
Debt not well covered by cash flow
Operating cash flow over the last twelve months equals 19.1% of total debt; we look for at least 20%.
Interest well covered
Operating income covers interest expense 6.6 times.
Short-term assets cover short-term debts
Current assets are 1.90 times current liabilities.
Bankruptcy risk in the grey zone
The Altman Z-score is 2.54; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Kimball Electronics has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$36.81
The share price is 47% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 25.8× | 16.9× | 34.8× | $21.69 | 40% |
| EV/EBITDA | 13.6× | 6.0× | 21.3× | $52.55 | 35% |
| P/B | 2.3× | 1.1× | 3.5× | $55.24 | 10% |
| Earnings power | 10.9% cost of equity | – | – | $28.12 | 15% |
| Fair value | $36.81 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 16.9
- Electronic Components and Accessories median 34.8
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Medium risk
- Average value traded per day
- $5.43M
- Value traded per 1% price move
- $2.13M
Downside
High risk
- Typical loss in a bad month
- 25.5%
- Volatility (annualized)
- 53%
- Sharpe ratio, 1 year
- -0.66
- Beta to the S&P 500 (5Y)
- 1.19
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2012 to 2026
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2026
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | -3.7% | -7.8% | +2.1% | +5.4% | |
| Gross profit | +12.5% | -9.1% | -0.1% | +6.2% | |
| Operating income | +45.1% | -9.0% | +0.1% | +8.3% | |
| Net income | +64.6% | -20.6% | -13.2% | +2.3% | |
| EPS, diluted | +66.2% | -20.2% | -12.8% | +4.0% | |
| Free cash flow | -86.2% | – | -25.7% | +20.7% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2017 | FY2021 | FY2026 | Trend |
|---|---|---|---|---|
| Return on equity | 10.3% | 13.8% | 4.8% | |
| Return on assets | 6.4% | 7.1% | 2.6% | |
| Current ratio | 1.95 | 1.94 | 2.09 | |
| Debt to equity | – | – | 0.20 | |
| Net debt to EBITDA | – | – | 0.26× | |
| Interest coverage | 157.9× | 30.3× | 7.8× | |
| Inventory turnover | 6.2× | 5.6× | 4.8× | |
| Capex to revenue | 3.6% | 3.0% | 3.6% | |
| Diluted shares | 28M | 25M | 25M |
Where the cash went
Fiscal 2022 to 2026, five years combined
Kimball Electronics generated $426.40M from operations and spent $329.87M on capital expenditure, dividends and share buybacks. 89% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2026 | 2.0% | 1.32× | 1.88× | 4.8% |
| FY2025 | 1.1% | 1.30× | 2.06× | 3.1% |
| FY2024 | 1.2% | 1.39× | 2.32× | 3.9% |
| FY2023 | 3.1% | 1.59× | 2.35× | 11.4% |
| FY2022 | 2.3% | 1.46× | 2.06× | 7.0% |
| FY2021 | 4.4% | 1.63× | 1.93× | 13.8% |
| FY2020 | 1.5% | 1.56× | 2.05× | 4.9% |
| FY2019 | 2.7% | 1.72× | 1.89× | 8.7% |
| FY2018 | 1.6% | 1.84× | 1.67× | 4.8% |
| FY2017 | 3.7% | 1.75× | 1.60× | 10.3% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2026 against fiscal 2025
- ProfitableNet income above zero$27.96M
- Cash generatingOperating cash flow above zero$72.27M
- Return on assets improvedROA up on the prior year1.4% → 2.6%
- Earnings backed by cashOperating cash flow above net income$72.27M vs $27.96M
- Less leverageLong-term debt to assets fell12.0% → 9.9%
- Better liquidityCurrent ratio rose2.20 → 2.09
- No dilutionShare count did not rise25M → 25M
- Gross margin improvedGross margin up on the prior year7.02% → 8.21%
- More efficientAsset turnover rose1.23 → 1.33
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