Update shared on 20 Dec 2025
Fair value Increased 11%Analysts have lifted their price target on Kimball Electronics by 3 dollars, from 27 dollars to 30 dollars per share. They cite slightly improved long term revenue expectations and a willingness to apply a higher future earnings multiple, despite modestly lower margin assumptions.
What's in the News
- Kimball Electronics updated investors on its share repurchase activity, buying back 49,202 shares (0.2%) for 1.48 million dollars between July 1 and September 30, 2025, as part of its ongoing capital return program (company filing).
- The company has now completed repurchases totaling 6,654,873 shares, representing 24.99% of shares outstanding, for 105.18 million dollars under the buyback plan originally announced on October 22, 2015 (company filing).
- Kimball Electronics reiterated its earnings guidance for fiscal 2026, maintaining its outlook for net sales in the range of 1.35 billion to 1.45 billion dollars (company guidance).
Valuation Changes
- Fair Value: Increased moderately from 27.0 dollars to 30.0 dollars per share, reflecting a higher assessed intrinsic value.
- Discount Rate: Rose slightly from 8.76% to 8.99%, implying a marginally higher required return on equity.
- Revenue Growth: Improved from a projected decline of approximately 1.90% per year to a smaller projected decline of about 1.14% per year.
- Net Profit Margin: Decreased slightly from roughly 2.86% to about 2.73%, indicating slightly lower long-term profitability assumptions.
- Future P/E: Increased meaningfully from about 19.1x to 22.9x, indicating a higher expected valuation multiple on future earnings.
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