DB:KT1

Stock Analysis Report

Executive Summary

Key Tronic Corporation, doing business as KeyTronicEMS Co., provides electronic manufacturing services (EMS) and solutions to original equipment manufacturers in the United States and internationally.


Snowflake Analysis

Adequate balance sheet and overvalued.


Similar Companies

Share Price & News

How has Key Tronic's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KT1's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

KT1

11.3%

DE Electronic

9.1%

DE Market


1 Year Return

-31.4%

KT1

-21.1%

DE Electronic

-13.1%

DE Market

Return vs Industry: KT1 underperformed the German Electronic industry which returned -21.2% over the past year.

Return vs Market: KT1 underperformed the German Market which returned -14.3% over the past year.


Shareholder returns

KT1IndustryMarket
7 Day0%11.3%9.1%
30 Day-1.1%-3.5%-1.0%
90 Day-36.3%-15.1%-20.7%
1 Year-31.4%-31.4%-19.5%-21.1%-10.6%-13.1%
3 Year-46.1%-46.1%6.4%3.0%-10.7%-18.1%
5 Year-65.6%-65.6%77.7%64.6%-10.7%-22.8%

Price Volatility Vs. Market

How volatile is Key Tronic's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Key Tronic undervalued compared to its fair value and its price relative to the market?

0.41x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate KT1's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate KT1's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: KT1 is unprofitable, so we can't compare its PE Ratio to the Electronic industry average.

PE vs Market: KT1 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate KT1's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: KT1 is good value based on its PB Ratio (0.4x) compared to the DE Electronic industry average (1.5x).


Next Steps

Future Growth

How is Key Tronic forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.4%

Forecasted Tech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Key Tronic has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Key Tronic performed over the past 5 years?

-55.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KT1 is currently unprofitable.

Growing Profit Margin: KT1 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: KT1 is unprofitable, and losses have increased over the past 5 years at a rate of -55% per year.

Accelerating Growth: Unable to compare KT1's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: KT1 is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (-12.3%).


Return on Equity

High ROE: KT1 has a negative Return on Equity (-7.52%), as it is currently unprofitable.


Next Steps

Financial Health

How is Key Tronic's financial position?


Financial Position Analysis

Short Term Liabilities: KT1's short term assets ($218.2M) exceed its short term liabilities ($108.3M).

Long Term Liabilities: KT1's short term assets ($218.2M) exceed its long term liabilities ($48.9M).


Debt to Equity History and Analysis

Debt Level: KT1's debt to equity ratio (40%) is considered satisfactory.

Reducing Debt: KT1's debt to equity ratio has reduced from 46.5% to 40% over the past 5 years.

Debt Coverage: KT1's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: KT1 is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Key Tronic's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate KT1's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate KT1's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if KT1's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if KT1's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of KT1's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.8yrs

Average management tenure


CEO

Craig Gates (60yo)

11s

Tenure

US$685,846

Compensation

Mr. Craig D. Gates has been the President and Chief Executive Officer of Key Tronic Corp., since April 23, 2009. Mr. Gates served as General Manager of Sales & Program Management of Key Tronic Corporation. ...


CEO Compensation Analysis

Compensation vs Market: Craig's total compensation ($USD685.85K) is above average for companies of similar size in the German market ($USD421.65K).

Compensation vs Earnings: Craig's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Craig Gates
President11yrsUS$685.85k2.06% $897.3k
Brett Larsen
Executive VP of Administration4.75yrsUS$398.18k0.32% $138.1k
Douglas Burkhardt
Executive Vice President of Worldwide Operations9.75yrsUS$375.56k0.86% $373.9k
Philip Hochberg
Executive Vice President of Business Development7.75yrsUS$336.00k0.67% $290.8k
Duane MacKleit
Vice President of Program Management7.75yrsUS$301.13k0.42% $184.9k
Craig Green
Senior Vice President of Business Development - Eastern Division2.83yrsno datano data
NICHOLAS FASCIANA
Senior Vice President of US Operations0.58yrno datano data
Kathleen Nemeth
Secretaryno datano datano data

7.8yrs

Average Tenure

57yo

Average Age

Experienced Management: KT1's management team is seasoned and experienced (7.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Craig Gates
President11yrsUS$685.85k2.06% $897.3k
Ronald Klawitter
Independent Director10.5yrsUS$57.81k1.82% $790.5k
Yacov Shamash
Independent Director31.25yrsUS$65.15k0.39% $171.3k
Patrick Sweeney
Independent Chairman of the Board7.5yrsUS$80.09k0.72% $313.2k
James Bean
Independent Director13.5yrsUS$67.35k0.063% $27.5k
Subodh Kulkarni
Independent Director1.5yrsUS$37.37k0.0093% $4.0k

10.6yrs

Average Tenure

68yo

Average Age

Experienced Board: KT1's board of directors are seasoned and experienced ( 10.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Key Tronic Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Key Tronic Corporation
  • Ticker: KT1
  • Exchange: DB
  • Founded: 1969
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: US$47.343m
  • Listing Market Cap: US$43.536m
  • Shares outstanding: 10.76m
  • Website: https://www.keytronic.com

Number of Employees


Location

  • Key Tronic Corporation
  • 4424 North Sullivan Road
  • Spokane Valley
  • Washington
  • 99216
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KTCCNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDJun 1983
KT1DB (Deutsche Boerse AG)YesCommon StockDEEURJun 1983

Biography

Key Tronic Corporation, doing business as KeyTronicEMS Co., provides electronic manufacturing services (EMS) and solutions to original equipment manufacturers in the United States and internationally. The company offers integrated electronic and mechanical engineering, assembly, sourcing and procurement, logistics, and new product testing services. Its services include product design; surface mount technologies and pin through hole capability for printed circuit board assembly; tool making; precision plastic molding; sheet metal fabrication and painting; liquid injection molding; complex assembly; automated tape winding; prototype design; and full product assembly services. The company also manufactures keyboards and other input devices. It markets its products and services primarily through field sales people and distributors. Key Tronic Corporation was founded in 1969 and is headquartered in Spokane Valley, Washington. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 23:00
End of Day Share Price2020/03/16 00:00
Earnings2019/12/28
Annual Earnings2019/06/29


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.