NasdaqGS:KBAL

Stock Analysis Report

Executive Summary

Kimball International, Inc. designs, manufactures, and sells furniture products under the Kimball, National, and Kimball Hospitality brands in the United States and internationally.

Rewards

Trading at 40.4% below its fair value

Earnings grew by 16% over the past year

Pays a reliable dividend of 1.74%

Risk Analysis

No risks detected for KBAL from our risk checks.


Snowflake Analysis

Flawless balance sheet with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has Kimball International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KBAL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.2%

KBAL

0.9%

US Commercial Services

0.6%

US Market


1 Year Return

45.2%

KBAL

24.5%

US Commercial Services

24.6%

US Market

Return vs Industry: KBAL exceeded the US Commercial Services industry which returned 23.7% over the past year.

Return vs Market: KBAL exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

KBALIndustryMarket
7 Day-2.2%0.9%0.6%
30 Day-0.9%4.1%3.0%
90 Day0.4%5.4%10.6%
1 Year48.0%45.2%29.1%24.5%27.3%24.6%
3 Year24.0%17.7%64.4%53.7%50.5%40.8%
5 Year141.2%120.6%110.4%89.0%78.9%59.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Kimball International undervalued compared to its fair value and its price relative to the market?

41.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KBAL ($20.74) is trading below our estimate of fair value ($34.8)

Significantly Below Fair Value: KBAL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: KBAL is good value based on its PE Ratio (19.2x) compared to the Commercial Services industry average (26.4x).

PE vs Market: KBAL is poor value based on its PE Ratio (19.2x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: KBAL is overvalued based on its PB Ratio (3.4x) compared to the US Commercial Services industry average (2.1x).


Next Steps

Future Growth

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

16.9%

Forecasted Commercial Services 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 Kimball International 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 Kimball International performed over the past 5 years?

28.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KBAL has high quality earnings.

Growing Profit Margin: KBAL's current net profit margins (5.1%) are higher than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: KBAL's earnings have grown significantly by 28.2% per year over the past 5 years.

Accelerating Growth: KBAL's earnings growth over the past year (16%) is below its 5-year average (28.2% per year).

Earnings vs Industry: KBAL earnings growth over the past year (16%) exceeded the Commercial Services industry -1.3%.


Return on Equity

High ROE: KBAL's Return on Equity (17.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kimball International's financial position?


Financial Position Analysis

Short Term Liabilities: KBAL's short term assets ($226.0M) exceed its short term liabilities ($124.9M).

Long Term Liabilities: KBAL's short term assets ($226.0M) exceed its long term liabilities ($32.8M).


Debt to Equity History and Analysis

Debt Level: KBAL's debt to equity ratio (0.06%) is considered satisfactory.

Reducing Debt: KBAL's debt to equity ratio has reduced from 0.06% to 0.06% over the past 5 years.

Debt Coverage: KBAL's debt is well covered by operating cash flow (50663.2%).

Interest Coverage: KBAL earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: KBAL has a high level of physical assets or inventory.

Debt Coverage by Assets: KBAL's debt is covered by short term assets (assets are 1661.6x debt).


Next Steps

Dividend

What is Kimball International's current dividend yield, its reliability and sustainability?

1.76%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: KBAL's dividend (1.74%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: KBAL's dividend (1.74%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: KBAL's dividends per share have been stable in the past 10 years.

Growing Dividend: KBAL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.5%), KBAL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Kimball International's salary, the management and board of directors tenure and is there insider trading?

3.9yrs

Average management tenure


CEO

Kristine Juster (56yo)

1.2yrs

Tenure

US$5,419,094

Compensation

Ms. Kristine L. Juster serves as Director at Trex Company Inc. since October 1, 2019. She has been the Chief Executive Officer of Kimball International, Inc. since November 1, 2018 and as a Director since  ...


CEO Compensation Analysis

Compensation vs Market: Kristine's total compensation ($USD5.42M) is above average for companies of similar size in the US market ($USD2.53M).

Compensation vs Earnings: Kristine's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.9yrs

Average Tenure

54.5yo

Average Age

Experienced Management: KBAL's management team is considered experienced (3.9 years average tenure).


Board Age and Tenure

5.4yrs

Average Tenure

60yo

Average Age

Experienced Board: KBAL's board of directors are considered experienced (5.4 years average tenure).


Insider Trading

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


Ownership Breakdown

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


Management Team

  • Michelle Schroeder (54yo)

    VP & CFO

    • Tenure: 5.2yrs
    • Compensation: US$875.83k
  • Greg Kincer (61yo)

    Vice President of Corporate Development

    • Tenure: 5.2yrs
  • Kristine Juster (56yo)

    CEO & Non-Independent Director

    • Tenure: 1.2yrs
    • Compensation: US$5.42m
  • Kourtney Smith (49yo)

    VP & President of National Office Furniture

    • Compensation: US$820.58k
  • Lonnie Nicholson (55yo)

    VP & Chief Administrative Officer

    • Tenure: 4.9yrs
    • Compensation: US$958.96k
  • Julia E. Cassidy (54yo)

    VP, General Counsel

    • Tenure: 2.9yrs
  • Darren Gress

    Corporate Controller

    • Dennis Gerber

      Director of Investor Relations & Treasurer

      • Wendy Murray

        Director of Marketing & Product

        • Tenure: 0.6yrs

      Board Members

      • Geoffrey Stringer (76yo)

        Independent Director

        • Tenure: 16.6yrs
        • Compensation: US$144.93k
      • Tim Jahnke (59yo)

        Independent Director

        • Tenure: 5.9yrs
        • Compensation: US$144.72k
      • Kim Ryan (52yo)

        Independent Chairman

        • Tenure: 1.2yrs
        • Compensation: US$191.51k
      • Kristine Juster (56yo)

        CEO & Non-Independent Director

        • Tenure: 1.2yrs
        • Compensation: US$5.42m
      • Tom Tischhauser (61yo)

        Independent Director

        • Tenure: 11.4yrs
        • Compensation: US$141.59k
      • Pat Connolly (60yo)

        Independent Director

        • Tenure: 5.4yrs
        • Compensation: US$154.68k
      • Susan Frampton (61yo)

        Independent Director

        • Tenure: 3.8yrs
        • Compensation: US$151.53k

      Company Information

      Kimball International, Inc.'s company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Kimball International, Inc.
      • Ticker: KBAL
      • Exchange: NasdaqGS
      • Founded: 1939
      • Industry: Office Services and Supplies
      • Sector: Commercial Services
      • Market Cap: US$756.964m
      • Shares outstanding: 36.94m
      • Website: https://www.kimballinternational.com

      Number of Employees


      Location

      • Kimball International, Inc.
      • 1600 Royal Street
      • Jasper
      • Indiana
      • 47549
      • United States

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      KBALNasdaqGS (Nasdaq Global Select)YesClass B Common StockUSUSDJan 1980
      KB1BDB (Deutsche Boerse AG)YesClass B Common StockDEEURJan 1980

      Biography

      Kimball International, Inc. designs, manufactures, and sells furniture products under the Kimball, National, and Kimball Hospitality brands in the United States and internationally. The company offers office furniture, including desks, tables, seating, bookcases, and filing and storage units for federal, state, and local government offices, as well as other government related entities; and furniture solutions, such as headboards, tables, seating, vanities, casegoods, lighting, and other products for hotel properties, and commercial and residential mixed use developments. Its furniture solutions are used in collaborative and open work space areas, conference and meeting/huddle rooms, training rooms, private offices, learning areas, classrooms, lobby/reception areas, and dining/café areas with a mix of wood, metal, laminate, paint, fabric, solid surface, and plastic options. In addition, the company offers patient/exam room and lounge seating, and casegoods for the healthcare market. It markets and sells its products through sales representatives, office furniture dealers, wholesalers, brokers, designers, purchasing companies, and catalog houses to end users. The company was formerly known as The Jasper Corporation and changed its name to Kimball International, Inc. in July 1974. Kimball International, Inc. was incorporated in 1939 and is headquartered in Jasper, Indiana. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/22 23:40
      End of Day Share Price2020/01/22 00:00
      Earnings2019/09/30
      Annual Earnings2019/06/30


      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.