NasdaqGS:KE

Stock Analysis Report

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Executive Summary

Kimball Electronics, Inc., a contract electronic manufacturing services company, engages in producing various electronics for the automotive, medical, industrial, and public safety end markets.

Rewards

PE ratio (11.8x) is below the US market (16.2x)

Earnings are forecast to grow 20.09% per year

Risk Analysis

No risks detected for KE from our risk checks.


Snowflake Analysis

Excellent balance sheet and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.5%

KE

-0.5%

US Electronic

2.3%

US Market


1 Year Return

-20.1%

KE

-1.9%

US Electronic

6.7%

US Market

Return vs Industry: KE underperformed the US Electronic industry which returned -1.9% over the past year.

Return vs Market: KE underperformed the US Market which returned 6.7% over the past year.


Shareholder returns

KEIndustryMarket
7 Day-0.5%-0.5%2.3%
30 Day-4.2%1.4%6.0%
90 Day11.4%18.3%18.9%
1 Year-20.1%-20.1%-0.8%-1.9%9.0%6.7%
3 Year-36.0%-36.0%14.2%11.0%36.6%27.7%
5 Year-6.5%-6.5%59.0%51.9%64.2%46.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

11.8x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KE ($12.54) is trading above our estimate of fair value ($10.91)

Significantly Below Fair Value: KE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: KE is good value based on its PE Ratio (11.8x) compared to the US Electronic industry average (20.3x).

PE vs Market: KE is good value based on its PE Ratio (11.8x) compared to the US market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: KE is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: KE is good value based on its PB Ratio (0.8x) compared to the US Electronic industry average (1.9x).


Next Steps

Future Growth

How is Kimball Electronics forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

20.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KE's forecast earnings growth (20.1% per year) is above the savings rate (2.2%).

Earnings vs Market: KE's earnings (20.1% per year) are forecast to grow slower than the US market (22.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: KE's revenue (4.6% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: KE's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KE's Return on Equity is forecast to be low in 3 years time (8.3%).


Next Steps

Past Performance

How has Kimball Electronics performed over the past 5 years?

2.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KE has high quality earnings.

Growing Profit Margin: KE's current net profit margins (2.2%) are lower than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: KE's earnings have grown by 2.5% per year over the past 5 years.

Accelerating Growth: KE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: KE had negative earnings growth (-9.6%) over the past year, making it difficult to compare to the Electronic industry average (-6.6%).


Return on Equity

High ROE: KE's Return on Equity (7.2%) is considered low.


Next Steps

Financial Health

How is Kimball Electronics's financial position?


Financial Position Analysis

Short Term Liabilities: KE's short term assets ($543.5M) exceed its short term liabilities ($262.1M).

Long Term Liabilities: KE's short term assets ($543.5M) exceed its long term liabilities ($120.8M).


Debt to Equity History and Analysis

Debt Level: KE's debt to equity ratio (32.6%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if KE's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: KE's debt is well covered by operating cash flow (51.9%).

Interest Coverage: KE's interest payments on its debt are well covered by EBIT (8.6x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if KE'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 KE's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Don Charron (56yo)

no data

Tenure

US$2,338,261

Compensation

Mr. Donald D. Charron, also known as Don, served as an Executive Vice President of Kimball International Inc. Mr. Charron serves as the Chairman and Chief Executive Officer of Kimball Electronics Group, In ...


CEO Compensation Analysis

Compensation vs Market: Don's total compensation ($USD2.34M) is about average for companies of similar size in the US market ($USD2.16M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Donald Charron
Chairman & CEOno dataUS$2.34m1.65% $5.2m
Michael Sergesketter
VP & CFO24.5yrsUS$747.45k0.34% $1.1m
John Kahle
VP, General Counselno dataUS$945.90k0.82% $2.6m
Steven Korn
President of Global Electronics Manufacturing Services of Operationsno dataUS$740.43k0.33% $1.0m
Mark Hodell
Principal Accounting Officer & Corporate Controllerno datano data0.11% $333.7k
Desiree Castillejos
VP of Corporate Development1.92yrsno data0.0074% $23.3k
Jessica DeLorenzo
Vice President of Human Resources2.08yrsno data0.010% $31.7k
Adam Smith
Treasurerno datano datano data

2.1yrs

Average Tenure

55.5yo

Average Age

Experienced Management: KE's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Donald Charron
Chairman & CEOno dataUS$2.34m1.65% $5.2m
Robert Phillippy
Independent Director1.67yrsUS$140.00kno data
Gregory Thaxton
Independent Director3.25yrsUS$150.00kno data
Colleen Repplier
Lead Independent Directorno dataUS$150.00k0.044% $139.1k
Holly Van Deursen
Independent Director0.67yrno data0.015% $47.2k
Gregory Lampert
Independent Director6.5yrsUS$150.00k0.059% $184.4k
Michele A. Holcomb
Independent Director0.67yrno datano data

1.7yrs

Average Tenure

59yo

Average Age

Experienced Board: KE's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


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.


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Kimball Electronics, Inc.
  • Ticker: KE
  • Exchange: NasdaqGS
  • Founded: 1961
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: US$313.591m
  • Shares outstanding: 24.99m
  • Website: https://www.kimballelectronics.com

Number of Employees


Location

  • Kimball Electronics, Inc.
  • 1205 Kimball Boulevard
  • Jasper
  • Indiana
  • 47546
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KENasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 2014

Biography

Kimball Electronics, Inc., a contract electronic manufacturing services company, engages in producing various electronics for the automotive, medical, industrial, and public safety end markets. The company’s engineering, manufacturing, and supply chain 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 disposables and other non-electronic products; 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 has operations in the United States, China, Mexico, Poland, Romania, Thailand, and Vietnam. Kimball Electronics, Inc. was founded in 1961 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 Analysis2020/07/14 00:05
End of Day Share Price2020/07/13 00:00
Earnings2020/03/31
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.