NasdaqGS:KE

Stock Analysis Report

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.


Snowflake Analysis

Excellent balance sheet with solid track record.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.2%

KE

-2.1%

US Electronic

-1.4%

US Market


1 Year Return

3.5%

KE

18.8%

US Electronic

14.5%

US Market

Return vs Industry: KE underperformed the US Electronic industry which returned 18.8% over the past year.

Return vs Market: KE underperformed the US Market which returned 14.5% over the past year.


Shareholder returns

KEIndustryMarket
7 Day-0.2%-2.1%-1.4%
30 Day13.9%-1.5%1.3%
90 Day30.1%8.5%4.6%
1 Year3.5%3.5%20.1%18.8%17.1%14.5%
3 Year-1.0%-1.0%44.5%40.4%45.1%35.7%
5 Year58.2%58.2%78.5%69.7%67.1%48.6%

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?

13.53x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KE ($17.47) is trading above our estimate of fair value ($9.17)

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 (13.5x) compared to the Electronic industry average (20.5x).

PE vs Market: KE is good value based on its PE Ratio (13.5x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: KE is good value based on its PB Ratio (1.2x) compared to the US Electronic industry average (2x).


Next Steps

Future Growth

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

21.8%

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 Kimball Electronics 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 Electronics performed over the past 5 years?

2.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KE has high quality earnings.

Growing Profit Margin: KE's current net profit margins (2.7%) are higher than last year (1.2%).


Past Earnings Growth Analysis

Earnings Trend: KE's earnings have grown by 2.3% per year over the past 5 years.

Accelerating Growth: KE's earnings growth over the past year (147.8%) exceeds its 5-year average (2.3% per year).

Earnings vs Industry: KE earnings growth over the past year (147.8%) exceeded the Electronic industry 53.7%.


Return on Equity

High ROE: KE's Return on Equity (9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

  • Explore strong past performing companies in the Tech industry.

Financial Health

How is Kimball Electronics's financial position?


Financial Position Analysis

Short Term Liabilities: KE's short term assets ($528.1M) exceed its short term liabilities ($249.6M).

Long Term Liabilities: KE's short term assets ($528.1M) exceed its long term liabilities ($121.1M).


Debt to Equity History and Analysis

Debt Level: KE's debt to equity ratio (29.7%) 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 (39.1%).

Interest Coverage: KE's interest payments on its debt are well covered by EBIT (9.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: KE's debt is covered by short term assets (assets are 4.8x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate KE'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 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

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

11.3yrs

Average management tenure


CEO

Don Charron (55yo)

0yrs

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 ($USD2.34M) is above average for companies of similar size in the US market ($USD1.71M).

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


Management Age and Tenure

11.3yrs

Average Tenure

55yo

Average Age

Experienced Management: KE's management team is seasoned and experienced (11.3 years average tenure).


Board Age and Tenure

1.1yrs

Average Tenure

58yo

Average Age

Experienced Board: KE's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


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

  • Don Charron (55yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: US$2.34m
  • John Kahle (62yo)

    VP, General Counsel

    • Tenure: 0yrs
    • Compensation: US$945.90k
  • Steve Korn (54yo)

    Vice President of North American Operations

    • Tenure: 12.9yrs
    • Compensation: US$740.43k
  • Desiree Castillejos (48yo)

    VP of Corporate Development

    • Tenure: 1.3yrs
  • Christopher Thyen (56yo)

    Vice President of New Platforms

    • Tenure: 11.3yrs
    • Compensation: US$701.03k
  • Mike Sergesketter (59yo)

    VP & CFO

    • Tenure: 23.9yrs
    • Compensation: US$747.45k
  • Mark Hodell

    Principal Accounting Officer & Corporate Controller

    • Tenure: 0yrs
  • Adam Smith

    Treasurer

    • Tenure: 0yrs
  • Jessica DeLorenzo (34yo)

    Vice President of Human Resources

    • Tenure: 1.5yrs

Board Members

  • Bob Phillippy (59yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$140.00k
  • Don Charron (55yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: US$2.34m
  • Greg Thaxton (58yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$150.00k
  • Colleen Repplier (59yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$150.00k
  • Holly Van Deursen (60yo)

    Independent Director

    • Tenure: 0.08yrs
  • Greg Lampert (52yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$150.00k
  • Michele A. Holcomb (51yo)

    Independent Director

    • Tenure: 0.08yrs

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$432.672m
  • Shares outstanding: 25.20m
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/05 00:20
End of Day Share Price2019/12/04 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.