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 last earnings update was 12 days ago.
Discounted Cash Flow Calculation for NasdaqGS:KE using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method. We use
analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
NasdaqGS:KE DCF 1st Stage: Next 5 year cash flow forecast
The current share price of
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Kimball Electronics's earnings available for a low price, and how does
this compare to other companies in the same industry?
Kimball Electronics's earnings are expected to grow by 18.1% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Kimball Electronics is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Kimball Electronics's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Kimball Electronics's finances.
The net worth of a company is the difference between its assets and liabilities.
Kimball Electronics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Kimball Electronics's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Kimball Electronics's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is covered by short term assets, assets are 8.3x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
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, Inc. and Kimball Electronics, Inc. He served for Rockwell Automation/Allen Bradley from December 1992 to April 1999, as Operations Manager, Director of Operations and as General Business Manager Electronic Operator Interface. He has been a Director at Kimball Electronics, Inc. since 2014. He served as a Director of Kimball International, Inc. from February 19, 2013 to October 29, 2014.
Don's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Don's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the Kimball Electronics management team is over 5 years, this suggests they are a seasoned and experienced team.
Chairman & CEO
VP & CFO
VP, General Counsel
Vice President of North American Operations & Global Supply Chain
Vice President of New Platforms
Principal Accounting Officer & Corporate Controller
Chief Strategy Officer and VP of Corporate Development
Vice President of Human Resources
Vice President of European Operations
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Kimball Electronics board of directors is about average.
Does Kimball Electronics Inc (NASDAQ:KE) Have A Volatile Share Price?
Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider. … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.
Is Kimball Electronics Inc's (NASDAQ:KE) PE Ratio A Signal To Sell For Investors?
Although some investors may see this as unappealing, it is important to understand the assumptions behind the P/E ratio before making judgments. … I will deconstruct the P/E ratio and highlight what you need to be careful of when using the P/E ratio … Check out our latest analysis for Kimball Electronics
What You Must Know About Kimball Electronics Inc's (NASDAQ:KE) Major Investors
In this article, I will take a quick look at Kimball Electronics Inc’s (NASDAQ:KE) recent ownership structure – an unconventional investing subject, but an important one. … When it comes to ownership structure of a company, the impact has been observed in both the long-and short-term performance of shares. … While these are more of a long-term investor’s concern, short-term investors may find the impact of institutional trading overwhelming enough to lose out on what could be a potential opportunity.
How Kimball Electronics Inc (NASDAQ:KE) Can Impact Your Portfolio Volatility
Generally, an investor should consider two types of risk that impact the market value of KE. … The second risk is market-wide, which arises from investing in the stock market. … A popular measure of market risk for a stock is its beta, and the market as a whole represents a beta value of one.
Does Kimball Electronics Inc's (NASDAQ:KE) PE Ratio Signal A Selling Opportunity?
The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … and want to better understand how you can grow your money by investing in Kimball Electronics Inc (NASDAQ:KE). … Kimball Electronics Inc (NASDAQ:KE) is trading with a trailing P/E of 27.3x, which is higher than the industry average of 23.1x.
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 production of precision plastics and metal fabrication; and product life cycle management services. The company has operations in the United States, China, Mexico, Poland, Romania, and Thailand. Kimball Electronics, Inc. was founded in 1961 and is headquartered in Jasper, Indiana.
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