Key Tronic (NasdaqGM:KTCC) - Share price, News & Analysis

KTCC fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	2/6
Financial Health	2/6
Dividends	0/6

KTCC Stock Overview

Key Tronic Corporation provides contract manufacturing services to original equipment manufacturers in the United States and internationally.

Risk Analysis

Interest payments are not well covered by earnings

Does not have a meaningful market cap ($54M)

Key Tronic Competitors

Deswell Industries

NasdaqGM:DSWL

US$50.4m

SigmaTron International

NasdaqCM:SGMA

US$43.8m

RF Industries

NasdaqGM:RFIL

US$69.6m

Nortech Systems

NasdaqCM:NSYS

US$33.2m

Price History & Performance

Summary of all time highs, changes and price drops for Key Tronic
Historical stock prices
Current Share Price	US$5.21
52 Week High	US$7.00
52 Week Low	US$4.24
Beta	1.54
1 Month Change	18.68%
3 Month Change	3.37%
1 Year Change	-21.89%
3 Year Change	-0.95%
5 Year Change	-22.36%
Change since IPO	1.66%

Recent News & Updates

Aug 09

Key Tronic GAAP EPS of $0.09, revenue of $126.2M

Key Tronic press release (NASDAQ:KTCC): FQ4 GAAP EPS of $0.09. Revenue of $126.2M (-4.8% Y/Y). CEO comment: “Moving into fiscal 2023, the global supply chain and COVID-19 crises continue to present uncertainty and multiple business challenges. At the same time, global logistics problems and heightened assurance of supply concerns continue to drive the favorable trend of contract manufacturing returning to North America. In fiscal 2023, we expect to ramp a number of new programs, including the previously announced program with a leading power equipment company in our Mexico facility during the second quarter. We believe we are well positioned to benefit from the growing demand for North American onshoring and see the potential for significant growth in fiscal 2023 and beyond.” For 1Q23, the company expects to report revenue in the range of $125M to $135M and earnings in the range of $0.05 to $0.10 per diluted share. Effective tax rate of 25% in the coming quarter.

Jul 31

Key Tronic (NASDAQ:KTCC) Use Of Debt Could Be Considered Risky

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

	KTCC	US Electronic	US Market
7D	6.8%	2.8%	3.6%
1Y	-21.9%	-12.0%	-9.6%

Return vs Industry: KTCC underperformed the US Electronic industry which returned -12.2% over the past year.

Return vs Market: KTCC underperformed the US Market which returned -10.2% over the past year.

Price Volatility

Is KTCC's price volatile compared to industry and market?
KTCC volatility
KTCC Average Weekly Movement	4.7%
Electronic Industry Average Movement	7.5%
Market Average Movement	7.7%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	3.2%

Stable Share Price: KTCC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: KTCC's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1969	5,450	Craig Gates	https://www.keytronic.com

Key Tronic Corporation provides contract manufacturing services 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.

Key Tronic Fundamentals Summary

How do Key Tronic's earnings and revenue compare to its market cap?
KTCC fundamental statistics
Market Cap	US$54.13m
Earnings (TTM)	US$3.38m
Revenue (TTM)	US$531.82m

16.6x

P/E Ratio

0.1x

P/S Ratio

Is KTCC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
KTCC income statement (TTM)
Revenue	US$531.82m
Cost of Revenue	US$488.60m
Gross Profit	US$43.21m
Other Expenses	US$39.84m
Earnings	US$3.38m

Last Reported Earnings

Jul 02, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.31
Gross Margin	8.13%
Net Profit Margin	0.63%
Debt/Equity Ratio	86.2%

How did KTCC perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is KTCC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for KTCC?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for KTCC. This is calculated by dividing KTCC's market cap by their current preferred multiple.
What is KTCC's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$54.13m

KTCC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.3x
Enterprise Value/EBITDA	12.7x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does KTCC's PE Ratio compare to its peers?

KTCC PE Ratio vs Peers

The above table shows the PE ratio for KTCC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	13x
DSWL Deswell Industries	6.2x	n/a	US$50.4m
SGMA SigmaTron International	4.6x	n/a	US$43.8m
RFIL RF Industries	37.7x	47.4%	US$69.6m
NSYS Nortech Systems	3.7x	n/a	US$33.2m
KTCC Key Tronic	16.6x	n/a	US$54.1m

Price-To-Earnings vs Peers: KTCC is expensive based on its Price-To-Earnings Ratio (16.6x) compared to the peer average (13x).

Price to Earnings Ratio vs Industry

How does KTCC's PE Ratio compare vs other companies in the US Electronic Industry?

Price-To-Earnings vs Industry: KTCC is expensive based on its Price-To-Earnings Ratio (16.6x) compared to the US Electronic industry average (15.8x)

Price to Earnings Ratio vs Fair Ratio

What is KTCC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

KTCC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	16.6x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate KTCC's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of KTCC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate KTCC's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate KTCC's fair value for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

13.6%

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.

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Take a look at our analysis of KTCC’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.

Past Performance

How has Key Tronic performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

15.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: KTCC has high quality earnings.

Growing Profit Margin: KTCC's current net profit margins (0.6%) are lower than last year (0.8%).

Past Earnings Growth Analysis

Earnings Trend: KTCC's earnings have grown by 15.6% per year over the past 5 years.

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

Earnings vs Industry: KTCC had negative earnings growth (-22.5%) over the past year, making it difficult to compare to the Electronic industry average (26.1%).

Return on Equity

High ROE: KTCC's Return on Equity (2.7%) is considered low.

Discover strong past performing companies

Financial Health

How is Key Tronic's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: KTCC's short term assets ($340.0M) exceed its short term liabilities ($163.7M).

Long Term Liabilities: KTCC's short term assets ($340.0M) exceed its long term liabilities ($118.4M).

Debt to Equity History and Analysis

Debt Level: KTCC's net debt to equity ratio (84.9%) is considered high.

Reducing Debt: KTCC's debt to equity ratio has increased from 36.9% to 86.2% over the past 5 years.

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

Interest Coverage: KTCC's interest payments on its debt are not well covered by EBIT (1.7x coverage).

Balance Sheet

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate KTCC'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 KTCC's dividends per share have been stable in the past.

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as KTCC has not reported any payouts.

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Management

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

6.1yrs

Average management tenure

CEO

Craig Gates (63 yo)

13.33yrs

Tenure

US$1,634,261

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 ($USD1.63M) is above average for companies of similar size in the US market ($USD759.98K).

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

Leadership Team

Experienced Management: KTCC's management team is seasoned and experienced (6.1 years average tenure).

Board Members

Experienced Board: KTCC's board of directors are seasoned and experienced ( 14.5 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.

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/08/15 00:00
End of Day Share Price	2022/08/15 00:00
Earnings	2022/07/02
Annual Earnings	2022/07/02