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Key Tronic

Nasdaq:KTCC
Snowflake Description

Adequate balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
KTCC
Nasdaq
$54M
Market Cap
  1. Home
  2. US
  3. Tech
Company description

Key Tronic Corporation, doing business as KeyTronicEMS Co., provides electronic manufacturing services (EMS) and solutions to original equipment manufacturers in the United States and internationally. The last earnings update was 71 days ago. More info.


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KTCC Share Price and Events
7 Day Returns
-1.2%
NasdaqGM:KTCC
-1.3%
US Electronic
-0.3%
US Market
1 Year Returns
-39.3%
NasdaqGM:KTCC
0.6%
US Electronic
3.4%
US Market
KTCC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Key Tronic (KTCC) -1.2% -1% -7.9% -39.3% -35.4% -52.5%
US Electronic -1.3% 2.4% -6% 0.6% 53.1% 53.4%
US Market -0.3% 2.9% 2.1% 3.4% 36.2% 41.3%
1 Year Return vs Industry and Market
  • KTCC underperformed the Electronic industry which returned 0.6% over the past year.
  • KTCC underperformed the Market in United States of America which returned 3.4% over the past year.
Price Volatility
KTCC
Industry
5yr Volatility vs Market
Related Companies

KTCC Value

 Is Key Tronic undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Key Tronic to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Key Tronic.

NasdaqGM:KTCC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 11.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGM:KTCC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Electronic Unlevered Beta Simply Wall St/ S&P Global 1.13
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.133 (1 + (1- 21%) (60.69%))
1.453
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.45
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.453 * 5.96%)
11.39%

Discounted Cash Flow Calculation for NasdaqGM:KTCC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Key Tronic is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGM:KTCC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 11.39%)
2020 2.68 Est @ -11.28% 2.40
2021 2.49 Est @ -7.08% 2.00
2022 2.38 Est @ -4.14% 1.73
2023 2.34 Est @ -2.08% 1.52
2024 2.32 Est @ -0.63% 1.35
2025 2.33 Est @ 0.37% 1.22
2026 2.35 Est @ 1.08% 1.11
2027 2.39 Est @ 1.58% 1.01
2028 2.44 Est @ 1.92% 0.92
2029 2.49 Est @ 2.16% 0.85
Present value of next 10 years cash flows $14.11
NasdaqGM:KTCC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $2.49 × (1 + 2.73%) ÷ (11.39% – 2.73%)
$29.54
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $29.54 ÷ (1 + 11.39%)10
$10.05
NasdaqGM:KTCC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $14.11 + $10.05
$24.16
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $24.16 / 10.76
$2.25
NasdaqGM:KTCC Discount to Share Price
Calculation Result
Value per share (USD) From above. $2.25
Current discount Discount to share price of $4.98
= -1 x ($4.98 - $2.25) / $2.25
-121.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Key Tronic is above its future cash flow value.
Often investors are willing to pay a premium 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 Key Tronic's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Key Tronic's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGM:KTCC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-30) in USD $-1.02
NasdaqGM:KTCC Share Price ** NasdaqGM (2019-07-18) in USD $4.98
United States of America Electronic Industry PE Ratio Median Figure of 91 Publicly-Listed Electronic Companies 17.44x
United States of America Market PE Ratio Median Figure of 3,083 Publicly-Listed Companies 17.88x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Key Tronic.

NasdaqGM:KTCC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGM:KTCC Share Price ÷ EPS (both in USD)

= 4.98 ÷ -1.02

-4.88x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Key Tronic is loss making, we can't compare its value to the US Electronic industry average.
  • Key Tronic is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Key Tronic's expected growth come at a high price?
Raw Data
NasdaqGM:KTCC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -4.88x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
43.3%per year
United States of America Electronic Industry PEG Ratio Median Figure of 59 Publicly-Listed Electronic Companies 1.23x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Key Tronic, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Key Tronic's assets?
Raw Data
NasdaqGM:KTCC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-30) in USD $10.52
NasdaqGM:KTCC Share Price * NasdaqGM (2019-07-18) in USD $4.98
United States of America Electronic Industry PB Ratio Median Figure of 139 Publicly-Listed Electronic Companies 2.18x
United States of America Market PB Ratio Median Figure of 5,245 Publicly-Listed Companies 1.8x
NasdaqGM:KTCC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGM:KTCC Share Price ÷ Book Value per Share (both in USD)

= 4.98 ÷ 10.52

0.47x

* Primary Listing of Key Tronic.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Key Tronic is good value based on assets compared to the US Electronic industry average.
X
Value checks
We assess Key Tronic's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electronic industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electronic industry average (and greater than 0)? (1 check)
  5. Key Tronic has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

KTCC Future Performance

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

  • No analysts cover Key Tronic, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
43.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Key Tronic expected to grow at an attractive rate?
  • Key Tronic's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Key Tronic's earnings growth is expected to exceed the United States of America market average.
  • Unable to compare Key Tronic's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NasdaqGM:KTCC Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGM:KTCC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 43.3%
United States of America Electronic Industry Earnings Growth Rate Market Cap Weighted Average 14.6%
United States of America Electronic Industry Revenue Growth Rate Market Cap Weighted Average 5.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGM:KTCC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGM:KTCC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-30 475 11 -11
2018-12-29 476 3 2
2018-09-29 465 10 0
2018-06-30 446 11 -1
2018-03-31 448 6 2
2017-12-30 453 10 3
2017-09-30 460 12 4
2017-07-01 468 9 6
2017-04-01 473 12 6
2016-12-31 478 4 7
2016-10-01 476 2 8
2016-07-02 485 5 7
2016-04-02 481 1 7

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Key Tronic's earnings are expected to grow significantly at over 20% yearly.
  • Unable to determine if Key Tronic 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.
Raw Data
NasdaqGM:KTCC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Key Tronic Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:KTCC Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-30 -1.02
2018-12-29 0.15
2018-09-29 -0.02
2018-06-30 -0.12
2018-03-31 0.20
2017-12-30 0.23
2017-09-30 0.40
2017-07-01 0.52
2017-04-01 0.60
2016-12-31 0.68
2016-10-01 0.70
2016-07-02 0.61
2016-04-02 0.63

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Key Tronic will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Key Tronic's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Key Tronic has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

KTCC Past Performance

  How has Key Tronic performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Key Tronic's growth in the last year to its industry (Electronic).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Key Tronic does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Key Tronic's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Key Tronic's 1-year growth to the US Electronic industry average as it is not currently profitable.
Earnings and Revenue History
Key Tronic's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Key Tronic Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:KTCC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-30 475.49 -10.98 21.88 6.58
2018-12-29 475.89 1.65 22.20 6.74
2018-09-29 464.58 -0.16 22.45 6.38
2018-06-30 446.32 -1.33 22.33 6.19
2018-03-31 447.84 2.19 22.49 6.20
2017-12-30 453.09 2.51 22.39 6.21
2017-09-30 459.88 4.26 22.20 6.32
2017-07-01 467.80 5.62 22.36 6.39
2017-04-01 473.16 6.43 22.18 6.46
2016-12-31 478.01 7.25 22.03 6.52
2016-10-01 475.89 7.51 21.76 6.43
2016-07-02 484.97 6.53 22.01 6.40
2016-04-02 481.49 6.73 21.81 6.34
2015-12-26 475.96 6.81 21.62 6.21
2015-09-26 473.86 6.64 21.84 6.00
2015-06-27 434.00 4.30 20.09 5.78
2015-03-28 385.70 3.34 17.63 5.55
2014-12-27 349.82 2.90 15.24 5.45
2014-09-27 313.76 4.39 12.98 5.58
2014-06-28 305.39 7.61 11.96 5.59
2014-03-29 317.88 8.63 11.79 5.53
2013-12-28 325.18 10.08 11.74 5.45
2013-09-28 341.50 10.54 11.52 5.25
2013-06-29 361.03 12.58 11.73 5.16
2013-03-30 373.15 14.00 11.72 4.98
2012-12-29 384.34 14.53 11.66 4.81
2012-09-29 374.22 14.12 11.64 4.74

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Key Tronic has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Key Tronic has efficiently used its assets last year compared to the US Electronic industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Key Tronic improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Key Tronic's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electronic industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. 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.
Key Tronic 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.

Full details on the Past part of the Simply Wall St company analysis model.

KTCC Health

 How is Key Tronic's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Key Tronic's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Key Tronic is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Key Tronic's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Key Tronic'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 checks below.
Assets
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 5.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, 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.
Raw Data

All data from Key Tronic Company Filings, last reported 3 months ago.

NasdaqGM:KTCC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-30 113.18 32.52 0.17
2018-12-29 124.23 40.23 0.21
2018-09-29 123.42 35.48 1.38
2018-06-30 118.08 35.00 0.36
2018-03-31 121.85 35.24 0.31
2017-12-30 116.81 37.35 0.45
2017-09-30 118.12 41.23 0.98
2017-07-01 116.57 43.05 0.37
2017-04-01 112.76 44.45 0.91
2016-12-31 106.88 46.67 1.28
2016-10-01 106.46 48.37 0.28
2016-07-02 105.58 44.82 1.02
2016-04-02 104.55 46.55 0.28
2015-12-26 101.89 41.85 1.19
2015-09-26 99.12 42.75 0.14
2015-06-27 100.77 43.32 0.37
2015-03-28 99.43 44.42 0.35
2014-12-27 98.81 45.96 0.20
2014-09-27 100.57 52.97 0.97
2014-06-28 103.65 7.85 5.80
2014-03-29 101.55 0.00 2.24
2013-12-28 99.81 0.00 1.43
2013-09-28 95.86 0.00 1.96
2013-06-29 94.16 0.58 10.82
2013-03-30 93.03 0.00 3.20
2012-12-29 87.49 4.73 0.25
2012-09-29 83.90 11.09 1.80
  • Key Tronic's level of debt (28.7%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0.2% vs 28.7% today).
  • Debt is well covered by operating cash flow (33.3%, greater than 20% of total debt).
  • Key Tronic is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess Key Tronic's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Key Tronic has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

KTCC Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Key Tronic dividends.
If you bought $2,000 of Key Tronic shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Key Tronic's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Key Tronic's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGM:KTCC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
United States of America Electronic Industry Average Dividend Yield Market Cap Weighted Average of 37 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Key Tronic has not reported any payouts.
  • Unable to verify if Key Tronic's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Key Tronic's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Key Tronic has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Key Tronic's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Key Tronic afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Key Tronic has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

KTCC Management

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

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.
CEO
Craig Gates
COMPENSATION $997,992
AGE 60
TENURE AS CEO 10.3 years
CEO Bio

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. from August 2002 to April 2009. He served as Executive Vice President of Marketing, Engineering and Sales since July 1997. He served as Executive Vice President at Key Tronic Corporation. from August 2002 to April 2009. He served as Vice President and General Manager of New Business Development from October 1995 to July 1997. Mr. Gates joined Key Tronic Corporation. as Vice President of Engineering in October 1994. Since 1982, he served various engineering and management positions within the Microswitch Division of Honeywell, Inc. From 1991 to October 1994, he served as Director of Operations, Electronics for Microswitch. He has been a Director of CyberOptics Corp. since February 17, 2012. He has been a Director of Key Tronic Corp., since July 22, 2009. Mr. Gates holds a Bachelor of Science Degree in Mechanical Engineering and a Masters in Business Administration from the University of Illinois, Urbana.

CEO Compensation
  • Craig's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Craig'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 Key Tronic management team in years:

7
Average Tenure
57
Average Age
  • The average tenure for the Key Tronic management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Craig Gates

TITLE
President
COMPENSATION
$998K
AGE
60
TENURE
10.3 yrs

Brett Larsen

TITLE
Executive VP of Administration
COMPENSATION
$509K
AGE
46
TENURE
4 yrs

Doug Burkhardt

TITLE
Executive Vice President of Worldwide Operations
COMPENSATION
$455K
AGE
61
TENURE
9 yrs

Phil Hochberg

TITLE
Executive Vice President of Business Development
COMPENSATION
$448K
AGE
57
TENURE
7 yrs

Duane MacKleit

TITLE
Vice President of Program Management
COMPENSATION
$348K
AGE
51
TENURE
7 yrs

Craig Green

TITLE
Senior Vice President of Business Development - Eastern Division
TENURE
2.1 yrs

William Ritchie

TITLE
Senior VP of Operations for Eastern Division
TENURE
1.9 yrs

Kathleen Nemeth

TITLE
Secretary
Board of Directors Tenure

Average tenure and age of the Key Tronic board of directors in years:

9.9
Average Tenure
68
Average Age
  • The tenure for the Key Tronic board of directors is about average.
Board of Directors

Patrick Sweeney

TITLE
Chairman of the Board
COMPENSATION
$103K
AGE
84
TENURE
6.8 yrs

Craig Gates

TITLE
President
COMPENSATION
$998K
AGE
60
TENURE
10 yrs

Yacov Shamash

TITLE
Independent Director
COMPENSATION
$87K
AGE
69
TENURE
30.5 yrs

Jim Bean

TITLE
Independent Director
COMPENSATION
$92K
AGE
69
TENURE
12.8 yrs

Ron Klawitter

TITLE
Director
COMPENSATION
$77K
AGE
67
TENURE
9.8 yrs

Subodh Kulkarni

TITLE
Director
AGE
54
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Key Tronic individual insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
08. May 19 Buy Subodh Kulkarni Individual 07. May 19 07. May 19 500 $5.76 $2,880
04. Feb 19 Buy Subodh Kulkarni Individual 01. Feb 19 01. Feb 19 500 $7.16 $3,580
X
Management checks
We assess Key Tronic's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Key Tronic has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

KTCC News

Simply Wall St News

How Has Key Tronic Corporation's (NASDAQ:KTCC) Performed Against The Industry?

Below, I assess KTCC's latest performance announced on 31 March 2018 and evaluate these figures to its historical trend and industry movements. … Was KTCC's recent earnings decline worse than the long-term trend and the industry. … KTCC's trailing twelve-month earnings (from 31 March 2018) of US$2.19m has

Simply Wall St -

What Do You Get For Owning Key Tronic Corporation (NASDAQ:KTCC)?

and want a simplistic look at the return on Key Tronic Corporation (NASDAQ:KTCC) stock. … Thus, to understand how your money can grow by investing in Key Tronic, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE) … What is Return on Capital Employed (ROCE)?

Simply Wall St -

Are Key Tronic Corporation's (NASDAQ:KTCC) Interest Costs Too High?

Key Tronic Corporation (NASDAQ:KTCC) is a small-cap stock with a market capitalization of US$83.28m. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Evaluating financial health as part of your investment thesis is

Simply Wall St -

Does Key Tronic Corporation's (NASDAQ:KTCC) PE Ratio Signal A Selling Opportunity?

and want to begin learning the link between Key Tronic Corporation (NASDAQ:KTCC)’s fundamentals and stock market performance. … Key Tronic Corporation (NASDAQ:KTCC) is currently trading at a trailing P/E of 41.3x, which is higher than the industry average of 22.1x. … Although some investors may jump to the conclusion that you should avoid the stock or sell if you own it, understanding the assumptions behind the P/E ratio might change your mind.

Simply Wall St -

KTCC Company Info

Description

Key Tronic Corporation, doing business as KeyTronicEMS Co., provides electronic manufacturing services (EMS) and solutions 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. The company also manufactures keyboards and other input devices. It markets its products and services primarily through field sales people and distributors. Key Tronic Corporation was founded in 1969 and is headquartered in Spokane Valley, Washington.

Details
Name: Key Tronic Corporation
KTCC
Exchange: NasdaqGM
Founded: 1969
$53,583,206
10,759,680
Website: http://www.keytronic.com
Address: Key Tronic Corporation
North 4424 Sullivan Road,
Spokane Valley,
Washington, 99216,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGM KTCC Common Stock Nasdaq Global Market US USD 22. Jun 1983
DB KT1 Common Stock Deutsche Boerse AG DE EUR 22. Jun 1983
Number of employees
Current staff
Staff numbers
4,701
Key Tronic employees.
Industry
Electronic Manufacturing Services
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/18 23:43
End of day share price update: 2019/07/18 00:00
Last earnings filing: 2019/05/08
Last earnings reported: 2019/03/30
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.