📊 KE Key Takeaways
Is KE a Good Investment? Thesis Analysis
Kimball Electronics faces severe operational deterioration with revenue declining 13.3% YoY while maintaining razor-thin profit margins of 1.9%, creating vulnerability in the cyclical PCB sector. Most critically, the company generated negative free cash flow of -$13.7M despite positive net income, indicating unsustainable cash consumption that cannot be maintained without external capital or dramatic operational turnaround.
Why Buy KE? Key Strengths
- Conservative leverage with Debt/Equity of 0.27x and manageable $153.8M long-term debt
- Strong liquidity position with 2.21x current ratio and $77.9M cash reserves
- Positive operating cash flow of $14.9M indicates underlying business core is functional
KE Investment Risks to Consider
- Revenue contraction of 13.3% YoY in cyclical PCB industry indicates significant demand deterioration
- Negative free cash flow of -$13.7M is unsustainable despite profitability; company is consuming capital
- Extremely thin margins (1.9% net, 3.6% operating) with poor capital returns (ROE 2.4%, ROA 1.3%) provide no safety buffer
Key Metrics to Watch
- Free cash flow trajectory - must return to positive to ensure viability
- Revenue stabilization and demand indicators in printed circuit board sector
- Gross margin sustainability and capital expenditure return on investment
KE Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.21x current ratio provides a solid financial cushion.
KE Profitability Ratios
KE vs Default Sector
How Kimball Electronics, Inc. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is KE Overvalued or Undervalued?
Based on fundamental analysis, Kimball Electronics, Inc. has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
KE Balance Sheet & Liquidity
KE 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Kimball Electronics, Inc.'s revenue has grown significantly by 41% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.22 reflects profitable operations.
KE Growth Metrics (YoY)
KE Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $341.3M | $3.4M | $0.14 |
| Q1 2026 | $365.6M | $3.2M | $0.12 |
| Q3 2025 | $374.6M | $3.8M | $0.15 |
| Q2 2025 | $357.4M | $3.4M | $0.14 |
| Q1 2025 | $374.3M | $3.2M | $0.12 |
| Q3 2024 | $425.0M | -$6.1M | $-0.24 |
| Q2 2024 | $421.2M | $8.3M | $0.33 |
| Q1 2024 | $405.9M | $9.5M | $0.38 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
KE Capital Allocation
KE SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Kimball Electronics, Inc. (CIK: 0001606757)
📋 Recent SEC Filings
❓ Frequently Asked Questions about KE
What is the AI rating for KE?
Kimball Electronics, Inc. (KE) has an AI rating of SELL with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are KE's key strengths?
Claude: Conservative leverage with Debt/Equity of 0.27x and manageable $153.8M long-term debt. Strong liquidity position with 2.21x current ratio and $77.9M cash reserves.
What are the risks of investing in KE?
Claude: Revenue contraction of 13.3% YoY in cyclical PCB industry indicates significant demand deterioration. Negative free cash flow of -$13.7M is unsustainable despite profitability; company is consuming capital.
What is KE's revenue and growth?
Kimball Electronics, Inc. reported revenue of $706.9M.
Does KE pay dividends?
Kimball Electronics, Inc. does not currently pay dividends.
Where can I find KE SEC filings?
Official SEC filings for Kimball Electronics, Inc. (CIK: 0001606757) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KE's EPS?
Kimball Electronics, Inc. has a diluted EPS of $0.55.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is KE a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Kimball Electronics, Inc. has a SELL rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is KE stock overvalued or undervalued?
Valuation metrics for KE: ROE of 2.4% (sector avg: 15%), net margin of 1.9% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy KE stock in 2026?
Our dual AI analysis gives Kimball Electronics, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is KE's free cash flow?
Kimball Electronics, Inc.'s operating cash flow is $14.9M, with capital expenditures of $28.6M. FCF margin is -1.9%.
How does KE compare to other Default stocks?
Vs Default sector averages: Net margin 1.9% (avg: 12%), ROE 2.4% (avg: 15%), current ratio 2.21 (avg: 1.8).