📊 KE Key Takeaways
Is Kimball Electronics, Inc. (KE) a Good Investment?
Kimball Electronics faces significant operational headwinds with 13.3% YoY revenue decline, negative free cash flow of -$13.2M, and deteriorating earnings (EPS down 16% YoY). The capital-intensive PCB manufacturing business is generating poor returns on capital (ROE 3.4%, ROA 1.8%) with unsustainably thin margins (1.8% net), indicating structural pressure in a cyclical commodity sector.
Revenue declined double digits and margins are thin, driving weak returns (ROE/ROA) and negative free cash flow. While liquidity is solid and leverage is modest, fundamentals need margin expansion and stronger cash conversion before a more constructive stance.
Why Buy Kimball Electronics, Inc. Stock? KE Key Strengths
- Reasonable liquidity position with 2.11x current ratio and 1.29x quick ratio providing near-term financial flexibility
- Conservative balance sheet with 0.28x debt-to-equity ratio and 5.7x interest coverage demonstrating adequate debt service capacity
- Positive operating cash flow of $29.8M generating some cash despite significant revenue contraction
- Healthy liquidity (2.21x current, 1.31x quick)
- Conservative leverage (0.27x D/E) with 5.7x interest cover
- Net income stable YoY despite sales decline
KE Stock Risks: Kimball Electronics, Inc. Investment Risks
- Sharp revenue decline of 13.3% YoY coupled with 16% EPS decline indicates accelerating earnings deterioration and cyclical downturn impact
- Negative free cash flow of -$13.2M as capital expenditures ($43M) exceed operating cash generation, unsustainable without balance sheet deterioration
- Razor-thin 1.8% net margins and 8% gross margins typical of commodity manufacturing create vulnerability to any operational disruption or further pricing pressure
- Continued top-line contraction (-13.3% YoY)
- Thin profitability (8% gross, 3.6% operating, 1.9% net)
- Negative free cash flow and weak cash conversion
Key Metrics to Watch
- Revenue stabilization - must demonstrate positive growth or flat trend to suggest cycle bottom
- Free cash flow inflection - negative FCF must reverse within next 2-3 quarters or raise concerns about capital allocation and financial sustainability
- Gross margin trend - 8% margins are critically low; any further compression would indicate lost pricing power or uncontrolled cost inflation
- Gross margin
- Free cash flow
Kimball Electronics, Inc. (KE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.11x current ratio provides a solid financial cushion.
KE Profit Margin, ROE & Profitability Analysis
KE vs Market Sector: How Kimball Electronics, Inc. Compares
How Kimball Electronics, Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Kimball Electronics, Inc. Stock Overvalued? KE Valuation Analysis 2026
Based on fundamental analysis, Kimball Electronics, Inc. has mixed fundamental signals relative to the Market 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.
Kimball Electronics, Inc. Balance Sheet: KE Debt, Cash & Liquidity
KE Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
KE Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $352.9M | $3.8M | $0.15 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Kimball Electronics, Inc. Dividends, Buybacks & Capital Allocation
KE SEC Filings: Latest 10-K & 10-Q 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 a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KE's key strengths?
Claude: Reasonable liquidity position with 2.11x current ratio and 1.29x quick ratio providing near-term financial flexibility. Conservative balance sheet with 0.28x debt-to-equity ratio and 5.7x interest coverage demonstrating adequate debt service capacity. ChatGPT: Healthy liquidity (2.21x current, 1.31x quick). Conservative leverage (0.27x D/E) with 5.7x interest cover.
What are the risks of investing in KE?
Claude: Sharp revenue decline of 13.3% YoY coupled with 16% EPS decline indicates accelerating earnings deterioration and cyclical downturn impact. Negative free cash flow of -$13.2M as capital expenditures ($43M) exceed operating cash generation, unsustainable without balance sheet deterioration. ChatGPT: Continued top-line contraction (-13.3% YoY). Thin profitability (8% gross, 3.6% operating, 1.9% net).
What is KE's revenue and growth?
Kimball Electronics, Inc. reported revenue of $1.1B.
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 $0.78.
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 May 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 3.4% (sector avg: 15%), net margin of 1.8% (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 $29.8M, with capital expenditures of $43.0M. FCF margin is -1.2%.
How does KE compare to other Market stocks?
Vs Default sector averages: Net margin 1.8% (avg: 12%), ROE 3.4% (avg: 15%), current ratio 2.11 (avg: 1.8).