📊 KTCC Key Takeaways
Is Key Tronic Corp. (KTCC) a Good Investment?
Key Tronic is unprofitable with negative operating and net income of -$11.1M and -$13.4M respectively, coupled with an extremely thin gross margin of 5.6% indicating fundamental operational challenges. The company's critically low cash position of $431K combined with $99.3M in debt and inability to cover interest from operations (interest coverage -1.3x) creates significant solvency risk despite positive free cash flow.
Fundamentals show thin profitability with a 4.5% gross margin and negative operating and net income, while interest coverage is negative, indicating earnings cannot service debt. Liquidity is mixed—current ratio is acceptable but cash is minimal—though positive operating and free cash flow offer a modest cushion. A turnaround requires clear margin recovery and deleveraging; absent that, the risk profile remains elevated.
Key Tronic Corp. Key Strengths (KTCC)
- Positive free cash flow of $6.3M demonstrates operational cash generation despite GAAP losses
- Current ratio of 2.06x provides short-term liquidity cushion on balance sheet
- Moderate leverage at 0.96x debt-to-equity ratio suggests balance sheet not extremely overleveraged
- Positive operating and free cash flow
- Adequate current ratio and acceptable quick ratio
- Debt/equity below 1 provides some balance sheet buffer
KTCC Stock Risks: Key Tronic Corp. Investment Risks
- Critically depleted cash position of only $431K creates acute liquidity vulnerability if operations deteriorate
- Persistent operating losses of -$11.1M with negative operating margin of -3.9% indicate structural profitability problems
- Unable to cover interest expense from operations with -1.3x interest coverage, signaling debt service stress
- Extremely thin 5.6% gross margin indicates loss of pricing power or unsustainable cost structure in competitive PCB industry
- Negative ROE of -13.0% and ROA of -4.2% indicate shareholder value destruction
- Sustained negative operating and net margins
- Negative interest coverage with meaningful debt load
- Very low cash balance heightens liquidity risk
Key Metrics to Watch
- Gross margin trend - any recovery critical for viability
- Operating cash flow sustainability - must remain positive to bridge to profitability
- Cash position - monitor for covenant violations or need for external financing
- Operating income - path to positive operating income is essential
- Gross margin
- Interest coverage
Key Tronic Corp. (KTCC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 2.2% FCF margin may limit capital allocation flexibility. Strong liquidity with a 2.06x current ratio provides a solid financial cushion.
KTCC Profit Margin, ROE & Profitability Analysis
KTCC vs Market Sector: How Key Tronic Corp. Compares
How Key Tronic Corp. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Key Tronic Corp. Stock Overvalued? KTCC Valuation Analysis 2026
Based on fundamental analysis, Key Tronic Corp. shows some fundamental concerns 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.
Key Tronic Corp. Balance Sheet: KTCC Debt, Cash & Liquidity
KTCC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Key Tronic Corp.'s revenue has shown modest growth of 9% over the 5-year period. The most recent EPS of $-0.26 indicates the company is currently unprofitable.
KTCC Revenue Growth, EPS Growth & YoY Performance
KTCC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $89.6M | -$604.0K | $-0.06 |
| Q2 2026 | $96.3M | -$3.8M | $-0.35 |
| Q1 2026 | $98.8M | $1.1M | $0.10 |
| Q3 2025 | $112.0M | -$604.0K | $-0.06 |
| Q2 2025 | $113.9M | $1.1M | $0.10 |
| Q1 2025 | $131.6M | $335.0K | $0.03 |
| Q1 2024 | $137.3M | $335.0K | $0.03 |
| Q3 2023 | $138.4M | -$802.0K | $-0.07 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Key Tronic Corp. Dividends, Buybacks & Capital Allocation
KTCC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Key Tronic Corp. (CIK: 0000719733)
📋 Recent SEC Filings
❓ Frequently Asked Questions about KTCC
What is the AI rating for KTCC?
Key Tronic Corp. (KTCC) has a Combined AI Grade of C from Claude (D) and ChatGPT (C) with 77% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KTCC's key strengths?
Claude: Positive free cash flow of $6.3M demonstrates operational cash generation despite GAAP losses. Current ratio of 2.06x provides short-term liquidity cushion on balance sheet. ChatGPT: Positive operating and free cash flow. Adequate current ratio and acceptable quick ratio.
What are the risks of investing in KTCC?
Claude: Critically depleted cash position of only $431K creates acute liquidity vulnerability if operations deteriorate. Persistent operating losses of -$11.1M with negative operating margin of -3.9% indicate structural profitability problems. ChatGPT: Sustained negative operating and net margins. Negative interest coverage with meaningful debt load.
What is KTCC's revenue and growth?
Key Tronic Corp. reported revenue of $284.6M.
Does KTCC pay dividends?
Key Tronic Corp. does not currently pay dividends.
Where can I find KTCC SEC filings?
Official SEC filings for Key Tronic Corp. (CIK: 0000719733) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KTCC's EPS?
Key Tronic Corp. has a diluted EPS of $-1.24.
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 grade reflects both perspectives for balanced insights.
What is KTCC's fundamental grade?
Based on our AI fundamental analysis in May 2026, Key Tronic Corp. has a C grade with 77% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is KTCC stock overvalued or undervalued?
Valuation metrics for KTCC: ROE of -13.0% (sector avg: 15%), net margin of -4.7% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is KTCC's AI grade for 2026?
Our dual AI analysis gives Key Tronic Corp. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is KTCC's free cash flow?
Key Tronic Corp.'s operating cash flow is $10.0M, with capital expenditures of $3.7M. FCF margin is 2.2%.
How does KTCC compare to other Market stocks?
Vs Default sector averages: Net margin -4.7% (avg: 12%), ROE -13.0% (avg: 15%), current ratio 2.06 (avg: 1.8).