📊 KTCC Key Takeaways
Is KTCC a Good Investment? Thesis Analysis
Key Tronic is in severe financial distress with operating losses of $10.8M, an unsustainably low 4.5% gross margin indicating structural competitive disadvantage in PCB manufacturing, and critically depleted cash reserves of only $788K. The company cannot cover interest expenses from operations and is actively destroying shareholder value with -10.2% ROE, making it unviable in its current operational state.
Why Buy KTCC? Key Strengths
- Generating positive operating cash flow of $14.0M and free cash flow of $7.5M despite unprofitability
- Current ratio of 2.03x provides adequate short-term liquidity cushion for working capital
- Asset base of $325.3M offers potential salvage value or restructuring optionality
KTCC Investment Risks to Consider
- Operating unprofitable with -$10.8M operating income and -5.6% operating margin
- Dangerously low cash position of $788K creates existential refinancing risk despite positive FCF
- 4.5% gross margin is unsustainably thin and suggests permanent competitive disadvantage in commoditized PCB industry
- Cannot service debt from operations with interest coverage ratio of -1.2x
- Destroying shareholder value with negative ROE of -10.2% and ROA of -3.3%
Key Metrics to Watch
- Gross margin sustainability and COGS reduction initiatives
- Cash burn rate and refinancing runway implications
- Path to operating profitability and positive EBIT
- Debt covenant compliance and credit facility status
KTCC Financial Metrics
💡 AI Analyst Insight
The relatively thin 3.8% FCF margin may limit capital allocation flexibility. Strong liquidity with a 2.03x current ratio provides a solid financial cushion.
KTCC Profitability Ratios
KTCC vs Default Sector
How KEY TRONIC CORP compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is KTCC Overvalued or Undervalued?
Based on fundamental analysis, KEY TRONIC CORP shows some fundamental concerns 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.
KTCC Balance Sheet & Liquidity
KTCC 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
KTCC Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q2 2023 | $123.7M | $587.0K | $0.05 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
KTCC Capital Allocation
KTCC SEC 10-K & 10-Q Filing 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 an AI rating of STRONG SELL with 85% confidence, based on fundamental analysis of SEC EDGAR filings.
What are KTCC's key strengths?
Claude: Generating positive operating cash flow of $14.0M and free cash flow of $7.5M despite unprofitability. Current ratio of 2.03x provides adequate short-term liquidity cushion for working capital.
What are the risks of investing in KTCC?
Claude: Operating unprofitable with -$10.8M operating income and -5.6% operating margin. Dangerously low cash position of $788K creates existential refinancing risk despite positive FCF.
What is KTCC's revenue and growth?
KEY TRONIC CORP reported revenue of $195.1M.
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 $-1.00.
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 KTCC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, KEY TRONIC CORP has a STRONG SELL rating with 85% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is KTCC stock overvalued or undervalued?
Valuation metrics for KTCC: ROE of -10.2% (sector avg: 15%), net margin of -5.5% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy KTCC stock in 2026?
Our dual AI analysis gives KEY TRONIC CORP a combined STRONG SELL rating 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 $14.0M, with capital expenditures of $6.5M. FCF margin is 3.8%.
How does KTCC compare to other Default stocks?
Vs Default sector averages: Net margin -5.5% (avg: 12%), ROE -10.2% (avg: 15%), current ratio 2.03 (avg: 1.8).