Quality Investor

Kimball Electronics, Inc.

Rank #443Value

KE · Nasdaq · Industrials

Kimball Electronics, Inc. (KE) — Rank #443 by gross profitability (GP/assets 0.11) · ROE 4.8% · Piotroski F-Score 7 / 9.

As-of 2026-09-15 · CIK 0001606757 · all metrics point-in-time as of the filing date.

About

Kimball Electronics, Inc. provides electronics, assemblies, and contract manufacturing organization solutions.

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The company offers electronics manufacturing services, including engineering and supply chain support to customers in the automotive, medical, and industrial end markets, as well as contract manufacturing organization solutions comprising the production of medical disposables and drug delivery services, such as precision molded plastics, cold chain management, and drug integration. It also engages in the production and testing of printed circuit board assemblies; assembly of medical, automotive, and industrial products; and clean room assembly, cold chain, and product sterilization management activities. In addition, the company offers design services and support, supply chain services and support, rapid prototyping and new product introduction support, product design and process validation and qualification, industrialization and automation of manufacturing processes, reliability testing, aftermarket services, and product life cycle management services. It operates in the United States, China, Mexico, Poland, Romania, Thailand, and internationally. Kimball Electronics, Inc.

was founded in 1961 and is headquartered in Jasper, Indiana.

Industry
Electrical Equipment & Parts
Sector
Industrials
State
IN
Filer Category
Accelerated filer
Fiscal Year End
June 30

Price History

KE+7.0% · +1.4% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and dividend yield are the primary valuation lenses for mature businesses.

Market Cap

$576.21M

P/E (annual)

21.2

P/S (annual)

0.4

P/B

1.0

P/OCF (annual)

8.0

Shareholder Yield

1.0%

Employees

5,600

Industry

Electrical Equipment & Parts

Exchange

Nasdaq

Signal Flags

2 green1 red
Revenue growth acceleratingGrowth rate increasing year over year
Operating leverage expandingOperating income growing faster than revenue
Revenue declining YoYRevenue contracted year over year

Quality Profile

Profitability

1/1 pass
GP / assets
0.11
Return on equity
4.8%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.87
Current ratio
2.09×
Net cash
-$73.61M

Cash Flow

2/3 pass
Positive FCF
PASS
Cash-backed earnings
WARN
Accruals healthy
PASS
SBC / revenue
0.6%

Growth

1/2 pass
Revenue growth
-3.7%
Piotroski F-Score
7 / 9
Share dilution
-1.0%

Terry Smith quality gate

Passes 0/5 Terry Smith thresholds

What Growth Is Priced In

Implied revenue growth (10Y)

12.6%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -1.0% — per-share value needs a total required return of 11.6% once share-count change is priced in.

vs. own 6-year median revenue growth: 0.4%

priced above its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

8.0%

r = 10% (base)

12.6%

r = 12%

16.5%

Net debt / market cap: 12.4%

Base FCF: $20.8M3Y mean FCF: $66.2M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

21.0xExpensive
10.5xmed 18.2x41.7x

P / S

Price / revenue per share

0.4xExpensive
0.3xmed 0.4x0.5x

P / B

Price / book value per share

1.0xFair
0.9xmed 1.0x1.5x

P / GP

Price / gross profit per share

5.0xFair
3.3xmed 4.6x6.8x

P / FCF

Price / free cash flow per share

28.3xExpensive
4.7xmed 17.0x28.3x

Dividend yield and payout ratio are the primary reads at this stage (trailing P/E — see valuation above).

Profitability

Gross profitability (GP / assets)

0.11

Primary signal (Novy-Marx).

2nd pctl of 43 SIC 36 peers

Return on equity

4.8%

Gross margin

8.2%

0th pctl of 43 SIC 36 peers

Revenue growth (YoY)

-3.7%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2023202420252026
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

-7.8%

Revenue CAGR (5Y)

2.1%

Earnings CAGR (3Y)

-20.6%

FCF CAGR (3Y)

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.87

35th pctl of 41 SIC 36 peers (best = lowest)

Current ratio

2.09×

31st pctl of 43 SIC 36 peers

Quick ratio

0.93×

Net cash

-$73.61M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$20.78M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

-0.26

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

WARN

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.6%

Stock-based comp intensity.

Piotroski F-Score

F-Score

7 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20212026
Value
Hypergrowth
Decline
Capital Return