Key Tronic Corp. (KTCC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Quantum Corp.

Xerox Holdings Corp.

Key Tronic Corp.

Immersion Corp.

Why is Key Tronic Corp. ?

Poor Management Efficiency with a low ROCE of 4.04%

The company has been able to generate a Return on Capital Employed (avg) of 4.04% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -2.71% over the last 5 years

The company has declared negative results for the last 2 consecutive quarters

ROCE(HY) Lowest at -13.61%
NET SALES(Q) Lowest at USD 96.32 MM
RAW MATERIAL COST(Y) Grown by 90.18% (YoY)

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -0.74%, its profits have fallen by -91.9%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -0.74% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in IT - Hardware)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Key Tronic Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Key Tronic Corp.

-1.3%

-0.72

47.96%

S&P 500

13.68%

0.71

19.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.71%

EBIT Growth (5y)

-201.77%

EBIT to Interest (avg)

1.65

Debt to EBITDA (avg)

6.29

Net Debt to Equity (avg)

0.97

Sales to Capital Employed (avg)

2.18

Tax Ratio

35.82%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

41.28%

ROCE (avg)

4.04%

ROE (avg)

2.42%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.28

EV to EBIT

-10.74

EV to EBITDA

-37.70

EV to Capital Employed

0.64

EV to Sales

0.33

PEG Ratio

Dividend Yield

ROCE (Latest)

-5.96%

ROE (Latest)

-14.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 21.37 MM

-31What is not working for the Company

ROCE(HY)

Lowest at -13.61%

NET SALES(Q)

Lowest at USD 96.32 MM

RAW MATERIAL COST(Y)

Grown by 90.18% (YoY

CASH AND EQV(HY)

Lowest at USD 1.91 MM

DEBT-EQUITY RATIO (HY)

Highest at 124.19 %

OPERATING PROFIT(Q)

Lowest at USD -6.77 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -7.02 %

PRE-TAX PROFIT(Q)

Lowest at USD -12.63 MM

NET PROFIT(Q)

Lowest at USD -8.57 MM

EPS(Q)

Lowest at USD -0.79

Here's what is working for Key Tronic Corp.

Operating Cash Flow

Highest at USD 21.37 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Here's what is not working for Key Tronic Corp.

Pre-Tax Profit

At USD -12.63 MM has Fallen at -151.32%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -8.57 MM has Fallen at -74.4%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Net Sales

Lowest at USD 96.32 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (USD MM)

Net Sales

Fallen at -15.4%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Operating Profit

Lowest at USD -6.77 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at -7.02 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD -12.63 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD -8.57 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD -0.79

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Cash and Eqv

Lowest at USD 1.91 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 124.19 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 90.18% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales