Kimball Electronics, Inc. (KE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Advanced Energy Industries, Inc.

Plexus Corp.

CTS Corp.

Kimball Electronics, Inc.

Sonos, Inc.

Benchmark Electronics, Inc.

Photronics, Inc.

Plug Power, Inc.

Veeco Instruments, Inc.

Aehr Test Systems

Vishay Intertechnology, Inc.

Why is Kimball Electronics, Inc. ?

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.39 times

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 10.86%

The company has declared Negative results for the last 7 consecutive quarters

NET PROFIT(HY) At USD 12.66 MM has Grown at -48.29%

With ROCE of 8.79%, it has a expensive valuation with a 0.98 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 43.35%, its profits have fallen by -51.3%

High Institutional Holdings at 88.31%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 0.8% over the previous quarter.

Market Beating Performance

The stock has generated a return of 43.35% in the last 1 year, much higher than market (S&P 500) returns of 12.33%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kimball Electronics, Inc. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Kimball Electronics, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Kimball Electronics, Inc.

49.29%

0.59

50.44%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.37%

EBIT Growth (5y)

6.58%

EBIT to Interest (avg)

8.81

Debt to EBITDA (avg)

1.39

Net Debt to Equity (avg)

0.23

Sales to Capital Employed (avg)

2.13

Tax Ratio

33.48%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

88.31%

ROCE (avg)

10.86%

ROE (avg)

8.81%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.97

EV to EBIT

11.09

EV to EBITDA

6.83

EV to Capital Employed

0.98

EV to Sales

0.43

PEG Ratio

Dividend Yield

ROCE (Latest)

8.79%

ROE (Latest)

4.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

No Trend

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 183.94 MM

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -1.25% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 12.11 %

INVENTORY TURNOVER RATIO(HY)

Highest at 4.51 times

OPERATING PROFIT MARGIN(Q)

Highest at 7.22 %

PRE-TAX PROFIT(Q)

At USD 13.75 MM has Grown at 48.19%

-8What is not working for the Company

NET PROFIT(HY)

At USD 12.66 MM has Grown at -48.29%

Here's what is working for Kimball Electronics, Inc.

Operating Cash Flow

Highest at USD 183.94 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)

Operating Profit Margin

Highest at 7.22 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

At USD 13.75 MM has Grown at 48.19%

over average net sales of the previous four periods of USD 9.28 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Debt-Equity Ratio

Lowest at 12.11 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 4.51 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -1.25% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 9.58 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Kimball Electronics, Inc.

Net Profit

At USD 12.66 MM has Grown at -48.29%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)