Kimball Electronics, Inc. (KE) AI Stock Analysis

Kimball Electronics, Inc. provides contract electronics manufacturing services and diversified manufacturing solutions. Founded in 1961 and headquartered in Jasper, Indiana, the company serves automotive, medical, industrial, and public safety markets. Its services include product design, supply chain management, rapid prototyping, and new product introduction support. The company manufactures printed circuit board assemblies, automates production processes, and performs environmental reliability testing. It also produces and packages medical devices, disposables, and drug delivery solutions under clean room conditions. Additionally, Kimball Electronics produces automation equipment, precision molded plastics, and software solutions across facilities in the United States, China, Mexico, Poland, and Romania.

Between FY2021 and FY2026, Kimball Electronics generated a 5-year revenue CAGR of 2.1%. After peaking at $1.82B in FY2023, annual revenue decreased to $1.71B in FY2024, $1.49B in FY2025, and $1.43B in FY2026. Despite a 3.7% revenue contraction in FY2026, gross margin rose to 8.6% from 7.0% in FY2025, and operating margin improved to 4.6% from 3.1%. Net income reached $28.0M with an EPS of $1.02 in FY2026. For the trailing twelve months ended June 30, 2026, quarterly revenue fell 2.3% year-over-year, while quarterly earnings grew 30.7%, resulting in a net profit margin of 1.9%.

As of June 30, 2026, Kimball Electronics held $90.7M in cash and short-term investments against $133.1M in total debt, resulting in net debt of $42.3M. Total assets stood at $1.09B, supported by $585.1M in shareholders' equity. The balance sheet reflects a current ratio of 2.09 and a debt-to-equity ratio of 0.23. In FY2026, operating cash flow was $72.3M, and capital expenditures were $51.5M, leaving free cash flow of $20.8M. The company also recorded $9.6M in share issuance.

Kimball Electronics trades at a trailing P/E of 22.9x and a forward P/E of 23.2x, compared to medians of 24.8x and 17.2x for US-listed Industrials peers. Its price-to-sales ratio is 0.4x and EV/EBITDA is 6.8x, both below the peer medians of 1.5x and 13.9x, respectively. Over the past year, KE declined 11.7% while the S&P 500 gained 16.8%. Over a 5-year period, the stock fell 10.1%, trailing the S&P 500's return of 83.0%.

Wall Street coverage includes 2 Strong Buy ratings and 1 Hold rating. The mean price target is $34.00, which represents 31.5% upside from the last close of $25.86 on October 16, 2026. For the fiscal year ending June 30, 2027, analysts project revenue of $1.54B and EPS of $1.56, indicating 43.6% earnings growth. Over the last four quarters, Kimball Electronics exceeded EPS estimates 2 times. The next earnings announcement is scheduled for November 4, 2026.

This page is an AI-written research summary of Kimball Electronics, Inc. (KE). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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