Key Tronic Corporation (KTCC) AI Stock Analysis
KTCC AI stock analysis summary
AI ResearchKey Tronic Corporation (KTCC) is a contract manufacturer providing electronics and mechanical assembly services to original equipment manufacturers. In FY2026, revenue dropped 17.4% to $386.7M, accompanied by a net loss of -$47.8M. The company faces a constrained cash position with $584,000 in cash against $126.3M in total debt.
- Market cap
- $23.5M
- Revenue (TTM)
- $386.7M
- P/E
- — fwd 8.1x
- 1Y return
- -34.2% S&P 500 16.8%
- Avg. target
- $9.25 336.3% vs last close
Bull case
- Key Tronic trades at a price-to-book ratio of 0.4x and a price-to-sales ratio of 0.1x, well below the 2.8x peer median.
- The stock is covered with an analyst mean price target of $9.25, which sits 336.3% above the close of $2.12.
- The business generated positive operating cash flow of $4.4M in FY2026 despite top-line contraction.
Bear case
- Net losses widened sharply in FY2026 to -$47.8M, resulting in an annual net margin of -12.4%.
- Cash and short-term investments stood at $584,000 as of June 30, 2026, alongside $126.3M in total debt.
- Annual revenue has contracted from $605.3M in FY2023 to $386.7M in FY2026, reflecting a five-year CAGR of -5.7%.
What Key Tronic does
Key Tronic Corporation provides contract manufacturing services to original equipment manufacturers across diverse industries. Its operations cover electronic and mechanical engineering, assembly, sourcing, logistics, and product testing. Offerings include surface mount technologies, pin through hole assembly, precision plastic molding, sheet metal fabrication, painting, and liquid injection molding. Founded in 1969 and based in Spokane Valley, Washington, it also manufactures keyboards and input devices, marketing through field sales and distributors.
Growth and profitability
Key Tronic generated revenue of $386.7M in FY2026, down 17.4% from $467.9M in FY2025 and marking a five-year revenue CAGR of -5.7%. Gross margin fell from 7.8% in FY2025 to 6.2% in FY2026, while operating margin turned negative at -5.3%. Net losses expanded from -$8.3M in FY2025 to -$47.8M in FY2026, leading to an EPS of -$1.50. For the trailing twelve months ended June 30, 2026, operating margin stood at -17.3% and EPS was -$4.41, with latest quarterly revenue falling 7.7% and quarterly earnings dropping 88.1% year-over-year.
Balance sheet and cash flow
As of June 30, 2026, Key Tronic reported cash and short-term investments of $584,000 and total debt of $126.3M, yielding net debt of $125.8M. The company has a current ratio of 2.10, shareholders' equity of $69.2M, and a debt-to-equity ratio of 1.83. During FY2026, operating cash flow reached $4.4M, while capital expenditures were $6.4M, resulting in free cash flow of -$1.9M. Its share count declined 1.8% over five years, while R&D expense totaled $8.0M in FY2026.
Valuation and performance
Key Tronic trades at a forward P/E of 8.1x, below the 18.8x median of its US-listed Technology peers. Its enterprise value of $151.2M represents an EV to EBITDA multiple of 14.6x, compared to the peer median of 16.6x. The stock trades at a price-to-sales multiple of 0.1x against the peer median of 2.8x, and holds a price-to-book ratio of 0.4x. Over the past year, the stock declined 34.2%, trailing the S&P 500 return of 16.8%.
What analysts expect
Analysts maintain a mean price target of $9.25 on Key Tronic Corporation, representing an upside of 336.3% over its last closing price of $2.12 on October 16, 2026. Forward earnings projections reflect a PEG ratio of 0.82. The company's next scheduled earnings release date is November 3, 2026.
Key risks and what to watch
- High balance sheet leverage is indicated by a debt-to-equity ratio of 1.83 and net debt of $125.8M.
- Liquidity buffers are low, with cash and short-term investments standing at $584,000 as of June 30, 2026.
- The business was free cash flow negative at -$1.9M in FY2026 after capital expenditures of $6.4M.
- Quarterly earnings fell 88.1% year-over-year in the latest period, showing sustained operating pressure.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this KTCC AI stock analysis
This page is an AI-written research summary of Key Tronic Corporation (KTCC). 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.
Related: KTCC income statement, KTCC balance sheet, KTCC key metrics, KTCC chart. See the KTCC stock overview for the latest quote and news.
KTCC AI stock analysis FAQ
What does Key Tronic Corporation do?
Key Tronic Corporation provides contract manufacturing services to original equipment manufacturers. It offers electronic and mechanical assembly, printed circuit board assembly, plastic molding, and manufacturing of keyboards and input devices.
What is Key Tronic's debt level?
As of June 30, 2026, the company held total debt of $126.3M and cash of $584,000, leading to net debt of $125.8M and a debt-to-equity ratio of 1.83.
Does Key Tronic Corporation pay a dividend?
Key Tronic does not pay a regular dividend.
What is the analyst price target for KTCC?
The mean analyst price target is $9.25, which is 336.3% above the closing price of $2.12 recorded on October 16, 2026.
When does Key Tronic report earnings next?
The next scheduled earnings date is November 3, 2026.