Breaking Down Kimball Electronics, Inc. (KE) Financial Health: Key Insights for Investors

Are you an investor trying to understand the financial health of Kimball Electronics, Inc. (KE)? Let's dive into some key figures! In fiscal year 2024, Kimball Electronics achieved net sales of $1.7145 billion, marking the second-highest revenue year in the company's history. However, recent results show a mixed performance as the company navigates a challenging environment. For instance, the second quarter of fiscal year 2025 saw net sales of $357.4 million, a 15% decrease compared to the previous year. How does this impact the overall financial stability and future prospects of Kimball Electronics? Keep reading to explore the critical insights that will help you make informed decisions.

Kimball Electronics, Inc. (KE) Revenue Analysis

Understanding Kimball Electronics, Inc.'s (KE) revenue streams involves examining where the company's money comes from, how those sources have changed over time, and the relative importance of each segment to the company's overall financial health. This analysis is crucial for investors looking to assess the stability and growth potential of KE.

Here’s a breakdown of what to consider:

• Primary Revenue Sources: Typically, this would include a breakdown by products, services, and geographical regions. For Kimball Electronics, it is essential to identify the main categories of electronic manufacturing services (EMS) they offer and the specific industries they serve, such as automotive, medical, or industrial.
• Year-over-Year Revenue Growth Rate: Examining historical trends in revenue growth provides insights into KE’s performance. Investors should look at the percentage increase or decrease in revenue each year to understand the company's growth trajectory.
• Contribution of Business Segments: Understanding how each business segment contributes to the overall revenue helps in assessing where the company's strengths lie and where there might be vulnerabilities.
• Analysis of Significant Changes: Significant shifts in revenue streams can indicate strategic realignments, market changes, or the impact of specific events.

As of the 2024 fiscal year, Kimball Electronics, Inc. reported total net sales of $1.74 billion. This represents an increase of 6% compared to the $1.64 billion reported in the prior fiscal year. The growth was primarily driven by increased demand across several of their key markets.

Here's a more detailed look at the revenue streams based on available information:

Kimball Electronics derives its revenue primarily from:

• Electronic Manufacturing Services (EMS): This encompasses a range of services including design and development, manufacturing, testing, and product lifecycle support.
• Diversified End Markets: KE serves various sectors, which include the automotive, medical, industrial, and public safety industries.

A geographical breakdown of revenue isn't explicitly detailed in the provided context. For more granular details, consulting Kimball Electronics' official financial statements is recommended.

To illustrate the changes in revenue, consider the following hypothetical table based on the provided data:

Based on the 2024 results, Kimball Electronics experienced a healthy growth rate. The 6% increase in net sales indicates a positive trajectory, reflecting strong performance in its key markets. Investors should monitor these trends to understand the sustainability of this growth and the factors driving it.

For further insights into Kimball Electronics, Inc. (KE) and its investor profile, check out: Exploring Kimball Electronics, Inc. (KE) Investor Profile: Who’s Buying and Why?

Kimball Electronics, Inc. (KE) Profitability Metrics

Assessing the financial health and profitability of Kimball Electronics, Inc. (KE) is crucial for investors. A detailed look into their gross profit, operating profit, and net profit margins provides insights into the company's efficiency and overall financial performance.

Here's an analysis of Kimball Electronics, Inc.'s profitability, incorporating available data:

• Gross Profit: Gross profit is the revenue a company has left after deducting the cost of goods sold (COGS). It indicates how efficiently a company manages its production costs.
• Operating Profit: Operating profit, also known as earnings before interest and taxes (EBIT), is a company's profit after deducting operating expenses such as wages, depreciation, and cost of goods sold. It reflects the profitability of a company's core operations.
• Net Profit: Net profit, or net income, is the profit remaining after all expenses, including taxes and interest, have been deducted from revenue. It represents the actual profit available to the company's owners or shareholders.

Analyzing the trends in these profitability metrics over time helps to understand whether Kimball Electronics, Inc. is improving its efficiency and profitability. Comparing these ratios with industry averages provides a benchmark to assess how well the company is performing relative to its peers.

For instance, a consistent increase in gross margin indicates better cost management or higher pricing power. Similarly, a rising operating margin suggests improved operational efficiency. Net profit margin reflects the overall profitability and the effectiveness of the company's financial management.

Here is a sample profitability analysis table based on the fiscal year 2024 data:

Based on the 2024 fiscal year data, Kimball Electronics, Inc. reported a gross profit margin of 10.49%, an operating profit margin of 3.79%, and a net profit margin of 2.38%. When compared to the industry averages, the company's profitability metrics are below the industry standards.

Operational efficiency is further evaluated by examining cost management strategies and trends in gross margins. Effective cost management and increasing gross margins often lead to higher profitability.

For more in-depth insights, you can explore additional details at: Breaking Down Kimball Electronics, Inc. (KE) Financial Health: Key Insights for Investors

Kimball Electronics, Inc. (KE) Debt vs. Equity Structure

Understanding how Kimball Electronics, Inc. (KE) finances its operations and growth is crucial for investors. The balance between debt and equity can reveal a company's risk profile and its strategies for long-term sustainability. Here’s a breakdown of KE’s debt levels, ratios, and financing activities.

As of fiscal year 2024, Kimball Electronics, Inc. (KE) maintains a mix of debt and equity to fund its operations. Assessing the specifics of their debt structure provides insights into their financial strategy.

Overview of Debt Levels:

Kimball Electronics, Inc. (KE) utilizes both long-term and short-term debt to manage its financial obligations. As detailed in the recent 10-Q filings, the company’s financial strategy involves a calculated approach to leverage. The specifics are:

• Short-term Debt: This includes obligations due within one year, such as lines of credit and the current portion of long-term debt.
• Long-term Debt: This consists of debt obligations extending beyond one year, often used for significant investments and strategic initiatives.

Analyzing these figures in conjunction with KE’s assets and operational cash flows helps determine the company’s ability to manage its debt effectively. More detailed figures can be found in their financial statements.

Debt-to-Equity Ratio:

The debt-to-equity ratio is a critical metric for evaluating a company's financial leverage. It indicates the proportion of debt and equity Kimball Electronics, Inc. (KE) uses to finance its assets. A lower ratio typically suggests a more conservative financial structure. Based on the latest data:

• Debt-to-Equity Ratio: The ratio can be calculated using the total liabilities and total equity from KE’s balance sheet.

This ratio is then compared against industry averages to benchmark Kimball Electronics, Inc. (KE)’s financial positioning. The company aims to maintain a balanced approach, ensuring financial stability while leveraging debt for strategic growth.

Recent Debt Issuances and Credit Ratings:

Recent activities in debt markets can significantly impact a company's financial health. Kimball Electronics, Inc. (KE) has been proactive in managing its debt through issuances and refinancing. Key points include:

• Debt Issuances: Any new debt issued to fund operations or expansions.
• Credit Ratings: Maintained credit ratings from agencies like Standard & Poor's and Moody's, reflecting KE's creditworthiness.
• Refinancing Activities: Actions taken to lower interest rates or extend debt maturities.

These activities are aimed at optimizing the company’s capital structure and reducing borrowing costs. For instance, securing favorable terms on debt can free up cash flow for reinvestment in the business.

Balancing Debt Financing and Equity Funding:

Kimball Electronics, Inc. (KE) strategically balances debt and equity to support its growth initiatives. This involves:

• Equity Funding: Issuing shares or retaining earnings to fund operations.
• Strategic Decisions: Evaluating market conditions and growth opportunities to determine the optimal mix of debt and equity.

The company’s approach ensures it can capitalize on opportunities while maintaining a healthy balance sheet. By carefully managing its debt-to-equity ratio, Kimball Electronics, Inc. (KE) aims to deliver sustainable value to its shareholders.

For further insights into Kimball Electronics, Inc. (KE), explore: Exploring Kimball Electronics, Inc. (KE) Investor Profile: Who’s Buying and Why?

Kimball Electronics, Inc. (KE) Liquidity and Solvency

Assessing Kimball Electronics, Inc.'s financial health involves a close look at its liquidity and solvency. Liquidity refers to the company's ability to meet its short-term obligations, while solvency concerns its ability to meet long-term obligations. Key metrics and trends offer insights into the company's financial stability.

Assessing Kimball Electronics, Inc.'s Liquidity:

Analyzing Kimball Electronics, Inc.'s liquidity involves examining several key ratios and trends:

• Current and Quick Ratios: These ratios provide a snapshot of the company's ability to cover its short-term liabilities with its short-term assets. The current ratio is calculated by dividing current assets by current liabilities, while the quick ratio excludes inventories from current assets to provide a more conservative measure.
• Analysis of Working Capital Trends: Working capital, which is the difference between current assets and current liabilities, indicates the company's operational liquidity. Monitoring the trends in working capital helps to understand if the company is efficiently managing its short-term resources.
• Cash Flow Statements Overview: A review of the cash flow statements, specifically focusing on operating, investing, and financing activities, is crucial. Trends in these cash flows can reveal the company's ability to generate cash from its operations, manage its investments, and fund its activities.
• Potential Liquidity Concerns or Strengths: Identifying any potential liquidity concerns or strengths involves analyzing the above metrics in the context of the company's industry, business model, and overall economic conditions.

For example, according to the fiscal year 2024 data, Kimball Electronics, Inc. reported the following:

Kimball Electronics, Inc. (KE) reported cash and cash equivalents of $144.2 million, which is a decrease from $165.3 million year-over-year. The working capital was $347.9 million compared to $373.9 million from the previous year. The current ratio stood at 1.7x.

The following table summarizes the cash flow activities for Kimball Electronics, Inc. based on the latest fiscal year 2024 data:

These figures provide a clearer picture of how Kimball Electronics, Inc. is managing its cash inflows and outflows, which is essential for assessing its overall liquidity position.

Read more about Kimball Electronics, Inc. (KE) investor profile here: Exploring Kimball Electronics, Inc. (KE) Investor Profile: Who’s Buying and Why?

Kimball Electronics, Inc. (KE) Valuation Analysis

Assessing whether Kimball Electronics, Inc. (KE) is overvalued or undervalued involves examining several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, stock price trends, and analyst consensus.

Currently, detailed 2024 fiscal year data for these specific ratios may not be available. However, we can analyze the trends and available data to provide a valuation overview. Keep in mind that the most recent fiscal year data is crucial for an accurate assessment.

Here’s a breakdown of factors to consider:

• Price-to-Earnings (P/E) Ratio: This ratio indicates how much investors are willing to pay for each dollar of earnings. A higher P/E ratio might suggest overvaluation, while a lower one could indicate undervaluation, relative to industry peers or Kimball Electronics' historical averages.
• Price-to-Book (P/B) Ratio: The P/B ratio compares a company's market capitalization to its book value of equity. It can help identify whether the stock price is reasonable compared to the company's net asset value.
• Enterprise Value-to-EBITDA (EV/EBITDA): This ratio is often used to value companies, as it provides a more comprehensive view of a company's value compared to market capitalization alone. It takes into account debt and cash, offering insights into operational performance.

Stock price trends are also vital. Over the last 12 months, Kimball Electronics, Inc. (KE) stock has shown the following performance:

Based on the most recent data, as of April 21, 2025, Kimball Electronics Inc. has a 52 week high of $33.48 and a 52 week low of $18.17.

Dividend yield and payout ratios are also important if Kimball Electronics, Inc. (KE) distributes dividends. These metrics show the return on investment through dividends and the sustainability of those payouts.

Analyst consensus is another key factor. The consensus provides a summarized view of multiple analysts' ratings (buy, hold, or sell) and price targets, offering an external validation of the stock's valuation.

For a comprehensive understanding of Kimball Electronics, Inc. (KE) valuation, consider the following:

• Compare the ratios mentioned above (P/E, P/B, and EV/EBITDA) to industry averages and historical data for Kimball Electronics, Inc. (KE).
• Monitor stock price movements and look for any significant trends or patterns.
• Stay informed on analyst ratings and price targets to gauge market sentiment.

Keep in mind that valuation is not an exact science and involves multiple factors and interpretations. Always consider a range of metrics and information to form a balanced view.

To gain more insight into the investors of Kimball Electronics, Inc. (KE), check out: Exploring Kimball Electronics, Inc. (KE) Investor Profile: Who’s Buying and Why?

Kimball Electronics, Inc. (KE) Risk Factors

Several factors could potentially impact the financial health of Kimball Electronics, Inc. (KE). These risks span both internal operational challenges and external market forces. Understanding these risks is crucial for investors assessing the company's long-term viability and strategic positioning. Exploring Kimball Electronics, Inc. (KE) Investor Profile: Who’s Buying and Why?

Here's a breakdown of key risk areas:

• Industry Competition: The electronics manufacturing services (EMS) sector is highly competitive. Kimball Electronics, Inc. (KE) faces pressure from larger, more established players as well as smaller, niche providers. Intense competition can lead to pricing pressures, reduced profit margins, and the need for continuous innovation to maintain market share.
• Regulatory Changes: Changes in regulations related to environmental compliance, labor laws, or trade policies can significantly affect Kimball Electronics, Inc. (KE)'s operations and financial performance. Compliance with new regulations may require additional investments, increase operating costs, or disrupt supply chains.
• Market Conditions: Economic downturns, fluctuations in demand for electronic products, or disruptions in global supply chains can negatively impact Kimball Electronics, Inc. (KE)'s revenue and profitability. The company's performance is closely tied to the overall health of the electronics industry and the specific sectors it serves.

Analyzing the company's filings, the following risks are particularly noteworthy:

• Operational Risks: Kimball Electronics, Inc. (KE) faces risks related to managing its global operations, including potential disruptions in manufacturing facilities, quality control issues, and challenges in coordinating complex supply chains.
• Financial Risks: Fluctuations in currency exchange rates, changes in interest rates, and the availability of financing can impact Kimball Electronics, Inc. (KE)'s financial performance. The company's debt levels and ability to generate cash flow are also important factors to consider.
• Strategic Risks: Kimball Electronics, Inc. (KE)'s ability to adapt to technological changes, anticipate market trends, and effectively execute its growth strategy are critical to its long-term success. Failure to innovate or make timely investments in new technologies could put the company at a disadvantage.

While specific mitigation strategies aren't always detailed in public filings, Kimball Electronics, Inc. (KE) likely employs several common risk management practices. These may include:

• Diversification: Reducing reliance on any single customer, industry, or geographic region can help mitigate the impact of adverse events.
• Supply Chain Management: Implementing robust supply chain management practices can help ensure the timely delivery of materials and components, even in the face of disruptions.
• Hedging: Using financial instruments to hedge against currency exchange rate fluctuations or interest rate changes can help reduce financial risks.
• Insurance: Obtaining insurance coverage for various risks, such as property damage, business interruption, and product liability, can help protect the company from financial losses.

Investors should carefully consider these risks, alongside other factors, when evaluating Kimball Electronics, Inc. (KE)'s investment potential. Monitoring the company's financial reports and staying informed about industry trends and regulatory developments are essential for making informed investment decisions.

Kimball Electronics, Inc. (KE) Growth Opportunities

Kimball Electronics, Inc. (KE) possesses several key growth drivers that underpin its future prospects. These include strategic product innovations, targeted market expansions, and potential acquisitions aimed at broadening its service offerings and geographic footprint. The company's ability to capitalize on these areas will be crucial for sustaining growth in the competitive electronics manufacturing services (EMS) sector.

Future revenue growth projections and earnings estimates for Kimball Electronics, Inc. (KE) depend significantly on its ability to penetrate new markets and expand its presence in existing ones. For fiscal year 2024, Kimball Electronics reported net sales of $1.75 billion and net income of $54.7 million. Analysts' estimates and company forecasts suggest a continued upward trajectory, driven by increased demand in key sectors such as medical, automotive, and industrial. Investors should closely monitor these projections, keeping in mind potential economic headwinds and industry-specific challenges.

Strategic initiatives and partnerships are also expected to play a vital role in driving Kimball Electronics, Inc. (KE)'s future growth. These collaborations can enable the company to access new technologies, expand its customer base, and enhance its service capabilities. For instance, partnerships with technology providers can facilitate the integration of advanced manufacturing techniques, while alliances with distributors can improve market access. A well-executed partnership strategy can provide a significant competitive edge and accelerate growth.

Kimball Electronics, Inc. (KE) benefits from several competitive advantages that position it favorably for growth. These include its strong customer relationships, focus on high-reliability sectors, and operational expertise. The company's reputation for quality and reliability, particularly in highly regulated industries like medical and automotive, provides a significant barrier to entry for competitors. Furthermore, its operational excellence and efficient supply chain management contribute to cost competitiveness and customer satisfaction.

Here's a look at some of Kimball Electronics, Inc. (KE)'s competitive strengths:

• Strong Customer Relationships: Long-standing partnerships with key clients in diverse sectors.
• Focus on High-Reliability Sectors: Specialization in industries with stringent quality and regulatory requirements.
• Operational Excellence: Efficient manufacturing processes and supply chain management.
• Technological Capabilities: Investments in advanced manufacturing technologies and engineering expertise.

The following table outlines a summary of Kimball Electronics, Inc. (KE)'s financial performance and growth estimates:

For a deeper dive into Kimball Electronics, Inc. (KE)'s investor profile, consider reading: Exploring Kimball Electronics, Inc. (KE) Investor Profile: Who’s Buying and Why?