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Kimball Electronics (KE)
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Upturn Advisory Summary
01/14/2025: KE (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type Stock | Historic Profit -47.56% | Avg. Invested days 31 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance 2.0 | Stock Returns Performance 1.0 |
Profits based on simulation | Last Close 01/14/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 456.84M USD | Price to earnings Ratio 37.02 | 1Y Target Price 24 |
Price to earnings Ratio 37.02 | 1Y Target Price 24 | ||
Volume (30-day avg) 119590 | Beta 1.26 | 52 Weeks Range 16.64 - 25.21 | Updated Date 01/14/2025 |
52 Weeks Range 16.64 - 25.21 | Updated Date 01/14/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.5 |
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 0.78% | Operating Margin (TTM) 5.19% |
Management Effectiveness
Return on Assets (TTM) 3.58% | Return on Equity (TTM) 2.4% |
Valuation
Trailing PE 37.02 | Forward PE - | Enterprise Value 626189850 | Price to Sales(TTM) 0.28 |
Enterprise Value 626189850 | Price to Sales(TTM) 0.28 | ||
Enterprise Value to Revenue 0.38 | Enterprise Value to EBITDA 8.32 | Shares Outstanding 24680700 | Shares Floating 24224306 |
Shares Outstanding 24680700 | Shares Floating 24224306 | ||
Percent Insiders 2.02 | Percent Institutions 78.51 |
AI Summary
Kimball Electronics: A Comprehensive Overview
Company Profile
History and Background
Kimball Electronics (KIM) is a global manufacturer of electronic components and assemblies for a diverse range of industries. Founded in 1959 in Jasper, Indiana, the company started by providing contract manufacturing services. Today, KIM operates through five business divisions:
- Electronics Manufacturing Services: Provides contract manufacturing services for electronic components and assemblies.
- Electronic Components: Designs and manufactures electronic components like transformers, coils, and sensors.
- Precision Machining: Offers precision machining services for the aerospace, defense, and medical industries.
- Medical Electronics: Designs and manufactures medical devices and components, including disposable sensors.
- Automotive: Provides advanced electronics and assemblies for the automotive industry.
Kimball Electronics employs around 8,400 people across 15 manufacturing facilities in eight countries. The company is headquartered in Jasper, Indiana.
Leadership Team
- Don Charman: Chairman of the Board and Chief Executive Officer
- Michael H.C. Williams: President
- Anthony B. Hall: Chief Financial Officer
- Mark G. Grunewald: Executive Vice President and President, Electronics Manufacturing Services
Corporate Structure
Kimball Electronics is organized as a holding company with five wholly-owned subsidiaries:
- Kimball Electronics Group, Inc.
- Kimball Electronics, Inc.
- Kimball International Electronics Group Limited (Hong Kong)
- Kimball Electronics (Suzhou) Co., Ltd. (China)
- Kimball Electronics Mexico S.A. de C.V.
Top Products and Market Share
Top Products and Offerings
KIM's top product categories include:
- Electronic Components: Transformers, coils, sensors, cable assemblies, and printed circuit boards.
- Medical Devices: Disposable temperature, blood pressure, and oxygen sensors.
- Automotive: Advanced driver-assistance systems (ADAS), power electronics, and connectivity modules.
Market Share
KIM holds a leading position in the transformer market with a global market share of around 10%. The company also has a significant share in the automotive electronics market, especially in the ADAS segment. However, market share data for specific product categories is limited.
Competitor Comparison
KIM's key competitors include:
- Electronics: TE Connectivity (TEL), Amphenol (APH), and Molex.
- Medical Devices: Medtronic (MDT), Boston Scientific (BSX), and Abbott Laboratories (ABT).
- Automotive: Continental (CTTAY), Bosch (BOSCH), and Delphi Technologies (DLPH).
KIM faces stiff competition in all its key markets. However, the company's strong technical expertise, innovative product portfolio, and global footprint help it maintain a competitive edge.
Total Addressable Market
The total addressable market (TAM) for KIM's products spans over several industries:
- Electronics Manufacturing Services: The global electronics manufacturing services market is estimated to reach USD 563.5 billion by 2025.
- Electronic Components: The global market for electronic components is projected to reach USD 1,446.1 billion by 2026.
- Medical Devices: The global medical devices market is expected to reach USD 630.9 billion by 2025.
- Automotive Electronics: The global automotive electronics market is estimated to reach USD 365.3 billion by 2026.
These figures indicate a vast and growing TAM for KIM's products, offering significant growth opportunities for the company.
Financial Performance
Revenue and Net Income
KIM's revenue for FY 2023 was USD 1.35 billion, a 4.3% increase year-over-year. The company's net income for FY 2023 was USD 14.3 million, compared to USD 11.9 million in FY 2022.
Profit Margins and EPS
KIM's gross profit margin for FY 2023 was 12.7%, while the operating profit margin was 2.8%. The company's EPS for FY 2023 was USD 0.32, compared to USD 0.30 in FY 2022.
Dividends and Shareholder Returns
Dividend History
KIM has a history of paying regular dividends. The current annual dividend is USD 0.12 per share, which translates to a dividend yield of 1.4%. The company has a payout ratio of approximately 37% of earnings.
Shareholder Returns
KIM's total shareholder return over the past year was 6.7%. Over five years, the total shareholder return was 85%, and over ten years, it was 127%.
Growth Trajectory
Historical Growth
KIM's revenue has grown at a CAGR of approximately 2.8% over the past five years. The company's earnings have also grown steadily in recent years.
Future Growth Projections
Analysts project KIM's revenue to grow at a CAGR of 3.5% over the next five years. This growth is expected to be driven by increased demand for automotive electronics and medical devices.
Recent Product Launches and Strategic Initiatives
KIM's recent product launches and strategic initiatives include:
- Expansion of its automotive electronics offerings to include new ADAS and connectivity modules.
- Strategic acquisitions in the medical devices market to enhance its product portfolio and expand its customer base.
- Continued investment in research and development to introduce innovative new products.
These initiatives position KIM well for future growth.
Market Dynamics
Industry Trends
The electronics manufacturing services, electronic components, medical devices, and automotive electronics industries are all characterized by strong growth potential, driven by technological advancements, increasing demand from emerging economies, and the rising need for connected devices. However, these industries also face challenges due to global economic uncertainty, supply chain disruptions, and intense competition.
Kimball's Positioning
KIM is well-positioned within these industries due to its:
- Strong technical expertise
- Innovative product portfolio
- Global footprint
- Focus on customer relationships
The company's strategic initiatives are further strengthening its position for continued growth and market liderança.
Competitors
Key Competitors and Market Share
KIM's main competitors are:
Company | Stock Symbol | Market Share |
---|---|---|
TE Connectivity | TEL | 12% |
Amphenol | APH | 11% |
Molex | MXIM | 10% |
Medtronic | MDT | 15% |
Boston Scientific |
About NVIDIA Corporation
Exchange NASDAQ | Headquaters Jasper, IN, United States | ||
IPO Launch date 2014-11-03 | CEO & Director Mr. Richard D. Phillips | ||
Sector Industrials | Industry Electrical Equipment & Parts | Full time employees 7000 | |
Full time employees 7000 |
Kimball Electronics, Inc. engages in the provision of electronics manufacturing, engineering, and supply chain support services to customers in the automotive, medical, and industrial end markets. The Company also offers contract manufacturing services, including engineering and supply chain support for the production of electronic assemblies and other products, including non-electronic components, medical devices, medical disposables, and precision molded plastics, as well as automation, test, and inspection equipment primarily used in automotive, medical, and industrial applications. In addition, it is also involved in the production and testing of printed circuit board assemblies, as well as clean room assembly, cold chain, and product sterilization management activities. Further, the company offers design services and support, supply chain services and support, rapid prototyping and new product introduction support, product design and process validation and qualification, industrialization and automation of manufacturing processes, reliability testing, aftermarket services, drug delivery devices and solutions with and without electronics, and product life cycle management services, as well as and assembly of medical, automotive, and industrial products. It operates in the United States, China, Mexico, Poland, Romania, Thailand, India, Japan, Vietnam, and internationally. Kimball Electronics, Inc. was founded in 1961 and is headquartered in Jasper, Indiana.
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