Kimball Electronics Inc. Common Stock (KE)

FairStock Score: 42/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Graham-and-Buffett-minded investor, I start with the business. Kimball is a contract electronics manufacturer serving automotive, medical, and industrial customers, with some medical disposables and drug-delivery work. That is a competitive field. Scale and customer relationships matter, but pricing power is limited; in fiscal year 2026, the year ended 2026-06-30, revenue was $1.4B and net income $28.0M, so net margin is roughly 2%. The profit recovery is real: net income rose from $17.0M in fiscal year 2025, the year ended 2025-06-30, to $28.0M in fiscal year 2026, and diluted EPS moved from $0.68 to $1.13. The balance sheet is conservative with debt-to-equity of 0.23, while a Piotroski F-Score of 8/9 and trailing free cash flow of $20.6M suggest decent accounting and cash quality. But the long-term record is uninspiring: the Lynch category is SLOW GROWER — Shrinking, based on profit -13.2% a year over five years and revenue 2.1%. Revenue has fallen from $1.7B in fiscal 2024, the year ended 2024-06-30, to $1.5B in fiscal 2025 and $1.4B in fiscal 2026. Returns are low: FairStock shows ROE of 4.84% and ROCE of 3.27%, not the hallmark of a wide moat. At the 2026-10-13 close of $28.31, FairStock's Graham Number is $24.91, giving a -13.65% margin of safety; its P/E is 25.05 and FCF yield is 3.0%. The low P/B of 1.16 and EV/EBITDA of 7.05 offer some support, but this is a show-me story.

In plain English: Kimball Electronics makes electronic parts and assemblies, plus some medical products, for other companies. Its latest full year showed higher profit but lower sales than the prior year, and the business earns thin margins with modest profits relative to the money invested. At the 2026-10-13 close of $28.31, the price looks a little above what its current earnings and book value alone would suggest, though cash flow and debt levels are reasonable.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-03-31) · fiscal Q2 2026 10-Q (period ended 2025-12-31) · fiscal Q1 2026 10-Q (period ended 2025-09-30) · fiscal Q3 2025 10-Q (period ended 2025-03-31) · FY2026 10-K (period ended 2026-06-30) · FY2025 10-K (period ended 2025-06-30) · FY2024 10-K (period ended 2024-06-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer