Key Tronic Corporation Common Stock (KTCC)

FairStock Score: 36/100 — MIXED

Key Financials

Strengths

• Generates $39 million in annual free cash flow (123.8% yield on market cap)

Concerns

• Revenue declining at 15.4% year-over-year signals potential demand weakness or market share loss
• Weak Piotroski F-Score of 3/9 suggests deteriorating financial quality across multiple dimensions
• Altman Z-Score of 0.9 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Key Tronic Corporation Common Stock is a micro-cap technology company valued at $31 million. Revenue stands at $395 million. From a quality standpoint, Key shows weak Piotroski F-Score of 3/9 signaling deteriorating fundamentals and distressed Altman Z-Score of 0.9 warrants caution. On valuation, the stock is strong 9.8% free cash flow yield. Growth dynamics show revenue growing at -15.4% and profit growth of -74.4%. Our composite FairStock Score of 36/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $39 million in annual free cash flow (123.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the technology space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer