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KEKimball Electronics, Inc.Sell5.4·$27.03
SellModerate Confidence

Thesis pillars

  • Attractive Valuation Cash Conversion→Stable
  • Analyst Target Upside→Stable
  • Declining Revenue Earnings Misses↑Improving
  • +2 more pillars — see the Why tab for full reasoning

Pillars as of Oct 24, 2026, based on the 10-K filed Aug 19, 2026

Full reasoning →

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Kimball Electronics, Inc. (KE) Stock Analysis

Inst Constrain edge

SellVALUE-TRAP 1/5ValueGrowthModerate Confidence

Industrials · Electrical Equipment & Parts

Earnings in 6 days (2026-11-04). Expect elevated volatility around the report — consider waiting for post-earnings price action before new entries.

Sell if holding. At $27.03, A.R:R 0.6:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 6.9%; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.0).

Kimball Electronics is a contract manufacturer providing electronics manufacturing services (EMS) and, through its new Kimball Solutions brand, contract development and manufacturing organization (CDMO) services spanning medical disposables, drug delivery devices, and precision... Read more

$27.03+6.9% A.UpsideScore 5.4/10#15 of 25 Electrical Equipment & Parts
QualityF-score7 / 9FCF yield8.19%
Stop $25.14Analyst target $28.90(−15% haircut)A.R:R 0.6:1
Analyst consensus$34.00+25.8%3 analysts
$28.90Analyst target
$27.03price
$34.00mean
$37

Sell if holding. At $27.03, A.R:R 0.6:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 6.9%; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.0). Chart setup: No clear chart pattern; technical signals are mixed. Score 5.4/10, moderate confidence.

Passes 6/9 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio and earnings proximity 6d<=7d. Suitability: aggressive.

10-K grounded · weekly refresh

About Kimball Electronics, Inc.

About Kimball Electronics, Inc.

Kimball Electronics generated 46% of fiscal 2026 net sales from automotive customers, 29% from medical, and 25% from industrial, and its three largest customers -- Nexteer Automotive (18%), Philips (11%), and ZF (11%) -- together accounted for approximately 40% of net sales. The company operates 11 manufacturing facilities across the U.S., Mexico, China, India, the Netherlands, Poland, Romania, and Thailand, deriving a substantial majority of revenue from operations outside the United States. Kimball completed its largest-ever acquisition, Helvoet Polymer Technologies, on July 1, 2026, expanding its precision molded plastics and medical device manufacturing capabilities and adding facilities in India and the Netherlands.

Kimball earns revenue as a contract manufacturer, producing printed circuit board assemblies, higher-level and final assemblies, medical disposables, drug delivery devices, and precision molded plastics to customer specifications under agreements that typically lack firm long-term production commitments -- customers generally do not commit to firm production schedules beyond one quarter, and margins on new program start-ups are typically diluted early before recovering as programs mature. Raw materials, particularly semiconductors, are sourced globally and have experienced periodic shortages and allocations; many customer contracts allow periodic price re-pricing tied to component costs, though Kimball can bear the risk of cost increases between repricing windows. During fiscal 2026, tariffs implemented under various U.S. trade authorities increased supply-chain costs, most of which the company recovered through contractual pass-through and repricing mechanisms. Kimball funded a portion of the Helvoet acquisition price through its credit facilities, and integrating Helvoet's India and EU operations, employees, and customer relationships is a key execution risk going forward.

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Kimball's supply chain carries specific geographic concentration risk beyond generic component shortages: the 10-K flags prolonged reliance on select regions, including Taiwan and mainland China, for certain critical components, and separately states its supply chain is heavily reliant on raw materials and components manufactured and assembled in various countries including China, which are subject to tariffs the company has only partially recovered through contractual pass-through. That regional concentration sits alongside a manufacturing footprint concentration of its own: a substantial majority of Kimball's revenue comes from operations outside the United States, primarily in China, Mexico, Poland, Romania, and Thailand, so the same geopolitical and trade-policy shifts that threaten component sourcing also touch the facilities producing the finished goods -- a compounding exposure to any single country-level disruption rather than an independent, diversifiable risk.

See also: Industrials · Electrical Equipment & Parts

From Kimball Electronics, Inc.'s most recent 10-K filing, extracted August 23, 2026.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-10-29

Recent Developments — Kimball Electronics, Inc.

Generated 2026-10-29T11:48:40Z.

TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Wed, Nov 4, 20266d to earnings· next earnings call

Thesis

Rewards
Strong earnings beat streak (3/4)
Attractive valuation
Risks
Thin upside margin: 6.9%
V7 low-quality RISK_OFF penalty: -0.5 (Q=4.0)
Sector modifier (Industrials): -0.7

Key Metrics

P/E (TTM)23.9
P/E (Fwd)14.8
Mkt Cap$649M
EV/EBITDA7.3
Profit Mgn2.0%
ROE4.8%
Rev Growth-2.3%
Beta1.24
DividendNone
Rating analysts12

Quality Signals

Piotroski F7/9

Options Flow

P/C2.38bearish
IV75%elevated

Concentration Risks(10-K Item 1A)

  • LOWCustomerNexteer Automotive18%
    10-K Item 1A: 'sales to Nexteer Automotive alone accounted for approximately 18% of our net sales'
  • MEDIUMCustomertop three customers (Nexteer Automotive, Philips, ZF)40%
    10-K Item 1A: 'sales to our three largest customers — Nexteer Automotive, Philips, and ZF — accounted for approximately 40% of our net sales in the aggregate'
  • LOWCustomerPhilips11%
    10-K Item 1: 'Philips| 11%| | *| | *'
  • LOWCustomerZF11%
    10-K Item 1: 'ZF| 11%| | 11%| | 13%'
  • MEDIUMProductautomotive end market46%
    10-K Item 1: 'Automotive| 46%| | 47%| | 46%'
  • MEDIUMGeographicoutside the United States
    10-K Item 1A: 'We derive a substantial majority of our revenues from our operations outside the United States, primarily in China, Mexico, Poland, Romania, and Thailand.'

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy

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About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.

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Conflicts and positions. People who build TrendMatrix, or entities they control, may hold positions, long or short, in securities it covers, and may trade them at any time. Positions are not disclosed individually. Verdicts are generated by an automated model applied by the same rules to every covered stock, and are not adjusted for any position held by the people who build TrendMatrix. We do not accept payment from issuers for coverage.

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Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

10 dimensions · all in-band

GatesA.R:R 0.6 < 1.5@spotEARNINGS PROXIMITY 6d<=7dMomentum 5.3<5.5 (soft — BUY_NOW allowed but watch)Momentum 5.3>=4.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Aggressive
RSI
40 · Neutral
↓ 20D MA↑ 50D MA↑ 200D MAGOLDEN CROSSSupport $24.03Resistance $29.20

Price Targets

$25
$29
A.Upside+6.9%
A.R:R0.6:1

Position Sizing

ConvictionNone
Suggested %0%
Max %0%
RegimeRisk-Off

Risk Alerts

! asymmetry at 0.6 (below the engine's 1.5 threshold)@spot
! EARNINGS_PROXIMITY:6d<=7d

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-11-04 (6d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is KE stock a buy right now?

Sell if holding. At $27.03, A.R:R 0.6:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 6.9%; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.0). Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $25.14. Score 5.4/10, moderate confidence.

What is the KE stock price target?

Analyst target: $28.90 (+6.9% upside). Prior stop was $25.14. Stop-loss: $25.14.

What are the risks of investing in KE?

Thin upside margin: 6.9%; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.0); Sector modifier (Industrials): -0.7.

Is KE overvalued or undervalued?

Kimball Electronics, Inc. trades at a P/E of 23.9 (forward 14.8). TrendMatrix value score: 7.2/10. Verdict: Sell.

What do analysts say about KE?

12 analysts cover KE with a consensus score of 4.1/5. Average price target: $34.

What does Kimball Electronics, Inc. do?Kimball Electronics is a contract manufacturer providing electronics manufacturing services (EMS) and, through its new...

Kimball Electronics is a contract manufacturer providing electronics manufacturing services (EMS) and, through its new Kimball Solutions brand, contract development and manufacturing organization (CDMO) services spanning medical disposables, drug delivery devices, and precision molded plastics for automotive, medical, and industrial customers. The company generated 46% of fiscal 2026 net sales from automotive customers, 29% from medical, and 25% from industrial, with its top three customers -- Nexteer Automotive (18%), Philips (11%), and ZF (11%) -- together accounting for approximately 40% of

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