Kimball Electronics, Inc. (KE)
NASDAQIndustrialsElectrical Equipment & PartsSnapshot 2026-09-09
$25.04-0.52%
Close 2026-09-09 · 1-day change
NASDAQIndustrialsElectrical Equipment & PartsSnapshot 2026-09-09
Intact: The reason to own it still holds.
Kimball Electronics aims for revenue near $1.4-$1.46 billion in 2026. Profit margins are expected to stay near 4.35%. Capital spending is steady at $50-$60 million. The company has a strong track record of earnings beats and recent M&A to expand capabilities.
Revenue growth is modest at about 3.4%. Profit margins are pressured and management execution is mixed. Recent earnings misses and litigation risks could hurt momentum. The sector faces headwinds that may limit upside.
The stock trades about 39% below our fair value near $42. Analysts expect roughly 3% revenue growth. The price reflects cautious optimism but also elevated risk from mixed execution and sector headwinds.
Breaks if: CAPEX falls outside $50-$60 million range in FY26
Kimball Electronics aims to maintain its capital expenditures within the $50-$60 million range for fiscal 2026.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a stable company with robust earnings quality. The current thesis state is mixed, reflecting strong recent performance but heightened near-term risks.
The market appears to have priced in a neutral valuation relative to peers, with a slight premium. There is an expectations gap indicating that investors may not fully anticipate potential challenges ahead.
Management has shown strong execution in maintaining revenue and margin targets, but there is an elevated risk of an earnings miss in the near term. Recent financial performance has been strong, but the company has faced some volatility in earnings surprises.
The thesis hinges on whether KE can maintain its revenue guidance and if sector bellwethers continue to perform well. Any negative guidance or earnings misses from these peers could significantly impact KE's outlook.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. The company maintained its fiscal 2026 revenue guidance of $1.4-$1.46 billion. However, it reported a significant earnings miss in Q4 2026. This mixed performance creates uncertainty around the company's outlook.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: Operating margin falls below 4.2% in FY26
Breaks if: Revenue falls below $1.4 billion in FY26
In the next 1 to 3 years, KE's performance will depend on management's ability to navigate sector challenges and maintain growth in its medical platform. Not investment advice.