Kimball Electronics trades at a deep value multiple with strong cash conversion and a recovering technical setup, but a below-floor quality score and a failed asymmetry gate keep the position sizing at avoid despite a string of earnings beats.
Thesis pillars
- Strong Cash Conversion→Stable
- Deep Value Multiple→Stable
- Quality Below Floor Risk↑Improving
- +2 more pillars — see the Why tab for full reasoning
Kimball Electronics, Inc. (KE) Stock Analysis
Falling Knife setup · Inst Constrain edge
Industrials · Electrical Equipment & Parts
Sell if holding. Momentum 3.9/10 is below the 5.0 floor at $24.21 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.0); Sector modifier (Industrials): -0.7.
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
Sell if holding. Momentum 3.9/10 is below the 5.0 floor at $24.21 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.0); Sector modifier (Industrials): -0.7. Chart setup: Death cross, below all MAs, RSI 39, MACD bearish. Score 5.3/10, moderate confidence.
Passes 7/9 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 62d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA). Suitability: aggressive.
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.
Show full overview
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.
Recent developments
updated 2026-09-03Recent Developments — Kimball Electronics, Inc.
Latest news
- NEWS Kimball Electronics Sees FY2027 Sales $1.535B-$1.560B vs $1.538B Est — benzinga Aug 12, 2026 neutral
- NEWS Kimball Electronics Q4 Adj. EPS $(0.01) Misses $0.39 Estimate, Sales $371.573M Miss $373.363M Estimate — benzinga Aug 12, 2026 negative
- NEWS Kimball Electronics Rebrands To Kimball Solutions At Jasper, Indianapolis Sites, Effective July 1 — benzinga Jul 15, 2026 positive
- NEWS Keybanc Initiates Coverage On Kimball Electronics with Sector Weight Rating — benzinga Jul 2, 2026 neutral
- NEWS Kimball Electronics Acquires Helvoet Polymer Technologies For €90M ($103M), Expanding Global Medical CDMO Platform Acros — benzinga Jul 1, 2026 positive
Generated 2026-09-03T14:22:18Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
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 States10-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.
Show full disclosure ▾Hide full disclosure ▴
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.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security. Our sole compensation is subscription revenue.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
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.
Rating Breakdown
2 floor-breakers
No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Momentum 3.9/10 is below the 5.0 floor at $24.21 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.0); Sector modifier (Industrials): -0.7. Chart setup: Death cross, below all MAs, RSI 39, MACD bearish. Prior stop was $22.52. Score 5.3/10, moderate confidence.
Take-profit target: $29.11 (+20.2% upside). Prior stop was $22.52. Stop-loss: $22.52.
V7 low-quality RISK_OFF penalty: -0.5 (Q=4.0); Sector modifier (Industrials): -0.7; Consecutive earnings misses (2).
Kimball Electronics, Inc. trades at a P/E of 21.1 (forward 13.2). TrendMatrix value score: 7.8/10. Verdict: Sell.
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