_edited.png)
RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Kimball Electronics, Inc. (XNAS:KE) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
KE
Name:
KIMBALL ELECTRONICS, INC. (XNAS:KE)
Sector:
- 20910.00K
Industry:
Electrical Equipment & Parts
CEO:
Mr. Donald Charron
Total Employees:
7,200
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -67.56% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF KIMBALL ELECTRONICS, INC.(KE) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND ELECTRICAL EQUIPMENT & PARTS INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
20.19
One Month Price Target:
$20.34
Six Month Price Target :
$21.07
Likely Price in One Year's Time:
Ticker:
$21.95
Likely Trading Range Today Under (Normal Volatility)
$20.1
Price Upper limit ($) :
$20.31
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$18.97
This week:
$17.46
This month :
$14.73
Other Primary facts
Market Cap:
497.19M
Market Cap Classification:
Small Cap
Number of Shares
IPO Date:
24.63M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
18.61%
-15.3%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$25.85
$23.25
$14.53
$17.13
Medium risk (<10%) entry points
Buy Call
Sell Call
$22.40
Buy Put:
Sell Put:
$21.85
$17.97
$18.53
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
KE
Sharpe Ratio:
1.89%
Comparison:
KE, is amongst the top 40% stocks with highest risk-adjusted returns
Sharpe ratio is -48.08% lower than the industry
& is -17.00% lower than the market/S&P 500 average
Average Returns/Yield of
KE
Daily returns:
0.07%
Weekly returns:
0.33%
Monthly returns:
1.30%
Yearly returns:
41.50%
Comparison of returns:
Average annual returns/yield (last 3 years) is -62.33% below industry average
Classification:
KE, is amongst the top 40% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.77
Statistical test of Returns:
KE has not yielded statistically significant higher returns when compared to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.98%
Weekly Volatility:
6.65%
Monthly Volatility:
13.31%
Yearly Volatility:
46.10%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
2.65%
Volatility in last five trading days has been -10.84% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-6.05%
Weekly VaR:
-13.52%
Monthly VaR:
-27.04%
How Much Can the price of
KE
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-23%
Worst case (decline):
-93.66%
This translates to price declining to:
$15.51
This translates to price declining to:
$1.28
Severe Crash Probability
Risk of crash in next 6/12 months: High (50-70%)
What is Value at Risk (VaR)?
Risk Fundamentals
KE is a 90.83% riskier investment compared to the market/S&P 500 & is 63.48% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -19.60% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
KE
Beta in relation to market/S&P 500--1.30
Expected beta in 1 year's time:
0.824
Expected beta in 3 year's time:
1.166
Unlevered (debt free) Beta:
1.211
Beta in relation to Nasdaq (XNAS):
0.724
Beta in relation to all global stocks::
0.71
Beta Comparison & Analysis
Beta of competitors/peers::
1.343
Beta is -3.47% lower than peers
Average Industry Beta:
1.797
Beta is -27.84% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
7.44%
Sustainable growth rate is -58.87% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
0.036
Alpha is -86.17% below industry average alpha yield
Alpha is 229% higher than market/& is unsustainably high
Analysis of Cost of Capital of
KE
Equity cost of capital:
0.120
Equity cost of capital is -22.17% below industry mean WACC
Unlevered (without debt) cost of capital:
11.24%
Before-tax cost of debt:
1.95%
After-tax cost of debt:
1.54%
Overall debt rating:
Highest AAA investment grade
Weighted average cost of capital (WACC):
1.54%
WACC is -23.56% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$53.00
Revenue growth rate per share of (3Y):
1.13
Annual revenue growth rate is 10.18% above the industry average
EPS:
$1.41
Expected Annual growth rate of EPS (3Y):
1.88%
Expected future EPS growth rate is -96.01% lower than the Electrical Equipment & Parts industry
Free cash flow (FCF) per share:
-
-
-
Debt per share
$1.62
EBITDA per share
$3.19
Valuation Analysis Today of
KE
P/E Ratio:
12.66
P/E Ratio of Competitors/Peers:
12.72
P/E ratio is -0.44% lower than main peers & is -32.03% lower than the industry
Stock price/value with industry average P/E ratio: $26.26
KE is -23.13% undervalued if valued using industry average P/E ratio
-
-
P/S (Price to Sales ratio):
0.38
Price to sales ratio is -95.86% below the industry mean
P/B (Price to book value ratio):
1.13
-
-
Net income growth rate (3Y):
261.40%
Net income growth rate is -35.19% lower than the industry average net income growth rate
Dividend Analysis
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Dividend History:
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
9.09%
Net debt to equity ratio:
-3.79%
Debt to assets ratio:
4.77%
Net debt to assets ratio:
-1.99%
Debt-to-asset ratio is -89.29% below industry average
Ability to repay debt:
Interest coverage ratio:
55.34
Interest coverage ratio is 986.39% more than industry average
Looking forward:
Debt growth rate:
-43.95%
Annual debt growth is -105% lower than industry average debt growth rate
Debt repayment rate in last quarter: 0.00%
Analysis of Key Statistics
Correlation of price movement with the market:
0.524
Statistical significance of correlation:
KE has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.569
Stock price is -8.00% less correlated with the market compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.569
Correlation of price movement with Nasdaq (^IXIC):
0.005
Covariance of price movement with the market:
0.009
Kurtosis
4.773
Returns have moderate fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
0.367
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
KE
Gross Profit Margin Ratio:
31%
Operating Profit Margin Ratio:
3.76%
Operating profit margin is -108.30% lower than the industry
Net Profit Margin Ratio:
31%
Effective Tax Rate:
22.15%
Effective tax rate is 5.91% higher than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
8.13%
Return on equity (ROE) is -19.13% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
4.27%
Return on assets (ROA) is -10.91% lower than the industry
Financial Leverage:
1.1x
Current Ratio:
1.84
Current ratio is -52.06% below industry average
Cash Conversion Cycle (days):
-2.5
Cash conversion cycle is -103.64% below industry average
The remaining useful life of property plant & equipment is: 8.3 years
Stock based compensation to net income ratio:
3.15%
In-depth Efficiency Analysis
Revenue generated per employee:
181.3K
Each employee generates -65% less revenue than industry average revenue per employee
EBITDA generated per employee:
10.9K
Each employee generates -87% less EBITDA than industry average revenue per employee
Profit generated per employee:
5.0K
Each employee generates -87% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
- 2.9K
Each employee generates -87% less free cash flow than industry average revenue per employee
Assets/Capital per employee
32.8K
Each employee generates -87% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
KE
VSE CORPORATION (XNAS:VSEC)
GEFEN INTERNATIONAL A.I. LTD (XASX:GFN)
RILYH
Tecnoglass Inc (XNYS:TGLS)
TITAN MACHINERY INC. (XNAS:TITN)
BARRETT BUSINESS SERVICES, INC. (XNAS:BBSI)
GSHT
AERSALE CORPORATION (XNAS:ASLE)
EAGLE BULK SHIPPING INC. (XNAS:EGLE)
Current Analyst Ratings
Strong buy�0%
Buy�0%
Hold�0%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: -
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
1.31B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
1.20B
102.16M
-
14.70M
54.15M
-
- 1039.00K
53.11M
86.00K
1.42M
31.23M
78.58M
49.05M
35.76M
45.94M
10.17M
35.76M
Statement of Cash Flow
Date:
Period:
8.91M
Differed Income Tax :
820.00K
Stock Based Compensation :
1.13M
Change in Working Capital :
- 20922.00K
Accounts Receivables:
25.72M
Other Working Capital:
-
Other Non-Cash Items:
- 685.00K
Net Cash Provided by Operating Activities:
- 8187.00K
Investments in PP&E:
-
Net Acquisitions:
-
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
9/30/21
2022
Q1
89.32M
-
89.32M
222.96M
262.13M
27.77M
602.18M
166.09M
12.01M
16.61M
-
-
41.38M
236.08M
-
838.27M
247.18M
32.64M
-
-
46.77M
326.58M
40.00M
31.87M
71.87M
-
398.45M
-
211.53M
- 9149.0K
-
September 30, 2021 at 6:00:00 AM
1.26B
439.81M
838.27M
-
72.64M
- 16688.0K
-
- 12868.00K
- 12868.00K
-
-
-
-
4.97M
4.97M
- 1028.00K
- 17118.00K
89.32M
106.44M
- 8187.00K
- 12723.00K
- 20910.00K
Our Proprietary Portfolio Rating
Our Rating:
D
Price Forecast/Expected Price in Next 5 Years of
KE
2023
2024
2025
2026
2027
$22.83
$24.82
$26.98
$29.34
$31.89