KEKimball Electronics, Inc.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (2.1×).
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Margins have held roughly steady, a stable cost structure.
A balanced mix of margins, efficiency, and leverage. ROE 4% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is KE?
Kimball Electronics, Inc. earns 8.5% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 0.48 points below what the capital costs: growth destroys value
- Operating margin
- 4.6%
Operating margin · Electrical Equipment & Parts median 11% · 12 months to Q4 2026
- Cash conversion
- 2.08×
Cash conversion · 6.24× a year ago · operating cash flow covers the operating profit after tax
- Gross margin
- 8.2%
Gross margin
| Year | Operating margin |
|---|---|
| FY2021 | 5.1% |
| FY2022 | 3.9% |
| FY2023 | 4.8% |
| FY2024 | 2.9% |
| FY2025 | 3.1% |
| FY2026 | 4.6% |
Details›
- Gross margin12 months to Q4 2026
- 8.2%
- Operating margin12 months to Q4 2026
- 4.6%
- Net margin12 months to Q4 2026
- 1.9%
- Free cash flow margin
- 1.5%
- Revenue, trailing twelve months
- $1.43B
- Free cash flow, trailing twelve months
- $21M
- Net income, trailing twelve months
- $28M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 8.5%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from KE and who it buys from, as the companies report it.
- Nexteer Automotive18%
Share of revenue · FY2026 10-K
- Philips11%
Share of revenue · FY2026 10-K
- ZF11%
Share of revenue · FY2026 10-K
None disclosed.
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; KE’s own figures are from its FY2026 10-K. Smaller customers and suppliers go unreported.
Electrical Equipment & Parts
Ranks #7 of 18 by RyuScore