MeritValue

Kimball Electronics, Inc.

KEdata completeness 100%13 fiscal years on file
The thesis, from the filings

Kimball Electronics, Inc. earns about 10% on invested capital, barely covering its ~9% cost of capital, with a roughly flat share count. The estimate methods put fair value between $12 and $13.17 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$1.29B1$1.35B2$1.82B3$1.71B3$1.49B3
Net income$56.8M4$31.3M5$55.8M6$20.5M6$17M6
Operating cash flow$130.1M7−$83.2M8−$13.8M9$73.2M9$183.9M9
Capital expenditure$38.4M10$74M11$89.4M12$46.1M12$33.3M12
Free cash flow (derived)$91.7M7−$157.1M8−$103.2M9$27.1M9$150.7M9
Total debt———$294.8M13$147.1M13
Cash & equivalents$106.4M14$49.9M15$43M16$78M16$88.8M16
Diluted shares25.3M25.2M25.1M25.3M25.0M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$227.8
your share of equity
Profit it earned you last year
$6.79
Free cash flow it threw off
$60.22
Debt you’d be carrying
$58.8

10 shares is a claim on $227.8 of net worth that earned you $6.79 and generated $60.22 of cash last year, against $58.8 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
10% avg · 5y
FY21 17%FY22 8%FY23 14%FY24 5%FY25 4%

It earned about 10% on invested capital against a ~9% cost of capital — roughly what it costs to fund the business, so the numbers show no clear edge.

seeing a moat in the numbers →
Management signal · capital allocation
−1% shares · 5y

Share count is roughly flat over 5 years — little dilution, little buyback. Total debt has fallen 50% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $12 and $13.17 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$12
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.0%
  • fcfBase$27.1M
DCF · Growth Exit 5Y
$13.17
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.0%
  • fcfBase$27.1M
Earnings Power Value
$12.95
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$31.3M
  • growthAssumed0.0%
Graham Number
$18.67
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years0.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $13.17
The three cases
Bear0.0%$13.17
Base0.0%$13.17
Bull5.0%$16.92

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 0.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-06-30 · accession 0001606757-23-000033 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-06-30 · accession 0001606757-24-000024 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-06-30 · accession 0001606757-25-000027 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-06-30 · accession 0001606757-23-000033 (NetIncomeLoss)
  5. 10-K · period ending 2022-06-30 · accession 0001606757-24-000024 (NetIncomeLoss)
  6. 10-K · period ending 2023-06-30 · accession 0001606757-25-000027 (NetIncomeLoss)
  7. 10-K · period ending 2021-06-30 · accession 0001606757-23-000033 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-06-30 · accession 0001606757-24-000024 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-06-30 · accession 0001606757-25-000027 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-06-30 · accession 0001606757-23-000033 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-06-30 · accession 0001606757-24-000024 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-06-30 · accession 0001606757-25-000027 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2024-06-30 · accession 0001606757-25-000027 (LongTermDebt)
  14. 10-K · period ending 2021-06-30 · accession 0001606757-23-000033 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2022-06-30 · accession 0001606757-24-000024 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2023-06-30 · accession 0001606757-25-000027 (CashAndCashEquivalentsAtCarryingValue)