Key Tronic Corp

Key Tronic operates with a market capitalization of $34.1 million and a price-to-book ratio of 0.28, indicating a significant discount to its book value. The company's liquidity position is characterized by $4.8 million in cash and equivalents, but this is offset by $121.6 million in long-term debt, resulting in a negative net cash position. The current ratio of 2.77 suggests the company has sufficient short-term assets to cover its liabilities, but the debt-to-equity ratio of 0.98 indicates a moderate level of leverage.

Profitability metrics reveal a challenging financial situation. The company reported a net loss of $1.99 million and a negative return on equity of -1.6%, which is below the industry median for return on equity. The operating margin is also weak, with operating income of $117,000 on $133.2 million in revenue, translating to a margin of 0.09%. This is significantly below the industry median for operating margin, indicating that Key Tronic is underperforming in terms of operational efficiency.

Geographically, Key Tronic's revenue is concentrated in the United States, with no significant international exposure disclosed in the financial data. The company's business is primarily driven by its core segment focused on keyboard and input device manufacturing, with no material diversification into other product lines.

Looking ahead, Key Tronic's revenue is expected to remain relatively flat, with no significant growth anticipated in the next fiscal year. The company's capital expenditure of -$3.96 million suggests a reduction in investment in physical assets, which may indicate a focus on cost control rather than expansion. The free cash flow of $246,000 is minimal and does not provide much flexibility for reinvestment or debt reduction.

Risk factors for Key Tronic include its high leverage and negative net cash position, which could limit its ability to respond to market changes or invest in growth opportunities. The company's dilution risk is currently low, as there is no indication of imminent share issuance or dilution events. However, the company's financial performance and liquidity position remain areas of concern, particularly given the negative net income and weak return metrics.

Recent events and filings do not indicate any major strategic shifts or operational changes for Key Tronic. The company continues to focus on its core manufacturing business, with no significant new product launches or market expansions disclosed in the latest financial reports.

Key Tronic maintains a healthy current ratio of 2.55, indicating strong short-term liquidity to meet immediate obligations.

The company exhibits low dilution risk, suggesting existing shareholders face minimal threat from equity issuance.

Key Tronic's debt-to-equity ratio of 0.98 is significantly lower than the cohort median of 0.26.

The company carries a high credit risk flag, suggesting potential difficulties in meeting debt obligations.

Operating margin of 0.09% falls well below the Electronic Equipment cohort median of 4.13%.

Revenue $566.9M, −6,3% YoY; Operating income −58,6% YoY.

• ▍Revenue $566.9M, −6,3% YoY
• ▍Operating income −58,6% YoY
• ▍Net income −154,0% YoY
• ▍Free cash flow −12,9% YoY
• ▍Net margin -0.5%

Revenue $605.3M, +11,2% YoY; Operating income +85,6% YoY.

• ▍Revenue $605.3M, +11,2% YoY
• ▍Operating income +85,6% YoY
• ▍Net income +52,7% YoY
• ▍Free cash flow +19,4% YoY
• ▍Net margin 0.9%

Revenue $544.2M, +4,9% YoY; Operating income −7,7% YoY.

• ▍Revenue $544.2M, +4,9% YoY
• ▍Operating income −7,7% YoY
• ▍Net income −22,2% YoY
• ▍Free cash flow +593,5% YoY
• ▍Net margin 0.6%

Revenue $518.7M; Operating income $9.5M.

• ▍Revenue $518.7M
• ▍Operating income $9.5M
• ▍Net margin 0.8%