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KE vs SWBI

KE
Kimball Electronics, Inc.
NEUTRAL
Price
$25.94
Market Cap
$631.3M
Sector
Industrials
AI Confidence
85%
SWBI
Smith & Wesson Brands, Inc.
BEARISH
Price
$14.85
Market Cap
$660.7M
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
KE
26.74
SWBI
61.88
Forward P/E
KE
17.53
SWBI
45.0
P/B Ratio
KE
1.08
SWBI
1.82
P/S Ratio
KE
0.43
SWBI
1.36
EV/EBITDA
KE
7.3
SWBI
13.95

Profitability

Gross Margin
KE
7.8%
SWBI
26.66%
Operating Margin
KE
3.83%
SWBI
4.81%
Profit Margin
KE
1.65%
SWBI
2.24%
ROE
KE
4.32%
SWBI
2.99%
ROA
KE
3.63%
SWBI
2.46%

Growth

Revenue Growth
KE
-4.5%
SWBI
17.1%
Earnings Growth
KE
7.1%
SWBI
67.6%

Financial Health

Debt/Equity
KE
0.3
SWBI
0.3
Current Ratio
KE
2.21
SWBI
4.5
Quick Ratio
KE
1.19
SWBI
1.35

Dividends

Dividend Yield
KE
--
SWBI
3.51%
Payout Ratio
KE
0.0%
SWBI
216.67%

AI Verdict

KE NEUTRAL

Kimball Electronics (KE) presents a mixed profile with a stable Piotroski F-Score of 4/9 and a clean balance sheet, but it currently trades at a premium to its Graham Number ($22.85) and Intrinsic Value ($17.12). While the company has seen a massive 92.6% price increase over the last year, this is not supported by organic growth, as revenue growth is negative (-4.50%). The company's primary strength lies in its low debt-to-equity ratio (0.30) and strong liquidity, but extremely thin profit margins (1.65%) leave little room for operational error.

Strengths
Strong liquidity with a Current Ratio of 2.21
Conservative leverage with Debt/Equity at 0.30
Positive earnings growth (7.10% YoY) despite revenue declines
Risks
Extremely thin profit margins (1.65%) and gross margins (7.80%)
Negative YoY and Q/Q revenue growth (-4.50%)
Current price ($25.94) exceeds both Graham and Intrinsic value estimates
SWBI BEARISH

SWBI exhibits a concerning disconnect between its market price ($14.85) and its deterministic fair value, with a Graham Number of $6.64 and Intrinsic Value of $7.08. While the Piotroski F-Score of 4/9 indicates stable financial health and growth metrics are strong, the valuation is stretched with a P/E of 61.88. Most critically, the dividend payout ratio of 216.67% is fundamentally unsustainable. Despite strong 1-year price momentum, the technical trend has turned sharply bearish (10/100), suggesting a correction toward fair value is likely.

Strengths
Strong YoY earnings growth of 67.60%
Low Debt/Equity ratio of 0.30 indicating low leverage
Excellent liquidity with a Current Ratio of 4.50
Risks
Unsustainable dividend payout ratio (216.67%)
Extremely thin profit margins (2.24%)
Significant premium to Graham Number and Intrinsic Value

Compare Another Pair

KE vs SWBI: Head-to-Head Comparison

This page compares Kimball Electronics, Inc. (KE) and Smith & Wesson Brands, Inc. (SWBI) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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