Kimball ElectronicsKE -0.27%80 Gross Margin % is 7.88% as of Mar. 2026, which is 0% below its 10-year median of 7.89. GuruFocus rates KE with a GF Score™ of 80/100 and a GF Value™ of $18.90 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 3,003 Industrial Products companies, Kimball Electronics ranks worse than 92.74% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Kimball Electronics had a gross margin of 7.88% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Kimball Electronics Gross Margin % Related Terms
Kimball Electronics Gross Margin % Historical Data
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The historical data trend for Kimball Electronics's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Electrical Equipment & Parts subindustry, Kimball Electronics's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Kimball Electronics Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Kimball Electronics's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kimball Electronics's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Kimball Electronics (KE) has a Gross Margin % of 7.88% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Kimball Electronics and its competitors. This is near median its historical median of 7.89. Over the past decade, Kimball Electronics' Gross Margin % has ranged from 6.98 to 9.14. According to the industry distribution chart, Kimball Electronics ranks #2785 out of 3003 companies in the Industrial Products industry, placing it in the top 92.7%.
Is Kimball Electronics' Gross Margin % too high?
Kimball Electronics' current Gross Margin % of 7.88% is near median its 10-year median of 7.89. Over the past 10 years, this metric has ranged from a low of 6.98 to a high of 9.14. The Industrial Products industry median Gross Margin % is 26.79. Kimball Electronics' value of 7.88% is 70.6% below this industry median. Based on the distribution chart, Kimball Electronics ranks #2785 out of 3003 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Kimball Electronics has a GF Score™ of 80/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kimball Electronics' Gross Margin % compare to ADSE and LTBR?
According to the Industrial Products industry distribution chart, Kimball Electronics ranks #2785 out of 3003 companies for Gross Margin %. This places Kimball Electronics in the lower half of its industry. The industry median Gross Margin % is 26.79. Kimball Electronics' value of 7.88% is 70.6% below this benchmark. Historically, Kimball Electronics' own Gross Margin % has ranged from 6.98 to 9.14 over the past decade. While the company's 10-year median is 7.89 vs. the industry median of 26.79, Kimball Electronics has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.79, based on 3,003 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kimball Electronics's current Gross Margin % of 7.88% is 70.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Kimball Electronics and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kimball Electronics's current Gross Margin % is 7.88%, which is near median its own 10-year median of 7.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kimball Electronics stock overvalued right now?
Based on GuruFocus' analysis, Kimball Electronics (KE) is currently considered Modestly Overvalued. The stock's GF Value™ is $18.90, compared to a current price of $24.39 — trading 29% above its estimated fair value. The current Gross Margin % is 7.88%, which is near median its 10-year median of 7.89 and 70.6% below the Industrial Products industry median of 26.79. Kimball Electronics' overall GF Score™ is 80/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Kimball Electronics (KE), the current Gross Margin % is 7.88% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Kimball Electronics (KE) Overvalued in 2026?
Based on GuruFocus' analysis, Kimball Electronics stock appears to be overvalued.
The current stock price of $24.39 is trading 29% above its estimated GF Value™ of $18.90.
GuruFocus considers Kimball Electronics to be Modestly Overvalued.
Key valuation signals for KE:
Gross Margin %: 7.88% (near median its 10-year median of 7.89)
GF Value™: $18.90 vs. price of $24.39 (29% above fair value)
Industry Position: 70.6% below the Industrial Products median (#2785 of 3003)
No single metric tells the full story. See the KE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kimball Electronics Inc is a contract electronic manufacturing services company. The company is engaged in producing durable electronics for the automotive, medical, industrial, and public safety end markets. The company's engineering, manufacturing, and supply chain services utilize common production and support capabilities. It is also engaged in producing safety-critical electronic assemblies for its automotive customers. Geographically, it has business units located in the United States, China, Mexico, Poland, Romania, and Thailand. The company derives maximum revenue from Mexico.
80GF Score
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