Kimball International Inc. Class B Stock Upgraded (KBALB)

NEW YORK ( TheStreet) -- Kimball International Inc. Class B (Nasdaq: KBALB) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its increase in net income, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Services & Supplies industry. The net income increased by 264.9% when compared to the same quarter one year prior, rising from $0.88 million to $3.20 million.
  • Net operating cash flow has significantly increased by 173.62% to $7.83 million when compared to the same quarter last year. In addition, KIMBALL INTERNATIONAL has also vastly surpassed the industry average cash flow growth rate of -0.01%.
  • Although KBALB's debt-to-equity ratio of 0.00 is very low, it is currently higher than that of the industry average. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.99 is somewhat weak and could be cause for future problems.
  • KBALB, with its decline in revenue, slightly underperformed the industry average of 0.4%. Since the same quarter one year prior, revenues slightly dropped by 4.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • KIMBALL INTERNATIONAL reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, KIMBALL INTERNATIONAL reported lower earnings of $0.13 versus $0.29 in the prior year.

Kimball International, Inc. manufactures and sells electronic assemblies and furniture in the United States, Poland, the United Kingdom, and internationally. The company operates in two segments, Electronic Manufacturing Services (EMS) and Furniture. The company has a P/E ratio of 47.2, below the average electronics industry P/E ratio of 61.9 and above the S&P 500 P/E ratio of 17.7. Kimball International Inc. Class B has a market cap of $227.3 million and is part of the technology sector and electronics industry. Shares are up 29.4% year to date as of the close of trading on Monday.

You can view the full Kimball International Inc. Class B Ratings Report or get investment ideas from our investment research center.
-- Written by a member of TheStreet RatingsStaff