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Background Key Tronic Corporation was organized in 1969, as a Washington corporation that locally manufactured computer keyboards. The ability to design, build and deliver a quality product led us to become a leading independent manufacturer of keyboards for computers in the United States.
Operating margin is thin at 0.12%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue declined 17.8% YoY. The question is whether this is cyclical or a structural shift.
Net debt of $117M represents 7.9x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$390M
▼ -17.8% YoY
Net Income (TTM)
-$17M
▼ -198.5% YoY
Op. Margin
-3.43%
▼ -1.1pp YoY
ROIC
-4.41%
▼ -1.8pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$8M
▲ +51.1% YoY
Op. Cash Flow (TTM)
$19M
▲ +37.4% YoY
Net Debt
$135M
Cash & Equiv.
$431K
5Y CAGR: +0.7%
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