Daily Stock Analysis: Kimball International Inc.

Kimball International Inc., known by the ticker symbol KBAL, is a small cap furnishings, fixtures, and appliances company in the industrials business sector. This is my first report on KBAL for my Viital stock portfolio; I most recently reported on this company for my Vista portfolio (number 6) on June 17, 2021. That was the last of four times nominated for that previous portfolio.

Kimball International Inc. operates in the furniture manufacturing business. The company specializes in making furniture for the workplace, health, and hospitality markets. Kimball International, Inc. was incorporated in 1939 and is headquartered in Jasper, Indiana. The company was formerly known as The Jasper Corporation and changed its name to Kimball International, Inc. in July 1974. 

Stock, Trading, Monitor, Business

Image source: Pixabay

The workplace market area includes commercial, education, government, and financial segments and eBusiness. 

The company's furniture brand portfolio comprises Kimball, National, Interwoven, Kimball Hospitality, D'style, and Poppin.

Kimball International, Inc. markets and sells its products through sales representatives, office furniture dealers, wholesalers, brokers, designers, purchasing companies, and catalog houses, as well as online to end-users. 

Three key data points gauge any dividend equity or fund such as Kimball International Inc. (KBAL):

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money. 

KBAL Price

Kimball International's price per share was $11.35 as of yesterday's market close. One year ago its price was $10.30. So, KBAL's share price increased a little over 10% in the past year.

If KBAL's stock trades in the range of $10 to $20.00 this next year, its recent $11.35 price could rise by $4.15 to reach $15.50 by November 4, 2022. My estimate is $2.00 less than the median of target price estimates from 2 analysts tracking KBAL for brokerage houses.  

KBAL Dividends

Kimball International's most recently announced quarterly dividend of  $0.09 will pay out on January 14th, to shareholders. The compounded annual payout of $0.36 yields 3.17% based on yesterday's $11.35 closing price. KBAL has paid quarterly dividends increasing generally annually since January 1985: That is 37 years of increasing payouts come January. 

KBAL Returns

Adding the $0.36 annual estimated KBAL forward-looking dividend to my $4.15 price upside estimate shows a $4.51 potential gross gain, per share, to be reduced by any costs to trade KBAL shares.  

At yesterday's $11.35 price per share, a little under $1000 would buy 88 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.11 per share.

Subtract that maybe $0.11 brokerage cost from my estimated $4.51 gross gain per share results in a net gain of $4.40 X 88 shares = $387.20 for a 38.75% net gain on a $999.68 investment.

So it is that Kimball International Inc. (KBAL) shows a possible 38.75% net gain including a 3.17% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in Kimball International Inc. (KBAL) could generate $31.70 in cash dividends alone. Note that a single share bought at yesterday's closing price was $11.35! Thus, Kimball International Inc's share price is almost 3 times less than the dividend income from $1000.00 invested. Thus, according to my dogcatcher ideal, now is the time to pickup KBAL shares. The estimated next year dividend from $1k invested is nearly three times the single share price. Consider yourself alerted. Its a sign!  

All of the estimates above are speculation based on the past history of Kimball International Inc. (KBAL). Only time and money invested in this stock will determine its market value.

Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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