Strong Valuations, High Cash and Growth, Undervalued
Kimball International (KBAL) is a company with a strong history, and that has helped it in establishing itself as a leading player in the fragmented commercial furniture business. The company has a 15.0% FCF Yield on EV (Enterprise Value) on FY21e and 13.4% on FY19 actual/trailing. We think identifying the FCF Yield on EV, rather than the share price/market cap, is more appropriate given the high amounts of net cash on the B/S. Kimball’s Net Cash position with no debt is $106 million ($2.86 cash/share). This