KNOWLES CORP (KN) Stock Fundamental Analysis
NYSE:KN - New York Stock Exchange, Inc. - US49926D1090 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to KN. KN was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. KN has only an average score on both its financial health and profitability. KN is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
KN had positive earnings in the past year.
KN had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: KN reported negative net income in multiple years.
KN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
KN has a Return On Assets of -17.62%. This is in the lower half of the industry: KN underperforms 73.33% of its industry peers.
With a Return On Equity value of -26.55%, KN is not doing good in the industry: 70.83% of the companies in the same industry are doing better.
The Return On Invested Capital of KN (4.83%) is better than 63.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KN is below the industry average of 8.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -17.62% | ||
| ROE | -26.55% | ||
| ROIC | 4.83% |
ROA(3y)-7.56%
ROA(5y)-3.87%
ROE(3y)-8.67%
ROE(5y)-4.34%
ROIC(3y)5.28%
ROIC(5y)4.66%
1.3 Margins
KN's Profit Margin has improved in the last couple of years.
KN has a Operating Margin of 7.33%. This is in the better half of the industry: KN outperforms 73.33% of its industry peers.
In the last couple of years the Operating Margin of KN has declined.
The Gross Margin of KN (39.48%) is better than 69.17% of its industry peers.
In the last couple of years the Gross Margin of KN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.33% | ||
| PM (TTM) | N/A | ||
| GM | 39.48% |
OM growth 3Y-1.61%
OM growth 5Y-8.73%
PM growth 3Y127.98%
PM growth 5Y4.56%
GM growth 3Y2.43%
GM growth 5Y-0.31%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KN is destroying value.
There is no outstanding debt for KN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
KN has an Altman-Z score of 2.77. This is not the best score and indicates that KN is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of KN (2.77) is comparable to the rest of the industry.
KN has a debt to FCF ratio of 1.61. This is a very positive value and a sign of high solvency as it would only need 1.61 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.61, KN is doing good in the industry, outperforming 76.67% of the companies in the same industry.
KN has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of KN (0.23) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.61 | ||
| Altman-Z | 2.77 |
ROIC/WACC0.57
WACC8.46%
2.3 Liquidity
KN has a Current Ratio of 2.35. This indicates that KN is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.35, KN perfoms like the industry average, outperforming 50.83% of the companies in the same industry.
KN has a Quick Ratio of 1.67. This is a normal value and indicates that KN is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.67, KN is in line with its industry, outperforming 45.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.35 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.49% over the past year.
KN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.13% yearly.
EPS 1Y (TTM)11.49%
EPS 3Y-14.09%
EPS 5Y-2.13%
EPS Q2Q%-3.57%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-33.78%
3.2 Future
Based on estimates for the next years, KN will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.43% on average per year.
Based on estimates for the next years, KN will show a decrease in Revenue. The Revenue will decrease by -5.01% on average per year.
EPS Next Y13.35%
EPS Next 2Y19.43%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-16.33%
Revenue Next 2Y-5.01%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.12, the valuation of KN can be described as rather expensive.
Based on the Price/Earnings ratio, KN is valued cheaply inside the industry as 80.83% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 29.63. KN is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 15.99, KN is valued correctly.
Based on the Price/Forward Earnings ratio, KN is valued cheaper than 81.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of KN to the average of the S&P500 Index (22.68), we can say KN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.12 | ||
| Fwd PE | 15.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KN is valued a bit cheaper than 68.33% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, KN is valued cheaply inside the industry as 89.17% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.08 | ||
| EV/EBITDA | 14.98 |
4.3 Compensation for Growth
KN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
KN's earnings are expected to grow with 19.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.36
PEG (5Y)N/A
EPS Next 2Y19.43%
EPS Next 3YN/A
5. Dividend
5.1 Amount
KN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
17.58
-0.26 (-1.46%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners100.49%
Inst Owner Change-0.88%
Ins Owners1.79%
Ins Owner Change-2.68%
Market Cap1.55B
Analysts83.33
Price Target20.74 (17.97%)
Short Float %3.65%
Short Ratio4.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.28%
Min EPS beat(2)-2.91%
Max EPS beat(2)-1.65%
EPS beat(4)1
Avg EPS beat(4)-1.14%
Min EPS beat(4)-7.85%
Max EPS beat(4)7.87%
EPS beat(8)4
Avg EPS beat(8)1.47%
EPS beat(12)8
Avg EPS beat(12)4.66%
EPS beat(16)11
Avg EPS beat(16)5.81%
Revenue beat(2)0
Avg Revenue beat(2)-7.98%
Min Revenue beat(2)-13.25%
Max Revenue beat(2)-2.71%
Revenue beat(4)0
Avg Revenue beat(4)-5.3%
Min Revenue beat(4)-13.25%
Max Revenue beat(4)-2.33%
Revenue beat(8)0
Avg Revenue beat(8)-5.09%
Revenue beat(12)0
Avg Revenue beat(12)-4.73%
Revenue beat(16)0
Avg Revenue beat(16)-4%
PT rev (1m)0%
PT rev (3m)-1.14%
EPS NQ rev (1m)0.89%
EPS NQ rev (3m)-5.83%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.12 | ||
| Fwd PE | 15.99 | ||
| P/S | 1.88 | ||
| P/FCF | 11.08 | ||
| P/OCF | 9.96 | ||
| P/B | 1.99 | ||
| P/tB | 4.49 | ||
| EV/EBITDA | 14.98 |
EPS(TTM)0.97
EY5.52%
EPS(NY)1.1
Fwd EY6.25%
FCF(TTM)1.59
FCFY9.02%
OCF(TTM)1.76
OCFY10.04%
SpS9.34
BVpS8.83
TBVpS3.91
PEG (NY)1.36
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -17.62% | ||
| ROE | -26.55% | ||
| ROCE | 6.12% | ||
| ROIC | 4.83% | ||
| ROICexc | 5.34% | ||
| ROICexgc | 10.35% | ||
| OM | 7.33% | ||
| PM (TTM) | N/A | ||
| GM | 39.48% | ||
| FCFM | 16.98% |
ROA(3y)-7.56%
ROA(5y)-3.87%
ROE(3y)-8.67%
ROE(5y)-4.34%
ROIC(3y)5.28%
ROIC(5y)4.66%
ROICexc(3y)5.55%
ROICexc(5y)4.94%
ROICexgc(3y)14.66%
ROICexgc(5y)15.56%
ROCE(3y)6.68%
ROCE(5y)5.89%
ROICexcg growth 3Y-25.98%
ROICexcg growth 5Y-15.25%
ROICexc growth 3Y-4.13%
ROICexc growth 5Y-9.82%
OM growth 3Y-1.61%
OM growth 5Y-8.73%
PM growth 3Y127.98%
PM growth 5Y4.56%
GM growth 3Y2.43%
GM growth 5Y-0.31%
F-Score4
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.61 | ||
| Debt/EBITDA | 1.54 | ||
| Cap/Depr | 29.4% | ||
| Cap/Sales | 1.91% | ||
| Interest Coverage | 4.9 | ||
| Cash Conversion | 136.68% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.35 | ||
| Quick Ratio | 1.67 | ||
| Altman-Z | 2.77 |
F-Score4
WACC8.46%
ROIC/WACC0.57
Cap/Depr(3y)58.1%
Cap/Depr(5y)60.54%
Cap/Sales(3y)4.08%
Cap/Sales(5y)4.24%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.49%
EPS 3Y-14.09%
EPS 5Y-2.13%
EPS Q2Q%-3.57%
EPS Next Y13.35%
EPS Next 2Y19.43%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-33.78%
Revenue Next Year-16.33%
Revenue Next 2Y-5.01%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y5.42%
EBIT growth 3Y-4.1%
EBIT growth 5Y-11.53%
EBIT Next Year30.74%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y133.22%
FCF growth 3Y3.12%
FCF growth 5Y41.8%
OCF growth 1Y48%
OCF growth 3Y-1.43%
OCF growth 5Y4.49%