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. Both the profitability and the financial health of KN get a neutral evaluation. Nothing too spectacular is happening here. KN has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year KN was profitable.
KN had a positive operating cash flow in the past year.
In multiple years KN reported negative net income over the last 5 years.
In the past 5 years KN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of KN (-21.04%) is worse than 72.58% of its industry peers.
KN has a worse Return On Equity (-31.12%) than 72.58% of its industry peers.
With a decent Return On Invested Capital value of 4.54%, KN is doing good in the industry, outperforming 62.10% of the companies in the same industry.
KN had an Average Return On Invested Capital over the past 3 years of 4.19%. This is below the industry average of 9.14%.
The 3 year average ROIC (4.19%) for KN is below the current ROIC(4.54%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -21.04% | ||
| ROE | -31.12% | ||
| ROIC | 4.54% |
ROA(3y)-17.55%
ROA(5y)-8.71%
ROE(3y)-22.59%
ROE(5y)-11.39%
ROIC(3y)4.19%
ROIC(5y)4.04%
1.3 Margins
KN has a better Operating Margin (8.27%) than 77.42% of its industry peers.
In the last couple of years the Operating Margin of KN has remained more or less at the same level.
Looking at the Gross Margin, with a value of 41.02%, KN is in the better half of the industry, outperforming 72.58% of the companies in the same industry.
In the last couple of years the Gross Margin of KN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.27% | ||
| PM (TTM) | N/A | ||
| GM | 41.02% |
OM growth 3Y-10.39%
OM growth 5Y-0.45%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.08%
GM growth 5Y2.09%
2. Health
2.1 Basic Checks
KN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, KN has less shares outstanding
The number of shares outstanding for KN has been reduced compared to 5 years ago.
The debt/assets ratio for KN has been reduced compared to a year ago.
2.2 Solvency
KN has an Altman-Z score of 2.35. 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.
Looking at the Altman-Z score, with a value of 2.35, KN is in line with its industry, outperforming 42.74% of the companies in the same industry.
The Debt to FCF ratio of KN is 1.74, which is an excellent value as it means it would take KN, only 1.74 years of fcf income to pay off all of its debts.
KN has a Debt to FCF ratio of 1.74. This is in the better half of the industry: KN outperforms 76.61% of its industry peers.
KN has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.18, KN is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.74 | ||
| Altman-Z | 2.35 |
ROIC/WACC0.54
WACC8.48%
2.3 Liquidity
A Current Ratio of 1.83 indicates that KN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.83, KN is doing worse than 62.90% of the companies in the same industry.
A Quick Ratio of 1.23 indicates that KN should not have too much problems paying its short term obligations.
KN's Quick ratio of 1.23 is on the low side compared to the rest of the industry. KN is outperformed by 68.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.49% over the past year.
The Earnings Per Share has been decreasing by -2.13% on average over the past years.
Looking at the last year, KN shows a small growth in Revenue. The Revenue has grown by 5.98% in the last year.
Measured over the past years, KN shows a decrease in Revenue. The Revenue has been decreasing by -8.33% on average per year.
EPS 1Y (TTM)11.49%
EPS 3Y-14.09%
EPS 5Y-2.13%
EPS Q2Q%-3.57%
Revenue 1Y (TTM)5.98%
Revenue growth 3Y-13.93%
Revenue growth 5Y-8.33%
Sales Q2Q%-33.78%
3.2 Future
The Earnings Per Share is expected to grow by 19.43% on average over the next years. This is quite good.
Based on estimates for the next years, KN will show a decrease in Revenue. The Revenue will decrease by -6.84% on average per year.
EPS Next Y13.35%
EPS Next 2Y19.43%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-18.39%
Revenue Next 2Y-6.84%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.28 indicates a correct valuation of KN.
KN's Price/Earnings ratio is rather cheap when compared to the industry. KN is cheaper than 81.45% of the companies in the same industry.
KN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.64.
A Price/Forward Earnings ratio of 13.48 indicates a correct valuation of KN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KN indicates a rather cheap valuation: KN is cheaper than 81.45% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.44, KN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.28 | ||
| Fwd PE | 13.48 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KN indicates a somewhat cheap valuation: KN is cheaper than 72.58% of the companies listed in the same industry.
87.90% of the companies in the same industry are more expensive than KN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.16 | ||
| EV/EBITDA | 11.89 |
4.3 Compensation for Growth
The 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)1.14
PEG (5Y)N/A
EPS Next 2Y19.43%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for KN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
14.82
+0.42 (+2.92%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners104.4%
Inst Owner Change-0.04%
Ins Owners1.76%
Ins Owner Change7.5%
Market Cap1.30B
Analysts81.67
Price Target21.93 (47.98%)
Short Float %3.72%
Short Ratio4.19
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)-4.43%
Min EPS beat(2)-7.21%
Max EPS beat(2)-1.65%
EPS beat(4)1
Avg EPS beat(4)-0.97%
Min EPS beat(4)-7.21%
Max EPS beat(4)7.87%
EPS beat(8)4
Avg EPS beat(8)0.79%
EPS beat(12)7
Avg EPS beat(12)3.57%
EPS beat(16)11
Avg EPS beat(16)5.4%
Revenue beat(2)0
Avg Revenue beat(2)-9.24%
Min Revenue beat(2)-13.25%
Max Revenue beat(2)-5.24%
Revenue beat(4)0
Avg Revenue beat(4)-5.88%
Min Revenue beat(4)-13.25%
Max Revenue beat(4)-2.33%
Revenue beat(8)0
Avg Revenue beat(8)-4.64%
Revenue beat(12)0
Avg Revenue beat(12)-4.96%
Revenue beat(16)0
Avg Revenue beat(16)-4.22%
PT rev (1m)0%
PT rev (3m)-1.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.13%
Revenue NY rev (1m)-1.39%
Revenue NY rev (3m)-3.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.28 | ||
| Fwd PE | 13.48 | ||
| P/S | 1.73 | ||
| P/FCF | 11.16 | ||
| P/OCF | 9.99 | ||
| P/B | 1.72 | ||
| P/tB | 3.95 | ||
| EV/EBITDA | 11.89 |
EPS(TTM)0.97
EY6.55%
EPS(NY)1.1
Fwd EY7.42%
FCF(TTM)1.33
FCFY8.96%
OCF(TTM)1.48
OCFY10.01%
SpS8.55
BVpS8.62
TBVpS3.75
PEG (NY)1.14
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -21.04% | ||
| ROE | -31.12% | ||
| ROCE | 6.73% | ||
| ROIC | 4.54% | ||
| ROICexc | 5.29% | ||
| ROICexgc | 11.51% | ||
| OM | 8.27% | ||
| PM (TTM) | N/A | ||
| GM | 41.02% | ||
| FCFM | 15.54% |
ROA(3y)-17.55%
ROA(5y)-8.71%
ROE(3y)-22.59%
ROE(5y)-11.39%
ROIC(3y)4.19%
ROIC(5y)4.04%
ROICexc(3y)4.56%
ROICexc(5y)4.37%
ROICexgc(3y)10.18%
ROICexgc(5y)12.65%
ROCE(3y)6.21%
ROCE(5y)5.98%
ROICexcg growth 3Y-16.68%
ROICexcg growth 5Y-5.92%
ROICexc growth 3Y-4.59%
ROICexc growth 5Y2.67%
OM growth 3Y-10.39%
OM growth 5Y-0.45%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.08%
GM growth 5Y2.09%
F-Score6
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.74 | ||
| Debt/EBITDA | 1.19 | ||
| Cap/Depr | 27.04% | ||
| Cap/Sales | 1.81% | ||
| Interest Coverage | 5.17 | ||
| Cash Conversion | 115.85% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 2.35 |
F-Score6
WACC8.48%
ROIC/WACC0.54
Cap/Depr(3y)41.19%
Cap/Depr(5y)50.8%
Cap/Sales(3y)3.47%
Cap/Sales(5y)4.04%
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)5.98%
Revenue growth 3Y-13.93%
Revenue growth 5Y-8.33%
Sales Q2Q%-33.78%
Revenue Next Year-18.39%
Revenue Next 2Y-6.84%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y43.19%
EBIT growth 3Y-22.87%
EBIT growth 5Y-8.74%
EBIT Next Year22.88%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y10.43%
FCF growth 3Y-4.44%
FCF growth 5Y7.09%
OCF growth 1Y6.03%
OCF growth 3Y-10.6%
OCF growth 5Y0.98%