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 125 industry peers in the Electronic Equipment, Instruments & Components industry. KN has only an average score on both its financial health and profitability. KN has a valuation in line with the averages, 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.
In the past 5 years KN always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -21.86%, KN is doing worse than 74.40% of the companies in the same industry.
KN has a worse Return On Equity (-31.73%) than 72.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.51%, KN is in the better half of the industry, outperforming 61.60% 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 9.16%.
The 3 year average ROIC (4.19%) for KN is below the current ROIC(4.51%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -21.86% | ||
| ROE | -31.73% | ||
| ROIC | 4.51% |
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's Operating Margin of 9.06% is fine compared to the rest of the industry. KN outperforms 77.60% of its industry peers.
KN's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 42.37%, KN is in the better half of the industry, outperforming 72.80% of the companies in the same industry.
KN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.06% | ||
| PM (TTM) | N/A | ||
| GM | 42.37% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KN is destroying value.
Compared to 1 year ago, KN has less shares outstanding
Compared to 5 years ago, KN has less shares outstanding
Compared to 1 year ago, KN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.98 indicates that KN is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.98, KN is in line with its industry, outperforming 45.60% of the companies in the same industry.
The Debt to FCF ratio of KN is 1.89, which is an excellent value as it means it would take KN, only 1.89 years of fcf income to pay off all of its debts.
KN has a better Debt to FCF ratio (1.89) than 78.40% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that KN is not too dependend on debt financing.
KN has a Debt to Equity ratio of 0.16. This is comparable to the rest of the industry: KN outperforms 48.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.89 | ||
| Altman-Z | 2.98 |
ROIC/WACC0.5
WACC9.05%
2.3 Liquidity
A Current Ratio of 2.02 indicates that KN has no problem at all paying its short term obligations.
KN has a Current ratio of 2.02. This is in the lower half of the industry: KN underperforms 61.60% of its industry peers.
KN has a Quick Ratio of 1.30. This is a normal value and indicates that KN is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.30, KN is not doing good in the industry: 65.60% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The earnings per share for KN have decreased by -6.86% in the last year.
KN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.13% yearly.
Looking at the last year, KN shows a decrease in Revenue. The Revenue has decreased by -9.74% in the last year.
The Revenue has been decreasing by -8.33% on average over the past years.
EPS 1Y (TTM)-6.86%
EPS 3Y-14.09%
EPS 5Y-2.13%
EPS Q2Q%-10%
Revenue 1Y (TTM)-9.74%
Revenue growth 3Y-13.93%
Revenue growth 5Y-8.33%
Sales Q2Q%-32.69%
3.2 Future
KN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.98% yearly.
Based on estimates for the next years, KN will show a decrease in Revenue. The Revenue will decrease by -6.35% on average per year.
EPS Next Y11.49%
EPS Next 2Y14.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-17.02%
Revenue Next 2Y-6.35%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue 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
A Price/Earnings ratio of 19.03 indicates a rather expensive valuation of KN.
Compared to the rest of the industry, the Price/Earnings ratio of KN indicates a rather cheap valuation: KN is cheaper than 80.80% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of KN to the average of the S&P500 Index (27.30), we can say KN is valued slightly cheaper.
A Price/Forward Earnings ratio of 14.10 indicates a correct valuation of KN.
Based on the Price/Forward Earnings ratio, KN is valued cheaply inside the industry as 90.40% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, KN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.03 | ||
| Fwd PE | 14.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KN is valued a bit cheaper than 68.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, KN is valued cheaply inside the industry as 88.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.74 | ||
| EV/EBITDA | 15.45 |
4.3 Compensation for Growth
KN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as KN's earnings are expected to grow with 14.98% in the coming years.
PEG (NY)1.66
PEG (5Y)N/A
EPS Next 2Y14.98%
EPS Next 3YN/A
5. Dividend
5.1 Amount
KN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
18.08
+0.33 (+1.86%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners103.89%
Inst Owner Change-0.04%
Ins Owners2%
Ins Owner Change10.14%
Market Cap1.57B
Analysts83.33
Price Target21.17 (17.09%)
Short Float %3.46%
Short Ratio4.47
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)-5.06%
Min EPS beat(2)-7.21%
Max EPS beat(2)-2.91%
EPS beat(4)0
Avg EPS beat(4)-3.67%
Min EPS beat(4)-7.21%
Max EPS beat(4)-1.65%
EPS beat(8)3
Avg EPS beat(8)-0.56%
EPS beat(12)6
Avg EPS beat(12)2.35%
EPS beat(16)10
Avg EPS beat(16)4.47%
Revenue beat(2)0
Avg Revenue beat(2)-2.85%
Min Revenue beat(2)-5.24%
Max Revenue beat(2)-0.47%
Revenue beat(4)0
Avg Revenue beat(4)-5.42%
Min Revenue beat(4)-13.25%
Max Revenue beat(4)-0.47%
Revenue beat(8)0
Avg Revenue beat(8)-4.07%
Revenue beat(12)0
Avg Revenue beat(12)-4.81%
Revenue beat(16)0
Avg Revenue beat(16)-4.1%
PT rev (1m)0%
PT rev (3m)-3.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.09%
EPS NY rev (1m)-0.47%
EPS NY rev (3m)-1.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.03 | ||
| Fwd PE | 14.1 | ||
| P/S | 2.29 | ||
| P/FCF | 15.74 | ||
| P/OCF | 13.78 | ||
| P/B | 2.08 | ||
| P/tB | 4.73 | ||
| EV/EBITDA | 15.45 |
EPS(TTM)0.95
EY5.25%
EPS(NY)1.28
Fwd EY7.09%
FCF(TTM)1.15
FCFY6.35%
OCF(TTM)1.31
OCFY7.26%
SpS7.88
BVpS8.69
TBVpS3.82
PEG (NY)1.66
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -21.86% | ||
| ROE | -31.73% | ||
| ROCE | 6.68% | ||
| ROIC | 4.51% | ||
| ROICexc | 5.06% | ||
| ROICexgc | 10.36% | ||
| OM | 9.06% | ||
| PM (TTM) | N/A | ||
| GM | 42.37% | ||
| FCFM | 14.57% |
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 Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.89 | ||
| Debt/EBITDA | 1.11 | ||
| Cap/Depr | 31.35% | ||
| Cap/Sales | 2.07% | ||
| Interest Coverage | 5.75 | ||
| Cash Conversion | 106.24% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 2.98 |
F-Score6
WACC9.05%
ROIC/WACC0.5
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)-6.86%
EPS 3Y-14.09%
EPS 5Y-2.13%
EPS Q2Q%-10%
EPS Next Y11.49%
EPS Next 2Y14.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-9.74%
Revenue growth 3Y-13.93%
Revenue growth 5Y-8.33%
Sales Q2Q%-32.69%
Revenue Next Year-17.02%
Revenue Next 2Y-6.35%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y24.2%
EBIT growth 3Y-22.87%
EBIT growth 5Y-8.74%
EBIT Next Year22.3%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y27.75%
FCF growth 3Y-4.44%
FCF growth 5Y7.09%
OCF growth 1Y6.24%
OCF growth 3Y-10.6%
OCF growth 5Y0.98%