KNIGHT-SWIFT TRANSPORTATION (KNX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KNX - US4990491049 - Common Stock
54.92 USD
-1.35 (-2.4%)
Overall KNX gets a fundamental rating of 4 out of 10. We evaluated KNX against 42 industry peers in the Ground Transportation industry. Both the profitability and the financial health of KNX get a neutral evaluation. Nothing too spectacular is happening here. KNX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- KNX had positive earnings in the past year.
- In the past year KNX had a positive cash flow from operations.
- KNX had positive earnings in each of the past 5 years.
- Of the past 5 years KNX 4 years had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 1.13%, KNX is in line with its industry, outperforming 50.00% of the companies in the same industry.
- KNX has a Return On Equity (2.00%) which is comparable to the rest of the industry.
- Looking at the Return On Invested Capital, with a value of 1.68%, KNX is in line with its industry, outperforming 42.86% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for KNX is significantly below the industry average of 6.92%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.13% | ||
| ROE | 2% | ||
| ROIC | 1.68% |
ROA(3y)1.06%
ROA(5y)3.44%
ROE(3y)1.88%
ROE(5y)5.63%
ROIC(3y)1.92%
ROIC(5y)4.21%
1.3 Margins
- Looking at the Profit Margin, with a value of 1.90%, KNX is in line with its industry, outperforming 47.62% of the companies in the same industry.
- KNX's Profit Margin has declined in the last couple of years.
- The Operating Margin of KNX (3.52%) is comparable to the rest of the industry.
- KNX's Operating Margin has declined in the last couple of years.
- With a decent Gross Margin value of 66.32%, KNX is doing good in the industry, outperforming 78.57% of the companies in the same industry.
- KNX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.52% | ||
| PM (TTM) | 1.9% | ||
| GM | 66.32% |
OM growth 3Y-31.61%
OM growth 5Y-19.06%
PM growth 3Y-56.03%
PM growth 5Y-36.82%
GM growth 3Y1.83%
GM growth 5Y0.35%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KNX is destroying value.
- The number of shares outstanding for KNX has been increased compared to 1 year ago.
- KNX has less shares outstanding than it did 5 years ago.
- KNX has a better debt/assets ratio than last year.
2.2 Solvency
- KNX has an Altman-Z score of 1.98. This is not the best score and indicates that KNX is in the grey zone with still only limited risk for bankruptcy at the moment.
- KNX has a Altman-Z score (1.98) which is in line with its industry peers.
- KNX has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
- KNX has a Debt to Equity ratio of 0.38. This is comparable to the rest of the industry: KNX outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.98 |
ROIC/WACC0.17
WACC10.12%
2.3 Liquidity
- KNX has a Current Ratio of 1.33. This is a normal value and indicates that KNX is financially healthy and should not expect problems in meeting its short term obligations.
- With a decent Current ratio value of 1.33, KNX is doing good in the industry, outperforming 61.90% of the companies in the same industry.
- KNX has a Quick Ratio of 1.33. This is a normal value and indicates that KNX is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of KNX (1.33) is better than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 18.87% over the past year.
- Measured over the past years, KNX shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -14.39% on average per year.
- Looking at the last year, KNX shows a small growth in Revenue. The Revenue has grown by 0.80% in the last year.
- Measured over the past years, KNX shows a quite strong growth in Revenue. The Revenue has been growing by 9.83% on average per year.
EPS 1Y (TTM)18.87%
EPS 3Y-36.96%
EPS 5Y-14.39%
EPS Q2Q%-13.89%
Revenue 1Y (TTM)0.8%
Revenue growth 3Y0.18%
Revenue growth 5Y9.83%
Sales Q2Q%-0.43%
3.2 Future
- The Earnings Per Share is expected to grow by 36.10% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 5.52% on average over the next years.
EPS Next Y61.94%
EPS Next 2Y55.84%
EPS Next 3Y50.7%
EPS Next 5Y36.1%
Revenue Next Year4.4%
Revenue Next 2Y6.13%
Revenue Next 3Y6.01%
Revenue Next 5Y5.52%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 43.59, which means the current valuation is very expensive for KNX.
- Compared to the rest of the industry, the Price/Earnings ratio of KNX is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, KNX is valued quite expensively.
- Based on the Price/Forward Earnings ratio of 26.92, the valuation of KNX can be described as expensive.
- 61.90% of the companies in the same industry are more expensive than KNX, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. KNX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.59 | ||
| Fwd PE | 26.92 |
4.2 Price Multiples
- KNX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KNX is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.26 |
4.3 Compensation for Growth
- KNX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- KNX's earnings are expected to grow with 50.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.7
PEG (5Y)N/A
EPS Next 2Y55.84%
EPS Next 3Y50.7%
5. Dividend
5.1 Amount
- KNX has a Yearly Dividend Yield of 1.26%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.69, KNX pays a bit more dividend than its industry peers.
- KNX's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
5.2 History
- The dividend of KNX is nicely growing with an annual growth rate of 21.76%!
- KNX has paid a dividend for at least 10 years, which is a reliable track record.
- As KNX did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)21.76%
Div Incr Years5
Div Non Decr Years6
5.3 Sustainability
- KNX pays out 80.22% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of KNX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP80.22%
EPS Next 2Y55.84%
EPS Next 3Y50.7%
KNIGHT-SWIFT TRANSPORTATION / KNX FAQ
What is the fundamental rating for KNX stock?
ChartMill assigns a fundamental rating of 4 / 10 to KNX.
Can you provide the valuation status for KNIGHT-SWIFT TRANSPORTATION?
ChartMill assigns a valuation rating of 3 / 10 to KNIGHT-SWIFT TRANSPORTATION (KNX). This can be considered as Overvalued.
Can you provide the profitability details for KNIGHT-SWIFT TRANSPORTATION?
KNIGHT-SWIFT TRANSPORTATION (KNX) has a profitability rating of 4 / 10.
Can you provide the expected EPS growth for KNX stock?
The Earnings per Share (EPS) of KNIGHT-SWIFT TRANSPORTATION (KNX) is expected to grow by 61.94% in the next year.
Is the dividend of KNIGHT-SWIFT TRANSPORTATION sustainable?
The dividend rating of KNIGHT-SWIFT TRANSPORTATION (KNX) is 5 / 10 and the dividend payout ratio is 80.22%.