KNIGHT-SWIFT TRANSPORTATION (KNX) Stock Fundamental Analysis
NYSE:KNX - New York Stock Exchange, Inc. - US4990491049 - Common Stock - Currency: USD
Overall KNX gets a fundamental rating of 4 out of 10. We evaluated KNX against 40 industry peers in the Ground Transportation industry. KNX has a medium profitability rating, but doesn't score so well on its financial health evaluation. KNX has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year KNX was profitable.
KNX had a positive operating cash flow in the past year.
In the past 5 years KNX has always been profitable.
In the past 5 years KNX always reported a positive cash flow from operatings.
1.2 Ratios
KNX has a Return On Assets (1.20%) which is in line with its industry peers.
KNX has a worse Return On Equity (2.12%) than 60.00% of its industry peers.
The Return On Invested Capital of KNX (1.98%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for KNX is below the industry average of 8.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.2% | ||
| ROE | 2.12% | ||
| ROIC | 1.98% |
ROA(3y)3.22%
ROA(5y)4.29%
ROE(3y)5.27%
ROE(5y)6.84%
ROIC(3y)3.9%
ROIC(5y)5.25%
1.3 Margins
With a Profit Margin value of 2.04%, KNX perfoms like the industry average, outperforming 42.50% of the companies in the same industry.
In the last couple of years the Profit Margin of KNX has declined.
KNX has a Operating Margin (3.72%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of KNX has declined.
KNX's Gross Margin of 65.47% is fine compared to the rest of the industry. KNX outperforms 77.50% of its industry peers.
KNX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.72% | ||
| PM (TTM) | 2.04% | ||
| GM | 65.47% |
OM growth 3Y-43.02%
OM growth 5Y-19.6%
PM growth 3Y-49.59%
PM growth 5Y-24.29%
GM growth 3Y0.74%
GM growth 5Y1.66%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KNX is destroying value.
KNX has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, KNX has less shares outstanding
Compared to 1 year ago, KNX has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.75, we must say that KNX is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of KNX (1.75) is worse than 65.00% of its industry peers.
KNX has a debt to FCF ratio of 19.68. This is a negative value and a sign of low solvency as KNX would need 19.68 years to pay back of all of its debts.
KNX has a Debt to FCF ratio of 19.68. This is comparable to the rest of the industry: KNX outperforms 57.50% of its industry peers.
KNX has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.30, KNX is in line with its industry, outperforming 55.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 19.68 | ||
| Altman-Z | 1.75 |
ROIC/WACC0.21
WACC9.44%
2.3 Liquidity
KNX has a Current Ratio of 0.88. This is a bad value and indicates that KNX is not financially healthy enough and could expect problems in meeting its short term obligations.
KNX has a Current ratio of 0.88. This is in the lower half of the industry: KNX underperforms 67.50% of its industry peers.
KNX has a Quick Ratio of 0.88. This is a bad value and indicates that KNX is not financially healthy enough and could expect problems in meeting its short term obligations.
KNX's Quick ratio of 0.88 is on the low side compared to the rest of the industry. KNX is outperformed by 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
KNX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.91%, which is quite good.
KNX shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -13.27% yearly.
KNX shows a small growth in Revenue. In the last year, the Revenue has grown by 1.16%.
The Revenue has been growing by 8.87% on average over the past years. This is quite good.
EPS 1Y (TTM)9.91%
EPS 3Y-39.22%
EPS 5Y-13.27%
EPS Q2Q%133.33%
Revenue 1Y (TTM)1.16%
Revenue growth 3Y7.3%
Revenue growth 5Y8.87%
Sales Q2Q%0.1%
3.2 Future
KNX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.58% yearly.
KNX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.21% yearly.
EPS Next Y44.09%
EPS Next 2Y54.86%
EPS Next 3Y52.22%
EPS Next 5Y31.58%
Revenue Next Year1.71%
Revenue Next 2Y4.16%
Revenue Next 3Y4.93%
Revenue Next 5Y4.21%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
KNX is valuated quite expensively with a Price/Earnings ratio of 38.66.
Compared to the rest of the industry, the Price/Earnings ratio of KNX is on the same level as its industry peers.
KNX's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.28.
A Price/Forward Earnings ratio of 18.55 indicates a rather expensive valuation of KNX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KNX indicates a somewhat cheap valuation: KNX is cheaper than 70.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of KNX to the average of the S&P500 Index (21.76), we can say KNX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.66 | ||
| Fwd PE | 18.55 |
4.2 Price Multiples
67.50% of the companies in the same industry are more expensive than KNX, based on the Enterprise Value to EBITDA ratio.
KNX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.68 | ||
| EV/EBITDA | 9.07 |
4.3 Compensation for Growth
The 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 52.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.88
PEG (5Y)N/A
EPS Next 2Y54.86%
EPS Next 3Y52.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.63%, KNX has a reasonable but not impressive dividend return.
KNX's Dividend Yield is a higher than the industry average which is at 1.55.
Compared to the average S&P500 Dividend Yield of 2.42, KNX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
5.2 History
On average, the dividend of KNX grows each year by 21.76%, which is quite nice.
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
71.28% of the earnings are spent on dividend by KNX. This is not a sustainable payout ratio.
KNX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP71.28%
EPS Next 2Y54.86%
EPS Next 3Y52.22%
47.16
+1.07 (+2.32%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners96%
Inst Owner Change-2.12%
Ins Owners3.13%
Ins Owner Change1.43%
Market Cap7.64B
Analysts73.6
Price Target52.71 (11.77%)
Short Float %4.51%
Short Ratio2.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
Yearly Dividend0.64
Dividend Growth(5Y)21.76%
DP71.28%
Div Incr Years5
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.76%
Min EPS beat(2)8.25%
Max EPS beat(2)9.28%
EPS beat(4)3
Avg EPS beat(4)2.09%
Min EPS beat(4)-13.78%
Max EPS beat(4)9.28%
EPS beat(8)4
Avg EPS beat(8)-13.96%
EPS beat(12)5
Avg EPS beat(12)-11.33%
EPS beat(16)9
Avg EPS beat(16)-5.48%
Revenue beat(2)0
Avg Revenue beat(2)-1.07%
Min Revenue beat(2)-1.93%
Max Revenue beat(2)-0.2%
Revenue beat(4)0
Avg Revenue beat(4)-1.28%
Min Revenue beat(4)-2.66%
Max Revenue beat(4)-0.2%
Revenue beat(8)1
Avg Revenue beat(8)-0.83%
Revenue beat(12)3
Avg Revenue beat(12)-0.62%
Revenue beat(16)7
Avg Revenue beat(16)0.46%
PT rev (1m)0.98%
PT rev (3m)-16.59%
EPS NQ rev (1m)0.85%
EPS NQ rev (3m)-30.93%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-26.48%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-2.88%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-2.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.66 | ||
| Fwd PE | 18.55 | ||
| P/S | 1.03 | ||
| P/FCF | 62.68 | ||
| P/OCF | 8.77 | ||
| P/B | 1.07 | ||
| P/tB | 6.85 | ||
| EV/EBITDA | 9.07 |
EPS(TTM)1.22
EY2.59%
EPS(NY)2.54
Fwd EY5.39%
FCF(TTM)0.75
FCFY1.6%
OCF(TTM)5.38
OCFY11.4%
SpS45.74
BVpS43.91
TBVpS6.88
PEG (NY)0.88
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.2% | ||
| ROE | 2.12% | ||
| ROCE | 2.52% | ||
| ROIC | 1.98% | ||
| ROICexc | 2.02% | ||
| ROICexgc | 4.57% | ||
| OM | 3.72% | ||
| PM (TTM) | 2.04% | ||
| GM | 65.47% | ||
| FCFM | 1.64% |
ROA(3y)3.22%
ROA(5y)4.29%
ROE(3y)5.27%
ROE(5y)6.84%
ROIC(3y)3.9%
ROIC(5y)5.25%
ROICexc(3y)3.98%
ROICexc(5y)5.37%
ROICexgc(3y)8.67%
ROICexgc(5y)12.23%
ROCE(3y)4.95%
ROCE(5y)6.67%
ROICexcg growth 3Y-42.4%
ROICexcg growth 5Y-21.09%
ROICexc growth 3Y-41.74%
ROICexc growth 5Y-19.4%
OM growth 3Y-43.02%
OM growth 5Y-19.6%
PM growth 3Y-49.59%
PM growth 5Y-24.29%
GM growth 3Y0.74%
GM growth 5Y1.66%
F-Score7
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 19.68 | ||
| Debt/EBITDA | 2 | ||
| Cap/Depr | 94.95% | ||
| Cap/Sales | 10.11% | ||
| Interest Coverage | 1.59 | ||
| Cash Conversion | 81.83% | ||
| Profit Quality | 80.8% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 1.75 |
F-Score7
WACC9.44%
ROIC/WACC0.21
Cap/Depr(3y)123.48%
Cap/Depr(5y)113.14%
Cap/Sales(3y)12.28%
Cap/Sales(5y)11.38%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.91%
EPS 3Y-39.22%
EPS 5Y-13.27%
EPS Q2Q%133.33%
EPS Next Y44.09%
EPS Next 2Y54.86%
EPS Next 3Y52.22%
EPS Next 5Y31.58%
Revenue 1Y (TTM)1.16%
Revenue growth 3Y7.3%
Revenue growth 5Y8.87%
Sales Q2Q%0.1%
Revenue Next Year1.71%
Revenue Next 2Y4.16%
Revenue Next 3Y4.93%
Revenue Next 5Y4.21%
EBIT growth 1Y20.63%
EBIT growth 3Y-38.86%
EBIT growth 5Y-12.46%
EBIT Next Year233.45%
EBIT Next 3Y69.92%
EBIT Next 5Y38.47%
FCF growth 1Y-71.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-34.21%
OCF growth 3Y-12.44%
OCF growth 5Y-0.98%