KNOWLES CORP (KN) Stock Fundamental Analysis
NYSE:KN - New York Stock Exchange, Inc. - US49926D1090 - Common Stock - Currency: USD
KN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 124 industry peers in the Electronic Equipment, Instruments & Components industry. KN has an average financial health and profitability rating. KN has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year KN was profitable.
In the past year KN had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: KN reported negative net income in multiple years.
Each year in the past 5 years KN had a positive operating cash flow.
1.2 Ratios
KN has a Return On Assets (2.28%) which is in line with its industry peers.
KN has a Return On Equity of 3.32%. This is comparable to the rest of the industry: KN outperforms 57.26% of its industry peers.
KN has a Return On Invested Capital (4.39%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KN is significantly below the industry average of 9.55%.
The 3 year average ROIC (4.19%) for KN is below the current ROIC(4.39%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.28% | ||
| ROE | 3.32% | ||
| ROIC | 4.39% |
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
With a decent Profit Margin value of 4.40%, KN is doing good in the industry, outperforming 68.55% of the companies in the same industry.
KN's Operating Margin of 10.66% is fine compared to the rest of the industry. KN outperforms 78.23% of its industry peers.
KN's Operating Margin has been stable in the last couple of years.
KN has a Gross Margin of 43.05%. This is in the better half of the industry: KN outperforms 74.19% of its industry peers.
KN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.66% | ||
| PM (TTM) | 4.4% | ||
| GM | 43.05% |
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.
KN has less shares outstanding than it did 1 year ago.
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
An Altman-Z score of 3.06 indicates that KN is not in any danger for bankruptcy at the moment.
The Altman-Z score of KN (3.06) is comparable to the rest of the industry.
KN has a debt to FCF ratio of 1.74. This is a very positive value and a sign of high solvency as it would only need 1.74 years to pay back of all of its debts.
The Debt to FCF ratio of KN (1.74) is better than 79.84% of its industry peers.
KN has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
KN has a Debt to Equity ratio (0.16) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.74 | ||
| Altman-Z | 3.06 |
ROIC/WACC0.47
WACC9.27%
2.3 Liquidity
A Current Ratio of 2.00 indicates that KN has no problem at all paying its short term obligations.
KN has a worse Current ratio (2.00) than 61.29% of its industry peers.
KN has a Quick Ratio of 1.29. This is a normal value and indicates that KN is financially healthy and should not expect problems in meeting its short term obligations.
KN has a worse Quick ratio (1.29) than 64.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
The earnings per share for KN have decreased by -7.77% 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 very negative growth in Revenue. The Revenue has decreased by -34.16% 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)-7.77%
EPS 3Y-14.09%
EPS 5Y-2.13%
EPS Q2Q%0%
Revenue 1Y (TTM)-34.16%
Revenue growth 3Y-13.93%
Revenue growth 5Y-8.33%
Sales Q2Q%-28.72%
3.2 Future
The Earnings Per Share is expected to grow by 14.98% on average over the next years. This is quite good.
KN is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -6.50% yearly.
EPS Next Y11.49%
EPS Next 2Y14.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-15.69%
Revenue Next 2Y-6.5%
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
Based on the Price/Earnings ratio of 20.97, the valuation of KN can be described as rather expensive.
76.61% of the companies in the same industry are more expensive than KN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of KN to the average of the S&P500 Index (26.48), we can say KN is valued slightly cheaper.
The Price/Forward Earnings ratio is 15.53, which indicates a correct valuation of KN.
83.87% of the companies in the same industry are more expensive than KN, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.04. KN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.97 | ||
| Fwd PE | 15.53 |
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 66.13% of the companies listed in the same industry.
KN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. KN is cheaper than 89.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.62 | ||
| EV/EBITDA | 17.56 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
KN's earnings are expected to grow with 14.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.82
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 |
19.92
+0.28 (+1.43%)
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-0.07%
Ins Owners2%
Ins Owner Change9.88%
Market Cap1.71B
Analysts83.33
Price Target21.17 (6.28%)
Short Float %3.14%
Short Ratio4.31
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)1
Avg EPS beat(2)-1.35%
Min EPS beat(2)-2.91%
Max EPS beat(2)0.22%
EPS beat(4)1
Avg EPS beat(4)-2.89%
Min EPS beat(4)-7.21%
Max EPS beat(4)0.22%
EPS beat(8)3
Avg EPS beat(8)-0.87%
EPS beat(12)6
Avg EPS beat(12)2.25%
EPS beat(16)10
Avg EPS beat(16)3.46%
Revenue beat(2)1
Avg Revenue beat(2)0.45%
Min Revenue beat(2)-0.47%
Max Revenue beat(2)1.36%
Revenue beat(4)1
Avg Revenue beat(4)-4.4%
Min Revenue beat(4)-13.25%
Max Revenue beat(4)1.36%
Revenue beat(8)1
Avg Revenue beat(8)-3.58%
Revenue beat(12)1
Avg Revenue beat(12)-3.98%
Revenue beat(16)1
Avg Revenue beat(16)-3.98%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)2.5%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.64%
Revenue NQ rev (1m)1.29%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)1.6%
Revenue NY rev (3m)3.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.97 | ||
| Fwd PE | 15.53 | ||
| P/S | 3.04 | ||
| P/FCF | 15.62 | ||
| P/OCF | 13.62 | ||
| P/B | 2.29 | ||
| P/tB | 5.24 | ||
| EV/EBITDA | 17.56 |
EPS(TTM)0.95
EY4.77%
EPS(NY)1.28
Fwd EY6.44%
FCF(TTM)1.27
FCFY6.4%
OCF(TTM)1.46
OCFY7.34%
SpS6.56
BVpS8.69
TBVpS3.8
PEG (NY)1.82
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.28% | ||
| ROE | 3.32% | ||
| ROCE | 6.51% | ||
| ROIC | 4.39% | ||
| ROICexc | 4.95% | ||
| ROICexgc | 10.15% | ||
| OM | 10.66% | ||
| PM (TTM) | 4.4% | ||
| GM | 43.05% | ||
| FCFM | 19.45% |
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-Score7
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.74 | ||
| Debt/EBITDA | 1.18 | ||
| Cap/Depr | 39.27% | ||
| Cap/Sales | 2.86% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 124.36% | ||
| Profit Quality | 441.53% | ||
| Current Ratio | 2 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 3.06 |
F-Score7
WACC9.27%
ROIC/WACC0.47
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)-7.77%
EPS 3Y-14.09%
EPS 5Y-2.13%
EPS Q2Q%0%
EPS Next Y11.49%
EPS Next 2Y14.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-34.16%
Revenue growth 3Y-13.93%
Revenue growth 5Y-8.33%
Sales Q2Q%-28.72%
Revenue Next Year-15.69%
Revenue Next 2Y-6.5%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y1.01%
EBIT growth 3Y-22.87%
EBIT growth 5Y-8.74%
EBIT Next Year22.3%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y76.05%
FCF growth 3Y-4.44%
FCF growth 5Y7.09%
OCF growth 1Y42.24%
OCF growth 3Y-10.6%
OCF growth 5Y0.98%