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 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
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 worse Return On Assets (-21.04%) than 72.80% of its industry peers.
KN has a worse Return On Equity (-31.12%) than 72.00% of its industry peers.
KN has a better Return On Invested Capital (4.54%) than 62.40% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KN is significantly below the industry average of 9.30%.
The last Return On Invested Capital (4.54%) for KN is above the 3 year average (4.19%), which is a sign of increasing profitability.
| 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
The Operating Margin of KN (8.27%) is better than 77.60% of its industry peers.
KN's Operating Margin has been stable in the last couple of years.
KN has a Gross Margin of 41.02%. This is in the better half of the industry: KN outperforms 73.60% of its industry peers.
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.
The number of shares outstanding for KN has been reduced compared to 1 year ago.
The number of shares outstanding for KN has been reduced compared to 5 years ago.
Compared to 1 year ago, KN has an improved debt to assets ratio.
2.2 Solvency
KN has an Altman-Z score of 2.63. 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.
The Altman-Z score of KN (2.63) is comparable to the rest of the 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 better Debt to FCF ratio (1.74) than 78.40% 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 51.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.74 | ||
| Altman-Z | 2.63 |
ROIC/WACC0.55
WACC8.31%
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 62.40% 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.
The Quick ratio of KN (1.23) is worse than 68.00% 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 for KN have decreased by -6.86% in the last year.
Measured over the past years, KN shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.13% on average per year.
Looking at the last year, KN shows a very strong growth in Revenue. The Revenue has grown by 21.17%.
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)-6.86%
EPS 3Y-14.09%
EPS 5Y-2.13%
EPS Q2Q%-10%
Revenue 1Y (TTM)21.17%
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 19.43% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 17.28 indicates a rather expensive valuation of KN.
78.40% of the companies in the same industry are more expensive than KN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.22, KN is valued a bit cheaper.
With a Price/Forward Earnings ratio of 11.87, the valuation of KN can be described as very reasonable.
KN's Price/Forward Earnings ratio is rather cheap when compared to the industry. KN is cheaper than 87.20% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.86, KN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.28 | ||
| Fwd PE | 11.87 |
4.2 Price Multiples
KN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KN is cheaper than 68.80% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, KN is valued cheaper than 88.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.26 | ||
| EV/EBITDA | 13.36 |
4.3 Compensation for Growth
KN's 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)1.29
PEG (5Y)N/A
EPS Next 2Y19.43%
EPS Next 3YN/A
5. Dividend
5.1 Amount
KN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
16.42
+0.42 (+2.63%)
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-0.34%
Ins Owners1.76%
Ins Owner Change10.38%
Market Cap1.43B
Analysts83.33
Price Target21.17 (28.93%)
Short Float %3.58%
Short Ratio3.14
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)-3.49%
PT rev (3m)-4.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.28%
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 | 17.28 | ||
| Fwd PE | 11.87 | ||
| P/S | 1.9 | ||
| P/FCF | 12.26 | ||
| P/OCF | 10.98 | ||
| P/B | 1.89 | ||
| P/tB | 4.34 | ||
| EV/EBITDA | 13.36 |
EPS(TTM)0.95
EY5.79%
EPS(NY)1.38
Fwd EY8.43%
FCF(TTM)1.34
FCFY8.16%
OCF(TTM)1.5
OCFY9.11%
SpS8.62
BVpS8.69
TBVpS3.78
PEG (NY)1.29
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 | 2.63 |
F-Score6
WACC8.31%
ROIC/WACC0.55
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 Y13.35%
EPS Next 2Y19.43%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)21.17%
Revenue growth 3Y-13.93%
Revenue growth 5Y-8.33%
Sales Q2Q%-32.69%
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%