KNOWLES CORP (KN) Stock Fundamental Analysis
USA - NYSE:KN - US49926D1090 - Common Stock
23.81 USD
+0.5 (+2.15%)
24.19 USD
+0.38 (+1.6%)
We assign a fundamental rating of 4 out of 10 to KN. KN was compared to 124 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 on the other hand it scores bad on growth.
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
The Return On Assets of KN (2.28%) is comparable to the rest of the industry.
The Return On Equity of KN (3.32%) is comparable to the rest of the industry.
The Return On Invested Capital of KN (4.39%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for KN is significantly below the industry average of 9.48%.
The last Return On Invested Capital (4.39%) for KN is above the 3 year average (4.19%), which is a sign of increasing profitability.
| 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
KN has a better Profit Margin (4.40%) than 66.13% of its industry peers.
KN's Operating Margin of 10.66% is fine compared to the rest of the industry. KN outperforms 77.42% of its industry peers.
KN's Operating Margin has been stable in the last couple of years.
KN has a better Gross Margin (43.05%) than 75.00% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KN is destroying value.
Compared to 1 year ago, KN has less shares outstanding
KN has less shares outstanding than it did 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 3.69. This indicates that KN is financially healthy and has little risk of bankruptcy at the moment.
KN's Altman-Z score of 3.69 is in line compared to the rest of the industry. KN outperforms 53.23% of its industry peers.
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.
KN's Debt to FCF ratio of 1.74 is fine compared to the rest of the industry. KN outperforms 79.03% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that KN is not too dependend on debt financing.
KN's Debt to Equity ratio of 0.16 is in line compared to the rest of the industry. KN outperforms 51.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.74 | ||
| Altman-Z | 3.69 |
ROIC/WACC0.47
WACC9.25%
2.3 Liquidity
A Current Ratio of 2.00 indicates that KN has no problem at all paying its short term obligations.
With a Current ratio value of 2.00, KN perfoms like the industry average, outperforming 40.32% of the companies in the same industry.
A Quick Ratio of 1.29 indicates that KN should not have too much problems paying 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
KN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.77%.
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 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 14.40% 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 -5.85% yearly.
EPS Next Y12.82%
EPS Next 2Y14.4%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-15.69%
Revenue Next 2Y-5.85%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 25.06, which means the current valuation is very expensive for KN.
74.19% 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 (27.79), we can say KN is valued inline with the index average.
A Price/Forward Earnings ratio of 18.76 indicates a rather expensive valuation of KN.
Based on the Price/Forward Earnings ratio, KN is valued a bit cheaper than 75.81% of the companies in the same industry.
KN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.06 | ||
| Fwd PE | 18.76 |
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 60.48% 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 86.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.68 | ||
| EV/EBITDA | 21.11 |
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 14.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.95
PEG (5Y)N/A
EPS Next 2Y14.4%
EPS Next 3YN/A
5. Dividend
5.1 Amount
KN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
23.81
+0.5 (+2.15%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners103.92%
Inst Owner Change-1.15%
Ins Owners2%
Ins Owner Change2.49%
Market Cap2.05B
Analysts83.33
Price Target22.95 (-3.61%)
Short Float %4.69%
Short Ratio5.76
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)8.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.5%
EPS NY rev (1m)0%
EPS NY rev (3m)1.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.29%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.06 | ||
| Fwd PE | 18.76 | ||
| P/S | 3.63 | ||
| P/FCF | 18.68 | ||
| P/OCF | 16.28 | ||
| P/B | 2.74 | ||
| P/tB | 6.26 | ||
| EV/EBITDA | 21.11 |
EPS(TTM)0.95
EY3.99%
EPS(NY)1.27
Fwd EY5.33%
FCF(TTM)1.27
FCFY5.35%
OCF(TTM)1.46
OCFY6.14%
SpS6.56
BVpS8.69
TBVpS3.8
PEG (NY)1.95
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 | 6.45 | ||
| Cash Conversion | 124.36% | ||
| Profit Quality | 441.53% | ||
| Current Ratio | 2 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 3.69 |
F-Score7
WACC9.25%
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 Y12.82%
EPS Next 2Y14.4%
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-5.85%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y1.01%
EBIT growth 3Y-22.87%
EBIT growth 5Y-8.74%
EBIT Next Year18.53%
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%