KNOWLES CORP (KN)

US49926D1090 - Common Stock

16.1  +0.4 (+2.55%)

After market: 15.92 -0.18 (-1.12%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to KN. KN was compared to 128 industry peers in the Electronic Equipment, Instruments & Components industry. Both the profitability and the financial health of KN get a neutral evaluation. Nothing too spectacular is happening here. KN is cheap, but on the other hand it scores bad on growth. This makes KN very considerable for value investing!



6

1. Profitability

1.1 Basic Checks

KN had positive earnings in the past year.
In the past year KN had a positive cash flow from operations.
KN had positive earnings in 4 of the past 5 years.
Each year in the past 5 years KN had a positive operating cash flow.

1.2 Ratios

KN has a better Return On Assets (4.95%) than 69.84% of its industry peers.
With a decent Return On Equity value of 7.00%, KN is doing good in the industry, outperforming 60.32% of the companies in the same industry.
KN has a Return On Invested Capital of 2.63%. This is comparable to the rest of the industry: KN outperforms 51.59% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KN is below the industry average of 9.65%.
Industry RankSector Rank
ROA 4.95%
ROE 7%
ROIC 2.63%
ROA(3y)-7.56%
ROA(5y)-3.87%
ROE(3y)-8.67%
ROE(5y)-4.34%
ROIC(3y)5.28%
ROIC(5y)4.66%

1.3 Margins

KN has a better Profit Margin (10.23%) than 84.13% of its industry peers.
In the last couple of years the Profit Margin of KN has grown nicely.
The Operating Margin of KN (6.12%) is better than 69.05% of its industry peers.
KN's Operating Margin has declined in the last couple of years.
The Gross Margin of KN (38.45%) is better than 72.22% of its industry peers.
In the last couple of years the Gross Margin of KN has remained more or less at the same level.
Industry RankSector Rank
OM 6.12%
PM (TTM) 10.23%
GM 38.45%
OM growth 3Y-1.61%
OM growth 5Y-8.73%
PM growth 3Y127.98%
PM growth 5Y4.56%
GM growth 3Y2.43%
GM growth 5Y-0.31%

5

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 a worse debt to assets ratio.

2.2 Solvency

KN has an Altman-Z score of 2.46. 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 (2.46) is comparable to the rest of the industry.
The Debt to FCF ratio of KN is 2.57, which is a good value as it means it would take KN, 2.57 years of fcf income to pay off all of its debts.
KN has a better Debt to FCF ratio (2.57) than 69.84% of its industry peers.
A Debt/Equity ratio of 0.22 indicates that KN is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.22, KN perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.22
Debt/FCF 2.57
Altman-Z 2.46
ROIC/WACC0.3
WACC8.84%

2.3 Liquidity

KN has a Current Ratio of 2.61. This indicates that KN is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.61, KN is in line with its industry, outperforming 51.59% of the companies in the same industry.
KN has a Quick Ratio of 1.41. This is a normal value and indicates that KN is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of KN (1.41) is worse than 61.11% of its industry peers.
Industry RankSector Rank
Current Ratio 2.61
Quick Ratio 1.41

3

3. Growth

3.1 Past

KN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -30.95%.
KN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.75% yearly.
Looking at the last year, KN shows a decrease in Revenue. The Revenue has decreased by -7.47% in the last year.
Measured over the past years, KN shows a decrease in Revenue. The Revenue has been decreasing by -3.07% on average per year.
EPS 1Y (TTM)-30.95%
EPS 3Y10.78%
EPS 5Y-2.75%
EPS growth Q2Q-15.15%
Revenue 1Y (TTM)-7.47%
Revenue growth 3Y-2.54%
Revenue growth 5Y-3.07%
Revenue growth Q2Q9.18%

3.2 Future

Based on estimates for the next years, KN will show a very strong growth in Earnings Per Share. The EPS will grow by 24.65% on average per year.
KN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.85% yearly.
EPS Next Y32.01%
EPS Next 2Y24.65%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year20.79%
Revenue Next 2Y7.85%
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.
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.

7

4. Valuation

4.1 Price/Earnings Ratio

KN is valuated rather expensively with a Price/Earnings ratio of 18.51.
Based on the Price/Earnings ratio, KN is valued a bit cheaper than 74.60% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.48. KN is valued slightly cheaper when compared to this.
KN is valuated correctly with a Price/Forward Earnings ratio of 14.02.
KN's Price/Forward Earnings ratio is rather cheap when compared to the industry. KN is cheaper than 81.75% of the companies in the same industry.
KN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.79.
Industry RankSector Rank
PE 18.51
Fwd PE 14.02

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KN is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, KN is valued cheaply inside the industry as 86.51% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 13.68
EV/EBITDA 18.12

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.
The decent profitability rating of KN may justify a higher PE ratio.
A more expensive valuation may be justified as KN's earnings are expected to grow with 24.65% in the coming years.
PEG (NY)0.58
PEG (5Y)N/A
EPS Next 2Y24.65%
EPS Next 3YN/A

0

5. Dividend

5.1 Amount

No dividends for KN!.
Industry RankSector Rank
Dividend Yield N/A

KNOWLES CORP

NYSE:KN (3/28/2024, 8:20:45 PM)

After market: 15.92 -0.18 (-1.12%)

16.1

+0.4 (+2.55%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.44B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 18.51
Fwd PE 14.02
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.58
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 4.95%
ROE 7%
ROCE
ROIC
ROICexc
ROICexgc
OM 6.12%
PM (TTM) 10.23%
GM 38.45%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.48
Health
Industry RankSector Rank
Debt/Equity 0.22
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.61
Quick Ratio 1.41
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-30.95%
EPS 3Y10.78%
EPS 5Y
EPS growth Q2Q
EPS Next Y32.01%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.47%
Revenue growth 3Y-2.54%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y