KNIGHT-SWIFT TRANSPORTATION (KNX) Stock Fundamental Analysis
NYSE:KNX - New York Stock Exchange, Inc. - US4990491049 - Common Stock - Currency: USD
Taking everything into account, KNX scores 4 out of 10 in our fundamental rating. KNX was compared to 40 industry peers in the Ground Transportation industry. There are concerns on the financial health of KNX while its profitability can be described as average. KNX has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year KNX was profitable.
In the past year KNX had a positive cash flow from operations.
Each year in the past 5 years KNX has been profitable.
KNX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.20%, KNX is in line with its industry, outperforming 42.50% of the companies in the same industry.
The Return On Equity of KNX (2.12%) is worse than 60.00% of its industry peers.
KNX has a Return On Invested Capital of 1.98%. This is comparable to the rest of the industry: KNX outperforms 42.50% of its industry peers.
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
KNX's Profit Margin of 2.04% is in line compared to the rest of the industry. KNX outperforms 42.50% of its industry peers.
In the last couple of years the Profit Margin of KNX has declined.
The Operating Margin of KNX (3.72%) is comparable to the rest of the industry.
KNX's Operating Margin has declined in the last couple of years.
The Gross Margin of KNX (65.47%) is better than 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
KNX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, KNX has more shares outstanding
KNX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, KNX has an improved debt to assets ratio.
2.2 Solvency
KNX has an Altman-Z score of 1.79. This is a bad value and indicates that KNX is not financially healthy and even has some risk of bankruptcy.
KNX has a Altman-Z score of 1.79. This is in the lower half of the industry: KNX underperforms 65.00% of its industry peers.
The Debt to FCF ratio of KNX is 19.68, which is on the high side as it means it would take KNX, 19.68 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 19.68, KNX perfoms like the industry average, outperforming 57.50% of the companies in the same industry.
KNX has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.30, KNX perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 19.68 | ||
| Altman-Z | 1.79 |
ROIC/WACC0.21
WACC9.54%
2.3 Liquidity
A Current Ratio of 0.88 indicates that KNX may have some problems paying its short term obligations.
With a Current ratio value of 0.88, KNX is not doing good in the industry: 67.50% of the companies in the same industry are doing better.
A Quick Ratio of 0.88 indicates that KNX may have some problems paying its short term obligations.
With a Quick ratio value of 0.88, KNX is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
| 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.
The earnings per share for KNX have been decreasing by -13.27% on average. This is quite bad
Looking at the last year, KNX shows a small growth in Revenue. The Revenue has grown by 1.16% in the last year.
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
The Earnings Per Share is expected to grow by 31.58% on average over the next years. This is a very strong growth
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
Based on the Price/Earnings ratio of 38.76, the valuation of KNX can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as KNX.
The average S&P500 Price/Earnings ratio is at 27.30. KNX is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 18.60 indicates a rather expensive valuation of KNX.
KNX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KNX is cheaper than 67.50% of the companies 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 | 38.76 | ||
| Fwd PE | 18.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KNX is valued a bit cheaper than 67.50% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KNX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.85 | ||
| EV/EBITDA | 9.4 |
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
KNX has a Yearly Dividend Yield of 1.49%.
KNX's Dividend Yield is a higher than the industry average which is at 1.47.
Compared to the average S&P500 Dividend Yield of 2.37, KNX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
5.2 History
The dividend of KNX is nicely growing with an annual growth rate of 21.76%!
KNX has paid a dividend for at least 10 years, which is a reliable track record.
KNX has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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.
The dividend of KNX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP71.28%
EPS Next 2Y54.86%
EPS Next 3Y52.22%
47.29
-0.93 (-1.93%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners96%
Inst Owner Change-0.04%
Ins Owners3.13%
Ins Owner Change1.43%
Market Cap7.66B
Analysts75.38
Price Target52.71 (11.46%)
Short Float %4.51%
Short Ratio2.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
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)-14.26%
EPS NQ rev (1m)-0.31%
EPS NQ rev (3m)-31.14%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-26.48%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)-2.62%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-2.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.76 | ||
| Fwd PE | 18.6 | ||
| P/S | 1.03 | ||
| P/FCF | 62.85 | ||
| P/OCF | 8.8 | ||
| P/B | 1.08 | ||
| P/tB | 6.87 | ||
| EV/EBITDA | 9.4 |
EPS(TTM)1.22
EY2.58%
EPS(NY)2.54
Fwd EY5.38%
FCF(TTM)0.75
FCFY1.59%
OCF(TTM)5.38
OCFY11.37%
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 | 1.79 |
F-Score7
WACC9.54%
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%