KNIGHT-SWIFT TRANSPORTATION (KNX) Stock Fundamental Analysis
NYSE:KNX - New York Stock Exchange, Inc. - US4990491049 - Common Stock - Currency: USD
Overall KNX gets a fundamental rating of 4 out of 10. We evaluated KNX against 39 industry peers in the Ground Transportation industry. While KNX is still in line with the averages on profitability rating, there are concerns on its financial health. KNX is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year KNX was profitable.
KNX had a positive operating cash flow in the past year.
In the past 5 years KNX has always been profitable.
KNX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of KNX (1.20%) is comparable to the rest of the industry.
The Return On Equity of KNX (2.12%) is comparable to the rest of the industry.
KNX has a Return On Invested Capital (1.98%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KNX is below the industry average of 8.06%.
| 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
With a Profit Margin value of 2.04%, KNX perfoms like the industry average, outperforming 43.59% of the companies in the same industry.
In the last couple of years the Profit Margin of KNX has declined.
KNX has a Operating Margin (3.72%) which is comparable to the rest of the industry.
KNX's Operating Margin has declined in the last couple of years.
KNX has a Gross Margin of 65.47%. This is in the better half of the industry: KNX outperforms 76.92% of its industry peers.
In the last couple of years the Gross Margin of KNX has grown nicely.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KNX is destroying value.
The number of shares outstanding for KNX has been increased compared to 1 year ago.
The number of shares outstanding for KNX has been reduced compared to 5 years ago.
The debt/assets ratio for KNX has been reduced compared to a year ago.
2.2 Solvency
KNX has an Altman-Z score of 1.72. 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 1.72. This is in the lower half of the industry: KNX underperforms 64.10% of its industry peers.
KNX has a debt to FCF ratio of 19.68. This is a negative value and a sign of low solvency as KNX would need 19.68 years to pay back of all of its debts.
With a Debt to FCF ratio value of 19.68, KNX perfoms like the industry average, outperforming 58.97% 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.
KNX's Debt to Equity ratio of 0.30 is in line compared to the rest of the industry. KNX outperforms 53.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 19.68 | ||
| Altman-Z | 1.72 |
ROIC/WACC0.21
WACC9.49%
2.3 Liquidity
KNX has a Current Ratio of 0.88. This is a bad value and indicates that KNX is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.88, KNX is doing worse than 66.67% of the companies in the same industry.
A Quick Ratio of 0.88 indicates that KNX may have some problems paying its short term obligations.
KNX has a worse Quick ratio (0.88) than 64.10% of its industry peers.
| 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.
Measured over the past years, KNX shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -13.27% on average per year.
The Revenue has been growing slightly by 1.16% in the past 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 32.52% on average over the next years. This is a very strong growth
Based on estimates for the next years, KNX will show a small growth in Revenue. The Revenue will grow by 4.72% on average per year.
EPS Next Y44.16%
EPS Next 2Y55.87%
EPS Next 3Y55.3%
EPS Next 5Y32.52%
Revenue Next Year1.68%
Revenue Next 2Y4.16%
Revenue Next 3Y5.2%
Revenue Next 5Y4.72%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
KNX is valuated quite expensively with a Price/Earnings ratio of 36.33.
KNX's Price/Earnings ratio is in line with the industry average.
KNX is valuated rather expensively when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 17.21, the valuation of KNX can be described as rather expensive.
Based on the Price/Forward Earnings ratio, KNX is valued a bit cheaper than the industry average as 64.10% of the companies are valued more expensively.
KNX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.33 | ||
| Fwd PE | 17.21 |
4.2 Price Multiples
69.23% of the companies in the same industry are more expensive than KNX, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, KNX is valued a bit cheaper than the industry average as 61.54% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.91 | ||
| EV/EBITDA | 8.8 |
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.
A more expensive valuation may be justified as KNX's earnings are expected to grow with 55.30% in the coming years.
PEG (NY)0.82
PEG (5Y)N/A
EPS Next 2Y55.87%
EPS Next 3Y55.3%
5. Dividend
5.1 Amount
KNX has a Yearly Dividend Yield of 1.63%. Purely for dividend investing, there may be better candidates out there.
KNX's Dividend Yield is a higher than the industry average which is at 1.58.
KNX's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
5.2 History
The dividend of KNX is nicely growing with an annual growth rate of 21.76%!
KNX has been paying a dividend for at least 10 years, so it has 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
KNX pays out 71.28% of its income as dividend. This is not a sustainable payout ratio.
KNX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP71.28%
EPS Next 2Y55.87%
EPS Next 3Y55.3%
44.32
+0.11 (+0.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners97.96%
Inst Owner Change-2.12%
Ins Owners3.16%
Ins Owner Change1.18%
Market Cap7.18B
Analysts73.6
Price Target52.2 (17.78%)
Short Float %4.64%
Short Ratio2.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
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)-6.87%
PT rev (3m)-18.01%
EPS NQ rev (1m)-6.2%
EPS NQ rev (3m)-31.79%
EPS NY rev (1m)-16.19%
EPS NY rev (3m)-26.62%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-2.73%
Revenue NY rev (1m)-1.56%
Revenue NY rev (3m)-2.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.33 | ||
| Fwd PE | 17.21 | ||
| P/S | 0.97 | ||
| P/FCF | 58.91 | ||
| P/OCF | 8.24 | ||
| P/B | 1.01 | ||
| P/tB | 6.44 | ||
| EV/EBITDA | 8.8 |
EPS(TTM)1.22
EY2.75%
EPS(NY)2.58
Fwd EY5.81%
FCF(TTM)0.75
FCFY1.7%
OCF(TTM)5.38
OCFY12.13%
SpS45.74
BVpS43.91
TBVpS6.88
PEG (NY)0.82
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 | 1.72 |
F-Score7
WACC9.49%
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 Y44.16%
EPS Next 2Y55.87%
EPS Next 3Y55.3%
EPS Next 5Y32.52%
Revenue 1Y (TTM)1.16%
Revenue growth 3Y7.3%
Revenue growth 5Y8.87%
Sales Q2Q%0.1%
Revenue Next Year1.68%
Revenue Next 2Y4.16%
Revenue Next 3Y5.2%
Revenue Next 5Y4.72%
EBIT growth 1Y20.63%
EBIT growth 3Y-38.86%
EBIT growth 5Y-12.46%
EBIT Next Year233.45%
EBIT Next 3Y69.92%
EBIT Next 5Y39.14%
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%