KNIGHT-SWIFT TRANSPORTATION (KNX)
US4990491049 - Common Stock
We assign a fundamental rating of 4 out of 10 to KNX. KNX was compared to 36 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 has a correct valuation and a medium 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.
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
KNX's Return On Assets of 1.69% is on the low side compared to the rest of the industry. KNX is outperformed by 66.67% of its industry peers.
KNX has a Return On Equity of 3.06%. This is in the lower half of the industry: KNX underperforms 63.89% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.31%, KNX is doing worse than 69.44% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for KNX is in line with the industry average of 7.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.69% | ||
| ROE | 3.06% | ||
| ROIC | 2.31% |
ROA(3y)5.24%
ROA(5y)4.86%
ROE(3y)8.52%
ROE(5y)7.6%
ROIC(3y)6.1%
ROIC(5y)5.83%
1.3 Margins
KNX's Profit Margin of 3.04% is on the low side compared to the rest of the industry. KNX is outperformed by 61.11% of its industry peers.
KNX's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 4.60%, KNX is in line with its industry, outperforming 44.44% of the companies in the same industry.
KNX's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 64.40%, KNX is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
KNX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.6% | ||
| PM (TTM) | 3.04% | ||
| GM | 64.4% |
OM growth 3Y-30.04%
OM growth 5Y-16.88%
PM growth 3Y-29.75%
PM growth 5Y-17.27%
GM growth 3Y-0.39%
GM growth 5Y2.36%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KNX is destroying value.
Compared to 1 year ago, KNX has more shares outstanding
Compared to 5 years ago, KNX has less shares outstanding
The debt/assets ratio for KNX is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.70, we must say that KNX is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.70, KNX is not doing good in the industry: 63.89% of the companies in the same industry are doing better.
KNX has a debt to FCF ratio of 29.79. This is a negative value and a sign of low solvency as KNX would need 29.79 years to pay back of all of its debts.
KNX's Debt to FCF ratio of 29.79 is fine compared to the rest of the industry. KNX outperforms 63.89% of its industry peers.
KNX has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
KNX's Debt to Equity ratio of 0.31 is fine compared to the rest of the industry. KNX outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 29.79 | ||
| Altman-Z | 1.7 |
ROIC/WACC0.27
WACC8.55%
2.3 Liquidity
KNX has a Current Ratio of 0.94. This is a bad value and indicates that KNX is not financially healthy enough and could expect problems in meeting its short term obligations.
KNX's Current ratio of 0.94 is on the low side compared to the rest of the industry. KNX is outperformed by 63.89% of its industry peers.
KNX has a Quick Ratio of 0.94. This is a bad value and indicates that KNX is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.94, KNX is not doing good in the industry: 63.89% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
KNX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -65.81%.
Measured over the past years, KNX shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.79% on average per year.
Looking at the last year, KNX shows a decrease in Revenue. The Revenue has decreased by -3.86% in the last year.
The Revenue has been growing slightly by 5.97% on average over the past years.
EPS 1Y (TTM)-65.81%
EPS 3Y-14.38%
EPS 5Y-7.79%
EPS growth Q2Q-91%
Revenue 1Y (TTM)-3.86%
Revenue growth 3Y15.18%
Revenue growth 5Y5.97%
Revenue growth Q2Q10.8%
3.2 Future
Based on estimates for the next years, KNX will show a very strong growth in Earnings Per Share. The EPS will grow by 32.38% on average per year.
Based on estimates for the next years, KNX will show a small growth in Revenue. The Revenue will grow by 7.86% on average per year.
EPS Next Y38.56%
EPS Next 2Y50.97%
EPS Next 3Y40.51%
EPS Next 5Y32.38%
Revenue Next Year10.36%
Revenue Next 2Y8.37%
Revenue Next 3Y7.42%
Revenue Next 5Y7.86%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 27.26, KNX can be considered very expensive at the moment.
KNX's Price/Earnings is on the same level as the industry average.
KNX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.84.
With a Price/Forward Earnings ratio of 19.67, KNX is valued on the expensive side.
Based on the Price/Forward Earnings ratio, KNX is valued a bit cheaper than 61.11% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.35. KNX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.26 | ||
| Fwd PE | 19.67 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KNX indicates a somewhat cheap valuation: KNX is cheaper than 66.67% of the companies listed in the same industry.
69.44% of the companies in the same industry are more expensive than KNX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 83.83 | ||
| EV/EBITDA | 9.46 |
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 40.51% in the coming years.
PEG (NY)0.71
PEG (5Y)N/A
EPS Next 2Y50.97%
EPS Next 3Y40.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.36%, KNX has a reasonable but not impressive dividend return.
KNX's Dividend Yield is a higher than the industry average which is at 1.75.
Compared to an average S&P500 Dividend Yield of 2.41, KNX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
5.2 History
On average, the dividend of KNX grows each year by 18.32%, which is quite nice.
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)18.32%
Div Incr Years4
Div Non Decr Years6
5.3 Sustainability
41.98% of the earnings are spent on dividend by KNX. This is a bit on the high side, but may be sustainable.
The dividend of KNX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP41.98%
EPS Next 2Y50.97%
EPS Next 3Y40.51%
KNIGHT-SWIFT TRANSPORTATION
NYSE:KNX (4/26/2024, 7:04:00 PM)
After market: 46.95 +0.06 (+0.13%)46.89
-0.25 (-0.53%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.55B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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PT rev (1m)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.26 | ||
| Fwd PE | 19.67 | ||
| 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)0.71
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.69% | ||
| ROE | 3.06% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.6% | ||
| PM (TTM) | 3.04% | ||
| GM | 64.4% | ||
| 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 Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.94 | ||
| 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)-65.81%
EPS 3Y-14.38%
EPS 5Y
EPS growth Q2Q
EPS Next Y38.56%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.86%
Revenue growth 3Y15.18%
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