Knife River Corporation
Knife River Corporation Fundamental Analysis
Knife River Corporation (KNF) shows weak financial fundamentals with a PE ratio of 28.91, profit margin of 4.99%, and ROE of 10.27%. The company generates $3.1B in annual revenue with weak year-over-year growth of 2.43%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze KNF's fundamental strength across five key dimensions:
Efficiency Score
WeakKNF struggles to generate sufficient returns from assets.
Valuation Score
WeakKNF trades at a premium to fair value.
Growth Score
ModerateKNF shows steady but slowing expansion.
Financial Health Score
ExcellentKNF maintains a strong and stable balance sheet.
Profitability Score
WeakKNF struggles to sustain strong margins.
Key Financial Metrics
Is KNF Expensive or Cheap?
P/E Ratio
KNF trades at 28.91 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, KNF's PEG of 5.05 indicates potential overvaluation.
Price to Book
The market values Knife River Corporation at 2.77 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.97 times EBITDA. This is generally considered low.
How Well Does KNF Make Money?
Net Profit Margin
For every $100 in sales, Knife River Corporation keeps $4.99 as profit after all expenses.
Operating Margin
Core operations generate 9.09 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.27 in profit for every $100 of shareholder equity.
ROA
Knife River Corporation generates $4.30 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Knife River Corporation generates limited operating cash flow of $278.32M, signaling weaker underlying cash strength.
Free Cash Flow
Knife River Corporation generates weak or negative free cash flow of $-69.56M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.23 in free cash annually.
FCF Yield
KNF converts -1.52% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.91
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.77
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.44
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.76
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.54
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How KNF Stacks Against Its Sector Peers
| Metric | KNF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.91 | 24.98 | Worse (Expensive) |
| ROE | 10.27% | 907.00% | Weak |
| Net Margin | 4.99% | -107080.00% (disorted) | Weak |
| Debt/Equity | 0.76 | 0.56 | Weak (High Leverage) |
| Current Ratio | 2.54 | 5.08 | Strong Liquidity |
| ROA | 4.30% | -10264.00% (disorted) | Weak |
KNF outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Knife River Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
33.01%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
36.79%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
38.59%
Industry Style: Cyclical, Commodity, Value
High Growth