Knife River Corporation
Knife River Corporation Fundamental Analysis
Knife River Corporation (KNF) shows weak financial fundamentals with a PE ratio of 33.55, profit margin of 4.58%, and ROE of 9.35%. The company generates $3.2B in annual revenue with moderate year-over-year growth of 8.52%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D 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
ModerateKNF shows balanced valuation metrics.
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 33.55 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, KNF's PEG of -1.73 indicates potential undervaluation.
Price to Book
The market values Knife River Corporation at 3.15 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 7.95 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 $4.58 as profit after all expenses.
Operating Margin
Core operations generate 8.81 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.35 in profit for every $100 of shareholder equity.
ROA
Knife River Corporation generates $3.84 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Knife River Corporation produces operating cash flow of $345.50M, showing steady but balanced cash generation.
Free Cash Flow
Knife River Corporation generates weak or negative free cash flow of $-5.27M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.09 in free cash annually.
FCF Yield
KNF converts -0.11% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
33.55
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.73
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.15
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.54
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.95
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.67
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How KNF Stacks Against Its Sector Peers
| Metric | KNF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 33.55 | 24.39 | Worse (Expensive) |
| ROE | 9.35% | 871.00% | Weak |
| Net Margin | 4.58% | -108693.00% (disorted) | Weak |
| Debt/Equity | 0.95 | 0.55 | Weak (High Leverage) |
| Current Ratio | 2.67 | 6.83 | Strong Liquidity |
| ROA | 3.84% | -6699.00% (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
44.10%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
6.38%
Industry Style: Cyclical, Commodity, Value
GrowingFCF CAGR
19.55%
Industry Style: Cyclical, Commodity, Value
High Growth