Knight-Swift Transportation Holdings Inc.
Knight-Swift Transportation Holdings Inc. Fundamental Analysis
Knight-Swift Transportation Holdings Inc. (KNX) shows weak financial fundamentals with a PE ratio of 130.94, profit margin of 0.88%, and ROE of 0.93%. The company generates $7.5B in annual revenue with moderate year-over-year growth of 3.76%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 36.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze KNX's fundamental strength across five key dimensions:
Efficiency Score
WeakKNX struggles to generate sufficient returns from assets.
Valuation Score
ModerateKNX shows balanced valuation metrics.
Growth Score
WeakKNX faces weak or negative growth trends.
Financial Health Score
ModerateKNX shows balanced financial health with some risks.
Profitability Score
ModerateKNX maintains healthy but balanced margins.
Key Financial Metrics
Is KNX Expensive or Cheap?
P/E Ratio
KNX trades at 130.94 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, KNX's PEG of -2.45 indicates potential undervaluation.
Price to Book
The market values Knight-Swift Transportation Holdings Inc. at 1.22 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.95 times EBITDA. This is generally considered low.
How Well Does KNX Make Money?
Net Profit Margin
For every $100 in sales, Knight-Swift Transportation Holdings Inc. keeps $0.88 as profit after all expenses.
Operating Margin
Core operations generate 3.37 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.93 in profit for every $100 of shareholder equity.
ROA
Knight-Swift Transportation Holdings Inc. generates $0.55 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Knight-Swift Transportation Holdings Inc. produces operating cash flow of $1.27B, showing steady but balanced cash generation.
Free Cash Flow
Knight-Swift Transportation Holdings Inc. generates strong free cash flow of $1.18B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.25 in free cash annually.
FCF Yield
KNX converts 13.62% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
130.94
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.45
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.22
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.16
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.41
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.86
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.009
vs 25 benchmark
ROA
Return on assets percentage
0.006
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How KNX Stacks Against Its Sector Peers
| Metric | KNX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 130.94 | 25.83 | Worse (Expensive) |
| ROE | 0.93% | 1291.00% | Weak |
| Net Margin | 0.88% | -43845.00% (disorted) | Weak |
| Debt/Equity | 0.41 | 0.80 | Strong (Low Leverage) |
| Current Ratio | 0.86 | 10.66 | Weak Liquidity |
| ROA | 0.55% | -1540652.00% (disorted) | Weak |
KNX 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 Knight-Swift Transportation Holdings Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
62.25%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-59.65%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
0.94%
Industry Style: Cyclical, Value, Infrastructure
Growing