Knowles (KN) AI Stock Analysis

• Market Cap: $2.31B
• Dividend Yield: N/A
• Average Volume (3M): 738.23K
• Price to Earnings (P/E): 50.7
• Beta (1Y): 1.60
• Revenue Growth: -24.42%
• EPS Growth: N/A
• Country: US
• Employees: 5,500
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.36
• Shares Outstanding: 84,913,635
• 10 Day Avg. Volume: 935,943
• 30 Day Avg. Volume: 738,231
• PEG Ratio: -0.35
• Price to Book (P/B): 2.37
• Price to Sales (P/S): 3.10
• P/FCF Ratio: 22.45
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 4.12
• Enterprise Value/Gross Profit: 9.96
• Enterprise Value/Ebitda: 22.27
• 1Y Price Target: $27.67
• Price Target Upside: 0.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $31.00 ▲(12.56% Upside)
• Action: Upgraded Date: 02/22/26
• Date: Action: Upgraded 02/22/26

The score is driven primarily by improving fundamentals (strong free cash flow and lower debt) and a constructive earnings outlook with margin guidance and growth drivers. Technicals also support the view with strong upward momentum, though near-overbought signals add short-term risk. The main constraint is valuation, with a high P/E and no dividend yield provided.

Positive Factors

Strong free cash flow

Sustained positive operating and free cash flow provides durable funding for capex, working capital, buybacks, and M&A. Growing FCF supports capital allocation optionality and lowers refinancing risk, improving the company's ability to invest through cycles and fund strategic initiatives.

Improving balance sheet / low leverage

Material debt reduction and low net leverage increase financial flexibility, lowering interest burden and insolvency risk. This de-risked balance sheet supports execution on growth projects, potential bolt-on acquisitions, and shareholder returns while insulating the business from credit stress.

Precision Devices segment strength

A high-margin, fast-growing segment provides a durable earnings base and margin resiliency. Outperformance and a book-to-bill >1 signal structural demand across industrial/defense/medtech end markets, improving long-term revenue mix and supporting sustained profitability expansion.

Negative Factors

Revenue & profitability volatility

Historic swings in revenue and profits reduce visibility into sustainable margins and earnings power. Choppy multi-year trends complicate forecasting, raise execution risk for multi-quarter investments, and mean upside depends on consistent operational improvements to lock in gains.

Specialty film / energy ramp execution risk

Large specialty film/energy orders are material to 2026 growth but require capacity build, permits and process stability. Ramp-related inefficiencies and scrap can erode margins and delay revenue recognition, making this a structural execution risk to projected segment contribution.

Supply, capacity and seasonality risks

Seasonal cash volatility and emerging supply/capacity constraints can limit ability to fulfill orders and monetize backlog. Persistent constraints would cap growth, pressure margins through higher costs or missed volume, and require continued capex or supplier diversification to resolve.

Knowles Business Overview & Revenue Model

Company Description

Knowles Corporation offers micro-acoustic microphones and balanced armature speakers, audio solutions, high performance capacitors, and radio frequency products for the consumer electronics, medtech, defense, electric vehicle, industrial, and communications markets. It operates in two segments, Audio and Precision Devices (PD). The Audio segment designs and manufactures audio products, including microphones, balanced armature speakers, and audio processors used in applications that serve the mobile, hearing health, True Wireless Stereo, Internet of Things, and computing markets. The PD segment is involved in the design and delivery of high-performance capacitor products and RF solutions that are used in applications, such as power supplies and medical implants, satellite communications, and radar systems, as well as for communications equipment. The company sells its products directly to original equipment manufacturers and to their contract manufacturers and suppliers, as well as through distributors. It has operations in Asia, the United States, Europe, other Americas, and internationally. The company was founded in 1946 and is headquartered in Itasca, Illinois.

How the Company Makes Money

Knowles generates revenue primarily through the sale of its audio products, including MEMS microphones and balanced armature speakers. The company sells these products to major electronics manufacturers and OEMs (original equipment manufacturers) across various sectors, including mobile devices, automotive, and healthcare. Key revenue streams include direct sales to large technology companies as well as partnerships with industry leaders that leverage Knowles' audio technology in their devices. Additionally, Knowles benefits from ongoing demand for high-quality audio solutions, as trends like voice activation and smart device integration continue to grow, further driving sales and fostering long-term relationships with clients.

Knowles Financial Statement Overview

Summary

Cash flow is strong and consistent (2025 OCF $114.0M; FCF $81.9M; FCF up 12.2% YoY), and the balance sheet is de-risking with debt reduced ($213.0M to $134.2M). Offsetting this, profitability and revenue have been volatile over the multi-year period, and some 2025 margin/return details are missing, limiting visibility into the durability of the recovery.

Income Statement

Revenue has rebounded over the last two annual periods (2024: +21.2%, 2025: +3.4%), but the longer-term trajectory remains choppy after the sharp 2023 decline. Profitability is volatile: the company swung from a large loss in 2024 (-43.3% net margin) to positive earnings in 2025 ($44.2M net income), indicating improving execution but still inconsistent earnings power. Margin data for 2025 is unavailable, limiting visibility into the quality of the recovery.

Balance Sheet

Leverage is moderate and improving: total debt declined to $134.2M in 2025 from $213.0M in 2024, while equity is stable at ~$775.8M, supporting balance-sheet flexibility. Total assets have also come down versus prior peaks, suggesting some restructuring/right-sizing. A key weakness is equity erosion versus 2021–2023 levels and the lack of 2025 leverage/return metrics in the dataset, which reduces clarity on current returns and balance-sheet efficiency.

Cash Flow

Cash generation is a relative strength: 2025 operating cash flow was $114.0M and free cash flow was $81.9M, both healthy versus reported net income ($44.2M). Free cash flow has been consistently positive across all provided years and grew 12.2% in 2025, supporting reinvestment and/or deleveraging capacity. The main weakness is variability year-to-year (notably 2022’s downturn), and some coverage ratios are missing for 2025, limiting a full read-through on sustainability.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	593.20M	553.50M	456.80M	478.80M	868.10M
Gross Profit	244.50M	221.20M	200.10M	227.00M	341.50M
EBITDA	109.60M	92.40M	70.90M	145.50M	181.50M
Net Income	44.20M	-239.50M	72.40M	-430.10M	150.40M
Balance Sheet
Total Assets	1.05B	1.12B	1.46B	1.18B	1.73B
Cash, Cash Equivalents and Short-Term Investments	54.20M	130.10M	87.30M	48.20M	68.90M
Total Debt	150.30M	213.00M	286.70M	64.50M	102.40M
Total Liabilities	275.30M	362.20M	428.70M	191.00M	275.10M
Stockholders Equity	775.80M	756.00M	1.03B	992.90M	1.46B
Cash Flow
Free Cash Flow	81.90M	116.50M	105.50M	54.20M	133.50M
Operating Cash Flow	114.00M	130.10M	122.70M	86.30M	182.10M
Investing Cash Flow	-31.60M	45.20M	-141.60M	-32.70M	-129.60M
Financing Cash Flow	-158.90M	-132.00M	58.20M	-73.20M	-131.40M

Knowles Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KN, the sentiment is Positive. The current price of 27.54 is above the 20-day moving average (MA) of 25.77, above the 50-day MA of 24.06, and above the 200-day MA of 21.30, indicating a bullish trend. The MACD of 1.01 indicates Negative momentum. The RSI at 69.10 is Neutral, neither overbought nor oversold. The STOCH value of 83.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KN.

Knowles Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DGII	76 Outperform	$1.87B	45.69	6.84%	―	1.46%	78.77%
KN	72 Outperform	$2.31B	50.72	4.68%	―	-24.42%	―
HLIT	62 Neutral	$1.19B	25.32	2.76%	―	1.93%	-43.22%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
VIAV	60 Neutral	$6.09B	-138.80	-5.54%	―	15.60%	―
ADTN	57 Neutral	$797.96M	-9.10	-48.44%	―	14.33%	83.32%
NTGR	50 Neutral	$581.94M	-33.38	-3.45%	―	2.95%	-228.28%

Knowles Corporate Events

Knowles Grants Performance-Based PSU Award to COO

On February 17, 2026, Knowles’ board compensation committee approved a special performance share unit award for Chief Operating Officer Daniel J. Giesecke under the company’s 2018 equity and cash incentive plan. The grant, with a target value of $500,000 or 18,423 PSUs, is structured to vest over a two-year period from January 1, 2026, through December 31, 2027, contingent on time-based service and achievement of revenue and adjusted EBIT goals in the Cornell Dubilier business unit.

Performance is measured annually on year-one and year-two revenue and adjusted EBIT, each metric tied to 25% of the target PSUs, with payouts ranging from 0% to 140% of target depending on whether 90% to 110% of goals are met. The design, including “banked” PSUs and detailed change-of-control protections, links Giesecke’s compensation directly to execution of strategic financial objectives in a key business unit, reinforcing management retention and alignment with shareholders but resulting in forfeiture if he departs before the performance period ends absent specified change-of-control scenarios.

The most recent analyst rating on (KN) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Knowles stock, see the KN Stock Forecast page.