Knowles (KN) AI Stock Analysis

• Market Cap: $1.84B
• Dividend Yield: N/A
• Average Volume (3M): 704.44K
• Price to Earnings (P/E): 77.7
• Beta (1Y): 1.69
• Revenue Growth: -28.85%
• EPS Growth: N/A
• Country: US
• Employees: 5,500
• Sector: Technology
• Sector Strength: 83
• Industry: Communication Equipment
• EPS (TTM): 0.24
• Shares Outstanding: 85,887,600
• 10 Day Avg. Volume: 510,818
• 30 Day Avg. Volume: 704,439
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 2.93
• Enterprise Value/Gross Profit: 6.95
• Enterprise Value/Ebitda: 5.74
• 1Y Price Target: $21.67
• Price Target Upside: 0.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 75 Outperform
• Price Target: $23.50 ▲(8.85% Upside)

Knowles Corporation demonstrates strong operational efficiency and positive technical indicators, contributing significantly to its overall score. The optimistic earnings call further supports a favorable outlook. However, high valuation metrics and revenue growth challenges slightly temper the overall score.

Positive Factors

Financial Performance

Knowles posted better results and guidance as the company benefited from broad-based strength across all its end markets.

Market Opportunities

Knowles highlighted new growth areas with the launch of its new Ceramic Inductor line and MedTech Micro Solutions, which could provide upside to CAGR targets.

Operational Efficiency

GMs were better than expected, driven by improved pricing and increased factory capacity utilization in the PD segment.

Negative Factors

Analyst Outlook

Analyst remains Neutral as continued progress on the recovery is awaited.

Market Competition

Knowles noted the potential to gain market share from competitors due to the tariff situation, which could provide incremental upside.

Tariff Impact

Knowles reiterated its prior estimate that less than 5% of revenue and less than 3% of COGS will be impacted by tariffs, expecting to recover almost all of the tariff impacts through price increases and surcharges.

Knowles Business Overview & Revenue Model

Company Description

Knowles Corporation (KN) is a leading provider of advanced micro-acoustic microphones, balanced armature speakers, and other audio solutions. The company operates primarily in the consumer electronics, mobile communications, and industrial markets, offering innovative products that enhance audio performance in various devices. Knowles is recognized for its cutting-edge technology in sound capture and reproduction, catering to manufacturers of smartphones, wearables, and other electronic devices.

How the Company Makes Money

Knowles generates revenue through the sale of its audio components, particularly its MEMS microphones and speakers, which are integral to smartphones, tablets, and other consumer electronics. The company maintains key partnerships with major technology companies, allowing it to secure long-term contracts and a stable customer base. Additionally, Knowles benefits from a diversified product portfolio that includes both high-end and cost-effective audio solutions, enabling it to capture a wide market segment. The company's revenue model is primarily based on direct sales to OEMs (original equipment manufacturers) and ODMs (original design manufacturers), along with licensing agreements for its proprietary technologies.

Knowles Financial Statement Overview

Summary

Knowles faces challenges in revenue growth and profitability with a negative net profit margin and declining revenue. Although the balance sheet shows moderate stability, declining equity and profitability raise concerns. Cash flow remains a strong point, with healthy operating cash flow aiding financial stability.

Income Statement

The income statement reveals a challenging period for Knowles with declining revenue and net losses. The TTM (Trailing-Twelve-Months) data shows a negative net profit margin and EBITDA, indicating profitability concerns. However, gross profit margin remains positive, suggesting operational efficiency. The decline in revenue from the previous year highlights potential market challenges or loss of competitive edge.

Balance Sheet

The balance sheet shows a moderate financial position with a reasonable debt-to-equity ratio and a positive equity ratio, reflecting financial stability. However, the decline in stockholders' equity over the years is a concern. The company has managed its liabilities well, maintaining a moderate level of total debt relative to equity.

Cash Flow

Cash flow analysis shows a healthy operating cash flow, but a declining trend in free cash flow growth rate. The company maintains a positive free cash flow, indicating potential for reinvestment and debt servicing. The operating cash flow to net income ratio is strong, suggesting that operating activities are generating sufficient cash relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	563.10M	553.50M	707.60M	764.70M	868.10M	764.30M
Gross Profit	237.70M	234.80M	283.40M	276.30M	359.50M	271.20M
EBITDA	287.60M	51.80M	98.90M	-360.00M	184.90M	110.50M
Net Income	26.40M	-239.50M	72.40M	-430.10M	150.40M	2.90M
Balance Sheet
Total Assets	1.09B	1.12B	1.46B	1.18B	1.73B	1.65B
Cash, Cash Equivalents and Short-Term Investments	103.20M	130.10M	87.30M	48.20M	68.90M	147.80M
Total Debt	210.90M	213.00M	286.70M	60.60M	96.10M	194.00M
Total Liabilities	342.20M	362.20M	428.70M	191.00M	272.10M	351.40M
Stockholders Equity	746.10M	756.00M	1.03B	992.90M	1.46B	1.30B
Cash Flow
Free Cash Flow	109.50M	116.50M	105.50M	54.20M	133.50M	96.20M
Operating Cash Flow	125.60M	130.10M	122.70M	86.30M	182.10M	128.10M
Investing Cash Flow	36.00M	45.20M	-141.60M	-32.70M	-129.60M	-35.10M
Financing Cash Flow	-142.50M	-132.00M	58.20M	-73.20M	-131.40M	-23.90M

Knowles Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.59
• 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 21.59 is above the 20-day moving average (MA) of 20.46, above the 50-day MA of 19.14, and above the 200-day MA of 17.95, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 66.71 is Neutral, neither overbought nor oversold. The STOCH value of 85.92 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	78 Outperform	$1.26B	29.86	7.21%	―	-2.37%	147.46%
HLIT	78 Outperform	$1.07B	16.10	16.36%	―	24.14%	16.17%
KN	75 Outperform	$1.84B	77.69	3.60%	―	-28.85%	―
ITRN	70 Outperform	$731.29M	13.04	29.11%	4.90%	3.30%	9.66%
NTGR	70 Outperform	$785.84M	12.57	12.97%	―	0.76%	―
Sector *	61 Neutral	$35.62B	7.50	-10.94%	1.87%	8.86%	-10.27%
VSAT	60 Neutral	$4.14B	―	-12.48%	―	-1.43%	43.14%

Knowles Corporate Events

Knowles Announces Investor Update Meeting on May 13

Knowles Corporation announced an investor update meeting scheduled for May 13, 2025, to discuss its business and financial outlook. The company is repositioning its portfolio towards higher-margin products and markets, including MedTech, Defense, and Industrial sectors, and aims for significant revenue and EBITDA growth over the next five years. The strategic shift involves divestitures and acquisitions, enhancing its market position and financial performance, which is expected to create value for stakeholders.

The most recent analyst rating on (KN) stock is a Buy with a $25.00 price target. To see the full list of analyst forecasts on Knowles stock, see the KN Stock Forecast page.