Knowles Corp (KN)
NYSE:KN
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Knowles
(NYSE:KN)
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Rating:72Outperform
Price Target:
$27.00
▲(1.81% Upside)
Action:UpgradedDate: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 cash generation
Consistently positive and growing free cash flow provides durable internal funding for capex, deleveraging, and shareholder returns. $81.9M FCF and 12.2% FCF growth in 2025 indicate the business reliably converts earnings to cash, supporting multi‑quarter strategic investments.
Negative Factors
Revenue volatility
Historic swings in top-line growth signal demand cyclicality and exposure to customer product cycles. Choppy multi‑year revenue patterns reduce predictability of margins and cash flow, requiring sustained execution to prove a stable, repeatable growth profile.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistently positive and growing free cash flow provides durable internal funding for capex, deleveraging, and shareholder returns. $81.9M FCF and 12.2% FCF growth in 2025 indicate the business reliably converts earnings to cash, supporting multi‑quarter strategic investments.
Read all positive factors
Knowles (KN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.27B
Dividend YieldN/A
Average Volume (3M)738.23K
Price to Earnings (P/E)41.6
Beta (1Y)1.56
Revenue Growth-24.42%
EPS GrowthN/A
CountryUS
Employees5,500
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.36
Shares Outstanding85,529,660
10 Day Avg. Volume935,943
30 Day Avg. Volume738,231
Financial Highlights & Ratios
PEG Ratio-0.35
Price to Book (P/B)2.37
Price to Sales (P/S)3.10
P/FCF Ratio22.45
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue4.07
Enterprise Value/Gross Profit9.85
Enterprise Value/Ebitda22.03
Forecast
1Y Price Target
$27.67Price Target Upside4.32% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)1.22
Revenue Forecast (FY)$621.60M
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 comm...
How the Company Makes Money
Knowles makes money primarily by selling engineered components and solutions to original equipment manufacturers (OEMs) and other customers, typically under supply agreements and purchase orders. Key revenue streams include: (1) Micro-acoustic com...
Knowles Key Performance Indicators (KPIs)
Knowles Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call communicated strong financial results, margin expansion, robust cash generation, a healthy backlog, and clear growth drivers (precision devices, specialty film/energy, medtech and defense), while also acknowledging concentrated near-term execution risks tied to the specialty film ramp, modest Q1 seasonality in cash flow, and some supply/capacity uncertainty. Overall, the positive items—notably above-guidance revenue and EPS, improved EBITDA and low leverage—outweigh the operational ramp and timing risks.Positive Updates
Q4 Revenue Growth
Q4 2025 revenue of $162 million, up 14% year-over-year, and above the high end of the company's guided range.
Negative Updates
Specialty Film Production Inefficiencies
Precision Devices gross margin improvements were partially offset by higher scrap costs and production inefficiencies in the specialty film line; ramp-related inefficiencies remain a headwind to margin expansion.
Read all updates
Q4-2025 Updates
Positive
Negative
Q4 Revenue Growth
Q4 2025 revenue of $162 million, up 14% year-over-year, and above the high end of the company's guided range.
Read all positive updates
Company Guidance
Knowles guided Q1 2026 revenue of $143–$153 million (midpoint +12% year‑over‑year), R&D of $9–$11 million, SG&A of $25–$27 million, adjusted EBIT margin of 18%–20%, interest expense of about $2 million, an effective tax rate of 15%–19%, and EPS of $0.22–$0.26 per share (midpoint +$0.06 or +33% YoY) assuming ~88 million diluted shares; they expect Q1 cash from operations of -$5 million to $5 million and Q1 capex of $10 million (full‑year capex ~4%–5% of revenue). Management also reiterated confidence in above‑historic organic revenue growth for 2026, noted the specialty film/energy ramp (an energy order expected north of $25 million this year and a 2026 specialty film revenue range of roughly $50–$65 million weighted to the back half), and highlighted a strong balance sheet (Q4 cash $54 million, $114 million revolver borrowings, liquidity >$340 million, net leverage ~0.4x).Knowles Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
74
Positive
Cash Flow
81
Very Positive
| 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
Positive
26.52
Price Trends
25.90
Positive
24.28
Positive
22.71
Positive
Market Momentum
0.09
Negative
56.02
Neutral
70.99
Neutral
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 26.52 is above the 20-day moving average (MA) of 25.40, above the 50-day MA of 25.90, and above the 200-day MA of 22.71, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 56.02 is Neutral, neither overbought nor oversold. The STOCH value of 70.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KN.
Knowles Risk Analysis
Knowles disclosed 22 risk factors in its most recent earnings report. Knowles reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Knowles Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.96B | 34.52 | 6.76% | ― | 1.46% | 78.77% | |
72 Outperform | $2.27B | 41.60 | 5.84% | ― | -24.42% | ― | |
64 Neutral | $1.07B | -15.18 | -30.65% | ― | 14.33% | 83.32% | |
63 Neutral | $8.92B | -21.27 | -5.44% | ― | 15.60% | ― | |
62 Neutral | $1.03B | -25.95 | -10.08% | ― | 1.93% | -43.22% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $680.34M | -21.58 | -6.37% | ― | 2.95% | -228.28% |
* Technology Sector Average
KN
Knowles
26.52
11.44
75.86%
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NTGR
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24.20
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38.54
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278.59%
Knowles Corporate Events
Executive/Board Changes
Knowles Grants Performance-Based PSU Award to COO
Positive
Feb 20, 2026
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 targe...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.