Knowles (KN) AI Stock Analysis

• Market Cap: $1.49B
• Dividend Yield: N/A
• Average Volume (3M): 539.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.70
• Revenue Growth: -18.14%
• EPS Growth: -405.65%
• Country: US
• Employees: 5,500
• Sector: Technology
• Sector Strength: 84
• Industry: Communication Equipment
• EPS (TTM): 0.18
• Shares Outstanding: 86,975,040
• 10 Day Avg. Volume: 524,739
• 30 Day Avg. Volume: 539,899
• PEG Ratio: <0.01
• Price to Book (P/B): 1.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.78
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 0.71
• Enterprise Value/Gross Profit: 8.17
• Enterprise Value/Ebitda: -3.74
• 1Y Price Target: $19.33
• Price Target Upside: 14.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 59 Neutral
• Price Target: $18.00 ▲(6.19%Upside)

Knowles Corporation's stock score reflects moderate financial stability and positive momentum from recent earnings and corporate events. However, profitability challenges and valuation concerns constrain the overall score. The strategic shift towards higher-margin markets and robust future guidance provide a positive outlook.

Positive Factors

Financial Performance

Knowles is well positioned for a return to YoY revenue and EPS growth as bookings return and inventories normalize in the channel.

Growth Opportunities

Knowles introduced a new long-term model for higher top-line growth and continued margin expansion.

Market Position

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

Negative Factors

Manufacturing Challenges

Knowles posted worse results and guidance as manufacturing challenges delayed shipments of specialty film capacitors.

Pricing and Costs

GMs decreased, driven by lower pricing on mature products and higher factory costs.

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 Corporation generates revenue through the sale of its advanced audio solutions, precision devices, and specialty components. The company's key revenue streams include sales from its Audio segment, which provides microphones and balanced armature speakers for mobile, consumer electronics, and audio markets. Additionally, the Precision Devices segment contributes to revenue through the sale of components such as capacitors and timing devices for critical applications in telecom, industrial, and aerospace sectors. Knowles also engages in strategic partnerships and collaborations with leading technology companies to enhance its product offerings and expand its market reach, further driving its revenue growth.

Knowles Financial Statement Overview

Summary

Knowles faces challenges in revenue growth and profitability with declining revenue and net losses. While the balance sheet indicates moderate financial stability, the declining equity and profitability are concerns. Cash flow remains a relatively strong point, with adequate operating cash flow.

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
621.90M	553.50M	707.60M	764.70M	868.10M	764.30M
	Gross Profit
249.70M	234.80M	283.40M	276.30M	359.50M	271.20M
	EBIT
52.50M	51.80M	51.10M	66.20M	115.80M	45.30M
	EBITDA
-139.60M	51.80M	98.90M	-360.00M	184.90M	110.50M
	Net Income Common Stockholders
-240.70M	-239.50M	72.40M	-430.10M	150.40M	2.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
101.90M	130.10M	87.30M	48.20M	68.90M	147.80M
	Total Assets
1.10B	1.12B	1.46B	1.18B	1.73B	1.65B
	Total Debt
209.80M	213.00M	286.70M	60.60M	96.10M	194.00M
	Net Debt
107.90M	82.90M	199.40M	12.40M	27.20M	46.20M
	Total Liabilities
341.30M	362.20M	428.70M	191.00M	272.10M	351.40M
	Stockholders Equity
755.80M	756.00M	1.03B	992.90M	1.46B	1.30B
Cash Flow		Free Cash Flow
99.90M	116.50M	105.50M	54.20M	133.50M	96.20M
	Operating Cash Flow
114.10M	130.10M	122.70M	86.30M	182.10M	128.10M
	Investing Cash Flow
37.90M	45.20M	-141.60M	-32.70M	-129.60M	-35.10M
	Financing Cash Flow
-171.80M	-132.00M	58.20M	-73.20M	-131.40M	-23.90M

Knowles Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 16.95 is above the 20-day moving average (MA) of 16.81, above the 50-day MA of 15.99, and below the 200-day MA of 17.55, indicating a neutral trend. The MACD of 0.28 indicates Negative momentum. The RSI at 55.38 is Neutral, neither overbought nor oversold. The STOCH value of 50.79 is Neutral, 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
ITRN	83 Outperform	$718.36M	13.01	30.02%	5.52%	3.73%	11.24%
DGII	79 Outperform	$1.23B	29.47	7.30%	―	-4.47%	195.28%
HLIT	73 Outperform	$1.01B	19.76	12.45%	―	20.53%	-27.75%
NTGR	63 Neutral	$787.23M	33.64	4.78%	―	-6.97%	―
Sector *	62 Neutral	$11.97B	10.29	-7.47%	2.99%	7.32%	-8.06%
KN	59 Neutral	$1.49B	―	-26.83%	―	-18.14%	-405.65%
VSAT	56 Neutral	$1.71B	―	-12.00%	―	19.02%	76.67%

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.