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Knife River Corporation (KNF)
NYSE:KNF
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Knife River Corporation
(NYSE:KNF)
75Outperform
Positive Factors
Market Position
Backlog remains near record levels with further awards expected.
Outlook and Growth
Knife River raised 2025 outlook to account for the acquisition of Strata.
Pricing Strategy
Pricing was strong with increases in aggregate, ready-mix, and asphalt.
Negative Factors
Project Delays
There have been some slowdowns and project delays on the private side of the business given tariff and macroeconomic uncertainty.
Knife River Corporation (KNF) vs. S&P 500 (SPY)
Market Cap
$5.64B
Dividend YieldN/A
Average Volume (3M)523.16K
Price to Earnings (P/E)31.4
Beta (1Y)1.27
Revenue Growth2.48%
EPS Growth2.22%
CountryUS
Employees4,761
SectorBasic Materials
Sector Strength63
IndustryConstruction Materials
Share Statistics
EPS (TTM)-1.21
Shares Outstanding56,652,363
10 Day Avg. Volume518,923
30 Day Avg. Volume523,164
Financial Highlights & Ratios
PEG Ratio-0.27
Price to Book (P/B)3.64
Price to Sales (P/S)0.00
P/FCF Ratio35.89
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue0.51
Enterprise Value/Gross Profit10.22
Enterprise Value/Ebitda3.24
Forecast
1Y Price Target
$115.00Price Target Upside15.51% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Knife River Corporation Business Overview & Revenue Model
Company DescriptionKnife River Corporation provides aggregates-based construction materials and contracting services in the United States. It operates through six segments: Pacific, Northwest, Mountain, North Central, South, and Energy Services. The company mines, processes, and sells construction aggregates, including crushed stone and sand, and gravel; and produces and sells asphalt and ready-mix concrete, as well as provides contracting services to support the aggregate-based product lines, including heavy-civil construction, asphalt and concrete paving, and site development and grading. It serves federal, state, and municipal governments for various projects, such as highways, bridges, airports, schools, public buildings, and other public-infrastructure projects. The company was founded in 1917 and is based in Bismarck, North Dakota.
How the Company Makes MoneyKnife River Corporation generates revenue through the production and sale of construction materials such as aggregates, asphalt, and ready-mix concrete. These materials are supplied to a wide range of construction projects, including infrastructure development, commercial construction, and residential projects. The company also offers contracting services, where it undertakes construction projects directly, managing the construction process from start to finish. Key revenue streams include the sale of materials to third-party contractors and direct revenues from contracting services. Significant partnerships with government agencies and private sector clients contribute to the company's earnings, allowing it to secure large-scale projects and maintain a steady flow of income.
Knife River Corporation Financial Statement Overview
Summary
Knife River Corporation exhibits strong financial health with consistent revenue growth and improved profitability. The balance sheet reflects a solid equity base and stable leverage, while cash flow operations are robust. Although there are areas to watch, such as EBITDA margin and debt levels, the company's overall financial trajectory is positive, showing resilience and potential for future growth.Income Statement
Knife River Corporation showed a commendable financial performance with consistent revenue growth over the years, reaching $2.9 billion in 2024. The gross profit margin and net profit margin have improved, indicating effective cost management. The EBIT margin has also shown an upward trajectory, reflecting operational efficiency. However, the EBITDA margin decreased slightly in 2024, signaling potential areas for improvement in depreciation or amortization costs management.82
Very Positive
Balance Sheet
The Debt-to-Equity ratio is relatively stable, indicating manageable leverage levels. Return on Equity has improved significantly, demonstrating effective use of shareholder funds. The Equity Ratio shows a solid financial position with a strong equity base. However, the total debt remains substantial, requiring careful management to maintain financial stability.75
Positive
Cash Flow
The company has maintained healthy operating cash flows, with a robust Operating Cash Flow to Net Income ratio. Despite a decline in Free Cash Flow in 2024, the overall cash flow position is strong, supported by prudent capital expenditure. The Free Cash Flow to Net Income ratio indicates efficient conversion of income into cash flow, though improvements in Free Cash Flow growth would enhance liquidity further.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.90B | 2.83B | 2.53B | 2.23B | 2.18B | Gross Profit |
| 569.83M | 538.93M | 347.27M | 346.95M | 370.58M | EBIT |
| 316.19M | 296.40M | 164.55M | 191.08M | 214.50M | EBITDA |
| 463.11M | 427.09M | 310.81M | 290.90M | 302.46M | Net Income Common Stockholders |
| 201.68M | 182.87M | 72.92M | 129.75M | 147.32M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 281.13M | 262.32M | 221.29M | 13.85M | 0.00 | Total Assets |
| 2.85B | 2.60B | 2.51B | 2.18B | 0.00 | Total Debt |
| 726.76M | 726.37M | 925.29M | 734.52M | 0.00 | Net Debt |
| 445.63M | 464.05M | 704.00M | 720.67M | 0.00 | Total Liabilities |
| 1.38B | 1.33B | 1.48B | 1.23B | 0.00 | Stockholders Equity |
| 1.48B | 1.27B | 1.03B | 952.84M | 0.00 |
| Cash Flow | Free Cash Flow | |||
| 149.90M | 211.44M | 29.28M | 7.01M | 96.53M | Operating Cash Flow |
| 322.32M | 335.73M | 207.44M | 181.24M | 232.40M | Investing Cash Flow |
| -294.80M | -117.89M | -155.88M | -398.27M | -185.85M | Financing Cash Flow |
| -8.71M | 34.39M | -55.32M | 223.80M | -47.95M |
Knife River Corporation Technical Analysis
Positive
99.56
Price Trends
91.60
Positive
96.42
Positive
92.44
Positive
Market Momentum
1.12
Negative
60.97
Neutral
65.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KNF, the sentiment is Positive. The current price of 99.56 is above the 20-day moving average (MA) of 92.91, above the 50-day MA of 91.60, and above the 200-day MA of 92.44, indicating a bullish trend. The MACD of 1.12 indicates Negative momentum. The RSI at 60.97 is Neutral, neither overbought nor oversold. The STOCH value of 65.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KNF.
Knife River Corporation Risk Analysis
Knife River Corporation disclosed 45 risk factors in its most recent earnings report. Knife River Corporation 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
Knife River Corporation Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $35.98B | 38.62 | 12.10% | 0.69% | -2.24% | 3.00% | |
76 Outperform | $7.97B | 17.12 | 33.51% | 0.43% | 0.64% | -1.15% | |
75 Outperform | $5.64B | 31.39 | 13.76% | ― | 2.48% | 2.22% | |
75 Outperform | $33.34B | 31.80 | 11.88% | 0.57% | -0.54% | -48.61% | |
73 Outperform | $9.96B | 6.80 | 6.58% | 1.29% | -8.41% | 570.14% | |
68 Neutral | $3.50B | 11.64 | 14.26% | 0.94% | -4.67% | -35.04% | |
49 Neutral | $1.97B | -1.18 | -21.24% | 3.71% | 1.29% | -31.16% |
* Basic Materials Sector Average
Performance Comparison
KNF
Knife River Corporation
99.56
22.37
28.98%
CX
Cemex SAB
6.56
-1.24
-15.90%
EXP
Eagle Materials
239.56
-28.04
-10.48%
MLM
Martin Marietta Materials
553.06
-49.61
-8.23%
VMC
Vulcan Materials
272.36
6.63
2.50%
BCC
Boise Cascade
93.10
-37.34
-28.63%
Knife River Corporation Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: 2.73%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Positive
The earnings call indicates a strong positive outlook with record financial expectations and successful acquisitions. However, challenges such as seasonal losses, private market slowdowns, and increased SG&A expenses are noted. The commitment to public infrastructure projects and organic growth initiatives paints a positive long-term picture.Q1-2025 Updates
Positive Updates
Record-Breaking Financial Guidance
Knife River is forecasting record revenue, net income, and adjusted EBITDA for the year, with consolidated revenue expectations between $3.25 billion and $3.45 billion and adjusted EBITDA between $530 million and $580 million.
Acquisition Program in Full Swing
Closed on Strata Corporation and Kalama Quarry, with additional deals in the pipeline. The acquisitions are expected to positively impact financial results starting in the second quarter.
Strong Public Infrastructure Backdrop
Public projects represent 87% of the backlog, with increased funding in several states, including a $3 billion fuel tax in Washington and over $1 billion in Idaho.
Organic Growth and EDGE Initiatives
Continued build-out of significant projects, such as the aggregates expansion in South Dakota and a new asphalt plant in Sioux Falls. The EDGE strategy focuses on driving excellence and long-term growth.
Increased Bidding Activity
Increased bidding activity compared to last year, securing public projects including three jobs totaling $170 million.
Negative Updates
Seasonal Loss in First Quarter
Knife River experienced an 8% seasonal loss in the first quarter, which is reflective of the company's unique footprint in Northern States.
Private Market Slowdown
Some private projects are being delayed due to economic uncertainties, impacting aggregates and ready-mix volumes, particularly in Oregon and Montana.
Increased SG&A Expenses
SG&A expenses increased by $13 million over the prior year, largely due to acquisition-related costs and business development activities.
Company Guidance
During the Knife River Corporation's first quarter 2025 results conference call, the company provided guidance indicating expectations for a record year with projected revenue between $3.25 billion and $3.45 billion and adjusted EBITDA ranging from $530 million to $580 million. The first quarter showed an 8% seasonal loss, reflective of the acquisition of Strata, which is expected to contribute positively in the second quarter. The company also highlighted a step-up in SG&A expenses, with $13 million reported for the quarter, primarily due to acquisitions and business development. Additionally, Knife River forecasts high single-digit increases in aggregate volumes and ready-mix volumes for the full year, supported by strategic investments and a robust backlog, particularly in public projects, which represent 87% of the backlog. The call also noted the company's efforts in integrating recent acquisitions and its focus on operational improvements and dynamic pricing to drive margin growth.Knife River Corporation Corporate Events
Financial Disclosures
Knife River Corporation Announces Q1 2025 Earnings
Neutral
May 6, 2025
On May 6, 2025, Knife River Corporation announced its first quarter 2025 earnings. The announcement may impact the company’s operations and industry positioning, but specific implications for stakeholders were not detailed in the release.
Spark’s Take on KNF Stock
According to Spark, TipRanks’ AI Analyst, KNF is a Outperform.
Knife River Corporation demonstrates strong financial performance with consistent revenue growth and improved profitability. The company’s strategic initiatives and positive earnings call sentiment indicate a favorable outlook. However, technical indicators suggest mixed momentum, and the stock’s valuation is moderate with no dividend yield. The overall assessment is positive, but cautious monitoring of technical trends and valuation factors is advisable.
To see Spark’s full report on KNF stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.