Knife River Corporation (KNF) AI Stock Analysis

• Market Cap: $4.99B
• Dividend Yield: N/A
• Average Volume (3M): 726.24K
• Price to Earnings (P/E): 32.7
• Beta (1Y): 1.33
• Revenue Growth: 2.64%
• EPS Growth: -22.49%
• Country: US
• Employees: 4,761
• Sector: Basic Materials
• Sector Strength: 57
• Industry: Construction Materials
• EPS (TTM): 0.89
• Shares Outstanding: 56,664,165
• 10 Day Avg. Volume: 934,243
• 30 Day Avg. Volume: 726,239
• PEG Ratio: 2.79
• Price to Book (P/B): 3.90
• Price to Sales (P/S): 1.98
• P/FCF Ratio: 38.38
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 2.02
• Enterprise Value/Gross Profit: 11.17
• Enterprise Value/Ebitda: 17.54
• 1Y Price Target: $111.40
• Price Target Upside: 26.53% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 65 Neutral
• Price Target: $95.00 ▲(7.91% Upside)

Knife River Corporation's overall stock score reflects strong revenue growth but is tempered by declining margins, increased leverage, and cash flow challenges. The technical indicators suggest mixed momentum, while the valuation indicates the stock may be overvalued. The earnings call highlighted both strategic progress and significant operational challenges, contributing to a balanced outlook.

Positive Factors

Acquisitions and Growth

The company is an acquirer of choice for many aggregate-led construction materials targets with a healthy pipeline of deals.

Financial Performance

The full-year EBITDA guidance was raised significantly due to the recent Strata acquisition, indicating strong expected financial performance.

Government Funding

Public funding is a key driver for project growth, and government infrastructure spend is a large driver of KNF’s earnings.

Negative Factors

Macroeconomic Uncertainty

There have been slowdowns and project delays on the private side of the business given tariff and macroeconomic uncertainty.

Project Delays

There have been some delayed construction projects in Oregon due to funding delays and market uncertainty, expected to impact future results.

Seasonality Challenges

Knife River Corporation's Q1 EBITDA loss was larger than expected due to seasonality impacts in colder-weather states, affecting construction project timelines.

Knife River Corporation Business Overview & Revenue Model

Company Description

Knife 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 Money

Knife River Corporation generates revenue through the sale of construction materials such as aggregate, asphalt, and ready-mix concrete. The company operates quarries and production facilities to extract and process raw materials, which are then sold to contractors and other businesses involved in construction projects. Additionally, Knife River offers contracting services, providing expertise in infrastructure development, paving, and site preparation. This dual approach allows the company to capitalize on both material sales and service contracts. Key revenue streams include long-term contracts with governmental agencies for public infrastructure projects, as well as partnerships with private construction firms for commercial and residential developments. Regional demand for construction and infrastructure development significantly influences its earnings.

Knife River Corporation Financial Statement Overview

Summary

Knife River Corporation demonstrates strong financial performance, with consistent revenue growth and effective cost management. The balance sheet is stable, but increasing debt levels need monitoring. Cash flows are well-managed, supporting operations, despite some fluctuations.

Income Statement

Knife River Corporation demonstrates strong financial performance with a consistent revenue growth trend, reflected by a 16% increase from 2022 to 2023. The gross profit margin and EBIT margin are solid, indicating effective cost management. However, there is a slight decline in net profit margin compared to the previous year, which suggests rising operational costs or other expenses.

Balance Sheet

The company's balance sheet is stable with a moderate debt-to-equity ratio, which suggests a balanced use of debt and equity financing. The equity ratio is healthy, indicating a strong equity position relative to total assets. However, the increasing debt levels over the years pose a potential risk that needs to be monitored.

Cash Flow

Cash flow analysis reveals robust operating cash flows, consistently covering capital expenditures, reflecting good cash management. The free cash flow to net income ratio is positive, indicating that the company generates sufficient cash to cover net income. However, fluctuations in free cash flow growth highlight potential volatility in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.95B	2.90B	2.83B	2.53B	2.23B	2.18B
Gross Profit	534.72M	569.83M	538.93M	347.27M	346.95M	370.58M
EBITDA	340.47M	463.11M	427.09M	310.81M	290.90M	302.46M
Net Income	153.28M	201.68M	182.87M	72.92M	129.75M	147.32M
Balance Sheet
Total Assets	3.63B	2.85B	2.60B	2.51B	2.18B	0.00
Cash, Cash Equivalents and Short-Term Investments	77.70M	281.13M	262.32M	221.29M	13.85M	0.00
Total Debt	1.40B	726.76M	726.37M	925.29M	734.52M	0.00
Total Liabilities	2.17B	1.38B	1.33B	1.48B	1.23B	0.00
Stockholders Equity	1.46B	1.48B	1.27B	1.03B	952.84M	0.00
Cash Flow
Free Cash Flow	-53.10M	149.90M	211.44M	29.28M	7.01M	96.53M
Operating Cash Flow	244.30M	322.32M	335.73M	207.44M	181.24M	232.40M
Investing Cash Flow	-886.50M	-294.80M	-117.89M	-155.88M	-398.27M	-185.85M
Financing Cash Flow	662.77M	-8.71M	34.39M	-55.32M	223.80M	-47.95M

Knife River Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 88.04
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 88.04 is above the 20-day moving average (MA) of 82.33, above the 50-day MA of 83.74, and below the 200-day MA of 93.88, indicating a neutral trend. The MACD of 1.15 indicates Negative momentum. The RSI at 67.36 is Neutral, neither overbought nor oversold. The STOCH value of 86.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KNF.

Knife River Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VMC	78 Outperform	$37.86B	40.05	11.89%	0.66%	0.19%	4.33%
EXP	77 Outperform	$7.31B	16.59	31.87%	0.44%	0.88%	-4.17%
CX	75 Outperform	$13.05B	8.40	7.12%	0.98%	-9.62%	795.20%
MLM	74 Outperform	$36.05B	33.13	12.10%	0.52%	-0.54%	-48.61%
BCC	71 Outperform	$3.10B	12.18	11.77%	7.11%	-4.67%	-35.04%
KNF	65 Neutral	$4.99B	32.74	11.11%	―	2.64%	-22.49%
Sector *	44 Neutral	AU$1.47B	-5.90	-41.17%	4.21%	-3.35%	-41.14%

Knife River Corporation Corporate Events

Knife River Corporation Reports Q2 2025 Earnings

On August 5, 2025, Knife River Corporation announced its second quarter 2025 earnings. The announcement, which was also submitted to the Securities and Exchange Commission, could have implications for the company’s financial performance and stakeholder interests.

The most recent analyst rating on (KNF) stock is a Buy with a $85.00 price target. To see the full list of analyst forecasts on Knife River Corporation stock, see the KNF Stock Forecast page.

Knife River Corporation Holds Annual Meeting with Key Approvals

On May 22, 2025, Knife River Corporation held its Annual Meeting where four proposals were presented to stockholders. All company nominees for Class II directors were elected, the compensation for named executive officers was approved, Deloitte & Touche LLP was ratified as the independent registered public accounting firm for 2025, and an amendment to eliminate supermajority voting requirements was passed.

The most recent analyst rating on (KNF) stock is a Buy with a $85.00 price target. To see the full list of analyst forecasts on Knife River Corporation stock, see the KNF Stock Forecast page.