Knife River Corporation (KNF) AI Stock Analysis

• Market Cap: $4.68B
• Dividend Yield: N/A
• Average Volume (3M): 481.04K
• Price to Earnings (P/E): 26.0
• Beta (1Y): 1.26
• Revenue Growth: 2.48%
• EPS Growth: 2.22%
• Country: US
• Employees: 4,761
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Construction Materials
• EPS (TTM): -1.21
• Shares Outstanding: 56,652,363
• 10 Day Avg. Volume: 570,424
• 30 Day Avg. Volume: 481,043
• PEG Ratio: -0.70
• Price to Book (P/B): 2.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 76.11
• Enterprise Value/Market Cap: 0.63
• Enterprise Value/Revenue: 0.25
• Enterprise Value/Gross Profit: 5.30
• Enterprise Value/Ebitda: 1.62
• 1Y Price Target: $118.17
• Price Target Upside: 43.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 68 Neutral
• Price Target: $88.00 ▲(6.61%Upside)

Knife River Corporation's strong financial performance and positive earnings call outlook are the main strengths, driving the overall score. However, technical analysis indicates bearish short-term momentum, and valuation metrics suggest moderate appeal.

Positive Factors

Acquisitions

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

Market Demand

Key factors attracting interest in Knife River Corporation shares include localized production, strong end-market demand with federal funding, and high barriers to entry with opportunities for growth through acquisitions.

Public Funding and Infrastructure

The construction season is ramping up, and many public budgets are at or near record levels, which supports a positive outlook for Knife River Corporation.

Negative Factors

Funding Delays

Oregon headwind. Largely owing to funding delays and, to a lesser extent, market uncertainty, there have been some delayed construction projects that are expected to have an impact on '25 results.

Project Delays

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

Seasonal Impact

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 (KNF) is a leading construction materials and contracting services company in the United States. The company operates in several sectors, including aggregates, asphalt, ready-mix concrete, and construction services. With a strong presence across multiple states, Knife River provides essential materials and services for public and private infrastructure projects, contributing to the development and maintenance of roads, bridges, commercial buildings, and residential properties.

How the Company Makes Money

Knife 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 demonstrates a strong financial position with consistent revenue growth and effective cost management. The balance sheet reflects a healthy equity position, although increasing debt levels should be monitored. Cash flows are managed well, supporting operational and capital needs, 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
2.92B	2.90B	2.83B	2.53B	2.23B	2.18B
	Gross Profit
553.74M	569.83M	538.93M	347.27M	346.95M	370.58M
	EBIT
287.27M	316.19M	296.40M	164.55M	191.08M	214.50M
	EBITDA
440.85M	463.11M	427.09M	310.81M	290.90M	302.46M
	Net Income Common Stockholders
180.60M	201.68M	182.87M	72.92M	129.75M	147.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
86.12M	281.13M	262.32M	221.29M	13.85M	0.00
	Total Assets
3.28B	2.85B	2.60B	2.51B	2.18B	0.00
	Total Debt
1.22B	726.76M	726.37M	925.29M	734.52M	0.00
	Net Debt
1.13B	445.63M	464.05M	704.00M	720.67M	0.00
	Total Liabilities
1.87B	1.38B	1.33B	1.48B	1.23B	0.00
	Stockholders Equity
1.41B	1.48B	1.27B	1.03B	952.84M	0.00
Cash Flow		Free Cash Flow
36.56M	149.90M	211.44M	29.28M	7.01M	96.53M
	Operating Cash Flow
240.26M	322.32M	335.73M	207.44M	181.24M	232.40M
	Investing Cash Flow
-753.37M	-294.80M	-117.89M	-155.88M	-398.27M	-185.85M
	Financing Cash Flow
480.93M	-8.71M	34.39M	-55.32M	223.80M	-47.95M

Knife River Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 82.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KNF, the sentiment is Negative. The current price of 82.54 is below the 20-day moving average (MA) of 91.58, below the 50-day MA of 92.68, and below the 200-day MA of 94.66, indicating a bearish trend. The MACD of -3.43 indicates Positive momentum. The RSI at 31.42 is Neutral, neither overbought nor oversold. The STOCH value of 11.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$34.50B	37.03	12.10%	0.75%	-2.24%	3.00%
EXP	76 Outperform	$6.45B	14.32	33.52%	0.51%	0.05%	0.96%
MLM	75 Outperform	$32.72B	31.21	11.88%	0.58%	-0.54%	-48.61%
CX	72 Outperform	$10.38B	7.15	6.58%	1.30%	-8.41%	570.14%
KNF	68 Neutral	$4.68B	26.02	13.76%	―	2.48%	2.22%
BCC	65 Neutral	$3.23B	10.73	14.26%	0.98%	-4.67%	-35.04%
Sector *	51 Neutral	$2.03B	-1.27	-21.09%	4.14%	2.90%	-30.49%

Knife River Corporation Corporate Events

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.

Knife River Corporation Announces Q1 2025 Earnings

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.