Knife River Corporation (KNF) AI Stock Analysis

• Market Cap: $3.75B
• Dividend Yield: N/A
• Average Volume (3M): 672.38K
• Price to Earnings (P/E): 25.4
• Beta (1Y): 1.28
• Revenue Growth: 5.52%
• EPS Growth: -25.56%
• Country: US
• Employees: 4,761
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 2.52
• Shares Outstanding: 56,664,165
• 10 Day Avg. Volume: 775,224
• 30 Day Avg. Volume: 672,375
• 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: 1.59
• Enterprise Value/Revenue: 1.96
• Enterprise Value/Gross Profit: 10.90
• Enterprise Value/Ebitda: 13.13
• 1Y Price Target: $93.33
• Price Target Upside: 31.47% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $78.00 ▲(9.87% Upside)

Knife River Corporation's overall stock score reflects strong earnings performance and strategic growth initiatives, which are offset by technical weaknesses and valuation concerns. The company's financial stability is solid, but attention to cash flow and leverage is necessary. The optimistic earnings outlook and strategic acquisitions are significant positives, while the bearish technical indicators and high P/E ratio present challenges.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health.

Strategic Acquisitions

Strategic acquisitions enhance market position and operational capacity, driving sustainable growth and competitive advantage.

High Backlog Levels

A high backlog ensures future revenue streams and reflects strong demand, supporting long-term business stability and growth.

Negative Factors

Increased Leverage

Increased leverage can strain financial flexibility and elevate risk, potentially impacting long-term financial stability.

Declining Free Cash Flow

Declining free cash flow limits the company's ability to invest in growth opportunities and manage debt, affecting long-term viability.

Challenges in Mountain Region

Operational challenges in key regions can hinder growth and profitability, affecting the company's overall market position.

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 multiple key streams, primarily from the sale of construction materials such as aggregates, asphalt, and ready-mix concrete. The company earns substantial income from its construction services, which include road construction, paving, and other infrastructure projects. Additionally, Knife River often engages in long-term contracts with government entities and private sector clients, providing a steady flow of income. Strategic partnerships with local and state governments, as well as ongoing projects in road and highway maintenance, contribute significantly to its earnings. The company also benefits from fluctuations in construction demand and infrastructure investment trends, which can enhance its revenue potential during periods of economic growth.

Knife River Corporation Financial Statement Overview

Summary

Knife River Corporation shows consistent revenue growth and stable profitability margins, which are positive indicators of operational efficiency. However, increased leverage and declining free cash flow present potential risks. The company maintains a solid financial position but should focus on improving cash flow management and reducing debt levels.

Income Statement

Knife River Corporation shows a steady revenue growth rate of 3.34% in the TTM, with a gross profit margin of 18.13% and a net profit margin of 5.20%. While these margins are slightly below the industry average, the company has maintained consistent revenue growth over the years. The EBIT and EBITDA margins are also stable, indicating efficient operational management.

Balance Sheet

The company's debt-to-equity ratio has increased to 0.96 in the TTM, indicating higher leverage, which could pose a risk if not managed properly. However, the return on equity is 10.58%, reflecting decent profitability relative to shareholder equity. The equity ratio stands at 43.39%, suggesting a balanced capital structure.

Cash Flow

The free cash flow has decreased significantly, resulting in a negative free cash flow to net income ratio of -21.74%. The operating cash flow to net income ratio is 61.50%, indicating that the company generates sufficient cash from operations to cover its net income, though the decline in free cash flow is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.05B	2.90B	2.83B	2.53B	2.23B	2.18B
Gross Profit	547.89M	569.83M	538.93M	360.89M	346.95M	370.58M
EBITDA	454.63M	463.11M	427.21M	306.74M	293.41M	304.96M
Net Income	148.32M	201.68M	182.87M	116.22M	129.75M	147.32M
Balance Sheet
Total Assets	3.70B	2.85B	2.60B	2.29B	2.18B	0.00
Cash, Cash Equivalents and Short-Term Investments	81.10M	281.13M	262.32M	10.09M	13.85M	0.00
Total Debt	1.24B	726.76M	726.37M	730.96M	734.52M	0.00
Total Liabilities	2.10B	1.38B	1.33B	1.27B	1.23B	0.00
Stockholders Equity	1.61B	1.48B	1.27B	1.03B	952.84M	0.00
Cash Flow
Free Cash Flow	-80.58M	149.90M	211.44M	29.28M	7.01M	96.53M
Operating Cash Flow	255.02M	322.32M	335.73M	207.44M	181.24M	232.40M
Investing Cash Flow	-939.99M	-294.80M	-117.89M	-155.88M	-398.27M	-185.85M
Financing Cash Flow	498.63M	-8.71M	34.39M	-55.32M	223.80M	-47.95M

Knife River Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 70.99
• 50DMA: Negative
• 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 Neutral. The current price of 70.99 is above the 20-day moving average (MA) of 65.13, below the 50-day MA of 71.12, and below the 200-day MA of 85.81, indicating a neutral trend. The MACD of -0.85 indicates Negative momentum. The RSI at 59.30 is Neutral, neither overbought nor oversold. The STOCH value of 85.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KNF.

Knife River Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CX	78 Outperform	$15.44B	11.01	7.10%	0.84%	-6.34%	210.97%
TTAM	74 Outperform	$2.87B	―	―	0.78%	―	―
TGLS	70 Outperform	$2.63B	14.39	26.21%	1.21%	15.70%	19.92%
KNF	67 Neutral	$3.75B	25.42	9.71%	―	5.52%	-25.56%
BCC	64 Neutral	$2.62B	13.99	9.05%	1.21%	-4.25%	-50.60%
USLM	63 Neutral	$3.31B	25.43	24.29%	0.19%	20.27%	31.94%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Knife River Corporation Corporate Events

Knife River Corp Reports Record Earnings and Optimistic Outlook

The recent earnings call from Knife River Corporation reflected a strong financial performance, marked by record results and positive strides in strategic initiatives. The sentiment was largely optimistic, with the company achieving impressive margins and growth, particularly in the Central segment. However, challenges such as project delays due to weather and competitive dynamics in the Mountain region were noted. Despite these hurdles, the overall outlook remains positive, with a continued focus on growth and operational improvements.

Knife River Corporation Reports Record Q3 2025 Results

Knife River Corporation, a vertically integrated construction materials and contracting services company, specializes in aggregates and operates primarily in the construction industry, focusing on publicly funded DOT projects and private ventures.

Knife River Corporation Announces Q3 2025 Earnings

On November 4, 2025, Knife River Corporation announced its third quarter 2025 earnings. The announcement is being furnished to the Securities and Exchange Commission, reflecting the company’s ongoing financial reporting and compliance efforts.

The most recent analyst rating on (KNF) stock is a Buy with a $75.00 price target. To see the full list of analyst forecasts on Knife River Corporation stock, see the KNF Stock Forecast page.

Knife River’s Earnings Call: Record Backlog Amid Challenges

The recent earnings call of Knife River Corporation painted a picture of both triumphs and trials. The company celebrated a record backlog and success in dynamic pricing and strategic acquisitions, yet faced significant hurdles due to weather-related disruptions and challenges in Oregon. The sentiment expressed was one of cautious optimism, with strong performances in some areas being counterbalanced by notable difficulties.

Knife River Corporation Reports Q2 2025 Financial Results

Knife River Corporation, a vertically integrated construction materials and contracting services company, specializes in aggregates and operates in the infrastructure sector. The company recently released its financial results for the second quarter of 2025, highlighting a record backlog and strategic acquisitions despite challenging weather conditions affecting the construction season. Key financial metrics showed a 3% increase in revenue to $833.8 million, but net income fell by 35% to $50.6 million, with adjusted EBITDA also declining by 9%. Despite these setbacks, Knife River achieved a record backlog of $1.3 billion, with significant contributions from recent acquisitions, and maintained a strong focus on its Competitive EDGE strategy. Looking ahead, Knife River remains optimistic about its long-term growth prospects, driven by infrastructure demand and strategic initiatives, while adjusting its full-year EBITDA guidance to reflect current challenges.