Knife River Corporation (KNF) AI Stock Analysis

• Market Cap: $4.47B
• Dividend Yield: N/A
• Average Volume (3M): 711.18K
• Price to Earnings (P/E): 24.4
• Beta (1Y): 1.29
• Revenue Growth: 2.48%
• EPS Growth: 2.22%
• Country: US
• Employees: 4,761
• Sector: Basic Materials
• Sector Strength: 69
• Industry: Construction Materials
• EPS (TTM): -1.21
• Shares Outstanding: 56,652,363
• 10 Day Avg. Volume: 592,984
• 30 Day Avg. Volume: 711,179
• PEG Ratio: -2.35
• Price to Book (P/B): 3.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 120.23
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 0.48
• Enterprise Value/Gross Profit: 9.96
• Enterprise Value/Ebitda: 3.04
• 1Y Price Target: $118.17
• Price Target Upside: 49.92% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 68 Neutral
• Price Target: $88.00 ▲(11.65%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

Financial Performance

Management believes that the balance of the year will generate approximately 90% of annual revenue and 108% of annual EBITDA, indicating strong future performance.

Mergers and Acquisitions

The company is an acquirer of choice for many aggregate-led construction materials targets.

Negative Factors

Project Delays

With spring weather slow to arrive and Oregon delaying some projects, it sounds like Q2 results could be impacted.

Seasonality Impacts

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 provider in the construction materials and contracting services industry. The company operates primarily in the United States, focusing on producing and delivering aggregate, asphalt, ready-mix concrete, and other related construction materials. Knife River serves a diverse range of sectors, including residential, commercial, industrial, and infrastructure construction, with a strong commitment to sustainability and quality.

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	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
EBITDA	463.11M	427.09M	310.81M	290.90M	302.46M
Net Income	201.68M	182.87M	72.92M	129.75M	147.32M
Balance Sheet
Total Assets	2.85B	2.60B	2.51B	2.18B	0.00
Cash, Cash Equivalents and Short-Term Investments	281.13M	262.32M	221.29M	13.85M	0.00
Total Debt	726.76M	726.37M	925.29M	734.52M	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

• Technical Analysis Sentiment: Negative
• Last Price: 78.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 78.82 is below the 20-day moving average (MA) of 80.59, below the 50-day MA of 88.97, and below the 200-day MA of 94.50, indicating a bearish trend. The MACD of -2.66 indicates Negative momentum. The RSI at 36.06 is Neutral, neither overbought nor oversold. The STOCH value of 15.65 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
EXP	78 Outperform	$7.20B	16.02	33.52%	0.45%	0.05%	0.96%
VMC	78 Outperform	$35.66B	38.27	12.10%	0.73%	-2.24%	3.00%
CX	72 Outperform	$11.14B	7.65	6.58%	1.21%	-8.41%	570.14%
MLM	69 Neutral	$34.05B	32.48	11.88%	0.56%	-0.54%	-48.61%
BCC	69 Neutral	$3.37B	11.19	14.26%	0.94%	-4.67%	-35.04%
KNF	68 Neutral	$4.47B	24.39	13.76%	―	2.48%	2.22%
Sector *	44 Neutral	AU$1.44B	-5.92	-40.74%	3.88%	-3.45%	-41.77%

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.