Knife River Corporation (KNF) AI Stock Analysis

• Market Cap: $5.62B
• Dividend Yield: N/A
• Average Volume (3M): 453.86K
• Price to Earnings (P/E): 31.3
• Beta (1Y): 1.27
• Revenue Growth: 2.48%
• EPS Growth: 2.22%
• Country: US
• Employees: 4,761
• Sector: Basic Materials
• Sector Strength: 65
• Industry: Construction Materials
• EPS (TTM): -1.21
• Shares Outstanding: 56,652,363
• 10 Day Avg. Volume: 395,193
• 30 Day Avg. Volume: 453,860
• PEG Ratio: -0.27
• Price to Book (P/B): 3.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 35.89
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 0.51
• Enterprise Value/Gross Profit: 10.22
• Enterprise Value/Ebitda: 3.24
• 1Y Price Target: $115.00
• Price Target Upside: 19.65% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 77 Outperform
• Price Target: $117.00 ▲(21.74%Upside)

Knife River Corporation's stock is rated positively, driven by strong financial performance and positive earnings guidance. The company's effective cost management and strategic acquisitions support a robust outlook. However, caution is warranted due to increased debt levels and high valuation metrics. The technical analysis suggests strong momentum, though current overbought conditions may lead to short-term volatility.

Positive Factors

Acquisitions

High barriers to entry, combined with a fragmented market, offer plenty of opportunities for accretive acquisitions to drive growth.

Financial Performance

The company is benefiting from structural positives such as localized production, pent-up end-market demand with federal funding in place, and geographic exposure to states growing at or above the national average.

Public Funding

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

Negative Factors

Private Sector Slowdown

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

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 (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 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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 96.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 96.11 is below the 20-day moving average (MA) of 96.81, above the 50-day MA of 93.56, and above the 200-day MA of 93.59, indicating a bullish trend. The MACD of 1.54 indicates Positive momentum. The RSI at 56.33 is Neutral, neither overbought nor oversold. The STOCH value of 25.27 is Neutral, 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	$35.43B	38.02	12.10%	0.70%	-2.24%	3.00%
KNF	77 Outperform	$5.62B	31.29	13.76%	―	2.48%	2.22%
EXP	76 Outperform	$7.01B	15.56	33.52%	0.47%	0.64%	-1.15%
MLM	75 Outperform	$33.86B	32.30	11.88%	0.55%	-0.54%	-48.61%
CX	73 Outperform	$10.88B	7.39	6.58%	1.16%	-8.41%	570.14%
BCC	65 Neutral	$3.26B	10.82	14.26%	0.96%	-4.67%	-35.04%
Sector *	50 Neutral	$2.00B	-1.13	-21.16%	3.71%	2.15%	-30.95%

Knife River Corporation Corporate Events

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.