Knife River Corporation (KNF) AI Stock Analysis

• Market Cap: $4.17B
• Dividend Yield: N/A
• Average Volume (3M): 662.93K
• Price to Earnings (P/E): 27.4
• Beta (1Y): 1.30
• Revenue Growth: 2.64%
• EPS Growth: -22.49%
• Country: US
• Employees: 4,761
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 0.89
• Shares Outstanding: 56,664,165
• 10 Day Avg. Volume: 706,292
• 30 Day Avg. Volume: 662,928
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: 2.02
• Enterprise Value/Gross Profit: 11.17
• Enterprise Value/Ebitda: 13.90
• 1Y Price Target: $109.00
• Price Target Upside: 48.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 63 Neutral
• Price Target: $88.00 ▲(19.60% Upside)

Knife River Corporation's overall stock score reflects strong revenue growth and a record backlog, which are offset by declining margins, increased leverage, and cash flow challenges. The technical indicators suggest a bearish trend, and the valuation appears stretched. The earnings call provided mixed signals, with growth potential tempered by current operational challenges.

Positive Factors

Record Backlog

A record backlog indicates strong future demand and revenue potential, providing a buffer against short-term market fluctuations and ensuring sustained business operations.

Successful Acquisitions

Strategic acquisitions enhance market position and operational scale, contributing to revenue growth and competitive advantage in the construction materials industry.

Improved Pricing Initiatives

Effective pricing strategies enhance revenue and margin sustainability, reflecting strong market demand and the company's ability to pass costs to customers.

Negative Factors

Declining Margins

Decreasing margins suggest rising costs or pricing pressures, which could impact profitability if not addressed through operational efficiencies or cost management.

Increased Leverage

Higher leverage increases financial risk and limits flexibility, potentially affecting the company's ability to invest in growth opportunities or weather economic downturns.

Cash Flow Challenges

Negative cash flow growth indicates potential liquidity issues, which could hinder the company's ability to fund operations, pay down debt, or invest in future growth.

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 shows strong revenue growth, but declining margins and increased leverage pose potential risks. The cash flow situation is particularly concerning, with negative free cash flow growth and reduced cash generation relative to income. The company needs to address operational efficiencies and manage its debt levels to improve financial stability.

Income Statement

Knife River Corporation demonstrates solid revenue growth, with a TTM (Trailing-Twelve-Months) revenue increase of 91.8% compared to the previous year. However, margins have slightly decreased over time, with the TTM gross profit margin at 18.13% and net profit margin at 5.20%. The EBIT and EBITDA margins have also seen a decline, indicating potential cost pressures or operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio has increased significantly to 0.96 in the TTM period, indicating higher leverage and potential risk. Return on equity has decreased to 10.58%, reflecting reduced profitability on shareholder equity. The equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Knife River Corporation's cash flow performance is concerning, with a negative free cash flow growth rate of -245.25% in the TTM period. The operating cash flow to net income ratio has decreased to 0.62, indicating less cash generation relative to net income. The free cash flow to net income ratio is negative, highlighting cash flow challenges.

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	429.44M	463.11M	427.09M	306.74M	293.41M	304.96M
Net Income	153.28M	201.68M	182.87M	116.22M	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	77.67M	281.13M	262.32M	10.09M	13.85M	0.00
Total Debt	1.40B	726.76M	726.37M	730.96M	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: Negative
• Last Price: 73.58
• 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 73.58 is below the 20-day moving average (MA) of 77.11, below the 50-day MA of 82.42, and below the 200-day MA of 91.10, indicating a bearish trend. The MACD of -2.83 indicates Positive momentum. The RSI at 36.52 is Neutral, neither overbought nor oversold. The STOCH value of 19.85 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
TGLS	77 Outperform	3.19B	16.89	24.84%	0.83%	16.89%	24.91%
TTAM	76 Outperform	2.71B	―	22.14%	0.54%	―	―
USLM	74 Outperform	3.72B	29.19	22.24%	0.18%	21.97%	44.87%
CX	73 Outperform	13.64B	8.75	7.71%	0.96%	-9.62%	795.20%
BCC	69 Neutral	2.88B	11.26	17.49%	1.10%	-5.26%	-40.75%
KNF	63 Neutral	$4.17B	27.36	11.11%	―	2.64%	-22.49%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

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.

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.