KNOT Offshore Partners (KNOP) AI Stock Analysis

• Market Cap: $322.48M
• Dividend Yield: 1.13%
• Average Volume (3M): 83.66K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.03
• Revenue Growth: 14.11%
• EPS Growth: 1641.62%
• Country: US
• Employees: 1
• Sector: Energy
• Sector Strength: 52
• Industry: Marine Shipping
• EPS (TTM): 0.20
• Shares Outstanding: 34,045,082
• 10 Day Avg. Volume: 124,849
• 30 Day Avg. Volume: 83,656
• 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: 3.60
• Enterprise Value/Revenue: 3.56
• Enterprise Value/Gross Profit: 9.21
• Enterprise Value/Ebitda: 6.18
• 1Y Price Target: $12.00
• Price Target Upside: 36.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: $9.00 ▲(2.04% Upside)

KNOT Offshore Partners' stock is supported by strong financial performance and a positive outlook from the earnings call. However, technical indicators suggest overbought conditions, and the valuation appears stretched with a high P/E ratio and low dividend yield. The company's ability to manage debt and maintain financial resilience will be crucial moving forward.

KNOT Offshore Partners Business Overview & Revenue Model

Company Description

KNOT Offshore Partners LP owns, acquires, and operates shuttle tankers under long-term charters in the North Sea and Brazil. The company provides loading, transportation, discharge, and storage of crude oil under time charters and bareboat charters. As of March 17, 2022, it operated a fleet of seventeen shuttle tankers. The company was founded in 2013 and is headquartered in Aberdeen, the United Kingdom.

How the Company Makes Money

KNOT Offshore Partners generates revenue primarily through long-term charters of its vessels to major oil companies and other operators in the offshore oil and gas sector. The company typically enters into fixed-rate contracts, which provide stable cash flows and predictable earnings. Revenue is derived from the operational performance of the fleet, with earnings bolstered by a mix of time charters and spot market contracts. Additionally, strategic partnerships with leading oil and gas companies enhance its market position and contribute to its revenue stability. The company's financial health is further supported by its focus on fleet utilization and cost management, ensuring competitive pricing and operational efficiency.

KNOT Offshore Partners Financial Statement Overview

Summary

KNOT Offshore Partners shows solid financial health with consistent revenue growth and strong operational efficiency. The balance sheet reflects moderate leverage typical for the industry, but with a relatively low ROE. Cash flow generation is a significant strength, supporting the company's operations and financial stability. While profitability margins could be improved, the company is well-positioned to sustain its current trajectory.

Income Statement

KNOT Offshore Partners has demonstrated a steady increase in revenue, with a TTM revenue growth rate of 4.28% compared to the previous year. The gross profit margin for the TTM is 38.63%, indicating efficient cost management. However, the net profit margin is relatively low at 4.36%, suggesting potential challenges in controlling non-operating expenses. The EBIT margin of 23.51% and EBITDA margin of 57.58% reflect strong operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is 1.54, indicating a moderate level of leverage, which is typical for the marine shipping industry. The return on equity (ROE) for the TTM is 2.31%, which is relatively low, suggesting limited profitability relative to shareholder equity. The equity ratio stands at 37.31%, indicating a balanced capital structure with a reasonable proportion of equity financing.

Cash Flow

KNOT Offshore Partners has shown robust cash flow management, with a free cash flow growth rate of 6.67% in the TTM. The operating cash flow to net income ratio is 10.30, highlighting strong cash generation relative to net income. The free cash flow to net income ratio is 10.23, indicating efficient conversion of earnings into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	326.00M	312.63M	290.72M	268.58M	281.13M	279.22M
Gross Profit	125.97M	200.51M	80.93M	72.32M	109.46M	128.47M
EBITDA	187.71M	190.68M	144.64M	210.19M	183.00M	187.63M
Net Income	14.21M	14.06M	-34.33M	58.67M	53.88M	65.22M
Balance Sheet
Total Assets	1.65B	1.57B	1.60B	1.73B	1.68B	1.78B
Cash, Cash Equivalents and Short-Term Investments	67.26M	66.93M	63.92M	47.58M	62.29M	52.58M
Total Debt	948.36M	906.00M	958.91M	1.06B	969.87M	1.03B
Total Liabilities	1.04B	961.03M	989.01M	1.08B	1.00B	1.08B
Stockholders Equity	616.11M	611.13M	607.48M	566.28M	599.12M	631.08M
Cash Flow
Free Cash Flow	145.28M	136.20M	128.86M	97.63M	154.88M	168.90M
Operating Cash Flow	146.37M	137.15M	131.64M	100.94M	166.41M	169.24M
Investing Cash Flow	559.00K	-338.00K	-2.78M	-35.51M	-11.54M	-21.43M
Financing Cash Flow	-129.70M	-133.32M	-112.51M	-79.97M	-145.15M	-139.26M

KNOT Offshore Partners Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.82
• 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 KNOP, the sentiment is Positive. The current price of 8.82 is above the 20-day moving average (MA) of 8.78, above the 50-day MA of 7.83, and above the 200-day MA of 6.56, indicating a bullish trend. The MACD of 0.38 indicates Positive momentum. The RSI at 55.21 is Neutral, neither overbought nor oversold. The STOCH value of 27.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KNOP.

KNOT Offshore Partners Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHIP	71 Outperform	$176.00M	11.13	16.58%	5.57%	1.66%	-46.13%
KNOP	71 Outperform	$322.48M	9.35	5.61%	1.13%	14.11%	1641.62%
GASS	70 Outperform	$247.02M	3.83	11.15%	―	13.82%	-10.37%
SB	70 Neutral	$462.49M	10.59	11.71%	4.50%	-9.65%	-46.46%
PANL	63 Neutral	$336.00M	23.57	2.13%	5.91%	15.09%	-71.58%
DSX	58 Neutral	$202.60M	13.42	2.52%	2.38%	-4.90%	21.09%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

KNOT Offshore Partners Corporate Events

KNOT Offshore Partners Completes Strategic Share Sale in July 2025

On July 2, 2025, KNOT Offshore Partners LP completed a significant transaction involving the sale of shares in KNOT Shuttle Tankers 37 AS to KNOT Shuttle Tankers AS. This move is part of a strategic realignment, potentially impacting the company’s operational focus and financial structure. The transaction, valued at USD 95 million, reflects KNOT’s efforts to optimize its asset portfolio and strengthen its market position in the shuttle tanker sector.

KNOT Offshore Partners Reports Strong Q2 2025 Results and Strategic Developments

KNOT Offshore Partners LP reported strong financial performance for Q2 2025, with revenues of $87.1 million and a net income of $6.8 million. The company achieved nearly full fleet utilization and declared cash distributions for common and preferred units. Significant events included the acquisition of a new shuttle tanker, a unit buyback program, and various charter extensions. The company is optimistic about future growth, driven by increased offshore oil production in Brazil and the North Sea, and anticipates that new shuttle tanker orders will meet rising demand.

KNOT Offshore Partners Expands Fleet and Launches Buyback Program

On July 2, 2025, KNOT Offshore Partners LP announced a series of strategic and operational updates, including the acquisition of the DP2 Suezmax shuttle tanker Daqing Knutsen for approximately $24.8 million, after accounting for outstanding indebtedness and fees. This acquisition is expected to enhance the company’s fleet and secure long-term employment for the vessel. Additionally, the company has initiated a $10 million common unit buyback program, reflecting confidence in its market valuation and commitment to creating long-term value for unitholders. The sale and leaseback of the Tove Knutsen is projected to generate about $32 million in proceeds, further supporting the company’s financial flexibility.