Knight Transportation (KNX) AI Stock Analysis

• Market Cap: $8.50B
• Dividend Yield: 1.37%
• Average Volume (3M): 3.12M
• Price to Earnings (P/E): 59.8
• Beta (1Y): 1.09
• Revenue Growth: >-0.01%
• EPS Growth: 279.47%
• Country: US
• Employees: 35,300
• Sector: Industrials
• Sector Strength: 72
• Industry: Trucking
• EPS (TTM): 0.32
• Shares Outstanding: 162,339,000
• 10 Day Avg. Volume: 3,886,151
• 30 Day Avg. Volume: 3,115,435
• PEG Ratio: -1.59
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 1.16
• P/FCF Ratio: -427.07
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 1.19
• Enterprise Value/Gross Profit: 7.26
• Enterprise Value/Ebitda: 8.43
• 1Y Price Target: $55.71
• Price Target Upside: 6.40% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $48.00 ▼(-8.33% Downside)

Knight Transportation's overall stock score reflects a stable financial position with strong cash flow performance and manageable leverage. However, high valuation metrics and mixed earnings call sentiment, particularly challenges in the Truckload segment, weigh on the score. Technical indicators suggest a positive short-term trend, but valuation concerns and market uncertainties limit upside potential.

Positive Factors

Strong Cash Flow Generation

Robust free cash flow growth enhances financial flexibility, allowing for reinvestment in operations, debt reduction, or shareholder returns, supporting long-term business stability.

LTL Segment Revenue Growth

Strong growth in the LTL segment indicates successful market penetration and service demand, contributing to diversified revenue streams and long-term growth potential.

Cost Structure Improvements

Reducing fixed costs improves operational efficiency and margin sustainability, enhancing profitability and competitive positioning in the long term.

Negative Factors

Truckload Segment Challenges

Declining revenue in the Truckload segment suggests market or operational challenges, potentially impacting overall revenue growth and profitability.

Unusual Charges Impacting Earnings

Significant unusual charges can distort earnings and indicate underlying operational issues, affecting investor confidence and financial performance.

Softness in LTL Demand

Softening demand in the LTL segment could pressure margins and impact revenue growth, posing challenges to maintaining profitability in the near term.

Knight Transportation Business Overview & Revenue Model

Company Description

Knight-Swift Transportation Holdings Inc., together with its subsidiaries, provides truckload transportation services in the United States, Mexico, and Canada. The company operates through four segments: Trucking, Logistics, Less-than-truckload (LTL), and Intermodal. Its trucking services include irregular route, dedicated, refrigerated, flatbed, expedited, dry van, drayage, and cross-border transportation of various products, goods, and materials. The company also provides logistics and intermodal services, such as brokerage, intermodal, and certain logistics; freight management; and non-trucking services. In addition, it offers various support services, including repair and maintenance shop services, warranty, insurance, and equipment leasing; and trailer parts manufacturing and warehousing services, as well as engages in the driving academy activities. In addition, it offers regional direct services to customers national transportation needs by utilizing carriers for coverage areas outside networks. The company operates a total of 18,019 tractors, which comprises 16,166 company tractors and 1,853 independent contractor tractors, as well as 67,606 trailers; 2,735 tractors and 7,413 trailers; and 597 tractors and 10,847 intermodal containers. It serves retail, food and beverage, consumer products, paper products, transportation and logistics, housing and building, automotive, and manufacturing industries. Knight-Swift Transportation Holdings Inc. was incorporated in 1989 and is headquartered in Phoenix, Arizona.

How the Company Makes Money

Knight Transportation generates revenue primarily through its truckload transportation services, which include long-haul and regional freight transportation. The company operates a fleet of trucks, which it uses to transport goods for various clients, charging them based on distance, weight, and service levels. Key revenue streams include contracts with large shippers, spot market transactions, and dedicated freight services that provide stable, recurring revenue. Additionally, Knight benefits from strategic partnerships with other logistics providers, enhancing its service offerings and expanding its market reach. The company's focus on operational efficiency, coupled with its investments in technology and fleet management, also contributes significantly to its profitability.

Knight Transportation Financial Statement Overview

Summary

Knight Transportation demonstrates steady financial health with moderate revenue growth and improving profitability metrics. The balance sheet is strong with manageable leverage and good equity utilization. Cash flow performance is particularly strong, with significant improvements in free cash flow generation. While there are challenges in maintaining high profit margins, the overall financial position is stable and shows potential for growth.

Income Statement

Knight Transportation shows moderate revenue growth with a TTM increase of 0.68% and a previous annual growth of 3.76%. However, the gross profit margin has decreased from 24.34% in 2024 to 16.39% in TTM, indicating rising costs or pricing pressures. The net profit margin improved slightly to 1.90% in TTM from 1.59% in 2024, but remains low, suggesting profitability challenges. EBIT and EBITDA margins are stable, reflecting consistent operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is stable at 0.39 in TTM, indicating a balanced leverage position. Return on equity improved to 2.00% in TTM from 1.65% in 2024, showing better utilization of equity. The equity ratio remains strong, suggesting a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

Knight Transportation's free cash flow growth is robust at 80.23% in TTM, recovering from negative growth in 2024. The operating cash flow to net income ratio is healthy at 0.74, indicating strong cash generation relative to net income. The free cash flow to net income ratio improved significantly, reflecting better cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.48B	7.41B	7.14B	7.43B	6.00B	4.67B
Gross Profit	1.23B	1.80B	1.96B	2.41B	1.97B	1.46B
EBITDA	1.06B	1.03B	1.01B	1.66B	1.47B	1.07B
Net Income	142.24M	117.63M	217.15M	771.33M	743.39M	410.00M
Balance Sheet
Total Assets	12.62B	13.07B	13.26B	11.14B	10.82B	8.62B
Cash, Cash Equivalents and Short-Term Investments	294.35M	365.94M	466.35M	389.74M	354.11M	205.03M
Total Debt	2.76B	2.82B	2.67B	1.67B	1.96B	1.03B
Total Liabilities	5.50B	5.96B	6.16B	4.18B	4.27B	2.75B
Stockholders Equity	7.11B	7.11B	7.09B	6.95B	6.53B	5.87B
Cash Flow
Free Cash Flow	352.45M	-20.09M	90.06M	635.29M	656.06M	398.58M
Operating Cash Flow	817.75M	799.06M	1.16B	1.44B	1.19B	919.64M
Investing Cash Flow	-564.61M	-759.12M	-1.23B	-646.18M	-1.82B	-480.71M
Financing Cash Flow	-274.04M	-139.40M	150.69M	-754.35M	779.33M	-443.88M

Knight Transportation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 52.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KNX, the sentiment is Positive. The current price of 52.36 is above the 20-day moving average (MA) of 49.78, above the 50-day MA of 46.49, and above the 200-day MA of 43.73, indicating a bullish trend. The MACD of 2.20 indicates Negative momentum. The RSI at 66.79 is Neutral, neither overbought nor oversold. The STOCH value of 65.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KNX.

Knight Transportation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAIA	73 Outperform	$8.53B	30.26	11.92%	―	1.96%	-24.55%
WERN	67 Neutral	$1.81B	74.46	1.78%	1.85%	-3.42%	-43.86%
ARCB	66 Neutral	$1.77B	18.61	7.40%	0.61%	-5.34%	-48.16%
KNX	64 Neutral	$8.50B	59.80	2.01%	1.37%	>-0.01%	279.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SNDR	59 Neutral	$4.73B	41.65	3.81%	1.41%	5.46%	2.31%
MRTN	58 Neutral	$934.22M	48.19	2.53%	2.09%	-9.74%	-42.57%

Knight Transportation Corporate Events

Knight Transportation Increases CFO Salary Amidst Leadership Changes

On November 4, 2025, Knight-Swift’s Compensation Committee approved equity awards for its named executive officers, to be granted on November 28, 2025, under the Omnibus Plan. These awards include performance-based stock units and restricted stock units, aligning with the company’s long-term growth objectives. Additionally, the base salary of CFO Andrew Hess was increased, effective November 8, 2025. The company also announced the retirement of General Counsel Todd Carlson, effective January 1, 2026, and declared a quarterly cash dividend of $0.18 per share, payable on December 22, 2025.