Knight Transportation (KNX) AI Stock Analysis

• Market Cap: $6.46B
• Dividend Yield: 1.68%
• Average Volume (3M): 3.50M
• Price to Earnings (P/E): 55.0
• Beta (1Y): 1.08
• Revenue Growth: 1.16%
• EPS Growth: 36.33%
• Country: US
• Employees: 35,300
• Sector: Industrials
• Sector Strength: 78
• Industry: Trucking
• EPS (TTM): 0.36
• Shares Outstanding: 162,000,850
• 10 Day Avg. Volume: 3,843,727
• 30 Day Avg. Volume: 3,503,172
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.97
• Price to Cash Flow (P/CF): 6.60
• P/FCF Ratio: 6.60
• Enterprise Value/Market Cap: 1.71
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 10.70
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $48.87
• Price Target Upside: 17.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

Knight Transportation's overall stock score reflects a company with stable financial performance but facing challenges in profitability and valuation. The technical indicators suggest a bearish trend, and while recent corporate changes are positive, market uncertainties and high P/E ratios temper the outlook. The company remains resilient in operations, but improvements in profitability and strategic guidance are needed for a stronger stock performance.

Positive Factors

Earnings

Knight Transportation reported 1Q results that were better than estimates with higher EPS than anticipated.

Financial Performance

Knight-Swift posted a 1Q25 adjusted EPS up 131% year-over-year.

Negative Factors

Guidance

Management reduced 2Q25 guidance and declined to give guidance beyond that due to prevailing market and trade policy uncertainty.

Market Conditions

Knight-Swift has seen customers with high Chinese goods exposure scale back orders.

Trade Policy

The fluid trade policy has stalled momentum in its annual contracting bid season.

Knight Transportation Business Overview & Revenue Model

Company Description

Knight Transportation, a subsidiary of Knight-Swift Transportation Holdings Inc., is a leading provider of truckload transportation services in North America. It operates within the transportation and logistics sector, offering a range of services including dry van, refrigerated, and dedicated trucking solutions. With a focus on safety, efficiency, and customer satisfaction, Knight Transportation serves a diverse clientele across various industries.

How the Company Makes Money

Knight Transportation generates revenue primarily through its truckload transportation services, which include dry van, refrigerated, and dedicated trucking. The company earns money by charging clients for transporting goods over long distances using its fleet of trucks. Revenue streams are bolstered by the company's operational efficiency and ability to manage logistics effectively. Additionally, Knight Transportation benefits from strategic partnerships and contracts with major shippers, ensuring a steady flow of business. Other contributing factors to its earnings include fuel surcharge programs and ancillary services such as logistics and brokerage solutions.

Knight Transportation Financial Statement Overview

Summary

Knight Transportation's financial health appears relatively stable, with strong equity backing and manageable debt levels. However, recent profitability challenges and lack of cash flow data for 2024 may indicate operational inefficiencies or strategic reinvestment. The company needs to address these areas to maintain long-term financial health and investor confidence.

Income Statement

Knight Transportation's income statement reveals a stable revenue trend with a slight growth rate over the years. The latest Gross Profit Margin stands at 34.35%, a strong indicator of cost management efficiency. However, the Net Profit Margin dropped to 1.59% in 2024 from 3.04% in 2023, suggesting challenges in converting revenue to net income due to increased expenses or reduced efficiencies. The EBIT and EBITDA margins are reasonable, at 3.28% and 9.41% respectively, although a decline in EBIT Margin from the previous year indicates some operational inefficiencies.

Balance Sheet

The balance sheet shows a robust equity base, with a Debt-to-Equity Ratio of 0.19, signaling a conservative leverage approach. The Equity Ratio of 55.98% reflects a strong reliance on equity financing, providing financial stability. ROE has decreased to 1.65% from 3.06% in 2023, pointing to lower profitability from the shareholders' perspective. Overall, the balance sheet is stable with minimal risk from debt obligations.

Cash Flow

Cash flow analysis shows volatility with zero reported figures for 2024, raising concerns about operational cash generation and capital expenditure. In previous years, the Free Cash Flow showed fluctuations, with a significant drop in 2024 compared to past performance. The Operating Cash Flow to Net Income ratio was favorable in past years, indicating efficient cash conversion, but the absence of recent data suggests potential liquidity management issues.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.41B	7.14B	7.43B	6.00B	4.67B
	Gross Profit
1.03B	1.25B	1.77B	1.41B	969.12M
	EBIT
243.39M	338.15M	412.30M	418.18M	76.28M
	EBITDA
1.11B	1.13B	1.77B	1.62B	1.17B
	Net Income Common Stockholders
117.63M	217.15M	771.33M	743.39M	410.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
218.26M	168.54M	196.77M	261.00M	156.70M
	Total Assets
12.70B	12.87B	10.95B	10.66B	8.47B
	Total Debt
1.37B	3.20B	2.09B	2.24B	817.08M
	Net Debt
1.01B	3.03B	1.89B	1.98B	660.38M
	Total Liabilities
5.58B	5.77B	4.00B	4.11B	2.60B
	Stockholders Equity
7.11B	7.09B	6.95B	6.53B	5.87B
Cash Flow		Free Cash Flow
-20.09M	90.06M	635.29M	656.06M	398.58M
	Operating Cash Flow
799.06M	1.16B	1.44B	1.19B	919.64M
	Investing Cash Flow
-759.12M	-1.23B	-646.18M	-1.82B	-480.71M
	Financing Cash Flow
-139.40M	150.69M	-754.35M	779.33M	-443.88M

Knight Transportation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 41.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 41.45 is above the 20-day moving average (MA) of 39.64, below the 50-day MA of 43.77, and below the 200-day MA of 51.04, indicating a neutral trend. The MACD of -1.20 indicates Negative momentum. The RSI at 51.55 is Neutral, neither overbought nor oversold. The STOCH value of 55.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KNX.

Knight Transportation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAIA	71 Outperform	$6.40B	20.04	14.63%	―	8.95%	-13.23%
ARCB	68 Neutral	$1.44B	8.20	14.25%	0.83%	-5.69%	51.78%
KNX	64 Neutral	$6.46B	54.98	2.13%	1.68%	1.16%	36.33%
Sector *	64 Neutral	$4.28B	11.80	5.30%	250.74%	4.12%	-9.02%
SNDR	64 Neutral	$3.84B	32.90	4.20%	1.77%	-0.30%	-20.76%
MRTN	57 Neutral	$1.04B	48.49	2.83%	1.89%	-13.47%	-62.49%
WERN	50 Neutral	$1.61B	91.34	1.21%	2.25%	-7.66%	―

Knight Transportation Corporate Events

Knight Transportation Appoints Douglas Col to Board

Knight-Swift Transportation Holdings Inc. announced the appointment of Douglas Col to its Board of Directors, effective March 13, 2025. Mr. Col, recognized as an independent director, brings extensive experience in the transportation sector, having served as Executive Vice President and CFO at Saia, Inc. His appointment is expected to enhance the company’s governance and strategic oversight, potentially impacting its industry positioning positively.