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Knight Transportation (KNX)
NYSE:KNX
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Knight Transportation
(NYSE:KNX)
Rating:68Neutral
Price Target:
$49.00
▲(9.28%Upside)
Positive Factors
Earnings Performance
Knight-Swift Transportation posted adjusted EPS of $0.35, up 17% year-over-year, above estimates.
Operational Efficiency
Truckload led the beat with better-than-expected utilization and cost management.
Negative Factors
Intermodal Segment Performance
All segments aside from Intermodal were in-line or above operating income estimates.
Revenue Pressure
Mix changes in the Truckload segment put more pressure on revenue per mile than anticipated.
Knight Transportation (KNX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.38B
Dividend Yield1.52%
Average Volume (3M)2.70M
Price to Earnings (P/E)44.9
Beta (1Y)1.16
Revenue Growth-2.54%
EPS Growth144.49%
CountryUS
Employees35,300
SectorIndustrials
Sector Strength93
IndustryTrucking
Share Statistics
EPS (TTM)0.35
Shares Outstanding162,050,000
10 Day Avg. Volume2,833,014
30 Day Avg. Volume2,701,680
Financial Highlights & Ratios
PEG Ratio1.75
Price to Book (P/B)1.07
Price to Sales (P/S)0.00
P/FCF Ratio62.30
Enterprise Value/Market Cap1.13
Enterprise Value/Revenue1.78
Enterprise Value/Gross Profit31.28
Enterprise Value/Ebitda7.49
Forecast
1Y Price Target
$53.60Price Target Upside19.54% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
Knight Transportation Business Overview & Revenue Model
Company DescriptionKnight Transportation (KNX) is a prominent American trucking company that operates primarily in the truckload transportation sector. Headquartered in Phoenix, Arizona, the company offers a range of services including dry van, temperature-controlled, and dedicated transportation services. With a focus on safety, efficiency, and customer satisfaction, Knight Transportation serves a wide array of industries, providing them with reliable logistics and transportation solutions.
How the Company Makes MoneyKnight Transportation makes money through several key revenue streams centered around its core trucking and logistics services. The primary source of revenue is its truckload transportation services, where the company charges clients for moving freight across various distances and regions. Knight Transportation also generates income through its dedicated contract carriage, where it offers customized transportation solutions tailored to meet specific client needs on a long-term basis. Additionally, the company earns from ancillary services such as brokerage operations, which involve arranging transportation for customers through third-party carriers. Strategic partnerships and a focus on operational efficiency, including advanced logistics technology and fuel management, further contribute to the company's profitability.
Knight Transportation Earnings Call Summary
Earnings Call Date:Jul 23, 2025
(Q2-2025)
| % Change Since: -1.80%|
Next Earnings Date:Oct 15, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive growth in certain segments like LTL and Truckload, alongside challenges such as a soft freight environment and margin pressures due to expansion costs. Overall, while there are significant achievements in revenue and income growth, the market conditions and segment-specific challenges create a balanced outlook.Q2-2025 Updates
Positive Updates
Revenue Growth and Operating Income Improvement
Revenue, excluding fuel surcharge, increased by 1.9%. Adjusted operating income improved by 17.2% year-over-year, or $15.2 million.
EPS Increase
GAAP earnings per diluted share for Q2 2025 were $0.21, a 61.5% year-over-year increase. Adjusted EPS was $0.35, a 45.8% year-over-year increase.
LTL Segment Growth
LTL business grew revenue excluding fuel surcharge by 28.4% year-over-year. Shipments per day increased by 21.7%.
Truckload Segment Performance
Truckload segment improved its adjusted operating ratio by 260 basis points and grew adjusted operating income by 87.5% year-over-year.
Logistics Segment Efficiency
Despite a 2.6% decline in revenue, the Logistics segment improved its adjusted operating ratio by 70 basis points to 94.8% and grew adjusted operating income by 13.3% year-over-year.
Cost Control Initiatives
The company made meaningful progress in cost control, reducing fixed costs on an absolute basis and keeping fixed cost per mile flat.
Negative Updates
Soft Freight Environment Impact
Most segments experienced pressure on revenue year-over-year due to a soft freight environment.
Intermodal Segment Decline
Intermodal segment saw a revenue decline of 13.8% year-over-year, driven by a 12.4% decrease in load count.
Operating Margin Pressure in LTL
Adjusted operating income for the LTL segment declined 36.8% year-over-year due to the decline in operating margin, primarily attributable to early-stage operations at new facilities.
Challenges in Cost of Expansion
The cost of expansion and integration efforts are putting pressure on margins, particularly in the LTL segment.
Uncertain Market Conditions
The fluid policy environment and soft freight demand, especially on the West Coast, have made forecasting difficult.
Company Guidance
During the Knight-Swift Transportation Second Quarter 2025 Earnings Call, the company provided several key metrics on its financial performance and guidance. Revenue, excluding fuel surcharge, increased by 1.9%, while adjusted operating income improved by 17.2% year-over-year. GAAP earnings per diluted share rose by 61.5% to $0.21, and adjusted EPS increased by 45.8% to $0.35. The adjusted operating ratio was 93.8%, an improvement of 80 basis points from the previous year. The company projected its adjusted EPS for the third quarter of 2025 to be between $0.36 and $0.42, with expectations of a sequential improvement in Truckload operating income, modest gains in LTL revenue and operating margin, and a stable contribution from the Logistics segment. Additionally, the company revised its full-year net cash CapEx guidance to $525 million to $575 million, down from the initial range of $575 million to $625 million.Knight Transportation Financial Statement Overview
Summary
Knight Transportation's financials reflect stability with consistent revenue and cash flow generation. The company maintains a strong equity base and prudent debt management, though profitability and ROE could be improved. Overall, the financial position is sound, but there is room for enhanced profitability.Income Statement
Knight Transportation's income statement showcases solid gross and net profit margins with a Gross Profit Margin of 18.2% and a Net Profit Margin of 2.0% for TTM (Trailing-Twelve-Months). Revenue growth appears stable, with a slight increase from the previous year, indicating consistent business performance. EBIT and EBITDA margins reflect steady operational efficiency, though there is a noticeable decline in EBIT margin from previous years. Overall, the income statement reflects a stable yet not exceptional profitability trajectory in a competitive trucking industry.75
Positive
Balance Sheet
The balance sheet indicates a stable financial position with a Debt-to-Equity Ratio of 0.19, suggesting prudent financial leverage. Return on Equity (ROE) for TTM is modest at 2.1%, which is quite low and shows room for improvement in generating returns for shareholders. The Equity Ratio stands strong at 56.4%, indicating a robust equity base relative to total assets, providing a cushion against liabilities. Overall, the balance sheet reflects a sound financial structure but with modest shareholder returns.70
Positive
Cash Flow
Cash flow analysis shows a Free Cash Flow to Net Income Ratio of 0.81 for TTM, indicating a robust cash generation relative to net income, though the Free Cash Flow Growth Rate shows volatility over the years. The Operating Cash Flow to Net Income Ratio is high at 5.77, highlighting strong cash conversion efficiency. However, capital expenditures have been significant, impacting free cash flow. The cash flow statement presents a stable cash-generating capability but with potential pressure from capital investments.68
Positive
| 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 |
| EBITDA | 1.11B | 1.13B | 1.77B | 1.62B | 1.17B |
| Net Income | 117.63M | 217.15M | 771.33M | 743.39M | 410.00M |
Balance Sheet | |||||
| Total Assets | 12.70B | 12.87B | 10.95B | 10.66B | 8.47B |
| Cash, Cash Equivalents and Short-Term Investments | 218.26M | 168.54M | 196.77M | 261.00M | 156.70M |
| Total Debt | 3.28B | 3.20B | 2.09B | 2.24B | 817.08M |
| 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
Negative
44.84
Price Trends
44.82
Positive
43.72
Positive
48.88
Negative
Market Momentum
0.14
Positive
47.38
Neutral
32.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KNX, the sentiment is Negative. The current price of 44.84 is below the 20-day moving average (MA) of 45.97, above the 50-day MA of 44.82, and below the 200-day MA of 48.88, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 47.38 is Neutral, neither overbought nor oversold. The STOCH value of 32.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KNX.
Knight Transportation Risk Analysis
Knight Transportation disclosed 38 risk factors in its most recent earnings report. Knight Transportation reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Knight Transportation Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.98B | 11.39 | 14.25% | 0.56% | -5.69% | 51.78% | |
75 Outperform | $8.30B | 30.82 | 12.69% | ― | 4.23% | -23.94% | |
68 Neutral | $7.38B | 44.91 | 2.33% | 1.52% | -2.54% | 144.49% | |
66 Neutral | $4.55B | 36.70 | 4.20% | 1.46% | -0.30% | -20.76% | |
65 Neutral | $11.05B | 15.76 | 5.13% | 1.92% | 3.11% | -24.90% | |
61 Neutral | $1.78B | 101.47 | 1.21% | 1.91% | -7.66% | -78.26% | |
58 Neutral | $1.06B | 50.78 | 2.72% | 1.85% | -11.77% | -52.06% |
* Industrials Sector Average
Performance Comparison
KNX
Knight Transportation
44.84
-6.69
-12.98%
MRTN
Marten Transport
13.00
-5.14
-28.34%
SAIA
Saia
333.61
-52.60
-13.62%
WERN
Werner Enterprises
29.33
-9.28
-24.04%
ARCB
ArcBest
86.21
-34.45
-28.55%
SNDR
Schneider National
26.03
0.15
0.58%
Knight Transportation Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Knight Transportation Secures New $2.5 Billion Credit Facility
Positive
Jul 14, 2025
On July 8, 2025, Knight-Swift Transportation Holdings Inc. entered into a new $2.5 billion unsecured credit facility, replacing its previous $2.3 billion credit facility and $250 million term loan. This new agreement includes a $1.5 billion revolving line of credit and two term loans, with varying maturity dates extending to 2030. The new credit facility is expected to streamline the company’s financial structure by consolidating its debt under more favorable terms, potentially enhancing its operational flexibility and financial stability.
The most recent analyst rating on (KNX) stock is a Buy with a $62.00 price target. To see the full list of analyst forecasts on Knight Transportation stock, see the KNX Stock Forecast page.
Shareholder MeetingsBusiness Operations and Strategy
Knight Transportation Holds Annual Stockholders Meeting
Neutral
May 14, 2025
On May 13, 2025, Knight-Swift Transportation Holdings Inc. held its Annual Meeting of Stockholders, where several key decisions were made. The stockholders elected twelve directors to serve one-year terms, approved executive compensation on an advisory basis, ratified the appointment of Grant Thornton LLP as the independent registered public accounting firm for 2025, and voted against a proposal for transparency in political spending. These decisions reflect the company’s strategic priorities and governance approach, potentially impacting its operational focus and stakeholder relations.
The most recent analyst rating on (KNX) stock is a Buy with a $62.00 price target. To see the full list of analyst forecasts on Knight Transportation stock, see the KNX Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.