Knight Transportation (KNX) AI Stock Analysis

• Market Cap: $7.05B
• Dividend Yield: 1.52%
• Average Volume (3M): 3.11M
• Price to Earnings (P/E): 46.8
• Beta (1Y): 1.09
• Revenue Growth: 1.16%
• EPS Growth: 36.33%
• Country: US
• Employees: 35,300
• Sector: Industrials
• Sector Strength: 92
• Industry: Trucking
• EPS (TTM): 0.28
• Shares Outstanding: 162,050,000
• 10 Day Avg. Volume: 2,929,480
• 30 Day Avg. Volume: 3,111,395
• PEG Ratio: 1.55
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 55.24
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $49.20
• Price Target Upside: 14.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 63 Neutral
• Price Target: $46.00 ▲( 7.43% Upside)

Knight Transportation is financially stable with a solid equity base and cash flow generation. However, high P/E ratio suggests overvaluation and external market uncertainties impact forward guidance. Technical indicators show mixed signals with short-term strength but long-term challenges. Recent board appointment is a strategic positive.

Positive Factors

Financial Performance

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

Market Position

Despite the reduction in guidance, Knight Transportation is considered best-positioned to outperform peers and benefit from a recovery in the TL market.

Operational Efficiency

Knight effectively controlled costs during the quarter and improved asset utilization while generating year-over-year revenue per loaded mile growth for the first time in 10 quarters.

Negative Factors

Guidance Reduction

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

Import Reduction

The guidance reduction was attributed to expected reductions in imports in May and June, which negatively impact demand and seasonality.

Trade Policy Impact

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

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 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 demonstrates stable financials with consistent revenue and cash flow generation. The company has a strong equity base and prudent debt management, though profitability and ROE could be improved. In a challenging trucking industry, Knight Transportation is resilient in its core operations, but there is room for enhanced profitability and shareholder returns.

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.

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.

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.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.41B	7.41B	7.14B	7.43B	6.00B	4.67B
	Gross Profit
979.80M	1.03B	1.25B	1.77B	1.41B	969.12M
	EBIT
295.11M	243.39M	338.15M	412.30M	418.18M	76.28M
	EBITDA
1.04B	1.11B	1.13B	1.77B	1.62B	1.17B
	Net Income Common Stockholders
150.90M	117.63M	217.15M	771.33M	743.39M	410.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
344.63M	218.26M	168.54M	196.77M	261.00M	156.70M
	Total Assets
12.61B	12.70B	12.87B	10.95B	10.66B	8.47B
	Total Debt
3.21B	3.28B	3.20B	2.09B	2.24B	817.08M
	Net Debt
3.00B	3.06B	3.03B	1.89B	1.98B	660.38M
	Total Liabilities
5.48B	5.58B	5.77B	4.00B	4.11B	2.60B
	Stockholders Equity
7.11B	7.11B	7.09B	6.95B	6.53B	5.87B
Cash Flow		Free Cash Flow
121.92M	-20.09M	90.06M	635.29M	656.06M	398.58M
	Operating Cash Flow
871.22M	799.06M	1.16B	1.44B	1.19B	919.64M
	Investing Cash Flow
-673.59M	-759.12M	-1.23B	-646.18M	-1.82B	-480.71M
	Financing Cash Flow
-193.48M	-139.40M	150.69M	-754.35M	779.33M	-443.88M

Knight Transportation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 42.82
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 42.82 is below the 20-day moving average (MA) of 42.86, above the 50-day MA of 42.40, and below the 200-day MA of 50.52, indicating a neutral trend. The MACD of 0.69 indicates Negative momentum. The RSI at 48.50 is Neutral, neither overbought nor oversold. The STOCH value of 8.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KNX.

Knight Transportation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARCB	73 Outperform	$1.42B	8.20	14.25%	0.76%	-5.69%	51.78%
SAIA	72 Outperform	$7.14B	22.36	14.63%	―	8.95%	-13.23%
SNDR	65 Neutral	$4.12B	33.23	4.20%	1.62%	-0.30%	-20.76%
Sector *	64 Neutral	$4.39B	11.81	5.20%	249.38%	3.96%	-12.36%
KNX	63 Neutral	$7.05B	46.78	2.13%	1.52%	1.16%	36.33%
MRTN	63 Neutral	$1.06B	48.96	2.83%	1.83%	-13.47%	-62.49%
WERN	50 Neutral	$1.62B	91.85	1.21%	2.14%	-7.66%	-78.26%

Knight Transportation Corporate Events

Knight Transportation Holds Annual Stockholders Meeting

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.

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.