Knight Transportation (KNX) AI Stock Analysis

• Market Cap: $6.44B
• Dividend Yield: 1.74%
• Average Volume (3M): 2.45M
• Price to Earnings (P/E): 39.1
• Beta (1Y): 1.14
• Revenue Growth: -2.54%
• EPS Growth: 144.49%
• Country: US
• Employees: 35,300
• Sector: Industrials
• Sector Strength: 72
• Industry: Trucking
• EPS (TTM): 0.35
• Shares Outstanding: 162,302,000
• 10 Day Avg. Volume: 2,944,415
• 30 Day Avg. Volume: 2,445,100
• 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: 1.48
• Enterprise Value/Revenue: 1.29
• Enterprise Value/Gross Profit: 6.52
• Enterprise Value/Ebitda: 8.91
• 1Y Price Target: $51.93
• Price Target Upside: 29.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 67 Neutral
• Price Target: $47.00 ▲(17.06% Upside)

Knight Transportation's overall stock score reflects a stable financial position and positive corporate events, offset by a high valuation and mixed technical signals. The company's resilience and strategic growth in key segments are significant strengths, while valuation concerns and lack of strong technical momentum are notable risks.

Positive Factors

Financial Flexibility

The new $2.5 billion credit facility enhances financial flexibility, allowing for better capital management and strategic investments, supporting long-term growth.

Revenue Growth in Key Segments

Significant revenue growth in the LTL segment indicates strong demand and effective market positioning, contributing to sustainable long-term revenue expansion.

Cash Flow Improvement

The substantial improvement in free cash flow highlights effective cash management, providing resources for reinvestment and debt reduction, enhancing financial stability.

Negative Factors

Soft Freight Environment

A soft freight environment poses challenges to revenue growth, impacting profitability and requiring strategic adjustments to maintain competitive advantage.

Intermodal Segment Decline

The decline in the Intermodal segment reflects operational challenges and market pressures, potentially affecting overall business performance and requiring strategic focus.

LTL Segment Margin Pressure

Margin pressure in the LTL segment due to expansion costs could strain profitability, necessitating efficiency improvements to sustain long-term growth.

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. The company operates a fleet of trucks and trailers that transport goods for customers across various industries, charging fees based on mileage, weight, and type of cargo. Key revenue streams include dry van services, which make up a significant portion of their business, as well as refrigerated transport services for temperature-sensitive goods. Additionally, Knight offers logistics services, managing the supply chain needs of customers which adds to its revenue. Strategic partnerships with shippers and a focus on customer service enhance their earnings potential. The company also benefits from operational efficiencies and a strong focus on maintaining a modern, well-maintained fleet, which reduces costs and improves profitability.

Knight Transportation Financial Statement Overview

Summary

Knight Transportation demonstrates a stable financial position with consistent revenue and profitability levels. The income statement shows moderate profitability, while the balance sheet reflects solid equity and manageable debt levels. Cash flow improvements highlight effective cash management, though asset utilization needs enhancement.

Income Statement

Knight Transportation's income statement shows a stable financial performance with a Gross Profit Margin of 19.03% and a Net Profit Margin of 2.22% in the TTM. The company has experienced slight revenue growth of 0.23% from the previous annual period. Despite a decrease in EBIT and EBITDA margins, the overall profitability remains moderate. The trucking industry faces challenges, but the firm maintains a steady revenue trajectory.

Balance Sheet

The balance sheet reflects a solid Debt-to-Equity Ratio of 0.18 and a healthy Equity Ratio of 56.88%. The Return on Equity stands at 2.31%, indicating modest returns for shareholders. The company's financial stability is reinforced by its relatively low leverage compared to industry standards, but the declining total assets trend may be a concern.

Cash Flow

Knight Transportation's cash flow statement presents a positive Free Cash Flow growth rate of 1060.01% in the TTM and an Operating Cash Flow to Net Income Ratio of 4.94. The significant improvement in free cash flow suggests better cash management, though the firm's reliance on capital expenditures requires careful monitoring to sustain long-term liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.43B	7.41B	7.14B	7.43B	6.00B	4.67B
Gross Profit	1.47B	1.80B	1.96B	2.41B	1.97B	1.46B
EBITDA	1.07B	1.03B	1.01B	1.66B	1.47B	1.07B
Net Income	164.84M	117.63M	217.15M	771.33M	743.39M	410.00M
Balance Sheet
Total Assets	12.52B	12.70B	12.87B	10.95B	10.66B	8.47B
Cash, Cash Equivalents and Short-Term Investments	339.37M	218.26M	168.54M	196.77M	261.00M	156.70M
Total Debt	1.30B	3.28B	3.20B	2.09B	2.24B	817.08M
Total Liabilities	5.39B	5.58B	5.77B	4.00B	4.11B	2.60B
Stockholders Equity	7.12B	7.11B	7.09B	6.95B	6.53B	5.87B
Cash Flow
Free Cash Flow	195.56M	-20.09M	90.06M	635.29M	656.06M	398.58M
Operating Cash Flow	814.29M	799.06M	1.16B	1.44B	1.19B	919.64M
Investing Cash Flow	-689.90M	-759.12M	-1.23B	-646.18M	-1.82B	-480.71M
Financing Cash Flow	-118.69M	-139.40M	150.69M	-754.35M	779.33M	-443.88M

Knight Transportation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 40.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 40.15 is below the 20-day moving average (MA) of 41.49, below the 50-day MA of 42.45, and below the 200-day MA of 46.01, indicating a bearish trend. The MACD of -0.97 indicates Positive momentum. The RSI at 41.67 is Neutral, neither overbought nor oversold. The STOCH value of 20.23 is Neutral, 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
SNDR	69 Neutral	$3.73B	29.85	2.53%	1.79%	2.20%	7.86%
KNX	67 Neutral	$6.44B	39.06	2.33%	1.74%	-2.54%	144.49%
ARCB	66 Neutral	$1.56B	10.18	12.17%	0.70%	-6.42%	25.72%
SAIA	65 Neutral	$7.82B	27.12	11.90%	―	4.23%	-23.94%
WERN	58 Neutral	$1.57B	30.66	3.69%	2.13%	-6.43%	-13.76%
MRTN	56 Neutral	$874.71M	41.82	2.71%	2.24%	-11.77%	-52.06%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Knight Transportation Corporate Events

Knight Transportation Declares Quarterly Cash Dividend

On August 6, 2025, Knight-Swift Transportation Holdings Inc.’s board of directors declared a quarterly cash dividend of $0.18 per share, payable to stockholders of record as of September 5, 2025, with payment expected on September 22, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders.

Knight Transportation Secures New $2.5 Billion Credit Facility

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.