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Knowles
(NYSE:KN)
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Rating:66Neutral
Price Target:
$36.00
▲(4.23% Upside)
Action:Reiterated
Date:10/23/26
The score is driven primarily by solid and improving financial performance (profitability, conservative leverage, positive free cash flow) and a strongly positive earnings-call outlook (raised growth expectations and margin expansion trajectory). Offsetting these strengths are weak near-term technicals (below key moving averages with negative MACD) and a demanding valuation (P/E 44.2 with no dividend yield support).
Positive Factors
Backlog and Design-Win Momentum
A book-to-bill ratio above one, a healthy backlog and continued design wins indicate demand is exceeding current shipments and support visibility into future revenue. Broad order strength across end markets and customers also suggests growth is not dependent on one isolated program.
Negative Factors
Historical Earnings Volatility
Large losses in recent annual periods show that reported earnings can diverge materially from underlying operating performance. This history reduces confidence in consistent profitability and indicates that non-operating items or one-time charges may continue to create variability.
Read all positive and negative factors
Positive Factors
Negative Factors
Backlog and Design-Win Momentum
A book-to-bill ratio above one, a healthy backlog and continued design wins indicate demand is exceeding current shipments and support visibility into future revenue. Broad order strength across end markets and customers also suggests growth is not dependent on one isolated program.
Read all positive factors
Knowles Key Performance Indicators (KPIs)
Any
Revenue by Geography
Tracks where Knowles earns its revenue across countries and regions, indicating dependence on particular markets. A heavy tilt toward one geography raises exposure to regional slowdowns, trade issues, or supply-chain disruption, while a diversified footprint points to more resilient demand.
Tracks where Knowles earns its revenue across countries and regions, indicating dependence on particular markets. A heavy tilt toward one geography raises exposure to regional slowdowns, trade issues, or supply-chain disruption, while a diversified footprint points to more resilient demand.
Data provided by:
The Fly
The FlyKnowles (KN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.75B
Dividend YieldN/A
Average Volume (3M)711.18K
Price to Earnings (P/E)38.3
Beta (1Y)1.66
Revenue Growth16.15%
EPS Growth86.48%
CountryUS
Employees5,200
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.83
Shares Outstanding85,410,324
10 Day Avg. Volume802,041
30 Day Avg. Volume711,184
Financial Highlights & Ratios
PEG Ratio-0.35
Price to Book (P/B)2.37
Price to Sales (P/S)3.10
P/FCF Ratio22.45
Enterprise Value/Market Cap1.22
Enterprise Value/Revenue5.02
Enterprise Value/Gross Profit11.79
Enterprise Value/Ebitda24.57
Forecast
1Y Price Target
$42.50Price Target Upside23.05% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.34
Revenue Forecast (FY)$666.58M
Knowles Business Overview & Revenue Model
Company Description
Knowles Corporation is a leading provider of specialized electronic components, offering an array of micro-acoustic microphones, sophisticated balanced armature speakers, comprehensive audio solutions, high-performance capacitors, and advanced rad...
How the Company Makes Money
Knowles makes money primarily by selling engineered components and modules to OEM customers, with revenue recognized from product shipments under customer purchase orders and longer-term supply arrangements. A major revenue stream comes from its h...
Knowles Earnings Call Summary
Earnings Call Date:Oct 22, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 10, 2027
Earnings Call Sentiment Positive
The call was strongly positive, supported by revenue growth above guidance, broad-based Precision Devices demand, robust orders and backlog, improving margins, strong cash generation, debt reduction, favorable 2026 guidance and multiple 2027 growth initiatives. The principal challenges were near-term capacity constraints, a 2% to 3% 2027 stamping headwind, higher planned capital spending, elevated operating expenses and uncertainty around part of industrial demand, but management characterized the broader outlook and execution as strong.Positive Updates
Strong Third-Quarter Financial Performance
Third-quarter revenue was $184 million, up 20% year-over-year and above the high end of guidance. EPS was $0.38, up $0.05 or 15% year-over-year and at the high end of guidance, while cash provided by operating activities was $45 million, also at the high end of guidance.
Negative Updates
Expected 2027 Stamping Revenue Headwind
The stamping business associated with the divested consumer business will have no revenue after the last-time buy at the end of 2026. Management expects this to create an approximately 2% to 3% headwind in 2027, particularly in the first half, although it noted that the business was cost-plus and did not generate significant EBIT.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Third-Quarter Financial Performance
Third-quarter revenue was $184 million, up 20% year-over-year and above the high end of guidance. EPS was $0.38, up $0.05 or 15% year-over-year and at the high end of guidance, while cash provided by operating activities was $45 million, also at the high end of guidance.
Read all positive updates
Company Guidance
For the fourth quarter of 2026, revenues are expected to be between $180 million and $190 million, up 14% year-over-year at the midpoint, with R&D expenses between $10 million and $12 million, selling and administrative expenses within the range of $29 million to $31 million, adjusted EBIT margin within the range of 23% to 25%, interest expense of $1.5 million, an effective tax rate of 15% to 19%, EPS within the range of $0.39 to $0.43 per share, up $0.05 or 14% year-over-year at the midpoint, weighted average shares outstanding of 87 million, cash from operating activities within the range of $60 million to $70 million, and capital spending of $8 million; full year capital spending is expected to be approximately 5% of revenues, 2026 revenue growth is expected to be 16% at the midpoint of the guidance range and adjusted EBITDA growth 24% over 2025 levels, and capital spending is expected to be above the historic range of 3% to 5%, increasing to 5% to 7% of revenues in 2027. For 2027, hearing health is expected to perform at historical levels, MSA should still probably be in that 2% to 4% for the full year, with a headwind of about 2% to 3% next year, especially more in the first half, PD is expected to have very strong year-over-year growth in the first half but be relatively flat sequentially because of capacity constraints, and MSA gross margins may be a little 1% or so higher in '27 over '26; Micro Solutions revenue is expected to be closer to $3 million this year, with a clear path north of $5 million next year and north of $10 million in '28 and maybe even more, while the company sees a path within 2 to 3 years from just a little north of 25% EBITDA margins this year to 30%.Knowles Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
79
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 666.10M | 593.20M | 553.50M | 456.80M | 478.80M | 868.10M |
| Gross Profit | 283.70M | 244.50M | 221.20M | 200.10M | 227.00M | 341.50M |
| EBITDA | 136.20M | 109.60M | 92.40M | 70.90M | 145.50M | 181.50M |
| Net Income | 71.70M | 44.20M | -239.50M | 72.40M | -430.10M | 150.40M |
Balance Sheet | ||||||
| Total Assets | 1.08B | 1.05B | 1.12B | 1.46B | 1.18B | 1.73B |
| Cash, Cash Equivalents and Short-Term Investments | 46.60M | 54.20M | 130.10M | 87.30M | 48.20M | 68.90M |
| Total Debt | 134.30M | 150.30M | 213.00M | 286.70M | 64.50M | 102.40M |
| Total Liabilities | 276.90M | 275.30M | 362.20M | 428.70M | 191.00M | 275.10M |
| Stockholders Equity | 798.30M | 775.80M | 756.00M | 1.03B | 992.90M | 1.46B |
Cash Flow | ||||||
| Free Cash Flow | 79.40M | 81.90M | 116.50M | 105.50M | 54.20M | 133.50M |
| Operating Cash Flow | 119.30M | 114.00M | 130.10M | 122.70M | 86.30M | 182.10M |
| Investing Cash Flow | -39.90M | -31.60M | 45.20M | -141.60M | -32.70M | -129.60M |
| Financing Cash Flow | -125.20M | -158.90M | -132.00M | 58.20M | -73.20M | -131.40M |
Knowles Technical Analysis
Negative
34.54
Price Trends
35.78
Negative
37.00
Negative
32.74
Negative
Market Momentum
-0.86
Positive
33.19
Neutral
22.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KN, the sentiment is Negative. The current price of 34.54 is below the 20-day moving average (MA) of 36.34, below the 50-day MA of 35.78, and above the 200-day MA of 32.74, indicating a bearish trend. The MACD of -0.86 indicates Positive momentum. The RSI at 33.19 is Neutral, neither overbought nor oversold. The STOCH value of 22.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KN.
Knowles Risk Analysis
Knowles disclosed 22 risk factors in its most recent earnings report. Knowles 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
Knowles Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $283.43M | 22.18 | 13.03% | ― | 11.85% | 10.33% | |
76 Outperform | $1.52B | 21.93 | 12.52% | 0.30% | 8.48% | 13.14% | |
70 Outperform | $2.23B | 72.23 | 2.61% | ― | 4.90% | ― | |
67 Neutral | $2.80B | 49.88 | 10.97% | 0.14% | 25.26% | -4.61% | |
66 Neutral | $2.75B | 38.30 | 9.11% | ― | 16.15% | 86.48% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
51 Neutral | $432.02M | -11.67 | -5.46% | 1.65% | 1.36% | 32.69% |
* Technology Sector Average
KN
Knowles
32.17
8.60
36.49%
BELFB
Bel Fuse Inc
199.51
43.81
28.14%
CTS
CTS
53.06
10.75
25.40%
MEI
Methode Electronics
12.12
5.06
71.65%
ROG
Rogers
124.96
38.51
44.55%
MPTI
M-tron Industries Inc
65.21
11.31
20.98%
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.