Knight Transportation (KNX) AI Stock Analysis

• Market Cap: $6.72B
• Dividend Yield: 1.69%
• Average Volume (3M): 2.70M
• Price to Earnings (P/E): 40.8
• Beta (1Y): 1.15
• 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: 3,350,091
• 30 Day Avg. Volume: 2,697,006
• 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: 1.42
• Enterprise Value/Revenue: 1.29
• Enterprise Value/Gross Profit: 6.52
• Enterprise Value/Ebitda: 8.91
• 1Y Price Target: $50.94
• Price Target Upside: 23.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 67 Neutral
• Price Target: $47.00 ▲(13.50% 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 Transportation (KNX) is a prominent American logistics and transportation company specializing in truckload transportation services. Founded in 1990 and headquartered in Phoenix, Arizona, the company operates through various segments including dry van, refrigerated, and logistics services. Knight Transportation provides comprehensive freight transportation solutions, catering primarily to shippers across North America, and is known for its commitment to service reliability and safety.

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: Neutral
• Last Price: 41.41
• 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 41.41 is above the 20-day moving average (MA) of 40.80, below the 50-day MA of 42.05, and below the 200-day MA of 45.70, indicating a neutral trend. The MACD of -0.77 indicates Negative momentum. The RSI at 51.81 is Neutral, neither overbought nor oversold. The STOCH value of 56.59 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
SNDR	69 Neutral	$3.81B	30.51	4.20%	1.75%	2.20%	7.86%
ARCB	68 Neutral	$1.64B	10.70	12.50%	0.67%	-6.42%	25.72%
KNX	67 Neutral	$6.72B	40.80	2.33%	1.69%	-2.54%	144.49%
SAIA	65 Neutral	$7.92B	27.47	12.69%	―	4.23%	-23.94%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
WERN	61 Neutral	$1.64B	32.05	3.65%	2.04%	-6.43%	-13.76%
MRTN	56 Neutral	$865.75M	41.39	2.72%	2.26%	-11.77%	-52.06%

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.