Knowles Corporation (KN)
NYSE:KN
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Knowles
(NYSE:KN)
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Rating:69Neutral
Price Target:
$45.00
▲(51.57% Upside)
Action:Reiterated
Date:06/16/26
The score is driven primarily by solid financial quality (low leverage and strong cash generation) and strong technical momentum (price well above key moving averages with supportive MACD/RSI). This is partially offset by expensive valuation (P/E ~60.8) and lingering fundamental risk from recent revenue decline and historical earnings volatility. Positive, growth-oriented guidance from the latest earnings call provides an additional tailwind.
Positive Factors
Cash generation
Consistent positive operating and free cash flow (OCF $112M, FCF $73.1M) supports durable capital allocation: funds capex for capacity, funds share repurchases, services debt, and cushions cyclic end markets. Cash conversion exceeding net income signals quality earnings and long-term financial resilience.
Negative Factors
Revenue and earnings volatility
Material multi-year top-line swings and episodic large losses reduce predictability of future cash flows and complicate planning. This history of volatility implies execution and demand sensitivity risks that can persist, making sustainable margin and EPS trajectories less certain over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent positive operating and free cash flow (OCF $112M, FCF $73.1M) supports durable capital allocation: funds capex for capacity, funds share repurchases, services debt, and cushions cyclic end markets. Cash conversion exceeding net income signals quality earnings and long-term financial resilience.
Read all positive factors
Knowles Key Performance Indicators (KPIs)
Knowles (KN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.45B
Dividend YieldN/A
Average Volume (3M)1.04M
Price to Earnings (P/E)61.5
Beta (1Y)1.61
Revenue Growth-1.25%
EPS GrowthN/A
CountryUS
Employees5,500
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.64
Shares Outstanding85,560,660
10 Day Avg. Volume999,778
30 Day Avg. Volume1,044,757
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 Cap1.03
Enterprise Value/Revenue5.79
Enterprise Value/Gross Profit13.80
Enterprise Value/Ebitda29.90
Forecast
1Y Price Target
$36.67Price Target Upside23.50% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)1.25
Revenue Forecast (FY)$643.27M
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 its engineered acoustic components and solutions to original equipment manufacturers (OEMs) and other device makers. Revenue is generated through (1) product sales of acoustic transducers and related compon...
Knowles Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational momentum: double-digit revenue growth (16% YoY), significant EPS improvement (50% YoY), expanding gross margins, a 1.19 book-to-bill in Precision Devices, and a funded energy order that should drive additional PD margin expansion in the back half of 2026. Management provided constructive Q2 guidance (revenue, margins, EPS) and highlighted conservative leverage and ample liquidity. Near-term headwinds include modest operating cash usage in Q1 (partly due to divestiture-related outflows), higher R&D/SG&A, temporary specialty film ramp costs, and the need for added direct labor as volumes increase. Overall, positives materially outweigh manageable, mostly transitory, lowlights.Positive Updates
Strong Top-Line and EPS Growth
Q1 revenue of $153.0M, up 16% year-over-year and at the high end of guidance. Adjusted EPS of $0.27, up 50% YoY and above the high end of guided range.
Negative Updates
Operating Cash Usage in Q1 and CMM-Related Outflows
Cash used by operating activities was $1M in Q1. Operating cash included ~$8M of outflows related to the previously divested CMM business, though management indicated these payments are now substantially complete.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line and EPS Growth
Q1 revenue of $153.0M, up 16% year-over-year and at the high end of guidance. Adjusted EPS of $0.27, up 50% YoY and above the high end of guided range.
Read all positive updates
Company Guidance
Knowles guided Q2 2026 revenue of $152–162 million (midpoint +8% YoY), adjusted EBIT margin of 20–22%, EPS of $0.28–$0.32 (midpoint +$0.06 or +25% YoY), R&D of $9–11 million, SG&A of $26–28 million, interest of ~$2 million, an effective tax rate of 15–19%, weighted average diluted shares of ~87 million, cash from operations of $20–30 million, and Q2 capex of $8 million (full‑year capex expected to be ~4–5% of revenues). For the full year management expects revenue growth above the high end of its prior 4–6% organic target and adjusted EBITDA growth above its 10–14% cumulative annual target; segment guidance includes MSA gross margins roughly in line with 2025 (~51% despite Q1 at 53.5%, up 480 bps YoY) and continued PD gross margin expansion (Q1 PD margin 39.2%, up 350 bps YoY; management said they’d be surprised if PD doesn’t improve ~100 bps for the year and called out a potential 200–250 bps back‑half benefit from the specialty energy ramp). Recent operating and balance‑sheet metrics referenced on the call: Q1 revenue $153 million (+16% YoY), Q1 EPS $0.27 (+50% YoY), Q1 cash used in operations $1 million, a book‑to‑bill of 1.19, a $75M+ energy order (with ~$25M+ expected contribution in the rest of 2026), Q1 cash $41 million, $131 million drawn on the revolver, net leverage ~0.6x on trailing‑12M adjusted EBITDA, liquidity >$310 million, and 276k shares repurchased for $7.5 million.Knowles Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
74
Positive
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 614.10M | 593.20M | 553.50M | 456.80M | 478.80M | 868.10M |
| Gross Profit | 257.40M | 244.50M | 221.20M | 200.10M | 227.00M | 341.50M |
| EBITDA | 118.80M | 109.60M | 92.40M | 70.90M | 145.50M | 181.50M |
| Net Income | 55.90M | 44.20M | -239.50M | 72.40M | -430.10M | 150.40M |
Balance Sheet | ||||||
| Total Assets | 1.05B | 1.05B | 1.12B | 1.46B | 1.18B | 1.73B |
| Cash, Cash Equivalents and Short-Term Investments | 41.00M | 54.20M | 130.10M | 87.30M | 48.20M | 68.90M |
| Total Debt | 151.50M | 150.30M | 213.00M | 286.70M | 64.50M | 102.40M |
| Total Liabilities | 273.70M | 275.30M | 362.20M | 428.70M | 191.00M | 275.10M |
| Stockholders Equity | 780.20M | 775.80M | 756.00M | 1.03B | 992.90M | 1.46B |
Cash Flow | ||||||
| Free Cash Flow | 73.10M | 81.90M | 116.50M | 105.50M | 54.20M | 133.50M |
| Operating Cash Flow | 112.00M | 114.00M | 130.10M | 122.70M | 86.30M | 182.10M |
| Investing Cash Flow | -38.90M | -31.60M | 45.20M | -141.60M | -32.70M | -129.60M |
| Financing Cash Flow | -134.50M | -158.90M | -132.00M | 58.20M | -73.20M | -131.40M |
Knowles Technical Analysis
Positive
29.69
Price Trends
34.40
Positive
30.15
Positive
26.48
Positive
Market Momentum
1.67
Negative
62.89
Neutral
73.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KN, the sentiment is Positive. The current price of 29.69 is below the 20-day moving average (MA) of 38.28, below the 50-day MA of 34.40, and above the 200-day MA of 26.48, indicating a bullish trend. The MACD of 1.67 indicates Negative momentum. The RSI at 62.89 is Neutral, neither overbought nor oversold. The STOCH value of 73.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $2.59B | 58.66 | 6.72% | ― | 13.48% | 0.69% | |
69 Neutral | $3.45B | 61.46 | 7.32% | ― | -1.25% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $1.20B | -33.94 | -24.02% | ― | 18.84% | 77.12% | |
60 Neutral | $1.61B | -38.84 | -10.31% | ― | -27.47% | -181.91% | |
54 Neutral | $12.28B | -205.18 | -6.92% | ― | 30.59% | -1171.00% | |
53 Neutral | $653.28M | -15.99 | -7.97% | ― | 3.66% | -200.01% |
* Technology Sector Average
KN
Knowles
40.23
23.16
135.68%
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NTGR
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48.73
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421.73%
Knowles Corporate Events
Executive/Board ChangesShareholder Meetings
Knowles Shareholders Endorse Board, Executive Pay and Auditor
Positive
Apr 29, 2026
Knowles held its annual meeting of stockholders on April 28, 2026, at which shareholders elected eight directors to one-year terms expiring at the 2027 annual meeting and strongly backed the company’s leadership slate. Investors also approve...
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.