Knight Transportation (KNX) AI Stock Analysis

• Market Cap: $6.54B
• Dividend Yield: 1.59%
• Average Volume (3M): 3.31M
• Price to Earnings (P/E): 44.4
• Beta (1Y): 1.04
• Revenue Growth: 1.16%
• EPS Growth: 36.33%
• Country: US
• Employees: 35,300
• Sector: Industrials
• Sector Strength: 80
• Industry: Trucking
• EPS (TTM): 0.28
• Shares Outstanding: 162,050,000
• 10 Day Avg. Volume: 3,437,396
• 30 Day Avg. Volume: 3,305,037
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 9.19
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $48.87
• Price Target Upside: 13.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

Knight Transportation's overall stock score reflects a company with stable financial performance but facing challenges in profitability and valuation. The technical indicators suggest a bearish trend, and while recent corporate changes are positive, market uncertainties and high P/E ratios temper the outlook. The company remains resilient in operations, but improvements in profitability and strategic guidance are needed for a stronger stock performance.

Positive Factors

Earnings

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

Financial Performance

Knight-Swift posted a 1Q25 adjusted EPS up 131% year-over-year.

Negative Factors

Guidance

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

Market Conditions

Knight-Swift has seen customers with high Chinese goods exposure scale back orders.

Trade Policy

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

Knight Transportation Business Overview & Revenue Model

Company Description

Knight Transportation, a subsidiary of Knight-Swift Transportation Holdings Inc., is a leading provider of truckload transportation services in North America. It operates within the transportation and logistics sector, offering a range of services including dry van, refrigerated, and dedicated trucking solutions. With a focus on safety, efficiency, and customer satisfaction, Knight Transportation serves a diverse clientele across various industries.

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

Knight Transportation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 43.17
• 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 43.17 is above the 20-day moving average (MA) of 39.92, below the 50-day MA of 43.18, and below the 200-day MA of 50.91, indicating a neutral trend. The MACD of -0.70 indicates Negative momentum. The RSI at 52.07 is Neutral, neither overbought nor oversold. The STOCH value of 79.66 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
SAIA	71 Outperform	$6.78B	21.24	14.63%	―	8.95%	-13.23%
ARCB	71 Outperform	$1.34B	8.06	14.25%	0.81%	-5.69%	51.78%
Sector *	64 Neutral	$4.24B	11.64	5.23%	249.83%	4.07%	-10.54%
KNX	64 Neutral	$6.54B	44.38	2.13%	1.59%	1.16%	36.33%
SNDR	63 Neutral	$3.90B	32.10	4.20%	1.71%	-0.30%	-20.76%
MRTN	57 Neutral	$1.03B	48.42	2.83%	1.89%	-13.47%	-62.49%
WERN	50 Neutral	$1.56B	90.05	1.21%	2.18%	-7.66%	―

Knight Transportation Corporate Events

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.