NYSE:KNL

Stock Analysis Report

Executive Summary

Knoll, Inc., together with its subsidiaries, designs, manufactures, markets, and sells commercial and residential furniture, accessories, and coverings for the workplace and residential markets in the United States, Canada, Europe, and internationally.

Rewards

Trading at 56.5% below its fair value

Earnings are forecast to grow 16.52% per year

Earnings grew by 0.3% over the past year

Risk Analysis

Has a high level of debt

Unstable dividend track record



Snowflake Analysis

Undervalued with reasonable growth potential and pays a dividend.


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Share Price & News

How has Knoll's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KNL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.6%

KNL

0.9%

US Commercial Services

0.6%

US Market


1 Year Return

30.2%

KNL

24.5%

US Commercial Services

24.6%

US Market

Return vs Industry: KNL exceeded the US Commercial Services industry which returned 23.7% over the past year.

Return vs Market: KNL exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

KNLIndustryMarket
7 Day1.6%0.9%0.6%
30 Day-1.8%4.1%3.0%
90 Day-2.9%5.4%10.6%
1 Year33.9%30.2%29.1%24.5%27.3%24.6%
3 Year4.0%-4.6%64.4%53.7%50.5%40.8%
5 Year42.5%24.5%110.4%89.0%78.9%59.1%

Price Volatility Vs. Market

How volatile is Knoll's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Knoll undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KNL ($24.97) is trading below our estimate of fair value ($57.42)

Significantly Below Fair Value: KNL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: KNL is good value based on its PE Ratio (14.9x) compared to the Commercial Services industry average (26.4x).

PE vs Market: KNL is good value based on its PE Ratio (14.9x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: KNL is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: KNL is overvalued based on its PB Ratio (3x) compared to the US Commercial Services industry average (2.1x).


Next Steps

Future Growth

How is Knoll forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

21.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KNL's forecast earnings growth (16.5% per year) is above the savings rate (1.7%).

Earnings vs Market: KNL's earnings (16.5% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: KNL's revenue (6.7% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: KNL's revenue (6.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KNL's Return on Equity is forecast to be high in 3 years time (20.8%)


Next Steps

Past Performance

How has Knoll performed over the past 5 years?

9.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KNL has high quality earnings.

Growing Profit Margin: KNL's current net profit margins (5.8%) are lower than last year (6.4%).


Past Earnings Growth Analysis

Earnings Trend: KNL's earnings have grown by 9.4% per year over the past 5 years.

Accelerating Growth: KNL's earnings growth over the past year (0.3%) is below its 5-year average (9.4% per year).

Earnings vs Industry: KNL earnings growth over the past year (0.3%) exceeded the Commercial Services industry -1.3%.


Return on Equity

High ROE: Whilst KNL's Return on Equity (20.11%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Knoll's financial position?


Financial Position Analysis

Short Term Liabilities: KNL's short term assets ($341.9M) exceed its short term liabilities ($294.8M).

Long Term Liabilities: KNL's short term assets ($341.9M) do not cover its long term liabilities ($653.5M).


Debt to Equity History and Analysis

Debt Level: KNL's debt to equity ratio (114.7%) is considered high.

Reducing Debt: KNL's debt to equity ratio has increased from 109.2% to 114.7% over the past 5 years.

Debt Coverage: KNL's debt is well covered by operating cash flow (30.6%).

Interest Coverage: KNL's interest payments on its debt are well covered by EBIT (6.3x coverage).


Balance Sheet

Inventory Level: KNL has a high level of physical assets or inventory.

Debt Coverage by Assets: KNL's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is Knoll's current dividend yield, its reliability and sustainability?

2.67%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years2.7%

Current dividend yield vs market & industry

Notable Dividend: KNL's dividend (2.72%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: KNL's dividend (2.72%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: KNL's dividend payments have been volatile in the past 10 years.

Growing Dividend: KNL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.3%), KNL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KNL's dividends in 3 years are forecast to be well covered by earnings (26.9% payout ratio).


Next Steps

Management

What is the CEO of Knoll's salary, the management and board of directors tenure and is there insider trading?

3.4yrs

Average management tenure


CEO

Andrew Cogan (56yo)

18.8yrs

Tenure

US$4,496,563

Compensation

Mr. Andrew B. Cogan has been the Chief Executive Officer of Knoll, Inc. since April 2001 and as its Acting President since April 10, 2015 until April 2019. Mr. Cogan has been the Chairman of Knoll, Inc. si ...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD4.50M) is about average for companies of similar size in the US market ($USD3.86M).

Compensation vs Earnings: Andrew's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.4yrs

Average Tenure

54yo

Average Age

Experienced Management: KNL's management team is considered experienced (3.4 years average tenure).


Board Age and Tenure

5.8yrs

Average Tenure

62yo

Average Age

Experienced Board: KNL's board of directors are considered experienced (5.8 years average tenure).


Insider Trading

Insider Buying: KNL insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$125,13814 Nov 19
Sarah Nash
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,581
Max PriceUS$27.32
SellUS$68,27614 Nov 19
Michael Pollner
EntityIndividual
Role
Chief Administrative Officer
Senior VP
Shares2,500
Max PriceUS$27.31
SellUS$228,72708 Nov 19
Andrew Cogan
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares8,317
Max PriceUS$27.50
SellUS$224,67107 Nov 19
Andrew Cogan
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares8,100
Max PriceUS$27.74
SellUS$135,84406 Nov 19
Stephen Fisher
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$27.17
SellUS$134,55205 Nov 19
David Schutte
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Lifestyle
Shares5,000
Max PriceUS$26.91
SellUS$265,03230 Oct 19
David Schutte
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Lifestyle
Shares10,000
Max PriceUS$26.51
SellUS$144,97529 Oct 19
Michael Pollner
EntityIndividual
Role
Chief Administrative Officer
Senior VP
Shares5,514
Max PriceUS$26.29
SellUS$2,077,50929 Oct 19
Andrew Cogan
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares79,126
Max PriceUS$26.26
SellUS$232,75909 Aug 19
Andrew Cogan
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares10,000
Max PriceUS$23.28
SellUS$247,75931 Jul 19
David Schutte
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Lifestyle
Shares10,000
Max PriceUS$24.84
SellUS$107,62631 Jul 19
Andrew Cogan
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares4,305
Max PriceUS$25.00
SellUS$58,42023 May 19
Andrew Cogan
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares2,774
Max PriceUS$21.06
SellUS$216,22920 May 19
Andrew Cogan
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares10,226
Max PriceUS$21.15
SellUS$75,62507 May 19
David Schutte
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Lifestyle
Shares3,500
Max PriceUS$21.61

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Andrew Cogan (56yo)

    Chairman & CEO

    • Tenure: 18.8yrs
    • Compensation: US$4.50m
  • David Bright

    Senior Vice President of Communications

    • Benjamin Pardo (57yo)

      Executive VP & Director of Design

      • Tenure: 14.3yrs
      • Compensation: US$916.44k
    • David Schutte (54yo)

      Executive Vice President of Lifestyle

      • Tenure: 13yrs
      • Compensation: US$1.00m
    • Michael Pollner (46yo)

      Senior VP

      • Tenure: 2yrs
      • Compensation: US$824.44k
    • Roxanne Klein (42yo)

      Senior Vice President of Human Resources

      • Tenure: 4.2yrs
    • Chris Baldwin

      COO & President of Knoll Office

      • Tenure: 1.3yrs
    • Charles Rayfield (39yo)

      Senior VP & CFO

      • Tenure: 2.6yrs
      • Compensation: US$902.44k
    • Scott Cameron (56yo)

      Senior Vice President of Operations

      • Tenure: 2.5yrs
    • Usman Waheed

      Chief Information & Technology Officer


      Board Members

      • Jeffrey Harris (63yo)

        Lead Independent Director

        • Compensation: US$155.00k
      • Steve Fisher (66yo)

        Independent Director

        • Tenure: 14.1yrs
        • Compensation: US$140.00k
      • John Maypole (79yo)

        Independent Director

        • Tenure: 15.1yrs
        • Compensation: US$155.00k
      • Chris Kennedy (55yo)

        Independent Director

        • Tenure: 5.2yrs
        • Compensation: US$140.00k
      • Andrew Cogan (56yo)

        Chairman & CEO

        • Tenure: 18.8yrs
        • Compensation: US$4.50m
      • Dan Dienst (54yo)

        Independent Director

        • Tenure: 2.4yrs
        • Compensation: US$140.00k
      • Ron Kass (62yo)

        Independent Director

        • Tenure: 1.5yrs
        • Compensation: US$76.06k
      • Sarah Nash (65yo)

        Independent Director

        • Tenure: 13.3yrs
        • Compensation: US$140.00k
      • Stephanie Stahl (52yo)

        Independent Director

        • Tenure: 6.4yrs
        • Compensation: US$140.00k

      Company Information

      Knoll, Inc.'s company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Knoll, Inc.
      • Ticker: KNL
      • Exchange: NYSE
      • Founded: 1938
      • Industry: Office Services and Supplies
      • Sector: Commercial Services
      • Market Cap: US$1.246b
      • Shares outstanding: 48.88m
      • Website: https://www.knoll.com

      Number of Employees


      Location

      • Knoll, Inc.
      • 1235 Water Street
      • East Greenville
      • Pennsylvania
      • 18041
      • United States

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      KNLNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 2004
      KK6DB (Deutsche Boerse AG)YesCommon StockDEEURDec 2004

      Biography

      Knoll, Inc., together with its subsidiaries, designs, manufactures, markets, and sells commercial and residential furniture, accessories, and coverings for the workplace and residential markets in the United States, Canada, Europe, and internationally. The company operates through Office and Lifestyle segments. It offers systems furniture, including integrated panels or table desks, work surfaces and storage units, power and data systems, and lighting products; office seating products comprising various work chairs; and files and storage products, such as lateral files, mobile pedestals and other storage units, bookcases, and overhead cabinets. The company also provides a range of adjustable tables, as well as meeting, conference, training, dining, stand-alone, and table desks; technology support accessories, desktop organizational tools, and lighting and storage products; lounge furniture; side, café, and dining chairs; training, conference, dining, and occasional tables; and lighting, rugs, textiles, fabrics, felt, leather, upholstery, drapery, and related architectural products. It serves companies, governmental agencies, and other medium to large sized organizations in various industries, including financial, legal, accounting, education, healthcare, and hospitality through its direct sales force and showrooms, distribution partners, and independent dealers and retailers, as well as online. Knoll, Inc. was founded in 1938 and is headquartered in East Greenville, Pennsylvania. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/24 00:16
      End of Day Share Price2020/01/23 00:00
      Earnings2019/09/30
      Annual Earnings2018/12/31


      Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.