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Knowles

NYSE:KN
Snowflake Description

Excellent balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
KN
NYSE
$1B
Market Cap
  1. Home
  2. US
  3. Tech
Company description

Knowles Corporation designs, manufactures, and sells micro-acoustic, audio processing, and precision device solutions for the mobile consumer electronics, communications, medical, defense, aerospace, and industrial markets worldwide. The last earnings update was 32 days ago. More info.


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  • Knowles has significant price volatility in the past 3 months.
KN Share Price and Events
7 Day Returns
-4.9%
NYSE:KN
-0.2%
US Electronic
0.4%
US Market
1 Year Returns
32.2%
NYSE:KN
0.1%
US Electronic
3.5%
US Market
KN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Knowles (KN) -4.9% 1.7% 27.7% 32.2% 30.2% -47.6%
US Electronic -0.2% 0.3% 22.8% 0.1% 60% 59.3%
US Market 0.4% 1.6% 16.4% 3.5% 39.4% 44%
1 Year Return vs Industry and Market
  • KN outperformed the Electronic industry which returned 0.1% over the past year.
  • KN outperformed the Market in United States of America which returned 3.5% over the past year.
Price Volatility
KN
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Knowles undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Knowles to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Knowles.

NYSE:KN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:KN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Electronic Unlevered Beta Simply Wall St/ S&P Global 1.07
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.07 (1 + (1- 21%) (11.43%))
1.111
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.11
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.111 * 5.96%)
9.35%

Discounted Cash Flow Calculation for NYSE:KN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Knowles is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:KN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.35%)
2019 22.00 Analyst x1 20.12
2020 66.00 Analyst x1 55.19
2021 73.01 Est @ 10.62% 55.83
2022 79.04 Est @ 8.25% 55.27
2023 84.25 Est @ 6.6% 53.88
2024 88.83 Est @ 5.44% 51.95
2025 92.94 Est @ 4.62% 49.70
2026 96.71 Est @ 4.06% 47.29
2027 100.25 Est @ 3.66% 44.83
2028 103.64 Est @ 3.38% 42.38
Present value of next 10 years cash flows $476.45
NYSE:KN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $103.64 × (1 + 2.73%) ÷ (9.35% – 2.73%)
$1,607.35
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,607.35 ÷ (1 + 9.35%)10
$657.31
NYSE:KN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $476.45 + $657.31
$1,133.76
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,133.76 / 90.22
$12.57
NYSE:KN Discount to Share Price
Calculation Result
Value per share (USD) From above. $12.57
Current discount Discount to share price of $16.55
= -1 x ($16.55 - $12.57) / $12.57
-31.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Knowles is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Knowles's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Knowles's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:KN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.73
NYSE:KN Share Price ** NYSE (2019-03-22) in USD $16.55
United States of America Electronic Industry PE Ratio Median Figure of 92 Publicly-Listed Electronic Companies 19.26x
United States of America Market PE Ratio Median Figure of 3,058 Publicly-Listed Companies 17.52x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Knowles.

NYSE:KN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:KN Share Price ÷ EPS (both in USD)

= 16.55 ÷ 0.73

22.72x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Knowles is overvalued based on earnings compared to the US Electronic industry average.
  • Knowles is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Knowles's expected growth come at a high price?
Raw Data
NYSE:KN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 22.72x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
4.5%per year
United States of America Electronic Industry PEG Ratio Median Figure of 60 Publicly-Listed Electronic Companies 1.53x
United States of America Market PEG Ratio Median Figure of 2,103 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

NYSE:KN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 22.72x ÷ 4.5%

5.08x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Knowles is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Knowles's assets?
Raw Data
NYSE:KN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $13.43
NYSE:KN Share Price * NYSE (2019-03-22) in USD $16.55
United States of America Electronic Industry PB Ratio Median Figure of 151 Publicly-Listed Electronic Companies 2.11x
United States of America Market PB Ratio Median Figure of 5,157 Publicly-Listed Companies 1.88x
NYSE:KN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:KN Share Price ÷ Book Value per Share (both in USD)

= 16.55 ÷ 13.43

1.23x

* Primary Listing of Knowles.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Knowles is good value based on assets compared to the US Electronic industry average.
X
Value checks
We assess Knowles's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electronic industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electronic industry average (and greater than 0)? (1 check)
  5. Knowles has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Knowles expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Knowles expected to grow at an attractive rate?
  • Knowles's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Knowles's earnings growth is positive but not above the United States of America market average.
  • Knowles's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:KN Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:KN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 4.5%
NYSE:KN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 4.8%
United States of America Electronic Industry Earnings Growth Rate Market Cap Weighted Average 17%
United States of America Electronic Industry Revenue Growth Rate Market Cap Weighted Average 5.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:KN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:KN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 962 1
2020-12-31 911 134 71 9
2019-12-31 853 76 61 10
NYSE:KN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 827 99 66
2018-09-30 819 105 18
2018-06-30 778 84 46
2018-03-31 754 73 11
2017-12-31 744 96 7
2017-09-30 666 99 -7
2017-06-30 713 117 3
2017-03-31 739 104 27
2016-12-31 756 107 20
2016-09-30 842 104 -5
2016-06-30 846 64 -21
2016-03-31 848 91 -1

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Knowles's earnings are expected to grow by 4.5% yearly, however this is not considered high growth (20% yearly).
  • Knowles's revenue is expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:KN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from Knowles Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:KN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31 0.74 0.96 0.42 7.00
2019-12-31 0.64 0.80 0.42 8.00
NYSE:KN Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.73
2018-09-30 0.20
2018-06-30 0.52
2018-03-31 0.12
2017-12-31 0.07
2017-09-30 -0.08
2017-06-30 0.04
2017-03-31 0.31
2016-12-31 0.22
2016-09-30 -0.06
2016-06-30 -0.24
2016-03-31 -0.01

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Knowles is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Knowles's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Knowles has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Knowles performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Knowles's growth in the last year to its industry (Electronic).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Knowles's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Knowles's 1-year earnings growth exceeds its 5-year average (909.2% vs -9.1%)
  • Knowles's earnings growth has exceeded the US Electronic industry average in the past year (909.2% vs 61%).
Earnings and Revenue History
Knowles's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Knowles Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:KN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 826.90 65.60 142.80 100.60
2018-09-30 818.60 18.10 135.10 98.20
2018-06-30 778.40 46.40 131.90 94.90
2018-03-31 754.40 11.10 128.70 94.20
2017-12-31 744.20 6.50 125.90 93.40
2017-09-30 665.70 -7.20 117.80 87.40
2017-06-30 712.80 3.20 128.90 88.80
2017-03-31 738.70 27.30 140.20 89.90
2016-12-31 755.70 19.80 149.40 92.00
2016-09-30 842.20 -5.00 186.30 104.30
2016-06-30 845.80 -21.10 188.90 109.40
2016-03-31 848.30 -1.00 177.60 101.80
2015-12-31 753.60 17.40 149.70 83.20
2015-09-30 912.10 22.00 161.80 83.90
2015-06-30 966.30 2.60 161.80 76.60
2015-03-31 1,054.50 -89.60 179.90 80.10
2014-12-31 915.00 119.60 156.90 64.10
2014-09-30 1,185.63 -52.93 201.94 82.65
2014-06-30 1,196.37 5.93 201.67 81.34
2014-03-31 1,212.08 101.51 195.44 80.88
2013-12-31 1,214.80 105.80 193.00 82.60
2013-09-30 1,181.02 101.25 191.54 81.71
2013-06-30 1,168.99 87.74 154.45 119.48
2013-03-31 1,133.20 81.03 173.43 98.24
2012-12-31 1,118.00 79.10 188.10 77.30

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Knowles has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Knowles used its assets less efficiently than the US Electronic industry average last year based on Return on Assets.
  • Knowles has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Knowles's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electronic industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Knowles has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Knowles's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Knowles's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Knowles is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Knowles's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Knowles's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Knowles Company Filings, last reported 2 months ago.

NYSE:KN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,211.60 170.60 73.50
2018-09-30 1,124.90 187.90 68.60
2018-06-30 1,142.60 196.10 50.80
2018-03-31 1,140.80 194.30 62.70
2017-12-31 1,132.10 207.40 111.70
2017-09-30 1,036.90 311.20 57.70
2017-06-30 1,009.90 298.10 48.60
2017-03-31 1,027.40 299.80 63.30
2016-12-31 1,008.40 313.80 63.40
2016-09-30 1,026.70 351.60 60.00
2016-06-30 1,002.60 394.80 47.20
2016-03-31 997.50 401.20 44.20
2015-12-31 1,006.80 447.50 63.30
2015-09-30 1,200.30 474.80 57.90
2015-06-30 1,166.90 398.50 37.00
2015-03-31 1,171.00 396.30 38.60
2014-12-31 1,236.20 407.00 55.20
2014-09-30 1,271.38 400.00 34.30
2014-06-30 1,318.71 400.00 44.61
2014-03-31 1,404.38 400.00 51.38
2013-12-31 1,887.10 1.60 105.60
2013-09-30 1,297.45 542.52 88.59
2013-06-30 1,249.86 490.45 12.82
2013-03-31 1,188.11 528.81 10.30
2012-12-31 1,188.11 528.81 10.30
  • Knowles's level of debt (14.1%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0.3% vs 14.1% today).
  • Debt is well covered by operating cash flow (57.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.1x coverage).
X
Financial health checks
We assess Knowles's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Knowles has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Knowles dividends.
If you bought $2,000 of Knowles shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Knowles's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Knowles's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:KN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
United States of America Electronic Industry Average Dividend Yield Market Cap Weighted Average of 38 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2006 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:KN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31
2019-12-31

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Knowles has not reported any payouts.
  • Unable to verify if Knowles's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Knowles's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Knowles has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Knowles's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Knowles afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Knowles has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jeff Niew
COMPENSATION $5,372,199
AGE 51
TENURE AS CEO 5.5 years
CEO Bio

Mr. Jeffrey S. Niew, also known as Jeff, has been the Chief Executive Officer and President of Knowles Corporation since September 2013. Mr. Niew served as the President and Chief Executive Officer at Dover Communication Technologies at Dover Corporation since November 2011. Mr. Niew has been Vice President at Dover Corporation since November 2011. He served as the Chief Executive Officer at Knowles Electronics Holdings, Inc. from February 2010 to November 2011. He served as the Chief Operating Officer of Knowles Electronics Holdings, Inc., from January 2007 to February 2010. Mr. Niew served as the President of Knowles Electronics Holdings, Inc. from January 2008 to November 2011 and also served as its Vice President and General Manager of Knowles Acoustics since November 2002. He joined Knowles in May 2000 as Director of Advanced Products for Knowles Acoustics. He served various management positions in product development, operations, sales and product management. He served at Littelfuse, Inc., from 1995 to 2000. He served at Hewlett Packards (now Agilent) from 1988 to 1995. He has been a Director at Knowles Corporation since February 28, 2014. He served as a Director of Knowles Electronics Holdings, Inc. He is a member of the Advisory Board of the University of Illinois – College of Engineering. He serves as a Director at Advanced Diamond Technologies, Inc. He is a graduate of University of Illinois at Chicago, College of Mechanical Engineering.

CEO Compensation
  • Jeff's compensation has been consistent with company performance over the past year.
  • Jeff's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Knowles management team in years:

5
Average Tenure
52
Average Age
  • The average tenure for the Knowles management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Jeff Niew

TITLE
President
COMPENSATION
$5M
AGE
51
TENURE
5.5 yrs

John Anderson

TITLE
Senior VP
COMPENSATION
$2M
AGE
55
TENURE
5.3 yrs

Dan Giesecke

TITLE
Senior VP & COO
COMPENSATION
$1M
AGE
50
TENURE
5.1 yrs

Christian Scherp

TITLE
President of Performance Audio
COMPENSATION
$1M
AGE
52

Mike Polacek

TITLE
President of Intelligent Audio
COMPENSATION
$2M
AGE
54
TENURE
2 yrs

Ray Cabrera

TITLE
Senior VP of Human Resources & Chief Administration Officer
COMPENSATION
$1M
AGE
51
TENURE
5.1 yrs

Mike Knapp

TITLE
Vice President of Investor Relations

Thomas Jackson

TITLE
Senior VP
COMPENSATION
$1M
AGE
52
TENURE
4.9 yrs

Brian Crannell

TITLE
Senior Vice President of Corporate Development
TENURE
2.7 yrs

Helmut Vogler

TITLE
Senior Vice President of Global Sales
TENURE
2.2 yrs
Board of Directors Tenure

Average tenure and age of the Knowles board of directors in years:

4.3
Average Tenure
64
Average Age
  • The tenure for the Knowles board of directors is about average.
Board of Directors

Don MacLeod

TITLE
Chairman of the Board
COMPENSATION
$248K
AGE
69
TENURE
0.8 yrs

Jeff Niew

TITLE
President
COMPENSATION
$5M
AGE
51
TENURE
5.1 yrs

Keith Barnes

TITLE
Independent Director
COMPENSATION
$250K
AGE
67
TENURE
5.1 yrs

Dick Lochridge

TITLE
Independent Director
COMPENSATION
$248K
AGE
74
TENURE
5.1 yrs

Didier Hirsch

TITLE
Independent Director
COMPENSATION
$235K
AGE
67
TENURE
4.3 yrs

Ron Jankov

TITLE
Independent Director
COMPENSATION
$235K
AGE
59
TENURE
5.1 yrs

Hermann Eul

TITLE
Independent Director
COMPENSATION
$235K
AGE
59
TENURE
3.7 yrs

Cheryl Shavers

TITLE
Independent Director
COMPENSATION
$276K
AGE
64
TENURE
1.6 yrs

Jane Li

TITLE
Independent Director
AGE
50
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
11. Mar 19 Buy Caligan Partners, LP Company 10. Jan 19 01. Mar 19 1,945,997 $16.40 $31,914,351
11. Mar 19 Buy Falcon Edge Capital, LP Company 10. Jan 19 07. Mar 19 2,890,653 $16.37 $47,319,990
30. Jul 18 Sell Thomas Jackson Individual 26. Jul 18 26. Jul 18 -2,756 $18.24 $-50,234
27. Jul 18 Buy Michael Polacek Individual 26. Jul 18 26. Jul 18 1,634 $18.30 $29,902
03. May 18 Buy Didier Hirsch Individual 01. May 18 01. May 18 7,000 $12.80 $88,800
03. May 18 Buy Jeffrey Niew Individual 01. May 18 01. May 18 2,500 $12.37 $30,923
X
Management checks
We assess Knowles's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Knowles has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Before You Buy Knowles Corporation (NYSE:KN), Consider Its Volatility

Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.

Simply Wall St -

Are Insiders Buying Knowles Corporation (NYSE:KN) Stock?

So shareholders might well want to know whether insiders have been buying or selling shares in Knowles Corporation (NYSE:KN). … The Last 12 Months Of Insider Transactions At Knowles. … Even though the purchase was made at a significantly lower price, we still think insider buying is a positive

Simply Wall St -

A Closer Look At Knowles Corporation's (NYSE:KN) Uninspiring ROE

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.016. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

How Should Investors Feel About Knowles Corporation's (NYSE:KN) CEO Pay?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … Then we'll look at a snap shot of the business growth. … How Does Jeff Niew's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Examining Knowles Corporation’s (NYSE:KN) Weak Return On Capital Employed

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … What is Return On Capital Employed (ROCE)? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

What Is Knowles Corporation's (NYSE:KN) Share Price Doing?

received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $18.13 at one point, and dropping to the lows of $13.72. … A question to answer is whether Knowles's current trading price of $14.52 reflective of the actual value of the? … Let’s take a look at Knowles’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Knowles Corporation (NYSE:KN): What Does Its Beta Value Mean For Your Portfolio?

If you're interested in Knowles Corporation (NYSE:KN), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … The first thing to understand about beta is that the beta of the overall market is one.

Simply Wall St -

Knowles Corporation (NYSE:KN) Delivered A Weaker ROE Than Its Industry

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.041. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

How Should Investors Feel About Knowles Corporation's (NYSE:KN) CEO Pay?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … According to our data, Knowles Corporation has a market capitalization of US$1.3b, and pays its CEO total annual compensation worth US$5m. … As you can see, Jeff Niew is paid more than the median CEO pay at companies of a similar size, in the same market

Simply Wall St -

Should You Be Tempted To Sell Knowles Corporation (NYSE:KN) Because Of Its PE Ratio?

This analysis is intended to introduce important early concepts to people who are starting to invest. … While KN might seem like a stock to avoid or sell if you own it, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions. … I will explain what the P/E ratio is as well as what you should look out for when using it

Simply Wall St -

Company Info

Description

Knowles Corporation designs, manufactures, and sells micro-acoustic, audio processing, and precision device solutions for the mobile consumer electronics, communications, medical, defense, aerospace, and industrial markets worldwide. It operates in two segments, Audio and Precision Devices (PD). The Audio segment designs and manufactures audio products, including microphones and balanced armature speakers, audio processors, and software and algorithms used in applications that serve the mobile, ear, and Internet of Things markets. It also provides analog and digital micro-electro-mechanical systems, microphones, electret condenser microphones, smart microphones, ultrasonic sensors, acoustic processors, and balanced armature speakers, as well as transducer products used primarily in hearing health and headset applications. The PD segment designs and delivers engineered capacitors and radio frequency devices for applications, such as power supplies, radar, medical implants, and satellites for the industrial, defense, aerospace, medical, telecommunications, and automotive markets. The company also provides single layer electronic components to the telecommunication, fiber optics, defense, and aerospace markets. It sells its products directly to original equipment manufacturers and to their contract manufacturers and suppliers, as well as through distributors. The company was founded in 1946 and is headquartered in Itasca, Illinois.

Details
Name: Knowles Corporation
KN
Exchange: NYSE
Founded: 1946
$1,493,084,945
90,216,613
Website: http://www.knowles.com
Address: Knowles Corporation
1151 Maplewood Drive,
Itasca,
Illinois, 60143,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE KN Common Stock New York Stock Exchange US USD 14. Feb 2014
DB 1K3 Common Stock Deutsche Boerse AG DE EUR 14. Feb 2014
LSE 0JRJ Common Stock London Stock Exchange GB USD 14. Feb 2014
Number of employees
Current staff
Staff numbers
8,000
Knowles employees.
Industry
Electronic Components
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/23 00:27
End of day share price update: 2019/03/22 00:00
Last estimates confirmation: 2019/02/08
Last earnings filing: 2019/02/19
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.