NYSE:KN

Stock Analysis Report

Executive Summary

Knowles Corporation designs, manufactures, and sells micro-acoustic, audio processing, and precision device solutions for the mobile consumer electronics, communications, medtech, defense, automotive, and industrial markets worldwide.


Snowflake Analysis

Flawless balance sheet and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: KN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.2%

KN

-4.2%

US Electronic

-4.2%

US Market


1 Year Return

3.6%

KN

2.0%

US Electronic

14.0%

US Market

Return vs Industry: KN exceeded the US Electronic industry which returned 2% over the past year.

Return vs Market: KN underperformed the US Market which returned 14% over the past year.


Shareholder returns

KNIndustryMarket
7 Day-5.2%-4.2%-4.2%
30 Day-18.4%-8.2%-1.8%
90 Day-23.9%-4.5%2.6%
1 Year3.6%3.6%3.0%2.0%16.3%14.0%
3 Year-10.8%-10.8%31.5%27.9%43.2%34.0%
5 Year-11.9%-11.9%60.5%52.6%65.9%47.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Knowles 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: KN ($16.88) is trading below our estimate of fair value ($63.15)

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


Price To Earnings Ratio

PE vs Industry: KN is poor value based on its PE Ratio (31x) compared to the Electronic industry average (18.7x).

PE vs Market: KN is poor value based on its PE Ratio (31x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: KN is good value based on its PB Ratio (1.2x) compared to the US Electronic industry average (1.9x).


Next Steps

Future Growth

How is Knowles forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

33.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KN's forecast earnings growth (33.7% per year) is above the savings rate (1.7%).

Earnings vs Market: KN's earnings (33.7% per year) are forecast to grow faster than the US market (13.1% per year).

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

Revenue vs Market: KN's revenue (4.7% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: KN's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KN's Return on Equity is forecast to be low in 3 years time (9.4%).


Next Steps

Past Performance

How has Knowles performed over the past 5 years?

35.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KN has high quality earnings.

Growing Profit Margin: KN's current net profit margins (5.8%) are lower than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: KN's earnings have grown significantly by 35.6% per year over the past 5 years.

Accelerating Growth: KN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: KN had negative earnings growth (-24.2%) over the past year, making it difficult to compare to the Electronic industry average (12%).


Return on Equity

High ROE: KN's Return on Equity (3.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Knowles's financial position?


Financial Position Analysis

Short Term Liabilities: KN's short term assets ($388.4M) exceed its short term liabilities ($151.5M).

Long Term Liabilities: KN's short term assets ($388.4M) exceed its long term liabilities ($214.6M).


Debt to Equity History and Analysis

Debt Level: KN's debt to equity ratio (12.2%) is considered satisfactory.

Reducing Debt: KN's debt to equity ratio has reduced from 32.4% to 12.2% over the past 5 years.

Debt Coverage: KN's debt is well covered by operating cash flow (79%).

Interest Coverage: KN's interest payments on its debt are well covered by EBIT (6.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: KN's debt is covered by short term assets (assets are 2.5x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate KN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate KN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if KN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if KN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of KN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.0yrs

Average management tenure


CEO

Jeff Niew (52yo)

6.4yrs

Tenure

US$4,964,527

Compensation

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 Dove ...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD4.96M) is about average for companies of similar size in the US market ($USD3.87M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jeffrey Niew
President6.4yrsUS$4.96m0.27% $4.2m
John Anderson
Senior VP6.2yrsUS$1.75m0.066% $1.0m
Daniel Giesecke
Senior VP & COO6yrsUS$1.43m0.037% $568.3k
Christian Scherp
President of Performance Audio0yrsUS$1.64m0.034% $523.9k
Michael Polacek
President of Intelligent Audio2.9yrsUS$1.67m0.11% $1.7m
Raymond Cabrera
Senior VP of Human Resources & Chief Administration Officer6yrsUS$1.15m0.054% $842.6k
Michael Knapp
Vice President of Investor Relations0yrsno datano data
Robert Perna
Senior VP0yrsno data0.011% $169.8k
Brian Crannell
Senior Vice President of Corporate Development3.6yrsno datano data
Helmut Vogler
Senior Vice President of Global Sales3.1yrsno datano data

6.0yrs

Average Tenure

53yo

Average Age

Experienced Management: KN's management team is seasoned and experienced (6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Niew
President6.4yrsUS$4.96m0.27% $4.2m
Donald MacLeod
Independent Chairman of the Board1.8yrsUS$335.01k0.037% $579.9k
Keith Barnes
Independent Director6yrsUS$247.51k0.033% $510.4k
Richard Lochridge
Independent Director6yrsUS$247.51k0.014% $219.5k
Ronald Jankov
Independent Director6yrsUS$235.01k0.075% $1.2m
Cheryl Shavers
Independent Director2.5yrsUS$235.01k0.026% $399.7k
Didier Hirsch
Independent Director5.2yrsUS$250.01k0.073% $1.1m
Hermann Eul
Independent Director4.6yrsUS$235.01k0.024% $371.5k
Ye Li
Independent Director2yrsUS$382.01k0.015% $227.1k

5.2yrs

Average Tenure

65yo

Average Age

Experienced Board: KN's board of directors are considered experienced (5.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: KN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Knowles Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Knowles Corporation
  • Ticker: KN
  • Exchange: NYSE
  • Founded: 1946
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: US$1.548b
  • Shares outstanding: 91.71m
  • Website: https://www.knowles.com

Number of Employees


Location

  • Knowles Corporation
  • 1151 Maplewood Drive
  • Itasca
  • Illinois
  • 60143
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KNNYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 2014
1K3DB (Deutsche Boerse AG)YesCommon StockDEEURFeb 2014
0JRJLSE (London Stock Exchange)YesCommon StockGBUSDFeb 2014

Biography

Knowles Corporation designs, manufactures, and sells micro-acoustic, audio processing, and precision device solutions for the mobile consumer electronics, communications, medtech, defense, automotive, 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. The PD segment designs and delivers capacitor products and radio frequency solutions that are used in applications, such as power supplies and medical implants, satellite communication, and radar systems, as well as our telecommunications infrastructure customers. The company also provides single layer electronic components to the telecommunication, fiber optics, and defense 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 01:43
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.