NYSE:KNX

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Knight-Swift Transportation Holdings

Market Cap

US$8.2b

Last Updated

2021/08/01 22:05 UTC

Data Sources

Company Financials +

Executive Summary

Knight-Swift Transportation Holdings Inc., together with its subsidiaries, provides truckload transportation services in the United States, Mexico, and Canada. More Details


Snowflake Analysis

Undervalued with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has Knight-Swift Transportation Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KNX is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: KNX's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

2.7%

KNX

-0.4%

US Transportation

-0.4%

US Market


1 Year Return

14.3%

KNX

36.2%

US Transportation

35.9%

US Market

Return vs Industry: KNX underperformed the US Transportation industry which returned 36.2% over the past year.

Return vs Market: KNX underperformed the US Market which returned 35.9% over the past year.


Shareholder returns

KNXIndustryMarket
7 Day2.7%-0.4%-0.4%
30 Day9.2%-11.0%-0.3%
90 Day4.4%-7.8%3.1%
1 Year15.1%14.3%38.0%36.2%38.0%35.9%
3 Year56.8%53.3%52.3%44.8%62.9%52.7%
5 Year74.3%68.2%157.4%137.1%121.3%96.9%

Long-Term Price Volatility Vs. Market

How volatile is Knight-Swift Transportation Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Knight-Swift Transportation Holdings undervalued compared to its fair value and its price relative to the market?

42.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KNX ($49.69) is trading below our estimate of fair value ($85.66)

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


Price To Earnings Ratio

PE vs Industry: KNX is good value based on its PE Ratio (15.2x) compared to the US Transportation industry average (18.9x).

PE vs Market: KNX is good value based on its PE Ratio (15.2x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: KNX is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: KNX is good value based on its PB Ratio (1.4x) compared to the US Transportation industry average (2.2x).


Future Growth

How is Knight-Swift Transportation Holdings forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

6.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KNX's forecast earnings growth (6.3% per year) is above the savings rate (2%).

Earnings vs Market: KNX's earnings (6.3% per year) are forecast to grow slower than the US market (15% per year).

High Growth Earnings: KNX's earnings are forecast to grow, but not significantly.

Revenue vs Market: KNX's revenue (7.9% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: KNX's revenue (7.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KNX's Return on Equity is forecast to be low in 3 years time (10.1%).


Past Performance

How has Knight-Swift Transportation Holdings performed over the past 5 years?

19.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KNX has high quality earnings.

Growing Profit Margin: KNX's current net profit margins (10.9%) are higher than last year (6.3%).


Past Earnings Growth Analysis

Earnings Trend: KNX's earnings have grown by 19.1% per year over the past 5 years.

Accelerating Growth: KNX's earnings growth over the past year (90.1%) exceeds its 5-year average (19.1% per year).

Earnings vs Industry: KNX earnings growth over the past year (90.1%) exceeded the Transportation industry 30.4%.


Return on Equity

High ROE: KNX's Return on Equity (9%) is considered low.


Financial Health

How is Knight-Swift Transportation Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: KNX's short term assets ($1.1B) exceed its short term liabilities ($705.5M).

Long Term Liabilities: KNX's short term assets ($1.1B) do not cover its long term liabilities ($1.9B).


Debt to Equity History and Analysis

Debt Level: KNX's debt to equity ratio (10.4%) is considered satisfactory.

Reducing Debt: KNX's debt to equity ratio has increased from 8% to 10.4% over the past 5 years.

Debt Coverage: KNX's debt is well covered by operating cash flow (157.4%).

Interest Coverage: KNX's interest payments on its debt are well covered by EBIT (56.7x coverage).


Balance Sheet


Dividend

What is Knight-Swift Transportation Holdings's current dividend yield, its reliability and sustainability?

0.80%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KNX's dividend (0.8%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: KNX's dividend (0.8%) is low compared to the top 25% of dividend payers in the US market (3.55%).


Stability and Growth of Payments

Stable Dividend: KNX's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (10.4%), KNX's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KNX's dividends in 3 years are forecast to be thoroughly covered by earnings (11.2% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Dave Jackson (45 yo)

6.5yrs

Tenure

US$5,834,698

Compensation

Mr. David A. Jackson, also known as Dave, was President and Chief Executive Officer at Swift Transportation Company since September 7, 2017. Mr. Jackson has been the Chief Executive Officer and President o...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD5.83M) is about average for companies of similar size in the US market ($USD6.51M).

Compensation vs Earnings: Dave's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: KNX's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: KNX's board of directors are seasoned and experienced ( 12 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: KNX insiders have only sold shares 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

Knight-Swift Transportation Holdings Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Knight-Swift Transportation Holdings Inc.
  • Ticker: KNX
  • Exchange: NYSE
  • Founded: 1989
  • Industry: Trucking
  • Sector: Transportation
  • Market Cap: US$8.224b
  • Shares outstanding: 165.51m
  • Website: https://knight-swift.com

Number of Employees


Location

  • Knight-Swift Transportation Holdings Inc.
  • 20002 North 19th Avenue
  • Phoenix
  • Arizona
  • 85027
  • United States

Listings


Biography

Knight-Swift Transportation Holdings Inc., together with its subsidiaries, provides truckload transportation services in the United States, Mexico, and Canada. The company operates through three segments: ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/01 22:05
End of Day Share Price2021/07/30 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.