Fact based stock research
Knight-Swift Transportation (NYSE:KNX)

US4990491049

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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Knight-Swift Transportation stock research in summary

knight-swift.com

ANALYSIS: With an Obermatt Combined Rank of 50 (better than 50% compared with investment alternatives), Knight-Swift Transportation (Trucking, USA) shares have above-average financial characteristics compared with similar stocks. Shares of Knight-Swift Transportation are low in value (priced high) with a consolidated Value Rank of 49 (worse than 51% of alternatives), and are riskily financed (Safety Rank of 44, which means above-average debt burdens) but show above-average growth (Growth Rank of 57). ...read more

RECOMMENDATION: A Combined Rank of 50, is a buy recommendation based on Knight-Swift Transportation's financial characteristics. As the company Knight-Swift Transportation shows low value with an Obermatt Value Rank of 49 (51% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 57% of comparable companies (Obermatt Growth Rank is 57). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 44 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Knight-Swift Transportation, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	49
Growth Rank	57
Safety Rank	44
Combined Rank	50

Country	USA
Industry	Trucking
Index	Low Emissions, S&P MIDCAP
Size class	X-Large

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Research History: Knight-Swift Transportation

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	52	69	59	49
GROWTH
GROWTH	68	62	65	57
SAFETY
SAFETY	63	94	60	44
SENTIMENT
SENTIMENT	n/a	73	37	^new
360° VIEW
360° VIEW	n/a	96	61	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Knight-Swift Transportation is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	52	69	59	49
GROWTH
GROWTH	68	62	65	57
SAFETY
SAFETY	63	94	60	44
COMBINED
COMBINED	70	94	81	50

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Knight-Swift Transportation the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 49 (worse than 51% compared with alternatives), Knight-Swift Transportation shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Knight-Swift Transportation. Expected dividend yields are higher than for 61% of comparable companies (a Dividend Yield rank of 61), making the stock attractive. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 71, which means that the stock price is lower compared with invested capital than for 71% of comparable investments. But in respect to sales and profits, the picture is reversed. Price-to-Sales is 38 which means that the stock price compared with what market professionals expect for future profits is higher than for 62% of comparable companies, indicating a low value concerning Knight-Swift Transportation's sales levels. The Price-to-Profit ratio (also referred to as price-earnings (P/E) ratio) is also unfavorable for Knight-Swift Transportation with a rank of 19. This means that the stock price, compared with what market professionals expect for future profits, is higher than for 81% of comparable companies, indicating a low value concerning Knight-Swift Transportation's profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 49, is a hold recommendation based on Knight-Swift Transportation's stock price compared with the company's operational size and dividend yields. The company seems confident that it can generate a reasonable return on invested capital, because it pays an above-average dividend while profits are below what you would expect for a company with this stock price. If you agree with this practice and believe that profits will return to higher levels, as the current dividend policy suggests, Knight-Swift Transportation may be an attractive investment. If this is not the case, you may want to be careful with this stock as it is also expensive compared with its expected revenue levels. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	45	47	47	38
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	65	68	37	19
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	53	78	75	71
DIVIDEND YIELD
DIVIDEND YIELD	40	50	48	61
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	52	69	59	49

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Knight-Swift Transportation; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 57 (better than 57% compared with alternatives), Knight-Swift Transportation shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Knight-Swift Transportation. Sales Growth has a rank of 57 which means that currently, professionals expect the company to grow more than 57% of its competitors. Capital Growth is also above 27% of competitors with a rank of 75, and Stock Returns with the rank of 51 is also an outperformance. Only Profit Growth is low with a rank of 27 which means that currently, professionals expect the company to grow its profits less than 73% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 57, is a buy recommendation for growth and momentum investors. All three operating growth indicators, namely revenue, profit, and capital growth, are showing improvements. This is a good indication of a company with a positive future. That might, at the same time, be the simple reason why profit growth is low. A growing company needs money and thus can't yet show high profit growth. Look out for signs in corporate communication about extra growth efforts costing time and money. If that is the case, Knight-Swift Transportation is a good growth stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	61	76	96	57
PROFIT GROWTH
PROFIT GROWTH	12	50	17	27
CAPITAL GROWTH
CAPITAL GROWTH	n/a	43	52	75
STOCK RETURNS
STOCK RETURNS	49	59	53	51
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	68	62	65	57

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Knight-Swift Transportation.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 44 (better than 44% compared with alternatives), the company Knight-Swift Transportation has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Knight-Swift Transportation is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Knight-Swift Transportation and the other two below average. Leverage is at a rank of 76 meaning the company has a below-average debt-to-equity ratio. It has less debt than 76% of its competitors.Refinancing is at a rank of 42, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 58% of its competitors. Liquidity is at a rank of 30, meaning that the company generates less profit to service its debt than 70% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 44 (worse than 56% compared with alternatives), Knight-Swift Transportation has a financing structure that is riskier than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of Knight-Swift Transportation are on the safer side. Investors may have a short-term debt challenge and liquidity issues with Knight-Swift Transportation and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	55	86	78	76
REFINANCING
REFINANCING	59	44	32	42
LIQUIDITY
LIQUIDITY	58	92	76	30
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	63	94	60	44

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Knight-Swift Transportation and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	59	85	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	8	36	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	77	16	^new
MARKET PULSE
MARKET PULSE	n/a	72	34	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	73	37	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Knight-Swift Transportation.
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