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.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Knight-Swift Transportation stock research in summary

knight-swift.com

ANALYSIS: With an Obermatt Combined Rank of 29 (worse than 71% compared with investment alternatives), Knight-Swift Transportation (Trucking, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Knight-Swift Transportation are a good value (attractively priced) with a consolidated Value Rank of 58 (better than 58% of alternatives) but show below-average growth (Growth Rank of 42), and are riskily financed (Safety Rank of 39), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 29, is a hold recommendation based on Knight-Swift Transportation's financial characteristics. As the company Knight-Swift Transportation's key financial metrics exhibit good value (Obermatt Value Rank of 58) but low growth (Obermatt Growth Rank of 42) and risky financing practices (Obermatt Safety Rank of 39), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 58% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. 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	58
Growth Rank	42
Safety Rank	39
Combined Rank	29

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

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

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Knight-Swift Transportation

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	52	69	59	58
GROWTH
GROWTH	68	62	65	42
SAFETY
SAFETY	63	94	60	39
SENTIMENT
SENTIMENT	n/a	73	37	^new
360° VIEW
360° VIEW	n/a	96	61	^new

Most recent update of the stock research: 25-Apr-2024. Financial reporting date used for calculating ranks: 31-Dec-2023. 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	58
GROWTH
GROWTH	68	62	65	42
SAFETY
SAFETY	63	94	60	39
COMBINED
COMBINED	70	94	81	29

Last update of combined financial performance: 25-Apr-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 58 (better than 58% compared with alternatives), Knight-Swift Transportation shares are more attractively priced than the majority of comparable stocks. 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 60% of comparable companies (a Dividend Yield rank of 60), 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 75, which means that the stock price is lower compared with invested capital than for 75% of comparable investments. But in respect to sales and profits, the picture is reversed. Price-to-Sales is 47 which means that the stock price compared with what market professionals expect for future profits is higher than for 53% 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 34. This means that the stock price, compared with what market professionals expect for future profits, is higher than for 66% 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 58, is a buy 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	47
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	65	68	37	34
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	53	78	75	75
DIVIDEND YIELD
DIVIDEND YIELD	40	50	48	60
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	52	69	59	58

Last update of Value Rank: 25-Apr-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 42 (better than 42% compared with alternatives), Knight-Swift Transportation shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Knight-Swift Transportation. Sales Growth has a rank of 61 which means that currently, professionals expect the company to grow more than 61% of its competitors. Capital Growth is also above 19% of competitors with a rank of 82. But Profit Growth only has a rank of 19, which means that currently professionals expect the company to grow its profits less than 81% of its competitors. And Stock Returns have also been below average with a rank of only 28. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 42, is a hold recommendation for growth and momentum investors. Profits are sometimes low if the company invests in the future. The positive revenue and capital investment outlook confirms such an interpretation. Both revenues and capital are solid growth indicators, and lower profits in such a case would be encouraging. But the investors see it differently by punishing the share price. Sometimes, Mister Market is not very reliable, because it is not uncommon for it to be volatile. Investors should look out for signs of growth expenditure that could justify low profit growth, and they may also find reasons why recent stock price developments don't confirm the growth outlook of operations. While operating growth indicators are not perfect, they are more reliable indicators for future performance than stock prices that can repeatedly surprise investors. 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, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	61	76	96	61
PROFIT GROWTH
PROFIT GROWTH	12	50	17	19
CAPITAL GROWTH
CAPITAL GROWTH	n/a	43	52	82
STOCK RETURNS
STOCK RETURNS	49	59	53	28
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	68	62	65	42

Last update of Growth Rank: 25-Apr-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 39 (better than 39% 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 32, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 68% 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 39 (worse than 61% 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	32
LIQUIDITY
LIQUIDITY	58	92	76	30
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	63	94	60	39

Last update of Safety Rank: 25-Apr-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: 25-Apr-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Knight-Swift Transportation.
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