Facts You Need to Understand Knight-Swift Transportation Stock

Now trading at a price of $58.66, Knight-Swift Transportation has moved 0.5% so far today.

Knight-Swift Transportation shares moved 13.51% over the last 52 weeks, with a high of $64.19 and a low of $42.1. During this time, the stock outperformed the S&P 500 index by 16.44%. As of January 2022, the company's 50-day average price is $57.0. Knight-Swift Transportation Holdings Inc., provides truck cargo transportation services in the United States, Mexico and Canada. The mid-cap Industrials company is based in Phoenix, AZ. Knight-Swift Transportation has returned a 0.99% dividend yield over the last 12 months.

The Company Has an Irregular Stream of Positive Cash Flows:

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (MM) $4,844 $4,674 $5,998 $7,429
Revenue Growth n/a -3.51% 28.33% 23.85%
Gross Margins 42.21% 42.4% 44.63% 35.79%
Gross Margins Growth n/a 0.45% 5.26% -19.81%
Operating Margins 8.82% 12.08% 16.1% 14.7%
Operating Margins Growth n/a 36.96% 33.28% -8.7%
Earnings Per Share $1.81 $2.46 $4.48 $4.8
EPS Growth n/a 35.91% 82.11% 7.14%
Diluted Shares (MM) 171 167 166 161
Free Cash Flow (MM) $10 $398 $655 $635
FCF Growth n/a 4039.49% 64.46% -3.05%
Capital Expenditures (MM) $830 $522 $535 $801
Net Debt / EBITDA 1.09 0.44 1.02 0.6

Knight-Swift Transportation Is Undervalued at Today's Prices:

Compared to the Industrials sector's average of 20.49, Knight-Swift Transportation has a trailing twelve month P/E ratio of 11.85 and, according to its EPS guidance of 4.64, an expected P/E ratio of 12.64.

However, Knight-Swift Transportation is likely undervalued in terms of its equity because its P/B ratio is 1.351 compared to its sector average of 3.78. The company's shares are currently trading 5.31% above their fair value as expressed by Benjamin Graham's formula:

√(22.5 * 5-year average EPS * book value per share) = √(22.5 * 3.19 * 43.22) = $55.7

18 analysts are following Knight-Swift Transportation and have set target prices ranging from $48.0 to $88.0 per share. On average, they have given the company a rating of buy. At the current price of $58.66, KNX is trading -12.86% away from its average analyst target price of $67.32 per share, implying an analyst consensus of some upside potential for the stock.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.