📊 KN Key Takeaways
Is KN a Good Investment? Thesis Analysis
Knowles demonstrates solid financial fundamentals with strong liquidity, conservative leverage, and positive cash generation, but the extreme 6278% revenue surge combined with concerning low ROE (5.7%) and ROA (4.2%) raises significant questions about earnings quality and capital efficiency. The massive top-line growth not translating proportionally to profit growth suggests acquisition-driven expansion or margin compression that warrants cautious oversight.
Why Buy KN? Key Strengths
- Strong balance sheet with 2.75x current ratio and minimal 0.15x debt-to-equity ratio
- Solid free cash flow generation of $34.7M with stable operating cash flow
- Respectable gross margin of 43.2% and positive operating profitability
- Excellent interest coverage of 16.7x providing significant debt service safety
- Profitable operations with net income growth of 118.6% YoY
KN Investment Risks to Consider
- Extreme 6278% revenue growth suggests major acquisition or accounting change, making organic growth assessment impossible
- Critically low ROE (5.7%) and ROA (4.2%) indicate poor capital efficiency despite large revenue base
- Disproportionate net income growth (119%) versus revenue growth (6279%) suggests deteriorating unit economics or margin compression
- Cash position of $54.2M is thin relative to $593M revenue and $1.1B asset base, limiting financial flexibility
- Revenue growth not translating to proportional profitability improvements raises quality of earnings concerns
Key Metrics to Watch
- Organic revenue growth rate and acquisition impact disclosure in next 10-Q
- Trend in ROE and ROA to assess whether capital efficiency improves or deteriorates
- Operating and net margins to confirm whether the low returns are structural or cyclical
- Free cash flow sustainability and cash conversion ratio as profitability measure
KN Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.75x current ratio provides a solid financial cushion.
KN Profitability Ratios
KN vs Default Sector
How Knowles Corp compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is KN Overvalued or Undervalued?
Based on fundamental analysis, Knowles Corp has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
KN Balance Sheet & Liquidity
KN 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Knowles Corp's revenue has declined by 32% over the 5-year period, indicating business contraction. The most recent EPS of $0.79 reflects profitable operations.
KN Growth Metrics (YoY)
KN Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2024 | $108.1M | $500.0K | $0.01 |
| Q2 2024 | $173.0M | $8.4M | $0.09 |
| Q1 2024 | $144.3M | $2.5M | $0.03 |
| Q3 2023 | $175.1M | $2.7M | $0.03 |
| Q2 2023 | $173.0M | $8.4M | $0.09 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
KN Capital Allocation
KN SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Knowles Corp (CIK: 0001587523)
📋 Recent SEC Filings
❓ Frequently Asked Questions about KN
What is the AI rating for KN?
Knowles Corp (KN) has an AI rating of HOLD with 58% confidence, based on fundamental analysis of SEC EDGAR filings.
What are KN's key strengths?
Claude: Strong balance sheet with 2.75x current ratio and minimal 0.15x debt-to-equity ratio. Solid free cash flow generation of $34.7M with stable operating cash flow.
What are the risks of investing in KN?
Claude: Extreme 6278% revenue growth suggests major acquisition or accounting change, making organic growth assessment impossible. Critically low ROE (5.7%) and ROA (4.2%) indicate poor capital efficiency despite large revenue base.
What is KN's revenue and growth?
Knowles Corp reported revenue of $593.2M.
Does KN pay dividends?
Knowles Corp does not currently pay dividends.
Where can I find KN SEC filings?
Official SEC filings for Knowles Corp (CIK: 0001587523) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KN's EPS?
Knowles Corp has a diluted EPS of $0.50.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is KN a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Knowles Corp has a HOLD rating with 58% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is KN stock overvalued or undervalued?
Valuation metrics for KN: ROE of 5.7% (sector avg: 15%), net margin of 7.5% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy KN stock in 2026?
Our dual AI analysis gives Knowles Corp a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is KN's free cash flow?
Knowles Corp's operating cash flow is $66.8M, with capital expenditures of $32.1M. FCF margin is 5.8%.
How does KN compare to other Default stocks?
Vs Default sector averages: Net margin 7.5% (avg: 12%), ROE 5.7% (avg: 15%), current ratio 2.75 (avg: 1.8).