📊 KN Key Takeaways
Is Knowles Corp (KN) a Good Investment?
Knowles exhibits severe operational cash flow deterioration (-$700K operating, -$11.5M free cash flow) that contradicts reported net income growth, signaling earnings quality concerns and an unsustainable business model. Despite strong topline growth and a fortress balance sheet, the company generates minimal returns on capital (ROE 1.2%, ROA 0.9%), indicating fundamental operational inefficiency that debt capacity cannot resolve.
Knowles exhibits a solid profitability rebound with 43% gross margin, 12% operating margin, and strong cash conversion supporting a low‑leverage, well‑liquid balance sheet. Positive free cash flow and 16.7x interest coverage indicate resilient fundamentals even if growth normalizes. The key question is durability of the outsized revenue surge; if margins hold, earnings and cash flow should remain healthy.
Why Buy Knowles Corp Stock? KN Key Strengths
- Exceptional revenue growth of +6278.5% YoY indicates major business transformation or acquisition integration
- Strong balance sheet with conservative leverage (Debt/Equity 0.17x) and robust liquidity (Current Ratio 3.27x)
- Respectable gross margins at 43.8% and positive net income of $9.7M with 118.6% YoY growth
- Strong liquidity (2.75x current, 1.58x quick)
- Low leverage with ample interest coverage (16.7x)
- Improving profitability and positive FCF with good cash conversion
KN Stock Risks: Knowles Corp Investment Risks
- Negative operating cash flow (-$700K) and negative free cash flow (-$11.5M) despite accounting profitability signals critical cash generation failure and working capital crisis
- Extremely poor capital efficiency with ROE of only 1.2% and ROA of 0.9% demonstrates the business generates minimal returns on deployed capital
- Divergence between accrual-based net income and cash-based operating results suggests potential earnings quality issues, unsustainable cost structure, or acquisition integration challenges
- Extraordinary YoY revenue spike may be non-recurring
- Exposure to cyclical consumer electronics and customer concentration
- Modest ROE and FCF margin limit return profile if margins compress
Key Metrics to Watch
- Operating cash flow trend and return to positive territory
- Free cash flow generation and cash conversion cycle improvements
- Return on equity and return on assets progression toward industry benchmarks
- Gross margin
- Free cash flow margin
Knowles Corp (KN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.27x current ratio provides a solid financial cushion.
KN Profit Margin, ROE & Profitability Analysis
KN vs Industrial Sector: How Knowles Corp Compares
How Knowles Corp compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Knowles Corp Stock Overvalued? KN Valuation Analysis 2026
Based on fundamental analysis, Knowles Corp has mixed fundamental signals relative to the Industrial 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.
Knowles Corp Balance Sheet: KN Debt, Cash & Liquidity
KN Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
KN Quarterly Earnings & 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.
Knowles Corp Dividends, Buybacks & Capital Allocation
KN SEC Filings: Latest 10-K & 10-Q 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 a Combined AI Rating of HOLD from Claude (SELL) and ChatGPT (BUY) with 75% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KN's key strengths?
Claude: Exceptional revenue growth of +6278.5% YoY indicates major business transformation or acquisition integration. Strong balance sheet with conservative leverage (Debt/Equity 0.17x) and robust liquidity (Current Ratio 3.27x). ChatGPT: Strong liquidity (2.75x current, 1.58x quick). Low leverage with ample interest coverage (16.7x).
What are the risks of investing in KN?
Claude: Negative operating cash flow (-$700K) and negative free cash flow (-$11.5M) despite accounting profitability signals critical cash generation failure and working capital crisis. Extremely poor capital efficiency with ROE of only 1.2% and ROA of 0.9% demonstrates the business generates minimal returns on deployed capital. ChatGPT: Extraordinary YoY revenue spike may be non-recurring. Exposure to cyclical consumer electronics and customer concentration.
What is KN's revenue and growth?
Knowles Corp reported revenue of $153.1M.
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 $0.11.
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 May 2026, Knowles Corp has a HOLD rating with 75% 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 1.2% (sector avg: 15%), net margin of 6.3% (sector avg: 10%). 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 $-700.0K, with capital expenditures of $10.8M. FCF margin is -7.5%.
How does KN compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 6.3% (avg: 10%), ROE 1.2% (avg: 15%), current ratio 3.27 (avg: 1.8).