📊 KNF Key Takeaways
Is Knife River Corp (KNF) a Good Investment?
Knife River Corp is in financial distress with negative gross margins (-0.7%), deeply negative free cash flow (-135.9M), and critically low cash reserves (13.3M) relative to 1.4B in long-term debt. Despite 8.5% revenue growth, the company cannot convert sales into profitability or positive cash generation, indicating fundamental operational challenges in its nonmetallic minerals business that make debt service unsustainable.
Knife River shows solid top-line growth with respectable operating profitability, supported by strong liquidity and manageable leverage. However, the sharp YoY EPS decline and negative free cash flow from elevated capex signal near-term execution and cash conversion risks; confirmation of margin resilience and FCF improvement would justify a more constructive view.
Why Buy Knife River Corp Stock? KNF Key Strengths
- Revenue growth of 8.5% YoY demonstrates continued market demand for products
- Current ratio of 2.67x suggests near-term liquidity is not immediately critical
- Stockholders' equity of 1.6B provides some residual balance sheet cushion
- Healthy liquidity (2.54x current, 1.39x quick)
- Strong interest coverage (20.5x) with moderate leverage (0.71x D/E)
- Consistent revenue growth and solid 9.1% operating margin
KNF Stock Risks: Knife River Corp Investment Risks
- Negative gross margin of -0.7% indicates core business operations are unprofitable before overhead costs
- Free cash flow of -135.9M with only 13.3M cash on hand creates unsustainable cash burn trajectory
- Operating cash flow is negative at -58.5M, meaning company cannot generate cash from normal business operations
- Long-term debt of 1.4B with negative interest coverage ratio (-6.2x) creates debt service risk
- Capital expenditure of 77.3M amid operating losses suggests misaligned capital allocation strategy
- Negative free cash flow driven by high capex
- Earnings pressure evidenced by -22.3% YoY EPS
- Cyclical construction demand and input cost volatility
Key Metrics to Watch
- Gross margin trajectory - must return to positive territory for long-term viability
- Operating cash flow - urgently needs to turn positive to sustain operations
- Cash balance and cash burn rate - current 13.3M reserve depletes rapidly at current burn rate
- Debt refinancing timeline and covenant compliance with negative earnings
- Free cash flow margin
- Operating margin trajectory
Knife River Corp (KNF) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.67x current ratio provides a solid financial cushion.
KNF Profit Margin, ROE & Profitability Analysis
KNF vs Materials Sector: How Knife River Corp Compares
How Knife River Corp compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Knife River Corp Stock Overvalued? KNF Valuation Analysis 2026
Based on fundamental analysis, Knife River Corp shows some fundamental concerns relative to the Materials 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.
Knife River Corp Balance Sheet: KNF Debt, Cash & Liquidity
KNF Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Knife River Corp's revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $3.23 reflects profitable operations.
KNF Revenue Growth, EPS Growth & YoY Performance
KNF Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $353.5M | -$68.7M | $-1.21 |
| Q3 2025 | $1.1B | -$47.6M | $2.20 |
| Q2 2025 | $806.9M | -$18.1M | $-0.32 |
| Q1 2025 | $329.6M | -$47.6M | $-0.84 |
| Q3 2024 | $1.1B | -$41.3M | $2.58 |
| Q2 2024 | $785.2M | $15.5M | $0.27 |
| Q1 2024 | $307.9M | -$41.3M | $-0.73 |
| Q3 2023 | $975.4M | $38.6M | $1.74 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Knife River Corp Dividends, Buybacks & Capital Allocation
KNF SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Knife River Corp (CIK: 0001955520)
📋 Recent SEC Filings
❓ Frequently Asked Questions about KNF
What is the AI rating for KNF?
Knife River Corp (KNF) has a Combined AI Rating of SELL from Claude (STRONG SELL) and ChatGPT (HOLD) with 77% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KNF's key strengths?
Claude: Revenue growth of 8.5% YoY demonstrates continued market demand for products. Current ratio of 2.67x suggests near-term liquidity is not immediately critical. ChatGPT: Healthy liquidity (2.54x current, 1.39x quick). Strong interest coverage (20.5x) with moderate leverage (0.71x D/E).
What are the risks of investing in KNF?
Claude: Negative gross margin of -0.7% indicates core business operations are unprofitable before overhead costs. Free cash flow of -135.9M with only 13.3M cash on hand creates unsustainable cash burn trajectory. ChatGPT: Negative free cash flow driven by high capex. Earnings pressure evidenced by -22.3% YoY EPS.
What is KNF's revenue and growth?
Knife River Corp reported revenue of $410.1M.
Does KNF pay dividends?
Knife River Corp does not currently pay dividends.
Where can I find KNF SEC filings?
Official SEC filings for Knife River Corp (CIK: 0001955520) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KNF's EPS?
Knife River Corp has a diluted EPS of $-1.40.
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 KNF a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Knife River Corp has a SELL rating with 77% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is KNF stock overvalued or undervalued?
Valuation metrics for KNF: ROE of -5.1% (sector avg: 14%), net margin of -19.3% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy KNF stock in 2026?
Our dual AI analysis gives Knife River Corp a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is KNF's free cash flow?
Knife River Corp's operating cash flow is $-58.6M, with capital expenditures of $77.3M. FCF margin is -33.1%.
How does KNF compare to other Materials stocks?
Vs Materials sector averages: Net margin -19.3% (avg: 10%), ROE -5.1% (avg: 14%), current ratio 2.67 (avg: 1.6).