Knowles Corp (KN) stock analysis

P/E above its 5-year median

Knowles's P/E of 41.2 is above its own 5-year median of 35.8.

P/E above the industry

Knowles's P/E of 41.2 is above the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of 32.5.

EV/EBITDA above its 5-year median

Knowles's EV/EBITDA of 21.7 is above its 5-year median of 17.7.

P/B above the industry

Knowles's price-to-book of 3.59 is above the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of 3.01.

Trading above fair value

The share price of $33.81 is above our fair value estimate of $28.07.

Margin of safety under 20%

The price is 20.4% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 7.4% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings growth accelerating

Net income grew 71.9% over the last twelve months, against a 5-year average of 46.3% a year.

Growing faster than the industry

Revenue grew 16.1% over the last twelve months; the Electronic and Other Electrical Equipment and Components, except Computer Equipment median is -3.5%.

Guidance issued

The latest outlook (2026 Full year Full year revenue, Oct 22, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 44.4% over the last twelve months, against 42.7% a year earlier.

Return on equity under 15%

Return on equity was 9.3% over the last twelve months and averaged -7.6% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 9.6%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Knowles's return on equity of 9.3% is above the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of 0.4%.

Earnings grew over 5 years

Net income grew 46.3% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 10.8% over the last twelve months, against a 5-year average of -18.4%.

Net margin above the industry

Knowles's net margin of 10.8% is above the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of -0.2%.

Low debt

Debt is 14.5% of shareholders' equity, under the 40% we consider low.

Debt rising against equity

Debt to equity rose from 12.7% five years ago to 14.5%.

Debt coverage

Needs operating cash flow.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 2.94 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 6.69; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Knowles has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.