Knight-Swift Transportation Holdings Inc. (KNX) stock analysis

P/E above its 5-year median

Knight-Swift Transportation's P/E of 67.1 is above its own 5-year median of 41.1.

P/E above the industry

Knight-Swift Transportation's P/E of 67.1 is above the Trucking and Courier Services, except Air median of 34.1.

EV/EBITDA above its 5-year median

Knight-Swift Transportation's EV/EBITDA of 8.9 is above its 5-year median of 7.0.

P/B below the industry

Knight-Swift Transportation's price-to-book of 1.44 is below the Trucking and Courier Services, except Air median of 1.83.

Trading above fair value

The share price of $62.39 is above our fair value estimate of $55.93.

Margin of safety under 20%

The price is 11.6% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 0.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -55.7% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 7.8% over the last twelve months, against a 5-year average of -30.6% a year.

Growing slower than the industry

Revenue grew 7.0% over the last twelve months; the Trucking and Courier Services, except Air median is 7.6%.

Guidance lowered

Knight-Swift Transportation lowered its fourth quarter Other income, net outlook on Oct 21, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 2.2% over the last twelve months and averaged 5.8% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 3.4%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Knight-Swift Transportation's return on equity of 2.2% is below the Trucking and Courier Services, except Air median of 3.4%.

Earnings shrank over 5 years

Net income shrank 30.6% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 1.9% over the last twelve months, against a 5-year average of 5.7%.

Net margin below the industry

Knight-Swift Transportation's net margin of 1.9% is below the Trucking and Courier Services, except Air median of 2.1%.

Low debt

Debt is 2.4% of shareholders' equity, under the 40% we consider low.

Debt rising against equity

Debt to equity rose from 0.9% five years ago to 2.4%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 909% of total debt.

Interest not well covered

Operating income covers interest expense 3.0 times; we look for at least 5.

Short-term assets don't cover short-term debts

Current assets are 0.91 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.25; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Knight-Swift Transportation paid dividends worth 1.3% of the share price over the last twelve months.

Yield below Treasuries

The 1.3% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Knight-Swift Transportation yields 1.3%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 83.2% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.