Knight-Swift Transportation Holdings Inc. (NYSE: KNX)

Sector: Industrials Industry: Trucking CIK: 0001492691
Market Cap 9.89 Bn
P/B 1.49
P/E 11.13
P/S 1.36
ROIC (Qtr) 1.34
Div Yield % 1.04
Rev 1y % (Qtr) 2.68
Total Debt (Qtr) 3.22 Bn
Debt/Equity (Qtr) 0.45
Add ratio to table...

About

Knight-Swift Transportation Holdings Inc. (KNX) is a prominent player in the freight transportation and logistics industry in North America. The company offers a wide range of services, including full truckload, less-than-truckload (LTL), intermodal, and logistics, to cater to a diverse customer base across various industries. Knight-Swift generates revenue through its multiple segments, namely Truckload, LTL, Logistics, and Intermodal. The Truckload segment operates a vast fleet of company-owned tractors and trailers, offering services such as...

Read more

Investment thesis

Bull case

  • Robust tangible asset base of 6.69B provides 18.41x coverage of working capital 363.10M, indicating strong operational backing.
  • Tangible assets of 6.69B provide robust 12.36x coverage of other current liabilities 540.93M, indicating strong asset backing.
  • Operating cash flow of 817.75M provides solid 0.74x coverage of current liabilities 1.11B, showing strong operational health.
  • Retained earnings of 2.64B provide strong 4.88x coverage of other current liabilities 540.93M, indicating earnings quality.
  • Cash position of 294.35M represents healthy 0.81x of working capital 363.10M, demonstrating strong operational liquidity.

Bear case

  • Operating cash flow of 817.75M barely covers its investment activities of (564.61M), with a coverage ratio of -1.45, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 817.75M provides thin coverage of dividend payments of (114.11M) with a -7.17 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of 243.25M provides weak coverage of capital expenditures of 574.50M, with a 0.42 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of 351.69M show weak coverage of depreciation charges of 943.35M, with a 0.37 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 243.25M represents just -1.67x of debt issuance (145.47M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Segments Breakdown of Revenue (2024)

Insurance Product Line Breakdown of Revenue (2024)

Peer comparison

Companies in the Trucking
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ODFL Old Dominion Freight Line, Inc. 48.73 Bn 782.67 33.27 0.08 Bn
2 XPO XPO, Inc. 23.75 Bn 75.14 2.91 4.09 Bn
3 SAIA Saia Inc 10.38 Bn 36.60 3.21 0.35 Bn
4 TFII TFI International Inc. 10.05 Bn 32.37 1.27 3.33 Bn
5 KNX Knight-Swift Transportation Holdings Inc. 9.89 Bn 11.13 1.36 3.22 Bn
6 SNDR Schneider National, Inc. 4.98 Bn 12.00 1.10 0.52 Bn
7 ARCB Arcbest Corp /De/ 2.70 Bn 45.25 0.96 0.46 Bn
8 RXO RXO, Inc. 2.51 Bn -25.14 0.44 0.67 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.92 1.82
EV to Cash from Ops. EV/CFO 8.02 30.89
EV to Debt EV to Debt 3.62 334.88
EV to EBIT EV/EBIT 9.75 41.39
EV to EBITDA EV/EBITDA 6.09 30.41
EV to Free Cash Flow [EV/FCF] EV/FCF 10.60 8.80
EV to Market Cap EV to Market Cap 1.18 1.18
EV to Revenue EV/Rev 1.61 3.58
Price to Book Value [P/B] P/B 1.49 8.76
Price to Earnings [P/E] P/E 11.13 71.24
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.25 1.04
Dividend Payout Ratio % Div Payout % (Qtr) 79.50 27.17
Dividend per Basic Share Div per Share (Qtr) 0.70 0.34
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 46.70 16.21
Interest Coverage Int. cover (Qtr) 2.11 2,509.13
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -4.64 -384.47
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -7.21 6.65
Dividend Growth (1y) % Div 1y % (Qtr) 12.90 -0.53
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 93.98 -139.40
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 3.99 -265.30
EBIT Growth (1y) % EBIT 1y % (Qtr) 54.63 -150.93
EBT Growth (1y) % EBT 1y % (Qtr) 202.57 -53,829.57
EPS Growth (1y) % EPS 1y % (Qtr) 266.67 -170.98
FCF Growth (1y) % FCF 1y % (Qtr) -7.82 59.93
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 2.79 -3.53
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.59 1.07
Cash Payout Ratio Cash Payout (Qtr) 0.08 0.05
Cash Ratio Cash Ratio (Qtr) 0.27 0.23
Current Ratio Curr Ratio (Qtr) 1.33 1.44
Debt to Equity Ratio Debt/Equity (Qtr) 0.45 0.64
Interest Cover Ratio Int Coverage (Qtr) 2.11 2,509.13
Times Interest Earned Times Interest Earned (Qtr) 2.11 2,509.13
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 17.30 10.72
EBIT Margin % EBIT Margin % (Qtr) 4.70 1.50
EBT Margin % EBT Margin % (Qtr) 2.47 0.13
Gross Margin % Gross Margin % (Qtr) 62.20 46.24
Net Profit Margin % Net Margin % (Qtr) 1.90 -0.55