Latest Ratios: P/E Ratio 73.5x · EV/EBITDA 28.4x · ROE 5.8%. (2012–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $3.1B | $1.9B | $1.8B | $1.6B | $1.5B | $2.2B | $1.7B | $2.0B | $1.2B | $1.3B | $1.5B |
| Enterprise Value | $3.2B | $2.0B | $1.9B | $1.8B | $1.5B | $2.2B | $1.8B | $2.1B | $1.3B | $1.4B | $1.7B |
| P/E Ratio → | 73.46 | 42.86 | — | 22.67 | — | 14.69 | 590.71 | 39.91 | 17.99 | 19.55 | — |
| P/S Ratio | 5.29 | 3.15 | 3.24 | 3.59 | 3.14 | 2.55 | 2.24 | 2.31 | 1.47 | 1.78 | 1.97 |
| P/B Ratio | 4.13 | 2.41 | 2.38 | 1.59 | 1.52 | 1.52 | 1.31 | 1.53 | 1.00 | 1.17 | 1.48 |
| P/FCF | 38.30 | 22.84 | 15.41 | 15.55 | 27.78 | 16.56 | 17.79 | 23.90 | 65.97 | 32.12 | 21.66 |
| P/OCF | 27.52 | 16.41 | 13.80 | 13.37 | 17.45 | 12.14 | 13.36 | 15.95 | 12.32 | 14.28 | 13.86 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.32 | 3.39 | 4.03 | 3.18 | 2.59 | 2.31 | 2.45 | 1.59 | 1.91 | 2.30 |
| EV / EBITDA | 28.36 | 17.25 | 19.92 | 24.34 | 10.52 | 12.42 | 16.28 | 14.73 | 9.91 | 11.36 | 13.93 |
| EV / EBIT | 41.61 | 26.83 | 34.28 | 41.16 | 16.62 | 18.86 | 62.19 | 25.71 | 16.87 | 35.74 | 36.28 |
| EV / FCF | — | 24.02 | 16.13 | 17.44 | 28.08 | 16.81 | 18.36 | 25.37 | 71.24 | 34.44 | 25.26 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 41.2% | 41.2% | 40.0% | 43.8% | 47.4% | 39.3% | 33.9% | 37.9% | 38.3% | 38.2% | 37.0% |
| Operating Margin | 13.1% | 13.1% | 10.2% | 10.8% | 19.0% | 13.6% | 6.3% | 10.3% | 9.7% | 9.6% | 7.4% |
| Net Profit Margin | 7.5% | 7.5% | -43.3% | 15.8% | -89.8% | 17.3% | 0.9% | 5.7% | 8.0% | 0.8% | -2.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 5.8% | 5.8% | -26.8% | 7.1% | -35.1% | 10.9% | 0.5% | 3.9% | 5.6% | 0.6% | -1.7% |
| ROA | 4.1% | 4.1% | -18.6% | 5.5% | -29.5% | 8.9% | 0.4% | 3.1% | 4.3% | 0.4% | -1.0% |
| ROIC | 6.8% | 6.8% | 4.1% | 3.3% | 5.4% | 6.2% | 2.6% | 4.9% | 4.7% | 4.3% | 3.2% |
| ROCE | 8.3% | 8.3% | 5.1% | 4.1% | 6.9% | 8.1% | 3.3% | 6.1% | 5.7% | 5.2% | 3.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.19 | 0.19 | 0.28 | 0.28 | 0.06 | 0.07 | 0.16 | 0.16 | 0.14 | 0.18 | 0.31 |
| Debt / EBITDA | 1.32 | 1.32 | 2.26 | 3.79 | 0.45 | 0.57 | 1.86 | 1.41 | 1.29 | 1.66 | 2.51 |
| Net Debt / Equity | — | 0.12 | 0.11 | 0.19 | 0.02 | 0.02 | 0.04 | 0.09 | 0.08 | 0.08 | 0.25 |
| Net Debt / EBITDA | 0.84 | 0.84 | 0.88 | 2.64 | 0.11 | 0.19 | 0.50 | 0.86 | 0.73 | 0.76 | 1.98 |
| Debt / FCF | — | 1.17 | 0.71 | 1.89 | 0.30 | 0.25 | 0.56 | 1.48 | 5.28 | 2.32 | 3.60 |
| Interest Coverage | 7.88 | 7.88 | 2.73 | 6.04 | 21.30 | 8.26 | 1.66 | 5.33 | 4.68 | 1.95 | 2.42 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.75 | 2.75 | 1.83 | 2.61 | 3.66 | 2.29 | 1.41 | 2.56 | 2.57 | 2.60 | 2.22 |
| Quick Ratio | 1.58 | 1.58 | 1.23 | 1.83 | 1.95 | 1.37 | 0.97 | 1.63 | 1.59 | 1.78 | 1.49 |
| Cash Ratio | 0.51 | 0.51 | 0.66 | 0.53 | 0.49 | 0.41 | 0.50 | 0.52 | 0.52 | 0.74 | 0.44 |
| Asset Turnover | — | 0.56 | 0.49 | 0.31 | 0.40 | 0.50 | 0.46 | 0.52 | 0.53 | 0.48 | 0.50 |
| Inventory Turnover | 2.80 | 2.80 | 2.82 | 2.02 | 1.49 | 3.44 | 3.88 | 3.75 | 3.64 | 3.66 | 4.40 |
| Days Sales Outstanding | — | 63.25 | 69.24 | 72.47 | 102.68 | 61.64 | 62.75 | 68.15 | 61.93 | 67.54 | 70.08 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.2% | 0.3% | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.4% | 2.3% | — | 4.4% | — | 6.8% | 0.2% | 2.5% | 5.6% | 5.1% | — |
| FCF Yield | 2.6% | 4.4% | 6.5% | 6.4% | 3.6% | 6.0% | 5.6% | 4.2% | 1.5% | 3.1% | 4.6% |
| Buyback Yield | 2.1% | 3.5% | 3.0% | 2.9% | 2.9% | 2.0% | 0.9% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 2.3% | 3.8% | 3.0% | 2.9% | 2.9% | 2.0% | 0.9% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $87M | $90M | $92M | $92M | $95M | $93M | $93M | $91M | $90M | $89M |
Includes 30+ ratios · 14 years · Updated daily
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
High-probability breakout stocks crossing their pivot across 5 pattern engines.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying KN stock.
Knowles Corporation's current P/E ratio is 73.5x. The historical average is 26.3x. This places it at the 100th percentile of its historical range.
Knowles Corporation's current EV/EBITDA is 28.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.1x.
Knowles Corporation's return on equity (ROE) is 5.8%. The historical average is -3.0%.
Based on historical data, Knowles Corporation is trading at a P/E of 73.5x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Knowles Corporation's current dividend yield is 0.19%.
Knowles Corporation has 41.2% gross margin and 13.1% operating margin. Operating margin between 10-20% is typical for established companies.
Knowles Corporation's Debt/EBITDA ratio is 1.3x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Customer concentration and mix shift
Metrics are mathematically derived from official filings.
Margin Expansion Masks Earnings Volatility
Gross margin improved to 42.4% in Q2 2026 from 40.8% a year earlier, according to the latest quarterly financials, yet net margin swung from -191.8% in Q2 2024 to 11.6% in Q2 2026, indicating underlying earnings power is stabilizing.
The sequential improvement in gross margin from 37.2% in Q1 2024 to 42.4% in Q2 2026 suggests a favorable mix shift toward Precision Devices, but the extreme net margin volatility—driven by a one-time impairment in Q2 2024—distorts the true earning power. Operating margin of 14.9% in Q2 2026, up from 6.6% in Q1 2024, reflects operating leverage as SG&A and R&D costs remain disciplined. However, the Q2 2026 EPS miss despite a revenue beat indicates that margin expansion may be partially offset by higher costs or one-time items, warranting close monitoring of cost trends.
Return on Capital Recovering from Impairment
ROIC improved to 2.1% in Q2 2026 from 0.5% in Q1 2024, as reported in the quarterly data, but remains below the cost of capital, suggesting the company is still rebuilding its return profile after a significant impairment.
The sharp recovery in ROIC from near-zero levels in early 2024 to 2.1% in Q2 2026 indicates that the asset base is becoming more productive, but the absolute level remains low relative to peers like Photronics (15.5% ROIC). The improvement is driven by margin expansion rather than asset efficiency, as asset turnover has only inched up from 0.09 to 0.16. This suggests that Knowles is still in the early stages of compounding returns, and investors should monitor whether the Precision Devices segment can sustain this trajectory.
Working Capital Drag Persists Despite Improvement
Cash conversion cycle improved to 152 days in Q2 2026 from 243 days in Q2 2024, based on reported figures, but remains elevated due to high inventory days of 134, indicating ongoing working capital intensity.
The reduction in CCC from 243 to 152 days is a positive sign, driven by a significant drop in DIO from 221 to 134 days, but the cycle remains long compared to typical hardware peers. DSO has also improved from 90 to 62 days, suggesting better receivables collection, while DPO has remained relatively stable around 44 days. The persistent high inventory levels may reflect the company's strategy to hold buffer stock for defense and medtech orders, but it also ties up cash and exposes the company to obsolescence risk in the fast-moving consumer electronics segment.
Deleveraging Strengthens Balance Sheet Flexibility
Debt-to-equity fell to 0.19 in Q2 2026 from 0.36 in Q2 2024, while interest coverage improved to 14.65 from 2.70, according to recent SEC filings, indicating significantly reduced financial risk.
The 51% reduction in total debt from $305M to $150M over the past two years has transformed the balance sheet, with interest coverage now comfortably above the 5x threshold that typically signals distress. This deleveraging appears deliberate, as the company has prioritized debt repayment over aggressive capital deployment. The low leverage provides ample headroom for future acquisitions or organic investments, but investors should note that the D/EBITDA ratio of 4.34 remains elevated relative to the low D/E, reflecting the cyclicality of EBITDA.
Liquidity Buffer Strengthens Amid Cash Flow Volatility
Current ratio improved to 3.20 in Q2 2026 from 1.83 in Q4 2024, while quick ratio rose to 1.75, as per the latest balance sheet, indicating a robust short-term liquidity position despite volatile operating cash flow.
The improvement in liquidity ratios is driven by a combination of debt reduction and a rise in current assets, likely including higher cash and receivables. However, the quick ratio of 1.75 suggests that inventory still plays a significant role in the current ratio, and in a severe demand downturn, inventory liquidation could be challenging. The company's cash position of $49.6M is modest relative to its $150M debt, but the low leverage and strong interest coverage mitigate refinancing risk. Investors should monitor the working capital swings that caused operating cash flow to fluctuate from -$0.7M in Q1 2026 to $28.2M in Q2 2026.
P/E Misleads on Cyclical Earnings
The trailing P/E of 73.18, based on current market data, is distorted by a one-time impairment in Q2 2024, making forward P/E of 27.41 a more reliable gauge of earnings power, but even that may overstate value given the cyclicality.
The most commonly misapplied ratio for Knowles is the trailing P/E, which is artificially inflated by the -191.8% net margin in Q2 2024. Investors should instead focus on EV/EBITDA (28.26) or forward P/E (27.41) to normalize for one-time items. However, even forward earnings may be cyclical, as the Audio segment's exposure to smartphone and TWS markets can cause significant swings. A more appropriate valuation metric might be EV/Sales (5.27) or a sum-of-the-parts analysis that separates the high-margin Precision Devices business from the lower-margin Audio segment, as the market may be applying a conglomerate discount.