Knowles Corporation (KN)
Valuation Overview•Is Knowles Corporation Overvalued or Undervalued?
Trading at a discount compared to peers, but the underlying intrinsic cash flows struggle to support the current price.
Moderate quality score of 70/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Solid fundamental quality, though profitability presents a headwind.
Wall Street sentiment is generally neutral. This is paired with healthy capital returns, driven predominantly by aggressive share repurchases.
Returns capital exclusively via buybacks — no active dividend
KN demonstrates adequate business quality with stable profitability. This is supported by a highly conservative balance sheet featuring strong liquidity and pristine Altman Z safety.
The company demonstrates solid revenue growth (7.4% 3Y CAGR) paired with stable bottom-line earnings. The company maintains healthy operational efficiency with a 17.7% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $0.00 | +7.2% | +7.4% | -4.9% | -3.5% | |
| EBITDA | $46.6M | — | -7.6% | — | — | |
| Net Income | $0.00 | +118.5% | — | — | — | |
| EPS (Diluted) | $0.00 | +118.7% | — | +74.2% | — | |
| Free Cash Flow | -$11.5M | -29.7% | +14.8% | -3.2% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 56.7% | 41.7% | 42.3% | 39.7% |
| Operating Margin | 17.7% | 11.4% | 13.3% | 11.0% |
| Net Margin | 10.0% | -6.7% | -18.5% | -7.9% |
| FCF Margin | 15.9% | 19.3% | 16.9% | 12.4% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.23 | $0.27 | +17.4% | ||
| Q1'26 | $0.35 | $0.36 | +2.9% | ||
| Q4'25 | $0.35 | $0.33 | -6.4% | ||
| Q3'25 | $0.17 | $0.02 | -88.2% | ||
| Q2'25 | $0.18 | $0.18 | +0.0% | ||
| Q1'25 | $0.28 | $0.27 | -3.6% | ||
| Q4'24 | $0.26 | $0.26 | +0.0% | ||
| Q3'24 | $0.24 | $0.24 | +0.0% |
Total return is +128.3% (1Y), outperforming the benchmark by +107.4%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +82.9% | +75.6% | — |
| 1Y | +128.3% | +107.4% | — |
| 3YCAGR | +32.2% | +13.3% | — |
| 5YCAGR | +15.6% | +4.6% | — |
| 10YCAGR | +11.1% | -3.7% | — |
The S&P 500 is at 30.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Knowles Corporation (KN) valuation, health, and returns.
Knowles Corporation is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. overvalued (implying -81.6% downside from DCF intrinsic value of $7.35)
Knowles Corporation has multiple valuation anchors: DCF Intrinsic Value: $7.35 | Peer Relative Fair Value: $110.00 | Wall Street Analyst Target: $38.50 (implying -3.9% upside). A convergence of these signals offers higher conviction.
Knowles Corporation displays good financial health with a composite quality score of 70/100, supported by a Altman Z-Score of 7.4 (safe zone), Piotroski F-Score of 9/9, Return on Invested Capital (ROIC) of 6.8%.
Knowles Corporation returns capital via buybacks instead of dividends, carrying a 1.9% buyback yield and reducing outstanding shares by -3.1% in the last 12 months.
Knowles Corporation's current growth trajectory is Stable. The company achieved +7.2% 1Y revenue growth and +118.7% 1Y EPS growth, compared to its 3Y revenue CAGR of +7.4%.
Wall Street consensus is Buy based on 15 analysts, beating EPS expectations in 42% of recent quarters with a 2-quarter streak. The consensus price target represents a -3.9% change from current levels.
Investment risks for Knowles Corporation include: -15.3% 1-year max drawdown, high beta (1.81x market volatility). Volatility risk is characterized by a beta of 1.81x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.