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Knight-Swift Transportation Holdings Inc Class A KNX

Morningstar Rating
$55.02 +1.42 (2.65%)
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Company Report

Truckload Sector Still Under Pressure, Though LTL Share Gains a Bright Spot for Knight Swift

Before its 2017 merger with Swift Transportation, Knight Transportation was the 12th-largest full-truckload carrier in the United States, with a history of exceptional execution, including average return on invested capital in the low teens—an unusual accomplishment in trucking. Knight's long-standing laser focus on network efficiency has served it well; its legacy operating ratio, or OR, (expenses/revenue, excluding fuel) averaged in the mid-80% range before the Swift deal, versus an industry average that traditionally exceeds 90%.

Price vs Fair Value

KNX is trading within a range we consider fairly valued.
Price
$52.11
Fair Value
$82.00
Uncertainty
Medium
1-Star Price
$32.75
5-Star Price
$25.50
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Market share gains linked to the failure of former industry giant Yellow are providing a material volume boost for Knight's LTL division.

Bears

Truckload-industry contract pricing headwinds from excess capacity will linger into first half 2024.

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News

Trading Information

Previous Close Price
$53.60
Day Range
$53.8955.32
52-Week Range
$45.7360.99
Bid/Ask
$53.49 / $56.12
Market Cap
$8.89 Bil
Volume/Avg
2.7 Mil / 1.9 Mil

Key Statistics

Price/Earnings (Normalized)
31.98
Price/Sales
1.25
Dividend Yield (Trailing)
1.05%
Dividend Yield (Forward)
1.16%
Total Yield
1.05%

Company Profile

Knight-Swift is the largest truckload, or TL, carrier in the U.S., with a diversified transportation offering. Pro forma for the U.S. Xpress deal, about 82% of revenue derives from Knight’s asset-based trucking business, with full-truckload (for-hire dry van, refrigerated, and dedicated contract) making up 69% and LTL at 13%. Truck brokerage and other asset-light logistics services make up 9% of revenue, with intermodal near 6%. Knight's intermodal operations use the Class-I railroads for the underlying movement of its shipping containers and also include drayage (regional trucking services to and from inland intermodal ramps/terminals). The remainder of revenue reflects services offered to shippers and third-party truckers including equipment maintenance and leasing.
Sector
Industrials
Industry
Trucking
Stock Style Box
Small Value
Total Number of Employees
34,800

Competitors

Valuation

Metric
KNX
ODFL
JBHT
Price/Earnings (Normalized)
31.9819.4826.44
Price/Book Value
1.2511.235.01
Price/Sales
1.258.231.62
Price/Cash Flow
8.2429.7312.34
Price/Earnings
KNX
ODFL
JBHT

Financial Strength

Metric
KNX
ODFL
JBHT
Quick Ratio
0.621.930.98
Current Ratio
0.942.101.17
Interest Coverage
2.963,524.6615.06
Quick Ratio
KNX
ODFL
JBHT

Profitability

Metric
KNX
ODFL
JBHT
Return on Assets (Normalized)
2.36%24.05%9.96%
Return on Equity (Normalized)
3.95%31.48%20.81%
Return on Invested Capital (Normalized)
3.76%30.55%16.19%
Return on Assets
KNX
ODFL
JBHT
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Trucking Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
ODFL
Old Dominion Freight Line Inc Ordinary SharesXdzpkgfgZxkgz$47.7 Bil
SAIA
Saia IncTzlgcswNkbzc$15.5 Bil
XPO
XPO IncPhkdzvxcnKnbw$14.2 Bil
TFII
TFI International IncCcqrk$13.4 Bil
YATRF
Yamato Holdings Co LtdRrlzw$5.1 Bil
YATRY
Yamato Holdings Co Ltd ADRFkhz$4.9 Bil
SNDR
Schneider National IncGmrgmhlpYrbyyxl$4.0 Bil
ARCB
ArcBest CorpLwhddqhsPpckq$3.3 Bil
RXO
RXO IncMsgtvd$2.6 Bil

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