KNF Intrinsic Value – Invest in Knife River Corporation to Capitalize on the Infrastructure Boom
December 30, 2023
🌥️Trending News
Investing in Knife River Corporation (KNIFE RIVER HOLDING ($NYSE:KNF)) is an ideal way to capitalize on the infrastructure boom. With an extensive portfolio of operations and projects, Knife River is well prepared to take advantage of increased infrastructure related activities. The company’s diverse team of professionals has extensive experience in the construction industry, with employees that have worked in multiple states, countries, and industries. This experience allows them to navigate the complexities of the infrastructure market and uncover opportunities that are a fit for their capabilities. With a focus on safety, efficiency, and quality, Knife River delivers projects on time and on budget.
Through their Trucking & Logistics division, Knife River provides customers with a full range of transportation services, from long haul trucking to short-haul deliveries. This division offers incredible potential for growth as infrastructure projects heat up across the United States. With a highly experienced team, an extensive portfolio of operations and projects, and a transportation-related business, Knife River is well positioned to take advantage of the current surge in infrastructure activities.
Stock Price
On Friday, KNIFE RIVER HOLDING stock opened at $67.0 and closed at $66.2, down by 1.3% from previous closing price of 67.0. Despite the slight drop in share prices, there is optimism in the market about KNIFE RIVER HOLDING’s future prospects. The company has a strong track record in infrastructure projects and has recently announced its focus on expanding its presence in the US, Europe, and Asia. With its strong balance sheet and ability to access large markets, KNIFE RIVER HOLDING is well-positioned to benefit from the current surge in infrastructure spending around the world. The company has extensive experience in large-scale projects, including roads, ports, and power plants, and has become a major player in the construction and engineering industries.
With a growing presence in many of the world’s most populous cities, KNIFE RIVER HOLDING is well-positioned to benefit from increased infrastructure investment. Despite the 1.3% dip in share prices on Friday, the company is still seen as an attractive long-term investment opportunity. With its strong balance sheet and ability to access large markets, KNIFE RIVER HOLDING is well-positioned to benefit from increased infrastructure spending around the world. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for KNF. More…
| Total Revenues | Net Income | Net Margin |
| 2.72k | 136.88 | 5.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for KNF. More…
| Operations | Investing | Financing |
| 320.97 | -120.97 | -102.88 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for KNF. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.68k | 1.44k | 21.97 |
Key Ratios Snapshot
Some of the financial key ratios for KNF are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | 9.9% |
| FCF Margin | ROE | ROA |
| 6.5% | 14.5% | 6.3% |
Analysis – KNF Intrinsic Value
As GoodWhale, we have conducted an analysis of KNIFE RIVER HOLDING’s fundamentals to determine its fair value. Based on our proprietary Valuation Line, the fair value of KNIFE RIVER HOLDING share is approximately $50.5. However, currently, KNIFE RIVER HOLDING stock is trading at $66.2, which is 31.2% higher than the fair value. More…
Peers
The competition between Knife River Holding Co and its competitors is fierce. With Taiheiyo Cement Corp, Martin Marietta Materials Inc, and Huaibei GreenGold Industry Investment Co Ltd all vying for a foothold in the construction materials market, Knife River Holding Co has had to constantly innovate and develop strategies to stay ahead of the competition. This has resulted in a dynamic and ever-changing landscape of competition between the companies.
– Taiheiyo Cement Corp ($TSE:5233)
Taiheiyo Cement Corp is a Japanese cement producer headquartered in Tokyo. The company operates two major business segments, including Cement and Raw Material Business, as well as Construction Materials Business. With a market cap of 337.12B as of 2023, the company is one of the biggest cement producers in the world. Additionally, Taiheiyo Cement Corp has a relatively strong Return on Equity (ROE) of 0.97%. This suggests that the company is making good use of its invested capital, as ROE measures how much profit a company generates with the money shareholders have invested.
– Martin Marietta Materials Inc ($NYSE:MLM)
Martin Marietta Materials Inc is a large-scale construction materials company, providing a wide range of products and services to the building and construction industry. The company’s current market cap stands at 30.79 billion, making it one of the leading construction materials providers in the United States. The return on equity for Martin Marietta Materials Inc is also impressive, standing at 12.73%. This suggests that the company is able to generate more value for shareholders than comparable companies in the industry. The company’s success in efficiently executing its operations has helped it to achieve a strong financial performance.
– Huaibei GreenGold Industry Investment Co Ltd ($SEHK:02450)
Huaibei GreenGold Industry Investment Co Ltd is a Chinese-based company that specializes in investments in the industrial sector. Its current market cap of 38.28M as of 2023 reflects the company’s strong financial standing in the sector. Moreover, the company’s Return on Equity (ROE) of 30.13% indicates that the company has been able to effectively use its assets to generate profits. The high ROE is a testament to the company’s ability to capitalize on its investments and generate a profit for its investors.
Summary
Knife River Holdings (KNR) is an interesting stock for investors looking to capitalize on the current infrastructure boom. It is a pure play on the sector, and offers a variety of services, including highway construction, commercial asphalt production, ready-mix concrete, and other transportation and construction-related services. Analysts are expecting even better performance in the coming months as infrastructure spending continues to increase. The company’s share price has risen over the past year, and is expected to continue to rise as the infrastructure boom continues.
