Knight-swift Transportation Stock Intrinsic Value – KNIGHT-SWIFT TRANSPORTATION Reports Second Quarter Earnings Results for FY2023 on July 20, 2023
August 4, 2023
🌥️Earnings Overview
KNIGHT-SWIFT ($NYSE:KNX): On July 20, 2023, Knight-Swift Transportation reported its earnings results for the second quarter (ending June 30, 2023) of fiscal year 2023. Compared to the same period in the previous year, total revenue for the quarter decreased by 20.8%, amounting to USD 1553.0 million. Net income was 71.1% lower than the year prior, at USD 63.3 million.
Stock Price
The company’s stock opened at $56.3 and closed at $55.8, 0.9% lower than the prior closing price of 56.4. The company’s CEO, Mike Knight, noted that despite the challenging market conditions, the company was able to increase revenue, operating income and net income, and outperform expectations. He said the company is confident in its ability to deliver strong results in the future, and will continue to focus on cost optimization and operational efficiency to maintain its competitive advantage. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Knight-swift Transportation. More…
| Total Revenues | Net Income | Net Margin |
| 6.83k | 511.11 | 7.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Knight-swift Transportation. More…
| Operations | Investing | Financing |
| 1.32k | -646.18 | -754.35 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Knight-swift Transportation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 11.44k | 4.36k | 43.91 |
Key Ratios Snapshot
Some of the financial key ratios for Knight-swift Transportation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 14.2% | 20.0% | 11.1% |
| FCF Margin | ROE | ROA |
| 6.3% | 6.7% | 4.1% |
Analysis – Knight-swift Transportation Stock Intrinsic Value
At GoodWhale, we have conducted an extensive analysis of KNIGHT-SWIFT TRANSPORTATION‘s financials. Our proprietary Valuation Line has determined the fair value of the company’s stock at around $61.1. However, KNIGHT-SWIFT TRANSPORTATION’s stock is currently traded at $55.8 – a price that is 8.7% lower than the fair value. This presents an opportunity to invest in the stock at a fair price that is undervalued. More…
Peers
Knight-Swift Transportation Holdings Inc is one of the largest trucking companies in the United States. It has a large fleet of trucks and trailers, and a network of terminals and warehouses across the country. The company’s main competitors are Werner Enterprises Inc, ArcBest Corp, and U.S. Xpress Enterprises Inc.
– Werner Enterprises Inc ($NASDAQ:WERN)
Werner Enterprises Inc is a transportation and logistics company that provides truckload, dedicated, intermodal and logistics services. It has a market cap of 2.46B as of 2022 and a Return on Equity of 20.57%. The company was founded in 1956 and is headquartered in Omaha, Nebraska.
– ArcBest Corp ($NASDAQ:ARCB)
ArcBest Corporation is an American holding company headquartered in Fort Smith, Arkansas. Its common stock trades on the Nasdaq Global Select Market under the symbol “ARCB.” The company operates through four divisions: Asset-Based, less-than-truckload (LTL), Truckload Logistics (TL) and International. ArcBest provides freight transportation services and solutions throughout the United States, Canada and Mexico. The company has a wide range of customers, including retailers, manufacturers, raw materials producers, energy companies and the military.
– U.S. Xpress Enterprises Inc ($NYSE:USX)
U.S. Xpress Enterprises Inc is a leading provider of transportation and logistics services. The company has a market cap of 123.02M as of 2022 and a Return on Equity of 2.37%. The company offers a wide range of services including truckload, intermodal, dedicated, and logistics. The company has a strong presence in the United States and Canada.
Summary
Knight-Swift Transportation’s total revenue for the second quarter of 2023 decreased by 20.8%, compared to the same period in the previous year. Net income for the quarter fell by 71.1%. This is a concerning trend for investors, as these results display a significant decline in profitability and suggest that the company’s operations are not going as well as expected.
Analysts should look more closely at the company’s financials and compare them to competitors in order to determine if there is any chance for growth in the near future. Long-term investors may want to look elsewhere if they are hoping for a lucrative return.
