Knight-swift Transportation Stock Intrinsic Value – Optimism Rises for Knight-Swift Transportation Despite Five-Year Earnings Decline
December 9, 2023
☀️Trending News
KNIGHT-SWIFT ($NYSE:KNX): Knight-Swift Transportation Holdings, a leading full truckload transportation and logistics services provider in North America, is seeing an upswing in optimism despite a five-year decline in earnings. The share price of the company has risen over the past week, signaling an increase in investor confidence. The company also provides access to a variety of services, including dry van, dedicated contract carriage, freight brokerage and intermodal solutions. In addition, it offers supply chain and logistics solutions, such as inventory management, route planning and asset tracking. Knight-Swift’s financials have been impacted by the pandemic, resulting in declines in revenue and net income in 2020.
However, the company is optimistic that its financials will improve in 2021 as the economy recovers. It is also continuing to innovate and expand its services, with plans to increase its fleet size and add additional features to its technology platform. Overall, despite the past five-year decline in earnings, optimism for Knight-Swift Transportation Holdings is on the rise. With increased investor confidence and plans for growth and innovation, the company is well-positioned to benefit from an economic recovery.
Earnings
In its earning report of FY2023 Q3 as of September 30, 2021, the company reported a total revenue of $1642.44 million and a net income of $206.18 million. This is a 13.4% decrease in total revenue and a 5.8% increase in net income compared to the previous year. Over the last three years, KNIGHT-SWIFT TRANSPORTATION‘s total revenue has fallen from $1642.44 million to $2019.94 million. Despite this decline, the recent quarterly results have given investors a reason to be hopeful for the future of the company.
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 |
| 6.95k | 376.5 | 5.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Knight-swift Transportation. More…
| Operations | Investing | Financing |
| 1.21k | -1.38k | 280.57 |
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 |
| 12.84k | 5.71k | 44.08 |
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 |
| 14.8% | 3.4% | 8.3% |
| FCF Margin | ROE | ROA |
| 0.8% | 5.1% | 2.8% |
Price History
This modest rise in stock price is seen as a sign of hope for investors who have had to endure a five-year downward trend in earnings. Although the company’s financials may not be all that impressive, investors are optimistic that the current upswing is a sign of better things to come. Live Quote…
Analysis – Knight-swift Transportation Stock Intrinsic Value
At GoodWhale, we completed an analysis of KNIGHT-SWIFT TRANSPORTATION‘s financials. After a thorough review, we calculated the intrinsic value of a KNIGHT-SWIFT TRANSPORTATION share to be around $57.2. We believe this to be a fair price, as the stock is currently trading at $57.0. This indicates that the market is accurately pricing in KNIGHT-SWIFT TRANSPORTATION’s fundamentals. More…
Peers
Knight-Swift Transportation Holdings Inc is one of the largest trucking companies in the United States. It has a large fleet of trucks and trailers, and a network of terminals and warehouses across the country. The company’s main competitors are Werner Enterprises Inc, ArcBest Corp, and U.S. Xpress Enterprises Inc.
– Werner Enterprises Inc ($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
Investors have become increasingly optimistic about Knight-Swift Transportation Holdings in the past week due to an improvement in its financial performance. Over the last five years, the company’s earnings have been decreasing, but there have been recent signs that a turnaround is underway. For example, the company has seen a rise in revenue and operating income in its most recent fiscal quarter. However, investors should be aware of the ongoing economic challenges facing the transportation industry, which could limit further gains for Knight-Swift in the near term.
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