Knight-swift Transportation Stock Fair Value – Exploring the Rapid Rise of Knight-Swift Transportation Holdings: A Look at ROCE Trends
December 3, 2023
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KNIGHT-SWIFT ($NYSE:KNX): The rapid rise of Knight-Swift Transportation Holdings in the transportation and logistics industry has been remarkable. To better understand the company’s success and rapid growth, it is essential to analyze its Return on Capital Employed (ROCE) trends. Knight-Swift Transportation Holdings is a holding company that provides combined transportation and logistics services to customers throughout North America. It serves customers such as airlines, parcel delivery companies, and railroads. It offers a variety of services such as truckload and less-than-truckload freight transportation, intermodal services, and supply chain solutions. Its ROCE, or Return on Capital Employed, has grown significantly in recent years.
ROCE is a financial metric that indicates how efficiently a company uses its capital. As a measure of profitability, it helps investors determine how well a company’s investments are performing. In the case of Knight-Swift Transportation Holdings, its ROCE has risen steadily year-over-year due to its efficient use of capital. In conclusion, the incredible growth of Knight-Swift Transportation Holdings can be attributed to its efficient use of capital as evidenced by its increasing ROCE trends. The company has invested wisely in technology, personnel, and infrastructure to drive its success and empower its customers with reliable transportation and logistics services.
Market Price
On Monday, the stock opened at $51.9 and closed at $52.1, representing a 0.2% increase from its previous closing price of $51.9. This indicates that the company is doing well and investors have faith in its growth prospects. It’s important to take a closer look at Knight-Swift’s performance, specifically its return on capital employed (ROCE). The ROCE ratio helps to determine how efficiently the company is using its capital to generate returns.
It measures the company’s ability to generate profits from its capital investments and serves as an indicator of future performance potential. By examining Knight-Swift’s ROCE trends, investors can gain insight into the company’s profitability and future prospects. 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 |
| 6.95k | 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% |
Analysis – Knight-swift Transportation Stock Fair Value
At GoodWhale, we recently conducted an analysis of KNIGHT-SWIFT TRANSPORTATION‘s wellbeing. Through our proprietary Valuation Line, we have determined that the intrinsic value of KNIGHT-SWIFT TRANSPORTATION share is around $57.3. Currently, the stock is trading at $52.1, making it a fair price which is undervalued by 9.1%. We believe this presents a great opportunity for investors who wish to capitalize on a potentially lucrative investment. More…
Peers
Knight-Swift Transportation Holdings Inc is one of the largest trucking companies in the United States. It has a large fleet of trucks and trailers, and a network of terminals and warehouses across the country. The company’s main competitors are Werner Enterprises Inc, ArcBest Corp, and U.S. Xpress Enterprises Inc.
– Werner Enterprises Inc ($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 Holdings is an American transportation and logistics company that operates in the trucking, ground and air freight, and logistics industry. Investing analysis of the company has revealed an increased return on capital employed (ROCE) trend over the past few years. This indicates that the company has become more efficient in utilizing its capital to generate profits, further driving shareholder value and improving overall investor returns.
The company has also seen improved operational efficiency, which has led to greater profitability and higher stock prices. The increasing ROCE trend suggests that Knight-Swift Transportation is well-positioned to continue to improve its profits and stock performance in the years to come.
