Knight-Swift Transportation Holdings Inc. (KNX) Company Bio
Knight Transportation is a provider of multiple truckload transportation services using a nationwide network of service centers in the U.S. to serve customers throughout North America. The company was founded in 1989 and is based in Phoenix, Arizona.
KNX Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Knight-Swift Transportation Holdings Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Knight-Swift Transportation Holdings Inc ranked in the 32th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 46.5%. The most interesting components of our discounted cash flow analysis for Knight-Swift Transportation Holdings Inc ended up being:
KNX's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 30.8% of tickers in our DCF set.
Knight-Swift Transportation Holdings Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 16.52. This coverage rate is greater than that of 84.96% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Knight-Swift Transportation Holdings Inc experienced a tax rate of about 20% over the past twelve months; relative to its sector (Industrials), this tax rate is higher than 81.14% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Knight-Swift Transportation Holdings Inc? See BWEN, MEC, NAT, CTAS, and GD.
Knight-Swift ([[KNX]] +0.3%) is teaming up with Daimler Trucks North America ([[DDAIF]] +0.4%) to deploy the company's first zero-emissions battery electric vehicle, consisting of a pre-production Freightliner eCascadia day cab tractor.The Freightliner eCascadia, equipped with a fully electric drivetrain, will be used by Knight-Swift to service the Greater Los Angeles...
The trucking industry continues to see sequential improvement off improvement in import activity at West Coast ports. "Companies are bringing in more of their containers than usual to the West Coast ports and then moving truck or rail inland from there to help with low inventory levels. They’re choosing to...
Another equity research analyst has pulled up earnings estimates for trucking companies. Citing recent conversations with management teams from several transportation companies, Deutsche Bank (NYSE: DB ) analyst Amit Mehrotra raised his earnings per share (EPS) forecasts for the rest of 2020 and all of 2021 on the carriers he follows. "The bottom line is we expect Transportation results to be very strong across the board, with likely more to come over the course of the next several quarters," stated Mehrotra in a weekend note to clients. On average he increased his third-quarter earnings estimates for truckload (TL) and less-than-truckload (LTL) companies by approximately 18%. Mehrotra said his third-quarter estimates now range between 12% and 32% higher than the current consensus estim...
Knight-Swift Transportation Holdings Inc. (NYSE: KNX) (the "Company") announced today that its board of directors has declared the Company’s quarterly cash dividend of $0.08 per share of common stock. The Company's quarterly dividends are pursuant to a cash dividend policy approved by its board of directors. The actual declaration of future cash dividends, and the establishment of record and payment dates, is subject to final determination by the board of directors each quarter after its review of the Company’s financial performance.