Knight-Swift Transportation Holdings Inc (KNX, Financial), with a current market capitalization of $8.57 billion, has recently shown a notable uptick in its stock performance. Over the past week, the company's stock price has surged by 7.39%, and over the last three months, it has gained an impressive 13.79%. This growth has brought the stock's price to $53.01. According to GuruFocus's valuation metrics, the stock is currently modestly undervalued with a GF Value of $58.94, compared to a past GF Value of $60, indicating a slight decrease in the intrinsic value estimation.
Overview of Knight-Swift Transportation Holdings Inc
Knight-Swift Transportation Holdings Inc, the largest truckload carrier in the United States, operates a diversified set of transportation services. These include full-truckload, refrigerated, dedicated contract, less-than-truckload (LTL), truck brokerage, intermodal operations, and equipment maintenance and leasing. The company's strategic approach to encompassing a broad range of transportation solutions has positioned it as a leader in the industry.
Assessing Profitability
Knight-Swift's financial health is reflected in its Profitability Rank of 8 out of 10. The company's operating margin stands at 3.00%, which is better than 26.63% of its peers in the industry. Additionally, its Return on Equity (ROE) is 1.56%, surpassing 18.82% of competitors, and its Return on Assets (ROA) at 0.91% is also above 23.89% of industry counterparts. The Return on Invested Capital (ROIC) is 1.70%, which is higher than 24.74% of similar companies. These metrics not only demonstrate Knight-Swift's ability to generate profits but also its efficiency in utilizing its assets and equity.
Growth Trajectory
The company's Growth Rank is a perfect 10 out of 10. Knight-Swift has achieved a 3-year revenue growth rate per share of 17.20%, which is better than 69.35% of its industry peers. Its 5-year rate stands at 11.00%, surpassing 74.88% of competitors. Looking ahead, the estimated total revenue growth rate for the next 3 to 5 years is 6.95%, which is more favorable than 56.03% of the industry. However, the 3-year EPS without NRI growth rate shows a decline of 14.30%, though it still ranks better than 16.85% of the industry. The future 3 to 5-year EPS growth rate is expected to be a robust 37.50%, outperforming 80.65% of competitors.
Notable Shareholders
Several prominent investors hold significant stakes in Knight-Swift. Andreas Halvorsen (Trades, Portfolio) owns 1,717,327 shares, representing 1.06% of the company's shares. Larry Robbins (Trades, Portfolio) follows with 1,325,061 shares, accounting for 0.82%, and Steven Cohen (Trades, Portfolio) holds 1,145,548 shares, or 0.71% of the total shares.
Competitive Landscape
Knight-Swift operates in a competitive industry, with key players like Schneider National Inc (SNDR, Financial) with a market cap of $4.58 billion, XPO Inc (XPO, Financial) valued at $13.42 billion, and Saia Inc (SAIA, Financial) closely trailing at $13.17 billion. These companies represent the diverse and dynamic nature of the transportation sector in which Knight-Swift continues to maintain a significant presence.
Conclusion
Knight-Swift Transportation Holdings Inc demonstrates a robust financial performance and significant growth potential. The company's strategic positioning in the transportation industry, coupled with its diversified service offerings and strong profitability metrics, positions it well for future growth. Currently assessed as modestly undervalued, the stock presents a potentially attractive investment opportunity for those looking to capitalize on the transportation sector's dynamics.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
