Knowles Corporation
$38.69
-0.10%Knowles Corporation offers micro-acoustic microphones and balanced armature speakers, audio solutions, high performance capacitors, and radio frequency products for the consumer electronics, medtech, defense, electric vehicle, industrial, and communications markets. It operates in two segments, Audio and Precision Devices (PD). The Audio segment designs and manufactures audio products, including microphones, balanced armature speakers, and audio processors used in applications that serve the mobile, hearing health, True Wireless Stereo, Internet of Things, and computing markets. The PD segment is involved in the design and delivery of high-performance capacitor products and RF solutions that are used in applications, such as power supplies and medical implants, satellite communications, and radar systems, as well as for communications equipment. The company sells its products directly to original equipment manufacturers and to their contract manufacturers and suppliers, as well as through distributors. It has operations in Asia, the United States, Europe, other Americas, and internationally. The company was founded in 1946 and is headquartered in Itasca, Illinois.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is elevated (P/E 75.9).
Valuation inputs: P/E 75.9, earnings yield +1.3%, momentum -0.1%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE +5.7%, ROIC +6.5%).
Profitability stack: net margin +7.4%, ROE +5.7%, ROIC +6.5%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +26.2%, momentum -0.1%, net margin +7.4%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Knowles Corporation Market vs Earnings Trajectory
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Knowles Corporation Fair Value Envelope
Knowles Corporation Profit Bridge
Profitability Analysis
Gross Margin
Strong gross margins indicate healthy pricing and efficient production or service delivery.
Operating Margin
Acceptable margins but limited operational leverage. Operating expense control is important.
Net Profit Margin
Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.
Effective Tax Rate
Moderate tax rate typical for most corporations. Represents standard tax burden on profits.
Profitability Insight
Room for improvement: Moderate profitability with opportunities to enhance margins through better cost management or pricing strategy.
Knowles Corporation Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Moderate capital requirements typical of many stable businesses. Healthy balance between reinvestment and cash generation.
FCF Growth Trend
Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.
Working Capital Impact
Moderate working capital outflow. Typical for growing businesses, but ensure it's supporting revenue growth, not inefficiency.
Cash Flow Quality Insight
Asset-light with strong cash conversion: Low capital requirements combined with efficient cash generation creates significant shareholder value through dividends, buybacks, or strategic investments.
Knowles Corporation Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.
Debt-to-Equity Ratio
Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Financial Health Insight
Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.
Knowles Corporation Street Expectations Map
Wall Street analysts project that KN stock may see slight declines over the coming 12 months. The consensus 1-year price target stands at 38.50, with estimates ranging from a low of 38.00 to a high of 39.00.
The consensus 1-year price target stands at 38.50, with estimates ranging from a low of 38.00 to a high of 39.00.
Analyst Consensus Analysis
Upside Potential
Fair value territory. Stock trading near consensus target suggests limited near-term catalysts. Focus on fundamental developments.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Risk-Reward Profile
Unfavorable risk-reward. Downside risk exceeds upside potential. Consider defensive positioning or alternative opportunities.
Analyst Conviction
Neutral sentiment. Fair value pricing with moderate agreement suggests wait-and-see approach or catalyst-driven opportunity.
Market Sentiment Insight
Efficient pricing: Stock trading at fair value with strong consensus suggests market has priced in expectations. Look for fundamental inflection points or new catalysts to drive meaningful moves.
Knowles Corporation Insider Positioning
During the last 12 months, insiders have purchased $2.20M and sold $11.72M worth of KN shares, resulting in $9.53M of net selling activity.
3 Months
0
0.00
163.0K
5.44M
-5.4M
-$5.44M
3-6 Months
0
0.00
208.9K
5.48M
-5.5M
-$5.48M
6-9 Months
136.7K
2.20M
35.0K
807.00K
+1.4M
+$1.39M
9-12 Months
0
0.00
0
0.00
+0
+$0
Top Buyers
Niew Jeffrey
Director, Officer: President & Ceo
$2.20M
Top Sellers
Niew Jeffrey
Director, Officer: President & Ceo
$7.85M
Barnes Keith
Director
$1.11M
Giesecke Daniel J.
Officer: Senior Vice President & Coo
$813K
Anderson John S.
Officer: Senior Vice President & Cfo
$654K
Perna Robert J
Officer: Svp, General Counsel & Sec
$551K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $9.53M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Weak buy/sell ratio. Selling significantly exceeds buying—monitor for potential fundamental concerns.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
5 insider sellers vs. 1 buyers. Widespread selling across multiple insiders may signal concerns.
Insider Activity Insight
Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.
No Dividend Yield Data
KN has not reported any dividend yield values in the available annual periods.
kn Dividend History
Learning Layer
Related Guides
Build conviction on KN by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.