Knight Transportation Profitability Analysis
| KNX Stock | USD 59.09 0.50 0.84% |
Net Income | First Reported 1994-03-31 | Previous Quarter 20.3 M | Current Value 30.5 M | Quarterly Volatility 63.6 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.17 | 0.1756 |
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| Net Profit Margin | 0.0289 | 0.0304 |
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| Pretax Profit Margin | 0.036 | 0.0378 |
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| Return On Assets | 0.016 | 0.0169 |
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| Return On Equity | 0.0291 | 0.0306 |
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For Knight Transportation profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Knight Transportation to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Knight Transportation utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Knight Transportation's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Knight Transportation over time as well as its relative position and ranking within its peers.
Knight |
Knight Transportation's Revenue Breakdown by Earning Segment
Check out Correlation Analysis.
Is Cargo Ground Transportation space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Knight Transportation. If investors know Knight will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Knight Transportation listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.49) | Dividend Share 0.62 | Earnings Share 0.23 | Revenue Per Share 46.27 | Quarterly Revenue Growth (0.07) |
The market value of Knight Transportation is measured differently than its book value, which is the value of Knight that is recorded on the company's balance sheet. Investors also form their own opinion of Knight Transportation's value that differs from its market value or its book value, called intrinsic value, which is Knight Transportation's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Knight Transportation's market value can be influenced by many factors that don't directly affect Knight Transportation's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Knight Transportation's value and its price as these two are different measures arrived at by different means. Investors typically determine if Knight Transportation is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Knight Transportation's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Knight Transportation Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Knight Transportation's current stock value. Our valuation model uses many indicators to compare Knight Transportation value to that of its competitors to determine the firm's financial worth. Knight Transportation is rated below average in return on equity category among its peers. It also is rated below average in return on asset category among its peers reporting about 1.51 of Return On Asset per Return On Equity. At this time, Knight Transportation's Return On Equity is fairly stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Knight Transportation's earnings, one of the primary drivers of an investment's value.Knight Return On Asset vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Knight Transportation |
| = | 0.0051 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Knight Transportation |
| = | 0.0077 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Knight Return On Asset Comparison
Knight Transportation is currently under evaluation in return on asset category among its peers.
Knight Transportation Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Knight Transportation, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Knight Transportation will eventually generate negative long term returns. The profitability progress is the general direction of Knight Transportation's change in net profit over the period of time. It can combine multiple indicators of Knight Transportation, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -830 K | -871.5 K | |
| Operating Income | 338.2 M | 355.1 M | |
| Income Before Tax | 270.3 M | 211.6 M | |
| Total Other Income Expense Net | -67.9 M | -64.5 M | |
| Net Income | 217.1 M | 162.8 M | |
| Income Tax Expense | 54.8 M | 48.8 M | |
| Net Income Applicable To Common Shares | 887 M | 931.4 M | |
| Net Income From Continuing Ops | 215.5 M | 357.6 M | |
| Non Operating Income Net Other | -23.6 M | -22.4 M | |
| Interest Income | 21.6 M | 22.7 M | |
| Net Interest Income | -105.5 M | -100.2 M | |
| Change To Netincome | -30.1 M | -28.6 M | |
| Net Income Per Share | 1.35 | 1.02 | |
| Income Quality | 5.35 | 5.62 | |
| Net Income Per E B T | 0.80 | 0.55 |
Knight Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Knight Transportation. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Knight Transportation position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Knight Transportation's important profitability drivers and their relationship over time.
Knight Transportation Profitability Trends
Knight Transportation profitability trend refers to the progression of profit or loss within a business. An upward trend means that Knight Transportation's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Knight Transportation's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.
Knight Transportation Profitability Drivers Correlations
One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Knight Transportation different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Knight Transportation in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Knight Transportation's future profitability.
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Use Knight Transportation in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Knight Transportation position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Knight Transportation will appreciate offsetting losses from the drop in the long position's value.Knight Transportation Pair Trading
Knight Transportation Pair Trading Analysis
The ability to find closely correlated positions to Knight Transportation could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Knight Transportation when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Knight Transportation - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Knight Transportation to buy it.
The correlation of Knight Transportation is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Knight Transportation moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Knight Transportation moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Knight Transportation can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Knight Transportation position
In addition to having Knight Transportation in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Retail theme has 61 constituents at this time.
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Additional Tools for Knight Stock Analysis
When running Knight Transportation's price analysis, check to measure Knight Transportation's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Knight Transportation is operating at the current time. Most of Knight Transportation's value examination focuses on studying past and present price action to predict the probability of Knight Transportation's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Knight Transportation's price. Additionally, you may evaluate how the addition of Knight Transportation to your portfolios can decrease your overall portfolio volatility.