📊 KNF Key Takeaways
Is Knife River Corp (KNF) a Good Investment?
Knife River demonstrates solid revenue growth of 8.5% YoY with strong operational liquidity (2.54x current ratio) and excellent debt service capacity (20.5x interest coverage), but faces material profitability concerns including negative free cash flow of -$69.6M despite $157.1M net income and a 22.3% YoY decline in diluted EPS. Below-average returns on equity (9.6%) and assets (4.3%) indicate suboptimal capital efficiency, while capex spending of $348M exceeding operating cash flow of $278.5M creates unsustainable cash burn that limits shareholder value creation.
Knife River shows solid top-line growth with respectable operating profitability, supported by strong liquidity and manageable leverage. However, the sharp YoY EPS decline and negative free cash flow from elevated capex signal near-term execution and cash conversion risks; confirmation of margin resilience and FCF improvement would justify a more constructive view.
Why Buy Knife River Corp Stock? KNF Key Strengths
- Revenue growth of 8.5% YoY demonstrates market demand in nonmetallic minerals sector
- Strong operational liquidity with current ratio of 2.54x and quick ratio of 1.39x
- Excellent interest coverage of 20.5x indicating robust debt service capacity
- Moderate leverage with debt-to-equity ratio of 0.71x providing balance sheet flexibility
- Healthy liquidity (2.54x current, 1.39x quick)
- Strong interest coverage (20.5x) with moderate leverage (0.71x D/E)
- Consistent revenue growth and solid 9.1% operating margin
KNF Stock Risks: Knife River Corp Investment Risks
- Negative free cash flow of -$69.6M despite positive net income signals fundamental capital allocation problems
- Diluted EPS declined 22.3% YoY despite revenue growth, indicating severe margin compression or share dilution
- Capital expenditures of $348M exceed operating cash flow of $278.5M, creating unsustainable cash burn
- Below-average returns on equity (9.6%) and assets (4.3%) demonstrate poor capital efficiency
- Thin cash position of $73.8M relative to $1.2B debt and capital-intensive operations
- Negative free cash flow driven by high capex
- Earnings pressure evidenced by -22.3% YoY EPS
- Cyclical construction demand and input cost volatility
Key Metrics to Watch
- Free cash flow inflection point and path to positive FCF generation
- Diluted EPS trend reversal and underlying gross/operating margin stability
- Return on equity and return on assets improvement trajectory
- Operating cash flow coverage of capital expenditure requirements
- Free cash flow margin
- Operating margin trajectory
Knife River Corp (KNF) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.54x current ratio provides a solid financial cushion.
KNF Profit Margin, ROE & Profitability Analysis
KNF vs Materials Sector: How Knife River Corp Compares
How Knife River Corp compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Knife River Corp Stock Overvalued? KNF Valuation Analysis 2026
Based on fundamental analysis, Knife River Corp has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Knife River Corp Balance Sheet: KNF Debt, Cash & Liquidity
KNF Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Knife River Corp's revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $3.23 reflects profitable operations.
KNF Revenue Growth, EPS Growth & YoY Performance
KNF Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.1B | -$47.6M | $2.20 |
| Q2 2025 | $806.9M | -$18.1M | $-0.32 |
| Q1 2025 | $329.6M | -$47.6M | $-0.84 |
| Q3 2024 | $1.1B | -$41.3M | $2.58 |
| Q2 2024 | $785.2M | $15.5M | $0.27 |
| Q1 2024 | $307.9M | -$41.3M | $-0.73 |
| Q3 2023 | $975.4M | $38.6M | $1.74 |
| Q2 2023 | $711.8M | -$1.4M | $-0.03 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Knife River Corp Dividends, Buybacks & Capital Allocation
KNF SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Knife River Corp (CIK: 0001955520)
📋 Recent SEC Filings
❓ Frequently Asked Questions about KNF
What is the AI rating for KNF?
Knife River Corp (KNF) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 67% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KNF's key strengths?
Claude: Revenue growth of 8.5% YoY demonstrates market demand in nonmetallic minerals sector. Strong operational liquidity with current ratio of 2.54x and quick ratio of 1.39x. ChatGPT: Healthy liquidity (2.54x current, 1.39x quick). Strong interest coverage (20.5x) with moderate leverage (0.71x D/E).
What are the risks of investing in KNF?
Claude: Negative free cash flow of -$69.6M despite positive net income signals fundamental capital allocation problems. Diluted EPS declined 22.3% YoY despite revenue growth, indicating severe margin compression or share dilution. ChatGPT: Negative free cash flow driven by high capex. Earnings pressure evidenced by -22.3% YoY EPS.
What is KNF's revenue and growth?
Knife River Corp reported revenue of $3.1B.
Does KNF pay dividends?
Knife River Corp does not currently pay dividends.
Where can I find KNF SEC filings?
Official SEC filings for Knife River Corp (CIK: 0001955520) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KNF's EPS?
Knife River Corp has a diluted EPS of $2.76.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is KNF a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Knife River Corp has a HOLD rating with 67% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is KNF stock overvalued or undervalued?
Valuation metrics for KNF: ROE of 9.6% (sector avg: 14%), net margin of 5.0% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy KNF stock in 2026?
Our dual AI analysis gives Knife River Corp a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is KNF's free cash flow?
Knife River Corp's operating cash flow is $278.5M, with capital expenditures of $348.0M. FCF margin is -2.2%.
How does KNF compare to other Materials stocks?
Vs Materials sector averages: Net margin 5.0% (avg: 10%), ROE 9.6% (avg: 14%), current ratio 2.54 (avg: 1.6).