KN

Knowles Corporation

Fundamental data last updated:August 29, 2026

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company profile

SECTOR

Technology

industry

Communication Equipment

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

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.

 


VALUATION

P/E

58.01

Market Cap ($M USD)

$3.25B

Forward P/E

24.38

PEG

0.18

PRICE TO SALES

5.29

PRICE TO BOOK

4.16

EV / EBITDA

27.44

5-Year Average P/E

Free Cash Flow Yield

2.25%

DCF Value

$5.05

Graham Number

$11.60

Price to FCF

44.44

EV to FCF

45.95

Earnings Yield

1.72%

FCF Yield

2.25%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$0.65

Next Year EPS Growth Estimate

$1.56

Next Year Revenue Growth Estimate

$687.00M

Return on Equity (ROE)

7.32%

FREE CASH FLOW

Operating Margin

14.07%

Debt-to-Equity

0.19

Piotroski F-Score

8

Altman Z-Score

7.52

Return on Invested Capital (ROIC)

8.97%

Current Ratio

3.27

Quick Ratio

1.77

Net Debt to EBITDA

0.90

Interest Coverage

10.67

Gross Profit margin

41.91%

FCF PER SHARE

$0.86

REVENUE PER SHARE

$7.19

Gainseekers Quantitative Analysis

Summary

The market seems to be pricing Knowles Corporation with a hefty premium, as evidenced by its Price/Earnings ratio of 53.90, which starkly contrasts with its DCF Value. This suggests a significant overvaluation relative to intrinsic worth. However, the Forward P/E of 22.65 and a robust Altman Z-score of 6.96 indicate financial stability and potential growth. The Earnings Yield of 1.86% is underwhelming, hinting at limited immediate returns. Overall, the stock appears to be trading on future expectations rather than current fundamentals.

AI Exposure / Tech Reliance

Operating in the Communication Equipment industry, Knowles Corporation is well-positioned to leverage AI and tech advancements. Its sector's inherent need for innovation aligns with AI integration, potentially enhancing product offerings. This adaptability could fortify its market position amid rapid technological shifts.

The Bull Case

For the discerning GARP investor, Knowles Corporation offers compelling reasons to buy. A strong ROIC of 8.97% and a Piotroski F-Score of 8 highlight efficient capital use and solid financial health. Despite a modest FCF Yield of 2.42%, the company's operating margin of 14.07% underscores its pricing power. These metrics suggest a company capable of generating sustainable returns and navigating economic cycles effectively.

The Bear Case

Despite its strengths, Knowles Corporation faces significant valuation challenges. The Price/Sales ratio of 4.92 and Price/Book of 3.86 indicate a stock priced for perfection, leaving little room for error. The stock's proximity to its 52-week high, just 0.20% away, suggests technical overextension. Additionally, the EV to FCF ratio of 42.80 raises concerns about cash flow efficiency, making it vulnerable if growth expectations falter.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$38.50

Institutional Ownership %

1-Year Beta

1.56

Insider Buying % (6 Mo)

Distance to 52-Week High

1.13%

Distance to 52-Week Low

57.57%

EARNINGS SURPRISE %

17.39%

50-DAY SMA

$30.66

200-DAY SMA

$25.22

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.