Knife River Corp

Industrials
Mining & Quarrying of Nonmetallic Minerals (No Fuels)
www.kniferiver.com

Earnings Score
Moat Score
Safety Score

Market Cap $5.96B
PE 30
Debt $687.25M
Cash $267.44M
EV $6.38B
FCF $167.70M

Earnings

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Sales & Net Margins

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Earnings	$199.11M
EBIT	$314.82M
ROE	14%
ROA	11%
FCF	$167.70M
Equity	$1.45B
Growth Stability	1
PE	29.95
PEG	0.82
PB	4.12
P/FCF	35.56
P/S	2.06
Price/Cash	0.04
Debt/Equity	0.47
Debt/FCF	4.1
Net Margins	8%
Gross Margins	20%
Op. Margins	11%
Earnings CAGR	37%
Sales Growth YoY	1%
Sales Growth QoQ	37%
Sales CAGR	8%
FCF CAGR	175%
Equity CAGR	18%
Earnings Stability	-0.28
Earnings Growth YoY	1%
Earnings Growth QoQ	90%

Earnings CAGR 5Y	37%
Sales CAGR 5Y	8%
FCF CAGR 5Y	175%
Equity CAGR 5Y	18%
Earnings CAGR 3Y	8%
Sales CAGR 3Y	8%
FCF CAGR 3Y	175%
Equity CAGR 3Y	18%
Market Cap	$5.96B
Revenue	$2.89B
Assets	$2.88B
Total Debt	$687.25M
Cash	$267.44M
Shares Outstanding	56.61M
EV	6.38B
Earnings Score	6%
Moat Score	91%
Safety Score	88%
Final Score	62%
Working Capital	733.53M
Current Ratio	2.72
Gross Profit	$568.19M
Shares Growth 3y	-6%
Equity Growth QoQ	12%
Equity Growth YoY	17%

Assets & ROA

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Stockholders Equity & ROE

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Knife River Corporation provides aggregates-based construction materials and contracting services in the United States. It operates through six segments: Pacific, Northwest, Mountain, North Central, South, and Energy Services. It mines, processes, and sells construction aggregates, including crushed stone and sand, and gravel; and produces and sells asphalt and ready-mix concrete, as well as provides contracting services to support the aggregate-based product lines, including heavy-civil construction, asphalt and concrete paving, and site development and grading. It serves various projects related to highways, airports, and other public infrastructure. The company was founded in 1917 and is based in Bismarck, North Dakota.

SEC Filings

Direct access to Knife River Corp (KNF) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Knife River Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Knife River Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 37%

Stability -28%

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Knife River Corp Discounted Cash Flow

Fully customizable DCF calculator online for Knife River Corp.

Years

Calculation mode

= $18T

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$168M	$461M	$1.3B	$3.5B	$9.6B	$26B	$72B	$198B	$544B	$1.5T	$4.1T	$41T
DCF		$419M	$1B	$2.6B	$6.5B	$16B	$41B	$102B	$254B	$634B	$1.6T	$16T
Value	$18T

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2021	12/2022	12/2023	TTM
Net Margins	6%	5%	6%	8%
ROA	-	8%	12%	11%
ROE	-	11%	14%	14%

Net Margins (7.96%)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	0.02	3.26	4.1
Debt over Equity	-	0	0.54	0.47
Growth Stability	-	-	-	1

Bad Debt/FCF ratio (4.1)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.47)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (1)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	14%	12%	8%
Earnings YoY growth	-	-10%	57%	37%
Equity YoY growth	-	8%	23%	18%
FCF YoY growth	-	318%	622%	175%