Knowles Corporation Common Stock (KN)

FairStock Score: 39/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Knowles as a special-situation turnaround, not a classic wide-moat compounder. The company sells capacitors, RF filters, balanced armature speakers, and medtech microphones into defense, industrial, medtech, and electrification markets. The filed record shows fiscal 2025, the year ended 2025-12-31, revenue of $593.2M and net income of $44.2M, or $0.50 per diluted share, versus fiscal 2024, the year ended 2024-12-31, revenue of $553.5M and a $237.8M loss. In the quarter ended 2026-03-31, revenue was $153.1M and net income $9.7M, compared with $132.2M of revenue and a $2.0M loss in the quarter ended 2025-03-31. That is real improvement, and the balance sheet looks sound: a 0.19 debt-to-equity ratio, a Piotroski F-score of 8/9, and an Altman Z-score of 6.47. But I must separate improvement from price. At the 2026-10-13 close of $36.58, FairStock's P/E is 43.55, P/B 3.93, EV/EBITDA 24.18, and FCF yield only 2.0%. The Graham Number is $13.26, leaving a negative 175.87% margin of safety. ROE of 9.50% and ROCE of 5.52% are not compelling for a technology components maker. The PEG of 0.29 says growth could be cheap if it persists, but the FairStock score of 39/100 and the Lynch turnaround label—returned to profit after a loss within the last three years—remind me this is not a steady franchise. I would want durable free cash flow and returns on capital before paying a premium.

In plain English: Knowles makes electronic parts like capacitors, radio filters, speakers, and microphones for defense, industrial, and medical customers. The business is improving: sales are higher and it swung back to profit after a big loss, with modest debt. At the recent price, however, the stock looks expensive compared with current profit, accounting value, and cash flow.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · fiscal Q1 2025 10-Q (period ended 2025-03-31) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer