Knife Riv Holding Co. Common Stock (KNF)

FairStock Score: 50/100 — MIXED

Key Financials

AI Analysis

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

Knife River is a basic-materials company selling aggregates, asphalt, ready-mix concrete and heavy-civil contracting. Aggregates can have local moats because permits and proximity matter, but this is still a cyclical, capital-intensive business. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $938.6 million and net income was $43.9 million, or $0.77 diluted EPS. A year earlier, fiscal Q2 2025, the quarter ended 2025-06-30, had revenue of $833.8 million, net income of $50.6 million, and diluted EPS of $0.89. Sales grew, but profit and per-share earnings slipped. Fiscal Q1 2026, the quarter ended 2026-03-31, was a loss: net income of -$79.2 million and diluted EPS of -$1.40. For fiscal year 2025, period ended 2025-12-31, revenue was $3.1 billion and net income was $157.1 million, or $2.76 diluted EPS; in fiscal year 2024, period ended 2024-12-31, net income was $201.7 million and diluted EPS was $3.55. So earnings are uneven and currently declining. The balance sheet gives me pause. Debt-to-equity is 1.04, ROE is 9.12%, ROCE is 4.50%, the Piotroski F-Score is 4/9, and the Altman Z-Score is 1.50. Free cash flow is only $43.1 million, a 1.5% FCF yield. At the 2026-10-13 close of $48.97, FairStock's P/E is 19.91, P/B is 1.73, EV/EBITDA is 8.93, and the Graham Number is $39.57, leaving a -23.76% margin of safety. With a beta of 0.52 and a cyclical Lynch category, I would want a wider discount. This is not a bargain; it looks like a fair-to-full price for a cyclical operator with modest returns.

In plain English: Knife River makes crushed stone, sand, gravel, asphalt, and concrete, and also does construction work, mostly in the United States. The business is cyclical: sales rose in the latest quarter, but profit fell, and the company lost money in the first quarter. At the recent price of $48.97, the stock looks a bit expensive compared with its profits and accounting value, and cash generation is thin.

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

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · 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) · 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