KNOT Offshore Partners LP Common Units representing Limited Partner Interests (KNOP)

FairStock Score: 40/100 — MIXED

Key Financials

AI Analysis

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

I look for businesses that earn high returns on capital and carry little debt. KNOT Offshore Partners owns shuttle tankers serving oil majors and national oil companies. In fiscal Q2 2026 it reported $96.8 million of revenue but only $3.4 million of net income. FairStock calculations put ROE at 2.40% and ROCE at 3.19%, so the business is not earning much on the capital employed. The balance sheet is levered, with debt-to-equity of 1.45, and an Altman Z-Score of 0.12 points to distress risk. The Piotroski F-Score of 8/9 is a positive accounting signal, but it must be weighed against weak profitability. Cash generation is the standout: trailing free cash flow is $153.8 million, a 42.8% FCF yield against a $359.0 million market cap. At the 2026-10-13 close of $10.06, P/B is 0.65 and EV/EBITDA is 5.59, which looks inexpensive on assets and cash flow. However, P/E is 41.92, the Graham Number is $9.85, and the margin of safety is -2.13%, so earnings-based value is not compelling. The dividend yield is 2.65% and beta is -0.06. The Lynch category is none because only 0 years of filed results are available, with 3 needed. Overall, this is a leveraged asset play with strong cash flow but weak profitability. The price looks fair at best unless cash flow is durable and debt is reduced.

In plain English: KNOT Offshore Partners owns and operates shuttle tankers that move crude oil from offshore platforms to shore. In its latest reported quarter, fiscal Q2 2026, revenue was $96.8 million and net income was $3.4 million, so profit is thin and the business looks weak on earnings. At the 2026-10-13 close, the price was $10.06, which looks around fair to slightly expensive against earnings and accounting net worth, though cash flow looks strong for its size.

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

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