KNF

Knife River Corp

Industrial/Transportation


Presented:07/13/2023
Price:$43.80
Cap:$2.48B
Current Price:$91.02
Cap:$5.15B

Presented

Date07/13/2023
Price$43.80
Market Cap$2.48B
Ent ValueN/A
P/E RatioN/A
Book Value$17.23
Div Yield0%
Shares O/S56.57M
Ave Daily Vol1,080,283
Short IntN/A

Current

Price$91.02
Market Cap$5.15B
Knife River Corp. mines aggregates and markets crushed stone, sand, gravel and related construction materials, including ready-mix concrete, asphalt and other value-added products. The company was founded in 1917 and is headquartered in Bismarck, ND.

Publicly traded companies mentioned herein: Knife River Corp (KNF), Summit Materials Inc (SUM)

Highlights

The presenter is long shares of Knife River Resources (KNF), due to its position as an independent construction materials and services company following the recent spin-off from MDU Resources. KNF has strong leverage to infrastructure markets (approximately 75% of KNF's business is tied to lucrative infrastructure projects), setting it apart from its peers in the public aggregates and construction sectors. The new management team's strategic focus on pricing and increasing margins, along with anticipated sales growth and improved financial position, fuels the presenter's optimism that KNF's stock. The stock is currently trading around $40, but he believes has the potential to exceed $60 within 18 months based on 2025 EBITDA of $400MM - $500MM and a ~10x EBITDA multiple.

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Idea Discussion

Commentor 1 - 2 weeks ago

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