KNX

Knight-Swift Transportation Holdings Inc - Ordinary Shares - Class A

Industrial/Transportation


Presented:09/03/2024
Price:$52.29
Cap:$8.46B
Current Price:$51.52
Cap:$8.34B

Presented

Date09/03/2024
Price$52.29
Market Cap$8.46B
Ent Value$10.44B
P/E Ratio126.48x
Book Value$43.59
Div Yield1.14%
Shares O/S161.86M
Ave Daily Vol1,967,317
Short Int3.77%

Current

Price$51.52
Market Cap$8.34B
Knight-Swift Transportation Holdings, Inc. engages in the provision of multiple truckload transportation and logistics services. It operates through the following business segments: Trucking, Logistics, and Intermodal. The Trucking segment comprises irregular route and dedicated, refrigerated, expedited, flatbed, and cross-border operations. The Logistics segment includes brokerage and other freight management services. The Intermodal segment consists of revenue generated by moving freight over the rail in the containers and other trailing equipment, combined with the revenue for drayage to transport loads between the railheads and customer locations. The company was founded in 1966 and is headquartered in Phoenix, AZ.

Publicly traded companies mentioned herein: FedEx Corp (FDX), Knight-Swift Transportation Holdings Inc (KNX), Old Dominion Freight Line Inc (ODFL), Saia Inc (SAIA)

Highlights

The presenter is long shares of Knight-Swift Transportation Holdings Inc (KNX), which is the largest player in the highly fragmented trucking industry. The stock has traded flattish in recent years as investors have waited for the trucking cycle to bottom, and the presenter believes that current trends set the company up for success. Additionally, he argues that KNX’s mid-cycle earnings are much higher than the market’s expectations of $3 – $4 due to the accretive 2023 acquisition of US Xpress and KNX’s ongoing efforts to build out its LTL network. Modeling mid-cycle EPS of $5 in his base case and underwriting a historically normal 15x multiple, the presenter reaches a $75 price target (42% upside) with incremental upside from the LTL business. 

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Idea Discussion

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