MeritValue

Knowles Corp

KNdata completeness 88%14 fiscal years on file

Data notes: no data for concept 'operatingCashFlow'

The thesis, from the filings

Knowles Corp earns about 5% on invested capital, and has bought back 7% of its shares over 5 years. The applicable estimate puts fair value near $5.2 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$868.1M1$478.8M2$456.8M3$553.5M3$593.2M3
Net income$150.4M4−$430.1M5$72.4M6−$237.8M6$44.2M6
Operating cash flow—————
Capital expenditure$48.6M7$32.1M8$16.9M9$13.6M9$32.1M9
Free cash flow (derived)—————
Total debt$140M10$90M11$592.4M12$477.7M13$228M13
Cash & equivalents$68.9M14$48.2M15$87.3M16$130.1M17$54.2M17
Diluted shares94.7M92.8M91.6M90.1M88.0M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$88.16
your share of equity
Profit it earned you last year
$5.02
Free cash flow it threw off
—
Debt you’d be carrying
$25.91

10 shares is a claim on $88.16 of net worth that earned you $5.02 last year, against $25.91 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
5% avg · 5y
FY21 8%FY22 7%FY23 3%FY24 3%FY25 6%

It earned an average 5% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−7% shares · 5y

Share count is down 7% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has risen 63% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$5.2
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$44.2M
  • growthAssumed0.0%
Graham Number
$9.96
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001587523-24-000017 (Revenues)
  2. 10-K · period ending 2022-12-31 · accession 0001587523-25-000010 (Revenues)
  3. 10-K · period ending 2023-12-31 · accession 0001587523-26-000005 (Revenues)
  4. 10-K · period ending 2021-12-31 · accession 0001587523-24-000017 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001587523-25-000010 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001587523-26-000005 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001587523-24-000017 (PaymentsToAcquirePropertyPlantAndEquipment)
  8. 10-K · period ending 2022-12-31 · accession 0001587523-25-000010 (PaymentsToAcquirePropertyPlantAndEquipment)
  9. 10-K · period ending 2023-12-31 · accession 0001587523-26-000005 (PaymentsToAcquirePropertyPlantAndEquipment)
  10. 10-K · period ending 2021-12-31 · accession 0001587523-23-000021 (LongTermDebtNoncurrent)
  11. 10-K · period ending 2022-12-31 · accession 0001587523-24-000017 (LongTermDebtNoncurrent)
  12. 10-K · period ending 2023-12-31 · accession 0001587523-25-000010 (LongTermDebtNoncurrent)
  13. 10-K · period ending 2024-12-31 · accession 0001587523-26-000005 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2021-12-31 · accession 0001587523-23-000021 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2022-12-31 · accession 0001587523-24-000017 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2023-12-31 · accession 0001587523-25-000010 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2024-12-31 · accession 0001587523-26-000005 (CashAndCashEquivalentsAtCarryingValue)