Stock Analysis · Knowles Cor (KN)
Overview
Knowles Corporation (KN) is a technology company that designs and manufactures specialized components used to sense, filter, and process sound and signals. Its products are generally small parts that are built into larger systems made by other companies. In plain terms, Knowles sells the “behind-the-scenes” hardware that helps equipment capture sound accurately, reduce noise, or handle delicate signal performance in demanding environments.
Based on the company’s public reporting, its business is organized around specialty components, with a major emphasis on markets where performance and reliability matter (for example, certain industrial, defense, or medical uses). Revenue is primarily generated from selling these components to manufacturers (B2B sales). Percentages by revenue line can vary by year and are typically detailed in the company’s annual report segment information.
Main sources of revenue (high-level):
- Specialty components used in applications such as precision acoustics and high-performance electronics (reported through business segments in filings)
- Other/legacy product lines depending on the period and how the company reports segments and product categories
One useful way to read Knowles is as a company whose results can be influenced by (1) demand cycles in electronics-related end markets, and (2) its ability to maintain strong margins through differentiated engineering and careful cost control.
Across the years shown, total revenue dropped sharply from 2021 to 2022, then stabilized and began recovering through 2025. Operating income remained positive in each year shown, while net income swung widely (including large losses in 2022 and 2024), which is consistent with earnings being affected by items beyond day-to-day operating profit (for example, non-cash charges or other non-operating factors).
Key Figures
| Metric | Value | Industry ⓘ |
|---|---|---|
| Date | Feb 16, 2026 | |
| Context | ||
| Sector | Technology | |
| Industry | Electronic Components | |
| Market Cap ⓘ | $2.32B | |
| Beta ⓘ | 1.51 | |
| Fundamental | ||
| P/E Ratio ⓘ | 47.05 | 41.71 |
| Profit Margin ⓘ | 7.45% | 6.11% |
| Revenue Growth ⓘ | 13.80% | 13.80% |
| Debt to Equity ⓘ | 19.37% | 39.00% |
| PEG ⓘ | 1.12 | |
| Free Cash Flow ⓘ | $81.90M | |
At the latest point shown, Knowles has a market capitalization of about $2.32B and a beta of ~1.51, indicating the stock has historically moved more than the broader market. The P/E ratio is ~47.1 versus an industry median near 41.7, while the profit margin is ~7.45% versus an industry median around 6.11%. Year-over-year revenue growth is shown at ~13.8% (in line with the industry median). Debt-to-equity is about 19%, below the industry median near 39%. Trailing twelve-month free cash flow is approximately $81.9M.
Growth (Medium)
Knowles operates in parts of the broader electronics and component ecosystem, where long-term demand is often supported by continued “electronics content” growth in end products (more sensors, more signal processing, higher performance requirements). However, this type of business can also be cyclical: customer inventory adjustments and end-market slowdowns can cause large swings in orders.
A key question for long-term growth is whether Knowles can keep focusing on higher-value, specialized components—the kind that compete more on performance and reliability than on price alone. In that scenario, growth comes not only from unit volumes but also from capturing more value per device/system through differentiated engineering.
The year-over-year revenue growth pattern shown is uneven: strong growth in parts of 2021, a long stretch of contraction across 2022–2023, and then a return to positive growth during 2024–2025, reaching about 13.8% most recently. This suggests the business has been moving through a downcycle and recovery rather than following a smooth, steady expansion path.
Free cash flow over the trailing twelve-month periods shown remained positive, moving from about $140M (2021) down to the $76–$101M range (2023–2025), and most recently around $81.9M. Consistently positive free cash flow can matter because it indicates the company is generating cash after operating needs and capital spending—cash that can be used for reinvestment, debt reduction, or other corporate purposes.
Potential catalysts (in a neutral, factual sense) typically include: a sustained recovery in customer demand after a downturn, additional design wins that scale into production, and improved operating efficiency that converts revenue into cash flow more consistently.
Risks (High)
This article is for informational purposes only and does not constitute financial advice. Some content is AI-generated. See Disclaimer
