Why KN Stock Traded Steady Today — RQD Quant Desk Flash

The KN scores 55 out of 100, graded D+, with the verdict "Roarable Sell — Weak Fundamentals / Trim." Across the five pillars:

• Fundamental Cash Engine: 12 / 20. ROIC is 6.6% and FCF yield is 0%. This pillar shows limited cash generation relative to invested capital. For an investor, this means the business is not currently producing free cash flow that would support valuation on a cash basis.
• Whale 13F Flow: 10 / 20. this pillar reflects institutional accumulation and options positioning. The underlying 13F detail is not itemized in the source data, so the sub-signal cannot be decomposed further here.
• Insider Conviction: 7 / 20. this is the weakest pillar, covering SEC Form 4 and Congressional PTR cluster flow. The low score indicates weak insider-side conviction signals in the rating's inputs.
• Macro Regime Fit: 13 / 20. beta is 1.0 and sector sensitivity is moderate. The stock is assessed as moving broadly in line with the market.
• Forensic Balance Sheet: 13 / 20. Altman Z is 2.5, Piotroski F is 6/9, and Debt/Equity is 0.15. Leverage is low; the Z-score and F-score sit in a mid-range band rather than signaling strength or distress.

Taken together, the rating frames KN as a company with a modest balance sheet and profitable operations on an accounting basis, but with thin cash returns and high valuation multiples. Upside drivers would need to come from improved cash conversion or earnings growth that justifies the current multiple. The valuation tradeoff is clear: at a trailing P/E of 67 and EV/EBITDA of 31, the market is pricing substantial future growth that the current cash engine does not yet demonstrate. This is an educational read of the scoring, not a recommendation.

Knowles Corporation (KN) is a NYSE-listed issuer.. Per the market data, gross margin is 43.2%, operating margin is 11.9%, and net margin is 7.5%.

Revenue rose from $456.8M in FY 2023 to $593.2M in FY 2025, and operating income moved from $43.4M to $70.3M over the same span. FY 2024 shows a net loss of -$237.8M despite positive operating income of $51.8M. Per the market data, ROIC is 6.6% and the Altman Z-Score is 2.5 with a Piotroski F-Score of 6/9 . Debt declined from $134.0M to $114.0M between FY 2024 and FY 2025, and Debt/Equity is 0.15.

• 🐂 Primary Bull Case: Revenue grew from $456.8M in FY 2023 to $593.2M in FY 2025 while operating income rose to $70.3M, with debt falling to $114.0M. With Fundamental Cash Engine at 12/20 (ROIC 6.6%, FCF yield —) and Institutional Whale Flow at 7/20, sustained execution supports upside toward the top of the $20.57 – $42.93 52-week range.
• 🐻 Primary Bear Case: A trailing P/E of 67 and FCF yield of 0% leave the valuation resting on earnings the cash engine does not yet demonstrate, with a Roarable Sell rating of 55. Investors must weigh 67.0x trailing P/E and 31.0x EV/EBITDA against 11.9% operating margins and a 1.00 macro beta if sector demand softens.

Supply chain is "NONE" and butterfly links are empty. 2nd-order bottlenecks cannot be identified from the provided inputs.

• Key Question #1: What is the composition of free cash flow, given FCF is listed as N/A for all periods and FCF yield is 0%?
• Key Question #2: What drove the FY 2024 net loss of -$237.8M while operating income remained positive?
• Key Question #3: What are the EPS and cash/debt figures for FY 2023, which are listed as N/A?