Knowles, headquartered in Itasca, Illinois, employs 7,100 people and went public on February 14, 2014, specializing in advanced microacoustic and audio processing solutions across various markets. Its segments include Precision Devices, Medtech & Specialty Audio, and Consumer MEMS Microphones.
Based on our analysis, Knowles Corporation is currently rated as undervalued with a score of 4 out of 5 stars by Cashu. Several key financial ratios indicate that the company could be an attractive investment opportunity compared to its sector peers.
The Price-to-Book (PB) ratio for Knowles stands at 2.32, significantly lower than the sector average of 3.48. A lower PB ratio suggests that the stock may be undervalued relative to its assets, indicating potential for price appreciation as the market recognizes its true worth.
Additionally, Knowles has reported a net profit margin of -42.96, which is considerably worse than the sector average of -15.27. While this negative margin reflects challenges in profitability, it also highlights the potential for improvement. If Knowles can enhance its operational efficiency, it may eventually return to profitability, positively impacting its stock price.
The Return on Equity (ROE) for Knowles is -31.46, compared to the sector's -23.19. A negative ROE indicates that the company is currently not generating profits from its equity. However, this also presents an opportunity for investors, as turning around a company with a strong market position can yield significant returns.
Finally, the Return on Assets (ROA) for Knowles is -21.27, while the sector average is -12.89. A low ROA suggests inefficiencies, yet also emphasizes potential growth if the company can streamline its operations.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
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