Knowles Corporation (KN) - Stock Analysis
Last updated: Mar 8, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
Knowles Corporation demonstrated a strong Q2 2025 earnings beat on July 24 with 8% YoY revenue growth and 20% EPS growth, followed by a 27% stock rally. Management's positive Q3 guidance, robust cash flow, new product launches in high-demand sectors, and strong technical momentum above moving averages signal favorable near-term return potential.
Loading chart data...
AI Analyst Overview
Loading chart data...
Valuation Metrics
Fundamental Analysis
Key Financial Insights: ⢠Strong liquidity ⢠Positive FCF ⢠High valuation KN has strong liquidity and positive free cash flow with modest leverage and decent operating returns, but low ROE, large intangibles, high operating costs and a rich valuation that leave limited downside protection.
Price Behavior
Key Price Behavior Insights: ⢠Recent peak-failure ⢠Near-term support ⢠Elevated volatility Support Level: $24.70â$24.83 Resistance Level: $27.50â$28.50 Price action is essentially flat over the last month but shows a short-term deteriorationâafter peaking near $28.48 on 2026-02-25 the stock plunged ~12â13% into 2026-03-06 and now sits at/near last month's low, so a sustained break below ~$24.7 would be a clear negative trigger while the $27.5â$28.5 area acts as near-term resistance.
AI Summary
Knowles has meaningfully transitioned into a cash-generative, higherâmargin specialtyâcomponents platform, but the stock already prices in nearâperfect executionâso the investment now hinges on whether specialtyâfilm yields and margin expansion materialize by midâ2026. Monitor quarterly gross/EBITDA margins, FCF after sustaining capex, and specialtyâfilm yield curves closelyâany slip will likely trigger rapid valuation compression given elevated multiples and a large intangible base.
Description
Knowles Corporation manufactures acoustic components (microphones, balanced-armature speakers and related audio processors) and precision electronic parts, including high-performance capacitors and RF products, serving consumer electronics, medical, defense, automotive and industrial markets. The business is organized into Audio and Precision Devices segments that supply components for applications such as hearing health, true wireless earbuds, medical implants, satellite communications and radar, and sells primarily to OEMs, contract manufacturers and distributors. Founded in 1946 and headquartered in Itasca, Illinois, the company operates across Asia, North America, Europe and other international markets.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| Sep 29 | Oct 6 | KN | Knowles Corporation | Knowles Corporation demonstrated a strong Q2 2025 earnings beat on July 24 with 8% YoY revenue growth and 20% EPS growth, followed by a 27% stock rally. Management's positive Q3 guidance, robust cash flow, new product launches in high-demand sectors, and strong technical momentum above moving averages signal favorable near-term return potential. | Closed | +4.9% |