Knowles Corporation (KN) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Knowles Corporation (KN) Technology Profile & Competitive Position

Knowles Corporation, a technology firm specializing in micro-acoustic microphones and audio solutions, serves diverse sectors like consumer electronics and medtech. With a $3.12B market cap and a presence in Asia, the Americas, and Europe, Knowles operates through its Audio and Precision Devices segments, focusing on innovation and market expansion.

What Is the Investment Thesis for KN?

The company's Audio segment is poised to benefit from the increasing demand for high-quality audio solutions in mobile devices, TWS earbuds, and IoT devices. The Precision Devices segment is expected to capitalize on the growth in medical implants, electric vehicles, and advanced communication systems. With a gross margin of 41.9% and a profit margin of 9.1%, Knowles demonstrates solid profitability. Key catalysts include new product launches, expansion into emerging markets, and strategic partnerships. Potential risks include intense competition, technological obsolescence, and economic downturns affecting consumer spending. The company's P/E ratio of 56.62 suggests a premium valuation, reflecting investor expectations for future growth.

Based on FMP financials and quantitative analysis

KN Key Highlights

Market Cap of $3.12B reflects Knowles' significant presence in the micro-acoustic and precision device markets.

• Gross Margin of 41.9% indicates strong pricing power and efficient cost management.
• Profit Margin of 9.1% demonstrates the company's ability to convert revenue into profit.
• Presence in diverse markets including consumer electronics, medtech, defense, and electric vehicles reduces reliance on any single industry.
• Global operations in Asia, the United States, Europe, and other Americas provide geographic diversification and access to key markets.

Who Are KN's Competitors?

KN is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are KN's Key Strengths?

Strong market position in micro-acoustic microphones and audio solutions.

• Diverse customer base across multiple industries.
• Global manufacturing and distribution network.
• Proprietary technology and expertise in audio processing.

What Are KN's Weaknesses?

Reliance on a few key customers.

• Exposure to cyclical trends in the consumer electronics market.
• Intense competition from other component manufacturers.
• Potential for technological obsolescence.

What Could Drive KN Stock Higher?

Launch of new micro-acoustic microphones for mobile devices in Q3 2026.

• Expansion of audio solutions for True Wireless Stereo (TWS) earbuds.
• Penetration of the electric vehicle (EV) market with high-performance capacitor products.
• Growth in medical implant applications with advanced capacitor technology.

What Are the Key Risks for KN?

Inconsistent delivery — missed Wall Street EPS estimates in 3 of the last 8 reported quarters.

• Rich valuation — a P/E of 56.62 runs well above the Technology sector’s ~32.70x, leaving little room for a miss.
• Insider selling — insiders were net sellers of roughly $15.0M recently.
• Economic downturns affecting consumer spending on electronics.
• Disruptive technologies from new entrants in the micro-acoustic market.
• Intense competition from other component manufacturers.
• Supply chain disruptions affecting the availability of raw materials.
• Fluctuations in currency exchange rates impacting international sales.

What Are the Growth Opportunities for KN?

• Expansion in True Wireless Stereo (TWS) Market: The TWS market is experiencing rapid growth, driven by the increasing adoption of wireless earbuds and headphones. Knowles can capitalize on this trend by developing and marketing advanced audio solutions for TWS devices. The global TWS market is projected to reach $27 billion by 2027, offering a significant growth opportunity for Knowles. By leveraging its expertise in balanced armature speakers and audio processing, Knowles can gain market share and drive revenue growth.
• Penetration of the Electric Vehicle (EV) Market: The EV market is expanding rapidly, creating new opportunities for Knowles to provide high-performance capacitor products and RF solutions for EV power systems and communication networks. The global EV market is expected to reach $800 billion by 2027. Knowles can leverage its technology and expertise to secure contracts with EV manufacturers and suppliers, driving revenue growth and expanding its market presence.
• Growth in Medical Implant Applications: The market for medical implants is growing, driven by the aging population and advancements in medical technology. Knowles can capitalize on this trend by providing high-performance capacitor products for implantable medical devices, such as pacemakers and defibrillators. The global medical implant market is projected to reach $130 billion by 2027, offering a significant growth opportunity for Knowles. By focusing on quality and reliability, Knowles can establish itself as a trusted supplier in the medical implant market.
• Expansion in the Internet of Things (IoT) Market: The IoT market is expanding rapidly, creating new opportunities for Knowles to provide micro-acoustic microphones and audio solutions for IoT devices, such as smart speakers and connected home devices. The global IoT market is expected to reach $1.5 trillion by 2027. Knowles can leverage its technology and expertise to secure contracts with IoT device manufacturers and suppliers, driving revenue growth and expanding its market presence.
• Strategic Partnerships and Acquisitions: Knowles can pursue strategic partnerships and acquisitions to expand its product portfolio, enter new markets, and enhance its competitive position. By partnering with complementary technology companies or acquiring smaller players in the micro-acoustic and precision device markets, Knowles can accelerate its growth and innovation. These partnerships can provide access to new technologies, customers, and distribution channels, driving revenue growth and increasing shareholder value.

What Are KN's Competitive Advantages?

• Proprietary technology in micro-acoustic microphones and balanced armature speakers.
• Strong relationships with leading OEMs in the mobile device and hearing aid markets.
• Global manufacturing and distribution network.
• Expertise in designing and manufacturing high-performance capacitor products.
• Reputation for quality and reliability in the medical device market.

What Does KN Do?

Founded in 1946 and headquartered in Itasca, Illinois, Knowles Corporation has evolved into a leading global provider of advanced micro-acoustic microphones, audio solutions, high-performance capacitors, and radio frequency (RF) products. Originally focused on hearing aid components, the company expanded its product portfolio to serve a wide array of markets, including consumer electronics, medtech, defense, electric vehicles, industrial, and communications. Knowles operates through two primary segments: Audio and Precision Devices (PD). The Audio segment designs and manufactures microphones, balanced armature speakers, and audio processors used in mobile devices, hearing health solutions, True Wireless Stereo (TWS) earbuds, Internet of Things (IoT) devices, and computing platforms. The PD segment specializes in high-performance capacitor products and RF solutions for applications such as power supplies, medical implants, satellite communications, and radar systems. Knowles sells its products directly to original equipment manufacturers (OEMs), their contract manufacturers and suppliers, and through a network of distributors. With operations spanning Asia, the United States, Europe, and other regions in the Americas, Knowles maintains a global footprint to support its diverse customer base. The company's commitment to innovation and quality has solidified its position as a key player in the micro-acoustic and precision device markets.

What Products and Services Does KN Offer?

• Designs and manufactures micro-acoustic microphones for mobile devices and other applications.
• Produces balanced armature speakers for high-end audio devices and hearing aids.
• Develops audio processors for noise cancellation and voice enhancement.
• Manufactures high-performance capacitor products for power supplies and medical implants.
• Provides RF solutions for satellite communications and radar systems.
• Offers audio solutions for True Wireless Stereo (TWS) earbuds and headphones.
• Supplies components for Internet of Things (IoT) devices and computing platforms.

How Does KN Make Money?

• Sells micro-acoustic microphones and audio solutions to original equipment manufacturers (OEMs).
• Generates revenue from the sale of high-performance capacitor products and RF solutions.
• Distributes products through a network of distributors and contract manufacturers.
• Provides customized solutions and engineering support to meet specific customer requirements.

What Industry Does KN Operate In?

Knowles Corporation operates in the communication equipment industry, which is characterized by rapid technological advancements and intense competition. The market for micro-acoustic microphones and audio solutions is driven by the increasing demand for high-quality audio experiences in consumer electronics, automotive, and industrial applications. The precision devices market is fueled by the growth in medical implants, electric vehicles, and advanced communication systems. Knowles competes with companies like Applied Optoelectronics, Inc. (AAOI) and Ondas Holdings Inc. (ONDS), as well as other specialized component manufacturers. The industry is subject to cyclical trends and is influenced by global economic conditions and consumer spending patterns.

Who Are KN's Key Customers?

• Mobile device manufacturers
• Hearing aid manufacturers
• Medical device companies
• Automotive manufacturers
• Industrial equipment manufacturers

Knowles Corporation Financial Trajectory

Knowles Corporation (KN) reported $166.8M in revenue for Q2 FY2026, reflecting 8.9% growth compared to the prior quarter. The company recorded net income of $19.4M, with diluted EPS of $0.22. Quarter-over-quarter revenue has been mixed, typical for a mid-cap company operating in Technology. Across the four most recent quarters, KN averaged $0.19 in diluted EPS.

Company Profile

Knowles Corporation operates in the Hardware, Equipment & Parts industry within the Technology sector. It is headquartered in Itasca, US. The company is led by CEO Jeffrey S. Niew. KN has traded publicly since 2014.

How Knowles Corporation Is Valued

Knowles Corporation carries a market capitalization of $3.12B, placing it in the mid-cap category. Analyst price targets span from $38.00 to $44.00, with a consensus of $40.67. At the current price of $36.59, that implies approximately 11% upside potential. Relative to its peer group, KN's quantitative score of 69/100 is above the peer average of 53/100.

Return on equity for Knowles Corporation stands at 7.3%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 5.3%, showing how much profit it generates from its asset base. KN trades at a trailing price-to-earnings ratio of 56.62, above the Technology sector average of ~32.70x. Its free cash flow yield is 2.3%, a gauge of the cash the business throws off relative to its market value. A current ratio of 3.27 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 1.8%, the inverse of the P/E and a quick read on earnings relative to price.

Knowles Corporation's Piotroski F-Score is 8/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 6.97 places it in the safe zone, indicating low near-term bankruptcy risk.

Knowles Corporation has missed Wall Street's EPS estimate in 3 of its last 8 reported quarters — a mixed record worth weighing. Reported results have landed about 8.7% below estimates on average.

Over the past six months, Knowles Corporation insiders filed 27 SEC Form 4 transactions — 18 sales and 9 purchases. On net that is roughly 400K shares disposed (about $15.0M), a signal worth weighing alongside the fundamentals.

KN Financials

KN Latest News

KN Analyst Consensus

KN MoonshotScore

Knowles Corporation Technology Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

Official Resources