Knife River Corporation (KNF) 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.

Knife River Corporation (KNF) Materials & Commodity Exposure

Knife River Corporation, established in 1917, is a leading US provider of construction materials and contracting services. Operating across six segments, the company mines, processes, and sells aggregates, asphalt, and ready-mix concrete, supporting infrastructure projects for government and commercial clients, with a Beta of 0.58.

What Is the Investment Thesis for KNF?

Knife River Corporation presents a notable research candidate within the construction materials sector. With a market capitalization of $3.25B and a P/E ratio of 23.24, the company demonstrates financial stability and growth potential. A key value driver is the ongoing demand for infrastructure development and maintenance across the United States, supported by government spending and population growth. The company's diversified geographic presence and integrated business model provide a competitive advantage. Key catalysts include potential infrastructure spending bills and increased construction activity. However, investors may want to evaluate potential risks such as fluctuations in commodity prices and economic downturns that could impact construction demand. The company's profit margin stands at 4.6%, and its gross margin is 18.3%.

Based on FMP financials and quantitative analysis

KNF Key Highlights

Market capitalization of $3.25B, reflecting substantial investor confidence in the company's market position and future prospects.

• P/E ratio of 23.24, indicating the price investors are willing to pay for each dollar of Knife River Corporation's earnings.
• Gross margin of 18.3%, demonstrating the company's efficiency in managing production costs and generating profit from its sales.
• Profit margin of 4.6%, showing the percentage of revenue that translates into profit after all expenses, including taxes, are paid.
• Beta of 0.58, suggesting lower volatility compared to the overall market, making it a potentially stable investment option.

Who Are KNF's Competitors?

KNF 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 KNF's Key Strengths?

Integrated business model combining materials production and contracting services.

• Extensive network of operations across multiple geographic regions.
• Established relationships with government agencies and commercial customers.
• Access to strategically located aggregate reserves.

What Are KNF's Weaknesses?

Exposure to cyclical demand in the construction industry.

• Dependence on government spending and infrastructure projects.
• Vulnerability to fluctuations in commodity prices.
• Profit margin of 4.6% is relatively low compared to some competitors.

What Could Drive KNF Stock Higher?

Potential passage of federal infrastructure bills, driving demand for construction materials.

• Increased construction activity in regions experiencing rapid population growth.
• Adoption of sustainable construction practices and materials, creating new market opportunities.
• Technological innovation and automation to improve efficiency and reduce costs.

What Are the Key Risks for KNF?

Economic downturns that reduce construction activity and demand for materials.

• Increased competition from other construction materials companies.
• Rising costs of raw materials, labor, and transportation.
• Changes in government regulations and environmental policies.
• Weather-related disruptions that can impact construction schedules.

What Are the Growth Opportunities for KNF?

• Growth opportunity 1: Increased Infrastructure Spending: The potential passage of federal infrastructure bills represents a significant growth opportunity for Knife River Corporation. Increased government investment in roads, bridges, and other public works projects would drive demand for the company's aggregates, asphalt, and concrete products. The timeline for this opportunity is dependent on legislative action, but the potential market size is substantial, estimated at billions of dollars in new construction spending over the next decade. Knife River's established relationships with government agencies and its extensive network of operations position it to capitalize on this increased demand.
• Growth opportunity 2: Expansion into New Geographic Markets: Knife River Corporation has the opportunity to expand its operations into new geographic markets, particularly in regions experiencing rapid population growth and infrastructure development. This expansion could involve acquiring existing construction materials companies or establishing new operations. The timeline for this opportunity is medium-term, with potential expansion over the next 3-5 years. The market size would depend on the specific regions targeted, but could represent a significant increase in revenue and market share. A competitive advantage would be the company's expertise in aggregates production and contracting services.
• Growth opportunity 3: Focus on Sustainable Construction Practices: As environmental concerns grow, there is increasing demand for sustainable construction materials and practices. Knife River Corporation can capitalize on this trend by investing in technologies and processes that reduce its environmental footprint and offer more sustainable products. This could include using recycled materials, reducing energy consumption, and minimizing waste. The timeline for this opportunity is ongoing, as sustainability becomes increasingly important. The market size for sustainable construction materials is growing rapidly, with estimates reaching billions of dollars in the coming years. A competitive advantage would be the company's commitment to environmental stewardship.
• Growth opportunity 4: Technological Innovation and Automation: Investing in technological innovation and automation can improve efficiency, reduce costs, and enhance the quality of Knife River Corporation's products and services. This could include implementing automated production processes, using drones for site surveying, and adopting digital project management tools. The timeline for this opportunity is ongoing, as technology continues to evolve. The market size for construction technology is growing rapidly, with estimates reaching billions of dollars in the coming years. A competitive advantage would be the company's ability to adopt and integrate new technologies effectively.
• Growth opportunity 5: Strategic Acquisitions and Partnerships: Knife River Corporation can pursue strategic acquisitions and partnerships to expand its product offerings, geographic reach, and customer base. This could involve acquiring complementary businesses, forming joint ventures with other companies, or partnering with technology providers. The timeline for this opportunity is ongoing, as opportunities arise. The market size would depend on the specific acquisitions and partnerships pursued, but could represent a significant increase in revenue and market share. A competitive advantage would be the company's financial strength and its ability to identify and integrate strategic acquisitions.

What Are KNF's Competitive Advantages?

• Access to strategically located aggregate reserves, providing a cost advantage.
• Integrated business model combining materials production and contracting services.
• Established relationships with government agencies and commercial customers.
• Extensive network of operations across multiple geographic regions.

What Does KNF Do?

Founded in 1917 and headquartered in Bismarck, North Dakota, Knife River Corporation has evolved into a prominent player in the U.S. construction materials and contracting services industry. The company operates through six segments: Pacific, Northwest, Mountain, North Central, South, and Energy Services, providing a broad geographic footprint. Knife River's core business involves mining, processing, and selling essential construction aggregates, including crushed stone, sand, and gravel. These materials form the foundation for various construction projects. In addition to aggregates, Knife River produces and sells asphalt and ready-mix concrete, further diversifying its product offerings. The company also provides contracting services, including heavy-civil construction, asphalt and concrete paving, and site development and grading. Knife River serves a diverse customer base, including federal, state, and municipal governments, supporting the construction and maintenance of critical infrastructure such as highways, bridges, airports, schools, and public buildings. The company's integrated business model, combining materials production and contracting services, allows it to capture value across the construction value chain.

What Products and Services Does KNF Offer?

• Mines and processes construction aggregates, including crushed stone, sand, and gravel.
• Produces and sells asphalt and ready-mix concrete.
• Provides heavy-civil construction services for infrastructure projects.
• Offers asphalt and concrete paving services.
• Performs site development and grading for construction projects.
• Serves federal, state, and municipal governments.
• Supports public infrastructure projects like highways, bridges, and airports.

How Does KNF Make Money?

• Generates revenue from the sale of construction aggregates, asphalt, and ready-mix concrete.
• Provides contracting services for construction projects, earning fees for labor and equipment.
• Operates through six geographic segments: Pacific, Northwest, Mountain, North Central, South, and Energy Services.
• Focuses on serving government and commercial customers in the construction industry.

What Industry Does KNF Operate In?

Knife River Corporation operates within the construction materials industry, a sector driven by infrastructure development, residential and commercial construction, and government spending. The industry is characterized by cyclical demand, influenced by economic conditions and interest rates. The competitive landscape includes both large, integrated players and smaller, regional companies. Knife River's integrated business model, combining materials production and contracting services, provides a competitive advantage. The construction materials market is expected to grow steadily, driven by population growth and urbanization. Knife River is well-positioned to capitalize on this growth, leveraging its established presence and diversified operations.

Who Are KNF's Key Customers?

• Federal government agencies involved in infrastructure development.
• State and municipal governments responsible for road and bridge construction.
• Commercial developers building residential and commercial properties.
• Contractors and subcontractors involved in construction projects.

Knife River Corporation (KNF) Valuation Context

Valued at $3.25B, KNF is classified as a mid-cap stock. Analyst price targets span from $62.00 to $103.00, with a consensus of $82.50. At the current price of $57.18, that implies approximately 44% upside potential. Relative to its peer group, KNF's quantitative score of 52/100 is below the peer average of 71/100.

KNF Revenue & Earnings Trend

In Q2 FY2026, KNF generated $938.6M in top-line revenue, marking a sequential increase of 128.9%. The company recorded net income of $43.9M, with diluted EPS of $0.77. Quarter-over-quarter revenue has been mixed, typical for a mid-cap company operating in Basic Materials. Across the four most recent quarters, KNF averaged $0.61 in diluted EPS.

Company Profile

Knife River Corporation operates in the Construction Materials industry within the Basic Materials sector. It is headquartered in Bismarck, US. The company is led by CEO Brian R. Gray. KNF has traded publicly since 2023.

Return on equity for Knife River Corporation stands at 8.7%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 3.3%, showing how much profit it generates from its asset base. KNF trades at a trailing price-to-earnings ratio of 23.24, roughly in line with the Basic Materials sector average of ~21.40x. Its free cash flow yield is 1.2%, a gauge of the cash the business throws off relative to its market value. A current ratio of 2.66 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 4.0%, the inverse of the P/E and a quick read on earnings relative to price.

Knife River Corporation's Piotroski F-Score is 4/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 2.34 places it in the grey zone, a middle ground that warrants monitoring.

Knife River Corporation has beaten Wall Street's EPS estimate in 4 of its last 8 reported quarters — more hits than misses. Reported results have landed about 7.7% below estimates on average.

Over the past six months, Knife River Corporation insiders filed 8 SEC Form 4 transactions — 0 sales and 8 purchases. On net that is roughly 13K shares acquired (about $0) — insiders putting money in tends to read as conviction.

KNF Financials

KNF Latest News

KNF Analyst Consensus

KNF MoonshotScore

What Investors Ask About Knife River Corporation (KNF) — Basic Materials

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

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