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Knight-Swift Transportation Holdings Owner Earnings per Share (TTM)

: 2.61 (As of Jun. 2021)
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In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

Knight-Swift Transportation Holdings's Owner Earnings per Share (TTM) ended in Jun. 2021 was $2.61. It's Price-to-Owner-Earnings ratio for today is 20.23.


The historical rank and industry rank for Knight-Swift Transportation Holdings's Owner Earnings per Share (TTM) or its related term are showing as below:

NYSE:KNX' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 4.47   Med: 25.11   Max: 115.47
Current: 20.24

4.47
115.47

During the past 13 years, the highest Price-to-Owner-Earnings ratio of Knight-Swift Transportation Holdings was 115.47. The lowest was 4.47. And the median was 25.11.


NYSE:KNX's Price-to-Owner-Earnings is ranked lower than
53% of the 486 Companies
in the Transportation industry.

( Industry Median: 17.06 vs. NYSE:KNX: 20.24 )

Knight-Swift Transportation Holdings's Earnings per Share (Diluted) for the three months ended in Jun. 2021 was $0.92. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2021 was $3.24. It's PE Ratio ratio for today is 16.29.

Knight-Swift Transportation Holdings's EPS without NRI for the three months ended in Jun. 2021 was $0.92. Its EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2021 was $3.24. It's PE Ratio without NRI ratio for today is 16.29.


Knight-Swift Transportation Holdings Owner Earnings per Share (TTM) Historical Data

The historical data trend for Knight-Swift Transportation Holdings's Owner Earnings per Share (TTM) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Knight-Swift Transportation Holdings Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Owner Earnings per Share (TTM)
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.99 0.46 3.30 1.61 1.88

Knight-Swift Transportation Holdings Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Owner Earnings per Share (TTM) Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.39 1.63 1.88 2.92 2.61

Competitive Comparison

For the Trucking subindustry, Knight-Swift Transportation Holdings's Owner Earnings per Share (TTM), along with its competitors' market caps and Owner Earnings per Share (TTM) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Knight-Swift Transportation Holdings Owner Earnings per Share (TTM) Distribution

For the Transportation industry and Industrials sector, Knight-Swift Transportation Holdings's Owner Earnings per Share (TTM) distribution charts can be found below:

* The bar in red indicates where Knight-Swift Transportation Holdings's Owner Earnings per Share (TTM) falls into.



Knight-Swift Transportation Holdings Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

Knight-Swift Transportation Holdings's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income 547
Depreciation, Depletion and Amortization 526
Change In Deferred Tax 14
5Y Average of Maintenance Capital Expenditure 505
Change In Working Capital -147
Shares Outstanding (Diluted Average) 167

1. Start with "Net Income" from income statement. Knight-Swift Transportation Holdings's Net Income for the trailing twelve months (TTM) ended in Jun. 2021 was $547 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. Knight-Swift Transportation Holdings's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Jun. 2021 was $526 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. Knight-Swift Transportation Holdings's Change In Deferred Tax for the trailing twelve months (TTM) ended in Jun. 2021 was $14 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $505 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous year. If the revenue decreased from the previous year, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous year, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

Knight-Swift Transportation Holdings's 5-Year Average Maintenance Capital Expenditure = $505 Mil

5. "Change In Working Capital" is from cashflow statement. Knight-Swift Transportation Holdings's Change In Working Capital for the trailing twelve months (TTM) ended in Jun. 2021 was $-147 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. Knight-Swift Transportation Holdings's Shares Outstanding (Diluted Average) for the months ended in Jun. 2021 was 166.585 Mil.

Knight-Swift Transportation Holdings's Onwer Earnings Per Share for Jun. 2021 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 546.981 +526.154+13.561
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-504.57647219738+-147.305)/166.585
=2.61

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=52.79/2.61
=20.23

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


Knight-Swift Transportation Holdings Owner Earnings per Share (TTM) Related Terms

Thank you for viewing the detailed overview of Knight-Swift Transportation Holdings's Owner Earnings per Share (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.


Knight-Swift Transportation Holdings Business Description

Knight-Swift Transportation Holdings logo
Industry
Industrials » Transportation NAICS : 484121 SIC : 4213
Traded in Other Exchanges
Address
20002 North 19th Avenue, Phoenix, AZ, USA, 85027
Knight-Swift Transportation is by far the largest asset-based full-truckload carrier in the United States. About 80% of revenue derives from asset-based truckload shipping operations (including for-hire dry van, refrigerated, and dedicated contract). The remainder stems from truck brokerage and other asset-light logistics services (8%), as well as intermodal (8%), which uses the Class-I railroads for the underlying movement of the firm's shipping containers and also offers drayage services.
Executives
Moyes Vickie 10 percent owner SWIFT TRANSPORTATION COMPANY 2200 SOUTH 75TH AVENUE PHOENIX AZ 85043
Moyes Jerry 10 percent owner, other: Member of 10% group SWIFT TRANSPORTATION COMPANY 2200 SOUTH 75TH AVENUE PHOENIX AZ 85043
Moyes Jerry & Vickie Family Trust 10 percent owner SWIFT TRANSPORTATION COMPANY 2200 SOUTH 75TH AVENUE PHOENIX AZ 85043
Garnreiter Michael director 6735 E. GREENWAY PARKWAY UNIT #2049 SCOTTSDALE AZ 85254
Nester Lyndee Moyes other: Member of 10% owner group PO BOX 1397 TOLLESON AZ 85353
Moyes Michael other: Member of 10% owner group SWIFT TRANSPORTATION COMPANY 2200 SOUTH 75TH AVENUE PHOENIX AZ 85043
Breen Shannon officer: Sr. VP Logistics/Intermodal 2200 SOUTH 75TH AVENUE PHOENIX AZ 85027
Flanagan Cary M officer: SVP and CAO SWIFT TRANSPORTATION COMPANY 2200 SOUTH 75TH AVENUE PHOENIX AZ 85043
Harrington Timothy Sean officer: Exec Vice Pres Sales 2200 NORTH 75TH AVENUE PHOENIX AZ 85027
Knight Gary J director, officer: Vice Chairman PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: KNIGHT GARY J a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Knight Kevin P director, officer: Executive Chairman 5601 WEST BUCKEYE ROAD PHOENIX AZ 85043
Liu Michael K officer: Exec. VP of Ops, Knight Trans 5601 WEST BUCKEYE ROAD PHOENIX AZ 85043
Jackson David A director, officer: President and CEO PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: JACKSON DAVID A a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Yu Wayne officer: CAO of Knight Trans. Inc. 5601 WEST BUCKEYE ROAD PHOENIX AZ 85043
Carlson Todd F. officer: General Counsel and Secretary 5601 WEST BUCKEYE ROAD PHOENIX AZ 85043

Knight-Swift Transportation Holdings Headlines

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