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KNOT Offshore Partners LPKNOP +0.47%62 ROE % is 1.69% as of Mar. 2026, which is 80% below its 10-year median of 8.51. GuruFocus rates KNOP with a GF Score™ of 62/100 and a GF Value™ of $8.08 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 955 Oil & Gas companies, KNOT Offshore Partners LP ranks worse than 58.32% on this metric.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* 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.
For the Oil & Gas Midstream subindustry, KNOT Offshore Partners LP's ROE %, along with its competitors' market caps and ROE % 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.
KNOT Offshore Partners LP ROE % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, KNOT Offshore Partners LP's ROE % distribution charts can be found below:
* The bar in red indicates where KNOT Offshore Partners LP's ROE % falls into.
* 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
KNOT Offshore Partners LP (KNOP) has a ROE % of 1.69% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on KNOT Offshore Partners LP and its competitors. This is 80% below median its historical median of 8.51. According to the industry distribution chart, KNOT Offshore Partners LP ranks #557 out of 955 companies in the Oil & Gas industry, placing it in the top 58.3%.
Is KNOT Offshore Partners LP's ROE % too high?
KNOT Offshore Partners LP's current ROE % of 1.69% is 80% below median its 10-year median of 8.51. The Oil & Gas industry median ROE % is 5.89. KNOT Offshore Partners LP's value of 1.69% is 71.3% below this industry median. Based on the distribution chart, KNOT Offshore Partners LP ranks #557 out of 955 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, KNOT Offshore Partners LP has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does KNOT Offshore Partners LP's ROE % compare to SMC and IMPP?
According to the Oil & Gas industry distribution chart, KNOT Offshore Partners LP ranks #557 out of 955 companies for ROE %. This places KNOT Offshore Partners LP in the lower half of its industry. The industry median ROE % is 5.89. KNOT Offshore Partners LP's value of 1.69% is 71.3% below this benchmark. While the company's 10-year median is 8.51 vs. the industry median of 5.89, KNOT Offshore Partners LP has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for an Oil & Gas company?
The median ROE % among Oil & Gas companies is 5.89, based on 955 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. KNOT Offshore Partners LP's current ROE % of 1.69% is 71.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on KNOT Offshore Partners LP and its competitors. For the Oil & Gas industry, the median ROE % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KNOT Offshore Partners LP's current ROE % is 1.69%, which is 80% below median its own 10-year median of 8.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KNOT Offshore Partners LP stock overvalued right now?
Based on GuruFocus' analysis, KNOT Offshore Partners LP (KNOP) is currently considered Significantly Overvalued. The stock's GF Value™ is $8.08, compared to a current price of $10.74 — trading 32.9% above its estimated fair value. The current ROE % is 1.69%, which is 80% below median its 10-year median of 8.51 and 71.3% below the Oil & Gas industry median of 5.89. KNOT Offshore Partners LP's overall GF Score™ is 62/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For KNOT Offshore Partners LP (KNOP), the current ROE % is 1.69% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is KNOT Offshore Partners LP (KNOP) Overvalued in 2026?
Based on GuruFocus' analysis, KNOT Offshore Partners LP stock appears to be overvalued.
The current stock price of $10.74 is trading 32.9% above its estimated GF Value™ of $8.08.
GuruFocus considers KNOT Offshore Partners LP to be Significantly Overvalued.
Key valuation signals for KNOP:
ROE %: 1.69% (80% below median its 10-year median of 8.51)
GF Value™: $8.08 vs. price of $10.74 (32.9% above fair value)
Industry Position: 71.3% below the Oil & Gas median (#557 of 955)
No single metric tells the full story. See the KNOP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
KNOT Offshore Partners LP owns, operates, and shuttles tankers under long-term charters in the North Sea and Brazil. The company provides crude oil loading, transportation, and storage services under time charters and bareboat charters. The Partnership is formed for acquiring ownership interests in over four shuttle tankers owned by Knutsen NYK Offshore Tankers AS (KNOT). It operates through the shuttle tanker market segment.
62GF Score
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