KN - Knowles: Brighter Future Than Their Past
2024-04-15 12:23:06 ET
Summary
- While Knowles's stock has been a laggard for the past decade, structural changes in the business imply a potentially different future.
- Present business conditions include various temporary headwinds that, I think, will abate in the coming year(s) including destocking and idiosyncratic macro headwinds.
- Over time, this is a competitive company with structural end-market tailwinds - e.g., growing hearing aid demand, defense growth - that should translate into higher sales and EBITDA.
Introduction
Knowles Corporation ( KN ) has had a bit of an underwhelming history and indeed, the stock's been essentially flat (with minimal variability) for the past 9 years. Thanks to poor capital allocation decisions (M&A) resulting in negative value for shareholders and competitive pressures in their MEMS business, a lot of investors have been understandably disinterested in the business....
Knowles: Brighter Future Than Their Past