Knight-Swift Transportation Holdings Inc Class A
KNX: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$73.00 | Tclx | Vtynvbh |
Knight-Swift's Trucking and Logistics Backdrop Bouncing Along the Bottom
Business Strategy and Outlook
Before its 2017 merger with Swift Transportation, Knight Transportation was the 12th-largest full-truckload carrier in the United States, with a history of exceptional execution, including average return on invested capital in the low teens—an unusual accomplishment in trucking. Knight's long-standing laser focus on network efficiency has served it well; its legacy operating ratio, or OR, (expenses/revenue, excluding fuel) averaged in the mid-80% range before the Swift deal, versus an industry average that traditionally exceeds 90%.