Is KNX a high-quality business?

AlphaMadera's AlphaQuality grade scores Knight-Swift Transportation Holdings Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how KNX compares to a Buffett-style quality bar.

What is Knight-Swift Transportation Holdings Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to KNX based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes KNX a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

KNX - Knight-Swift Transportation Holdings Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $65.20 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Cyclical & Capital-Intensive

AlphaQuality — archetype-weighted quantitative grade

C- 45.4 / 100 composite

Composite Grade

Composite of six pillars weighted for cyclical & capital-intensive businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

F 19.8

5yr Avg ROIC 3.7% 28/100
Operating Margin Trend -3.69 pp/yr 0/100

Capital Efficiency

Weight: 15%

C- 50.1

5yr Avg ROE 5.4% 37/100
5yr Share-Count CAGR -0.6% 74/100

Growth Quality

Weight: 10%

C- 44.4

5yr Revenue CAGR 5.6% 63/100
5yr EPS CAGR -44.9% 0/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 15%

C+ 61.2

5yr FCF Margin 6.1% 55/100
5yr FCF/NI Conversion 2.70x 69/100

Balance Sheet

Weight: 25%

C- 46.6

Net Debt / EBITDA 2.48x 60/100
Interest Coverage (EBIT/Int) 1.59x 21/100
Altman Z-Score 2.34 52/100

Stability

Weight: 20%

C- 48.0

EPS Volatility (σ/μ) 0.65 18/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 1/5 80/100

4 of 4 gurus held; 1 new buy; 2 added; 1 trimmed.

Holders: 4 +2
Avg Δ position: +10688.3%
New buys: 1
Full exits: 0

Dalio new
Wood increased +21410%
Cooperman decreased -33%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (10%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (20%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.