Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin4.2%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin0.9%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
F
Years to Pay Off Debt40.7 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$1.8B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital-$144M
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
N/A
Cash Flow
C
Free Cash Flow$461M
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income1221.9%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$1.7B
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Market Data
Key Margins
Gross Profit14.0%
Operating Margin4.2%
Net Margin0.9%
Company Info
Showing Key Metrics
Income Highlights
Metric
2025
2024
2023
2022
2021
Gross Profit %
14.0%▼
14.0%▼
17.6%▼
23.9%•
N/A
Operating Margin %
4.2%▲
3.5%▼
4.8%▼
14.7%•
N/A
Net Income %
0.9%▼
1.6%▼
3.0%▼
10.4%•
N/A
Diluted EPS
0.41▼
0.73▼
1.34▼
4.73•
N/A
Balance Sheet Highlights
Metric
2025
2024
2023
2022
Total Assets
$12.0B
$12.7B
$12.9B
$11.0B
Total Debt
$2.7B▼
$3.3B▲
$3.2B▲
$2.1B
Working Capital
-$144M▲
-$258M▼
-$116M▼
$600M
Years to Pay Debt
40.72
27.86
14.74
2.71
Cash Flow Highlights
Metric
2025
2024
2023
2022
2021
Free Cash Flow
$461M▲
-$20M▼
$90M▼
$635M•
N/A
Owner Earnings
$1.7B
$1.7B
$2.0B
$2.2B
N/A
CapEx % of Net Income
1,221.9%
696.4%
493.5%
103.8%
N/A
Income Statement
2025
2024
2023
2022
2021
Tax Effect Of Unusual Items
-30,672
-4,204
-453
-198
Tax Rate For Calcs
0
0
0
0
Normalized EBITDA
1,143,478
1,132,018
1,134,725
1,731,943
Total Unusual Items
-98,308
-19,012
-2,236
-810
Total Unusual Items Excluding Goodwill
-98,308
-19,012
-2,236
-810
Net Income From Continuing Operation Net Minority Interest
65,946
117,626
217,149
771,325
Reconciled Depreciation
788,053
792,802
735,100
659,824
Reconciled Cost Of Revenue
6,426,811
6,375,289
5,887,862
5,654,025
EBITDA
1,045,170
1,113,006
1,132,489
1,731,133
EBIT
257,117
320,204
397,389
1,071,309
Net Interest Income
-150,885
-154,602
-105,523
-45,364
Interest Expense
161,795
171,158
127,100
50,803
Interest Income
10,910
16,556
21,577
5,439
Normalized Income
133,582
132,434
218,932
771,937
Net Income From Continuing And Discontinued Operation
65,946
117,626
217,149
771,325
Total Expenses
7,155,319
7,147,678
6,801,377
6,335,944
Rent Expense Supplemental
166,833
171,665
130,269
56,856
Total Operating Income As Reported
216,062
243,388
338,153
1,091,828
Diluted Average Shares
162,611
162,173
161,826
163,211
Basic Average Shares
162,188
161,738
161,188
162,260
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
65,946
117,626
217,149
771,325
Net Income Common Stockholders
65,946
117,626
217,149
771,325
Net Income
65,946
117,626
217,149
771,325
Minority Interests
392
1,540
1,628
207
Net Income Including Noncontrolling Interests
65,554
116,086
215,521
771,118
Net Income Continuous Operations
65,554
116,086
215,521
771,118
Tax Provision
29,768
32,960
54,768
249,388
Pretax Income
95,322
149,046
270,289
1,020,506
Other Income Expense
-68,163
41,248
35,423
-26,768
Other Non Operating Income Expenses
30,145
60,260
37,659
-25,958
Special Income Charges
-98,308
-19,012
-2,236
-810
Write Off
810
299
Impairment Of Capital Assets
98,308
19,012
2,236
810
Net Non Operating Interest Income Expense
-150,885
-154,602
-105,523
-45,364
Interest Expense Non Operating
161,795
171,158
127,100
50,803
Interest Income Non Operating
10,910
16,556
21,577
5,439
Operating Income
314,370
262,400
340,389
1,092,638
Operating Expense
728,508
772,389
913,515
681,919
Other Operating Expenses
179,010
198,080
157,294
91,148
Other Taxes
135,064
127,505
117,024
111,197
Selling General And Administration
414,434
446,804
639,197
479,574
General And Administrative Expense
414,434
446,804
639,197
479,574
Other Gand A
29,326
31,152
29,661
23,656
Insurance And Claims
385,108
415,652
609,536
455,918
Gross Profit
1,042,878
1,034,789
1,253,904
1,774,557
Cost Of Revenue
6,426,811
6,375,289
5,887,862
5,654,025
Total Revenue
7,469,689
7,410,078
7,141,766
7,428,582
Operating Revenue
7,469,689
7,410,078
7,141,766
7,428,582
Balance Sheet
2025
2024
2023
2022
Ordinary Shares Number
162,339
161,896
161,385
160,706
Share Issued
162,339
161,896
161,385
160,706
Net Debt
1,433,373
1,918,035
1,647,984
1,289,459
Total Debt
2,685,567
3,277,291
3,199,766
2,089,025
Tangible Book Value
1,212,014
1,089,781
1,179,710
1,649,096
Invested Capital
8,736,247
9,245,263
8,903,919
8,431,233
Working Capital
-143,683
-258,010
-116,272
599,565
Net Tangible Assets
1,212,014
1,089,781
1,179,710
1,649,096
Capital Lease Obligations
1,031,774
1,140,995
1,383,237
602,796
Common Stock Equity
7,082,454
7,108,967
7,087,390
6,945,004
Total Capitalization
8,736,247
8,786,280
8,903,919
8,431,233
Total Equity Gross Minority Interest
7,091,866
7,116,805
7,104,081
6,955,281
Minority Interest
9,412
7,838
16,691
10,277
Stockholders Equity
7,082,454
7,108,967
7,087,390
6,945,004
Gains Losses Not Affecting Retained Earnings
-716
-442
-830
-2,436
Other Equity Adjustments
-716
-442
-830
-2,436
Retained Earnings
2,600,822
2,661,064
2,659,755
2,553,567
Additional Paid In Capital
4,480,725
4,446,726
4,426,852
4,392,266
Capital Stock
1,623
1,619
1,613
1,607
Common Stock
1,623
1,619
1,613
1,607
Total Liabilities Net Minority Interest
4,863,570
5,581,727
5,766,684
3,996,385
Total Non Current Liabilities Net Minority Interest
3,832,361
3,874,976
3,941,397
3,102,378
Other Non Current Liabilities
205,117
210,117
79,086
12,049
Non Current Accrued Expenses
359,546
335,880
315,476
201,838
Non Current Deferred Liabilities
904,075
919,814
951,749
907,893
Non Current Deferred Taxes Liabilities
904,075
919,814
951,749
907,893
Long Term Debt And Capital Lease Obligation
2,363,623
2,409,165
2,595,086
1,980,598
Long Term Capital Lease Obligation
709,830
731,852
778,557
494,369
Long Term Debt
1,653,793
1,677,313
1,816,529
1,486,229
Current Liabilities
1,031,209
1,706,751
1,825,287
894,007
Current Debt And Capital Lease Obligation
321,944
868,126
604,680
108,427
Current Capital Lease Obligation
321,944
409,143
604,680
108,427
Current Debt
458,983
Other Current Borrowings
458,983
Payables And Accrued Expenses
709,265
838,625
1,220,607
785,580
Current Accrued Expenses
508,430
508,928
865,434
564,731
Payables
200,835
329,697
355,173
220,849
Accounts Payable
200,835
329,697
355,173
220,849
Total Assets
11,955,436
12,698,532
12,870,765
10,951,666
Total Non Current Assets
11,067,910
11,249,791
11,161,750
9,458,094
Other Non Current Assets
165,174
154,379
152,850
134,785
Goodwill And Other Intangible Assets
5,870,440
6,019,186
5,907,680
5,295,908
Other Intangible Assets
1,935,699
2,057,044
2,058,882
1,776,569
Goodwill
3,934,741
3,962,142
3,848,798
3,519,339
Net PPE
5,032,296
5,076,226
5,101,220
4,027,401
Accumulated Depreciation
-2,662,331
-2,401,129
-2,104,211
-1,905,340
Gross PPE
7,694,627
7,477,355
7,205,431
5,932,741
Leases
42,157
39,193
37,228
16,587
Other Properties
409,621
472,107
568,870
252,175
Machinery Furniture Equipment
201,497
172,470
156,911
131,886
Buildings And Improvements
1,017,448
976,354
861,194
726,424
Land And Improvements
456,186
460,629
426,635
376,552
Current Assets
887,526
1,448,741
1,709,015
1,493,572
Other Current Assets
36,894
28,520
43,939
38,025
Assets Held For Sale Current
72,985
82,993
83,366
40,602
Restricted Cash
82,381
147,684
297,805
192,967
Prepaid Assets
113,985
123,089
148,696
108,081
Receivables
360,861
848,194
966,664
917,127
Other Receivables
9,642
7,238
12,246
15,859
Taxes Receivable
45,895
37,260
65,815
58,974
Accounts Receivable
305,324
803,696
888,603
842,294
Allowance For Doubtful Accounts Receivable
-30,647
-37,797
-39,458
-22,980
Gross Accounts Receivable
335,971
841,493
928,061
865,274
Cash Cash Equivalents And Short Term Investments
220,420
218,261
168,545
196,770
Cash And Cash Equivalents
220,420
218,261
168,545
196,770
Cash Flow
2025
2024
2023
2022
2021
Free Cash Flow
460,830
-20,087
90,065
635,290
Repurchase Of Capital Stock
0
0
-299,941
-57,175
Repayment Of Debt
-2,691,545
-758,679
-651,219
-824,333
Issuance Of Debt
2,004,000
730,800
913,000
472,500
Issuance Of Capital Stock
5,441
5,328
5,208
7,432
Capital Expenditure
-805,817
-819,150
-1,071,611
-800,563
Interest Paid Supplemental Data
161,342
174,485
118,150
48,905
Income Tax Paid Supplemental Data
50,312
9,929
40,378
289,159
End Cash Position
308,740
370,230
469,686
385,345
Beginning Cash Position
370,230
469,686
385,345
350,023
Changes In Cash
-61,490
-99,456
84,341
35,322
Financing Cash Flow
-807,743
-139,397
150,690
-754,347
Cash Flow From Continuing Financing Activities
-807,743
-139,397
150,690
-754,347
Net Other Financing Charges
-8,204
-12,693
-25,150
-31,701
Cash Dividends Paid
-117,435
-104,153
-91,149
-78,304
Common Stock Dividend Paid
-78,304
-63,535
Net Common Stock Issuance
5,441
5,328
5,208
-292,509
Common Stock Payments
0
0
-299,941
-57,175
Common Stock Issuance
5,441
5,328
5,208
7,432
Net Issuance Payments Of Debt
-687,545
-27,879
261,781
-351,833
Net Short Term Debt Issuance
-217,000
50,000
Net Long Term Debt Issuance
-687,545
-27,879
261,781
-351,833
Long Term Debt Payments
-2,691,545
-758,679
-651,219
-824,333
Long Term Debt Issuance
2,004,000
730,800
913,000
472,500
Investing Cash Flow
-520,394
-759,122
-1,228,025
-646,184
Cash Flow From Continuing Investing Activities
-520,394
-759,122
-1,228,025
-646,184
Net Other Investing Changes
-6,550
-194,425
-452,631
-27,603
Net Investment Purchase And Sale
0
530
3,590
-1,439
Sale Of Investment
0
530
3,620
9,706
Purchase Of Investment
0
0
-30
-11,145
Net PPE Purchase And Sale
-513,844
-565,227
-778,984
-617,142
Sale Of PPE
291,973
253,923
292,627
183,421
Purchase Of PPE
-805,817
-819,150
-1,071,611
-800,563
Operating Cash Flow
1,266,647
799,063
1,161,676
1,435,853
Cash Flow From Continuing Operating Activities
1,266,647
799,063
1,161,676
1,435,853
Change In Working Capital
203,780
-233,688
80,946
-74,709
Change In Other Working Capital
17,024
42,401
-12,695
-18,841
Change In Other Current Liabilities
-161,610
-175,898
-120,550
-42,893
Change In Payables And Accrued Expense
-129,285
-206,751
65,932
-13,618
Change In Accrued Expense
1,003
-221,569
53,304
11,151
Change In Payable
-130,288
14,818
12,628
-24,769
Change In Account Payable
-130,288
14,818
12,628
-24,769
Change In Receivables
477,651
106,560
148,259
643
Changes In Account Receivables
486,286
78,005
155,100
58,708
Other Non Cash Items
199,041
150,007
183,836
88,575
Unrealized Gain Loss On Investment Securities
0
0
-12,631
Asset Impairment Charge
98,308
19,012
2,236
810
Deferred Tax
-15,739
-22,263
10,784
30,852
Deferred Income Tax
-15,739
-22,263
10,784
30,852
Depreciation Amortization Depletion
788,053
792,802
735,100
659,824
Depreciation And Amortization
788,053
792,802
735,100
659,824
Amortization Cash Flow
76,984
75,280
70,138
64,843
Amortization Of Intangibles
76,984
75,280
70,138
64,843
Depreciation
711,069
717,522
664,962
594,981
Operating Gains Losses
-72,350
-22,893
-66,747
-40,617
Gain Loss On Investment Securities
-910
11,554
-2,096
52,274
Gain Loss On Sale Of PPE
-71,440
-34,447
-64,651
-92,891
Net Income From Continuing Operations
65,554
116,086
215,521
771,118
2/5
Graham Score
Speculative Investor
Fails most of Graham's safety criteria. Treat with caution.
Graham's Fair Value
N/A
N/A — requires
positive EPS and positive book value per share. Check the Financials tab for earnings history.
Margin of Safety
—
Market Cap / Net Assets
N/A
Net Assets: $7.1B
Warren's Owner Earnings
$1.7B
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
2/5 — Speculative Investor
✅
Adequate Size
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
$7.5B
vs > $1.5B revenue
❌
Strong Financial Condition
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
0.86x
vs Current Ratio > 2.0x
✅
Earnings Stability
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
No loss years (4 yrs data)
vs No negative EPS years
❌
Dividend Record
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
No dividend
vs Uninterrupted dividends
❌
Earnings Growth
EPS grew from $4.73 to $0.41 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
-91.3% EPS growth
vs > 33% EPS growth
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
✅ Adequate Size — $7.5Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
❌ Strong Financial Condition — 0.86xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
✅ Earnings Stability — No loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
❌ Dividend Record — No dividendvs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
EPS grew from $4.73 to $0.41 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
"A minimum increase of at least one-third in per-share earnings over ten years."
These metrics estimate what KNX is worth based on fundamentals — independent of what the market prices it at.
Graham's Fair Value and NCAV are conservative floors.
EPV assumes zero growth. These are reference points, not price targets.
Net Current Asset Value
N/A
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
N/A
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
2.3%
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Cash Flow Analysis
Metric
2025
2024
2023
2022
2021
Capital Expenditure % of Net Income
1,221.9%
696.4%
493.5%
103.8%
N/A
Repurchase of Capital Stock
N/A
$0M
$0M
-$300M
-$57M
Free Cash Flow
$461M▲
-$20M▼
$90M▼
$635M•
N/A•
Warren's Owner Earnings
$1.7B
$1.7B
$2.0B
$2.2B
N/A
Peers & Industry
No auto-detected peers for this industry. You can manually compare KNX against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
No management data available.
Risk Analysis
KNX (KNX) fundamental analysis — Overall grade F based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A. Gross profit margin: 14.0%. Operating margin: 4.2%. Net margin: 0.9%. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
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