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Relative valuation derived from Industrials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 37GRADE D
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
10.7%
Sector: 8.9%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, KNOT Offshore Partners LP (KNOP) receives a "Hold" rating with a composite score of 54.6/100, ranked #625 out of 4446 stocks. Key factor scores: Quality 37/100, Value 83/100, Momentum 64/100. This is quantitative analysis only — not investment advice.
KNOT Offshore Partners LP (KNOP) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does KNOT Offshore Partners LP Do?
KNOT Offshore Partners LP owns, acquires, and operates shuttle tankers under long-term charters in the North Sea and Brazil. The company provides loading, transportation, discharge, and storage of crude oil under time charters and bareboat charters. As of March 17, 2022, it operated a fleet of seventeen shuttle tankers. The company was founded in 2013 and is headquartered in Aberdeen, the United Kingdom. KNOT Offshore Partners LP (KNOP) is classified as a small-cap stock in the Industrials sector, specifically within the Transportation industry. The company is led by CEO Gary I. Chapman and employs approximately 640 people. With a market capitalization of $348M, KNOP is one of the notable companies in the Industrials sector.
As of April 2026, KNOT Offshore Partners LP receives a Hold rating with a composite score of 54.6/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.KNOP ranks #625 out of 4,446 stocks in our coverage universe. Within the Industrials sector, KNOT Offshore Partners LP ranks #107 of 752 stocks, placing it in the top quartile of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
KNOP Stock Price and 52-Week Range
KNOT Offshore Partners LP (KNOP) currently trades at $10.18. The stock gained $0.30 (3.0%) in the most recent trading session. The 52-week high for KNOP is $11.15, which means the stock is currently trading -8.7% from its annual peak. The 52-week low is $5.45, putting the stock 86.8% above its annual trough. Recent trading volume was 119K shares, suggesting relatively thin trading activity.
Is KNOP Overvalued or Undervalued? — Valuation Analysis
KNOT Offshore Partners LP (KNOP) carries a value factor score of 83/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The price-to-book ratio stands at 0.67x, versus the sector average of 2.23x. The price-to-sales ratio is 0.28x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, KNOP trades at 1.56x EV/EBITDA, versus 5.70x for the sector.
Based on these multiples, KNOT Offshore Partners LP appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
KNOT Offshore Partners LP (KNOP) earns a quality factor score of 37/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 10.7%, compared to the Industrials sector average of 8.9%, which is within a healthy range. Return on assets (ROA) comes in at 3.6% versus the sector average of 3.3%.
On a margin basis, KNOT Offshore Partners LP reports gross margins of 64.8%, compared to 35.8% for the sector. The operating margin is 22.9% (sector: 6.2%). Net profit margin stands at 4.4%, versus 3.9% for the average Industrials stock. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
KNOP Debt, Balance Sheet, and Financial Health
KNOT Offshore Partners LP has a debt-to-equity ratio of 172.0%, compared to the Industrials sector average of 70.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. Total debt on the balance sheet is $905M. Cash and equivalents stand at $67M.
KNOP has a beta of 0.08, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for KNOT Offshore Partners LP is 64/100, reflecting average volatility within the normal range for its sector.
KNOT Offshore Partners LP Revenue and Earnings History — Quarterly Trend
In TTM 2026, KNOT Offshore Partners LP reported revenue of $319M. Net income for the quarter was $14M. Gross margin was 64.8%. Operating income came in at $73M.
In FY 2024, KNOT Offshore Partners LP reported revenue of $319M. Net income for the quarter was $14M. Gross margin was 64.8%. Revenue grew 9.6% year-over-year compared to FY 2023. Operating income came in at $73M.
In FY 2023, KNOT Offshore Partners LP reported revenue of $291M and earnings per share (EPS) of $-1.19. Net income for the quarter was $-34M. Gross margin was 66.0%. Revenue grew 8.2% year-over-year compared to FY 2022. Operating income came in at $25M.
In FY 2022, KNOT Offshore Partners LP reported revenue of $269M and earnings per share (EPS) of $2.96. Net income for the quarter was $59M. Gross margin was 66.9%. Revenue grew -0.4% year-over-year compared to FY 2021. Operating income came in at $66M.
Over the past 8 quarters, KNOT Offshore Partners LP has demonstrated a growth trajectory, with revenue expanding from $279M to $319M. Investors analyzing KNOP stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
KNOP Dividend Yield and Income Analysis
KNOT Offshore Partners LP (KNOP) does not currently pay a dividend. This is common among smaller companies in the Transportation industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Industrials dividend stocks may want to explore other Industrials stocks or use the stock screener to filter by dividend yield.
KNOP Momentum and Technical Analysis Profile
KNOT Offshore Partners LP (KNOP) has a momentum factor score of 64/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 60/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 26/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
KNOP vs Competitors — Industrials Sector Ranking and Peer Comparison
Comparing KNOP against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full KNOP vs S&P 500 (SPY) comparison to assess how KNOT Offshore Partners LP stacks up against the broader market across all factor dimensions.
KNOP Next Earnings Date
No upcoming earnings date has been announced for KNOT Offshore Partners LP (KNOP) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy KNOP? — Investment Thesis Summary
KNOT Offshore Partners LP presents a balanced picture with arguments on both sides. The quality score of 37/100 flags below-average profitability. The value score of 83/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 64/100, suggesting the trend favors buyers. Low volatility (stability score 64/100) reduces downside risk.
In summary, KNOT Offshore Partners LP (KNOP) earns a Hold rating with a composite score of 54.6/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on KNOP stock.
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Institutional Research Dossier
KNOT Offshore Partners LP (KNOP) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
KNOT Offshore Partners LP (KNOP) receives a Hold rating, reflecting a balanced assessment of its attractive valuation metrics against concerns regarding its high debt load and the inherent cyclicality of the shipping industry. While the company's EV/EBITDA multiple suggests undervaluation and its consistent gross margins are appealing, the significant debt and potential for charter rate fluctuations warrant caution. Investors should closely monitor debt reduction efforts and the stability of long-term charter agreements before considering a more bullish stance.
The company's specialized shuttle tanker fleet and long-term contracts provide a degree of revenue visibility, but the capital-intensive nature of the business and reliance on a limited number of key customers introduce vulnerabilities. The Hold rating acknowledges the potential upside from the company's strong free cash flow generation and high dividend yield, but also recognizes the downside risks associated with its financial leverage and exposure to the volatile energy market.
Business Strategy & Overview
KNOT Offshore Partners LP operates in the niche market of shuttle tankers, providing crucial transportation services for crude oil in the North Sea and Brazil. The company's core strategy revolves around acquiring and operating a fleet of specialized shuttle tankers, securing long-term charters with major oil and gas companies, and maintaining high operational standards to ensure contract renewals. This strategy focuses on providing stable and predictable cash flows through long-term contracts, mitigating the risks associated with spot market volatility.
The company's business model is predicated on the demand for shuttle tankers in regions with challenging offshore environments, where direct pipeline infrastructure is not feasible or economical. KNOT Offshore Partners benefits from the specialized nature of its fleet, which is equipped with dynamic positioning systems and other advanced technologies to operate safely and efficiently in harsh weather conditions. The company's relationships with major oil companies are critical for securing long-term charters and maintaining a high utilization rate for its vessels.
KNOT Offshore Partners' strategic positioning is further enhanced by its focus on long-term contracts, which provide revenue visibility and reduce exposure to short-term market fluctuations. These contracts typically include provisions for cost recovery and inflation adjustments, protecting the company's profitability against rising operating expenses. However, the reliance on a limited number of key customers also presents a concentration risk, as the loss of a major charter could significantly impact the company's financial performance.
The company's growth strategy involves selectively acquiring new shuttle tankers and expanding its operations into new geographic regions. However, given the capital-intensive nature of the business, KNOT Offshore Partners must carefully manage its debt levels and ensure that new acquisitions are accretive to earnings. The company's ability to secure favorable financing terms and maintain a strong balance sheet will be crucial for its long-term success.
Execution Benchmarks audit
Gross Margin
Core pricing power
64.8%
Sector: 35.8%
+81% VS SCTR
Economic Moat Analysis
KNOT Offshore Partners' economic moat is assessed as Narrow. The company benefits from a degree of specialization and established relationships within the shuttle tanker market, but faces limitations that prevent a wider moat classification. The primary source of its competitive advantage stems from its specialized fleet and operational expertise in handling shuttle tanker operations in harsh environments like the North Sea and Brazil.
The specialized nature of the shuttle tanker fleet, equipped with dynamic positioning and other advanced technologies, creates a barrier to entry for potential competitors. Building and operating such vessels requires significant capital investment and technical expertise, limiting the number of companies capable of competing effectively. Furthermore, KNOT Offshore Partners' long-standing relationships with major oil and gas companies provide a competitive edge in securing long-term charters.
However, the moat is not wide due to several factors. Firstly, the shuttle tanker market is relatively concentrated, with a limited number of major players. While KNOT Offshore Partners has a significant presence, it is not the only provider of these services. Secondly, the long-term nature of charter contracts, while providing revenue visibility, also means that the company is locked into these agreements, limiting its flexibility to respond to changing market conditions. Thirdly, the capital-intensive nature of the business and the high debt levels required to finance vessel acquisitions create a financial risk that could erode the company's competitive advantage.
Finally, the reliance on a limited number of key customers introduces a concentration risk that weakens the moat. The loss of a major charter could significantly impact the company's financial performance and reduce its ability to invest in new vessels or maintain its existing fleet. Therefore, while KNOT Offshore Partners has a defensible position in its niche market, its economic moat is considered narrow due to the competitive landscape, financial leverage, and customer concentration risks.
Financial Health & Profitability
KNOT Offshore Partners' financial health presents a mixed picture. While the company generates strong gross margins and free cash flow, its high debt levels raise concerns about its long-term financial stability. The company's gross margin has consistently remained high, averaging above 60% in recent years, indicating a strong ability to control operating costs. The operating margin, while fluctuating, has generally been healthy, reflecting the profitability of its long-term charter contracts.
However, the company's debt-to-equity ratio is significantly higher than the sector average, indicating a high degree of financial leverage. This high debt load increases the company's vulnerability to interest rate fluctuations and economic downturns. While the company's free cash flow generation has been strong in some years, it has also been negative in others, highlighting the volatility of its cash flows. The negative free cash flow in FY2022 and FY2017 is particularly concerning, as it suggests that the company may have difficulty meeting its debt obligations or funding new acquisitions without raising additional capital.
A review of the quarterly financial history reveals some concerning trends. While revenue has generally been stable, net income has fluctuated significantly, reflecting the impact of various factors such as vessel impairments, charter rate adjustments, and financing costs. The significant net loss in FY2023 is particularly alarming, as it suggests that the company may be facing challenges in maintaining its profitability. The company's total cash balance is relatively low compared to its total debt, further highlighting its financial vulnerability.
Compared to the sector, KNOT Offshore Partners has a higher gross margin and operating margin, indicating a strong ability to generate profits from its operations. However, its debt-to-equity ratio is significantly higher than the sector average, raising concerns about its financial leverage. The company's ROE is slightly higher than the sector average, but this is likely due to its higher debt levels, which can artificially inflate ROE. Overall, KNOT Offshore Partners' financial health is a concern, and investors should closely monitor its debt reduction efforts and cash flow generation.
Valuation Assessment
KNOT Offshore Partners' valuation presents a compelling case for potential undervaluation based on several key metrics. The company's EV/EBITDA multiple of 1.5x is significantly lower than the sector average of 5.7x, suggesting that the market may be undervaluing its earnings potential. This low multiple could be attributed to concerns about the company's high debt levels and the cyclical nature of the shipping industry, but it also presents an opportunity for investors who believe that the company can successfully manage its debt and maintain its profitability.
The company's P/E ratio is not available, but given its net income, it would likely be low relative to the sector average. This further supports the argument that the company is undervalued. However, it is important to note that P/E ratios can be misleading for companies with volatile earnings, and investors should focus on other valuation metrics such as EV/EBITDA and free cash flow yield.
The company's free cash flow yield is attractive, indicating that it is generating a significant amount of cash relative to its market capitalization. This free cash flow can be used to reduce debt, fund new acquisitions, or return capital to shareholders through dividends or share repurchases. However, investors should also consider the sustainability of the company's free cash flow, as it can be affected by various factors such as charter rate fluctuations, vessel maintenance costs, and capital expenditures.
Overall, KNOT Offshore Partners' valuation appears to be attractive based on its EV/EBITDA multiple and free cash flow yield. However, investors should carefully consider the risks associated with its high debt levels and the cyclical nature of the shipping industry before making an investment decision. The Hold rating reflects a balanced assessment of the company's valuation and risk profile.
Risk & Uncertainty
KNOT Offshore Partners faces several specific risks that could negatively impact its financial performance and undermine the investment thesis. The most significant risk is its high debt level, which increases its vulnerability to interest rate fluctuations and economic downturns. A rise in interest rates could significantly increase the company's financing costs and reduce its profitability. An economic downturn could reduce demand for shuttle tanker services and lead to lower charter rates, further straining the company's financial resources.
Another key risk is the concentration of its customer base. The company relies on a limited number of major oil and gas companies for its revenue, and the loss of a major charter could significantly impact its financial performance. The renewal of existing charters is also not guaranteed, and the company may be forced to accept lower charter rates in the future, reducing its profitability.
The cyclical nature of the shipping industry also presents a significant risk. Demand for shuttle tanker services is closely tied to the price of oil and gas, and a decline in energy prices could reduce demand for the company's services. Furthermore, the company faces competition from other shuttle tanker operators, which could put pressure on charter rates and reduce its profitability.
Finally, regulatory changes and environmental concerns could also pose a risk to the company's operations. Stricter environmental regulations could increase the company's operating costs and reduce its competitiveness. Furthermore, public concerns about climate change could reduce demand for fossil fuels and negatively impact the company's long-term prospects.
Bulls Say / Bears Say
The Bull Case
BULL VIEWKNOT Offshore Partners' low EV/EBITDA multiple and high free cash flow yield suggest significant undervaluation, offering substantial upside potential as the market recognizes its intrinsic value.
BULL VIEWThe company's long-term charter contracts provide stable and predictable cash flows, mitigating the risks associated with short-term market fluctuations and supporting a high dividend yield.
BULL VIEWThe specialized nature of KNOT Offshore Partners' shuttle tanker fleet and its operational expertise create a barrier to entry, protecting its market share and profitability.
The Bear Case
BEAR VIEWKNOT Offshore Partners' high debt levels make it vulnerable to interest rate hikes and economic downturns, potentially leading to financial distress.
BEAR VIEWThe company's reliance on a limited number of key customers creates a concentration risk, as the loss of a major charter could significantly impact its financial performance.
BEAR VIEWThe cyclical nature of the shipping industry and the potential for charter rate fluctuations could erode KNOT Offshore Partners' profitability and reduce its ability to service its debt.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score KNOP and 4,400+ other equities.
KNOT Offshore Partners LP exhibits a 66% valuation discount relative to institutional benchmarks. This represents a constructive entry window based on current multiples.
Return on Assets
Efficiency of asset utilization
3.6%
Sector: 3.3%
Gross Margin
Pricing power and cost efficiency
64.8%
Sector: 35.8%
Operating Margin
Core business profitability
22.9%
Sector: 6.2%
Net Margin
Bottom-line profitability
4.4%
Sector: 3.9%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
