KNOT Offshore Partners LP (KNOP): fair value, margin of safety and Wheel Score

Is KNOP undervalued?

At 9.77 (close of 16 Oct 2026), KNOP trades 72% below the GLS average fair value of 34.55. That average comes from 9 models run on the latest filings, and 4 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns KNOT Offshore Partners LP the full Value points in the Wheel Score - and a closer look at what the market is pricing in.

The 9 models disagree widely: GLS Growth gives 1.29 while DCF gives 167.72. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.

The nightly engine files KNOP under Defensive: a low beta, a dividend and positive earnings.

Nine valuation models for KNOP

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

On financial health KNOP scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is low at 4.8 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.

Returns on capital are thin or negative - ROIC 1.5%, ROE 3.7%, ROA 1.4% - with debt at 1.54 times equity and a free-cash-flow yield of 46.7%.

The dividend yield is 1.81% at a payout ratio of 75%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Time Charter And Bareboat Revenues 50%, Time Charter Revenues 50%, Bareboat Revenues 0% (fiscal year FY2025).

Institutional ownership scores 3/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 69: Good

KNOP scores 69 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 25/25), Piotroski health (16/20), the GLS moat (7/15), the option premium on offer (15/20) and how easily the stock trades (6/20). Stability (6/20) is the part holding the score back.

Implied volatility is 30% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (15 of 20 points). Chain open interest is thin - 627 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.

Volume runs at 73k shares a day on a market cap of $329M, with a beta of -0.06 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 6 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

The next earnings report is due on 3 Dec 2026, 48 days away - outside the window of a 30-45-day put sold today. The shares go ex-dividend on 26 Oct 2026 (0.1000 per share), so a covered call sold before then carries a small early-assignment risk around that date.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

Similar stocks in Marine Shipping

The 12 companies below are the closest to KNOT Offshore Partners LP by market cap within the Marine Shipping industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

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