Senior Research Analyst at JN Group, Jahmar Brown, says Knutsford Express’ diversification and expansion have been the driving force behind its impressive COVID-19 recovery. 

Knutsford was one of the companies severely impacted by the COVID-19 pandemic and the restrictions imposed to curb the spread of the virus.

For its financial year 2021 the company recorded a net income loss of $99 million. 

That was completely reversed in 2022 when the company recorded $85 million in net income.

Speaking on Taking Stock with Kalilah Reynolds, Brown said the rebound was largely due to growth in transportation revenues due to more local and international travel. 

Knutsford recorded a 72% increase in revenues for the six-month period ending November 2022. The company also recorded a massive 864% jump in net income from $14 million to $143 million for the same period.

Additionally, Brown said that the expansion of the company’s courier service network to 18 sites across the island, also contributed significantly to its growth.  

“Knutsford is a company emerging from the shock of Covid pretty well,” Brown said.

He also noted that the company’s gross margin, which had fallen from 18% in 2019 to -11% in 2021, recovered to 12% in 2022.

The stock price has also reflected the positive news.

Knutsford stock closed trading on Thursday at $12.52 after trading around the $8-$9 region for several months.

“At this price we believe the company is trading high and is currently overvalued compared to the service industry value,” Brown warned. 

Despite being overvalued, the analyst said that he believes Knutsford is a good investment for medium to long-term investors. 

“The business model is solid and they do have a large market share as it relates to premium travel in the country. So we don’t see them falling off in the medium to long term,” he said.

However, Brown noted that with instability in the market now, especially news of a possible recession in the United States, Knutsford’s short-term performance is difficult to predict.