DB:1KG

Stock Analysis Report

Executive Summary

Kainos Group plc provides digital technology services and platforms for public and private organizations worldwide.

Snowflake

Fundamentals

Outstanding track record with flawless balance sheet.


Similar Companies

Share Price & News

How has Kainos Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1KG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.3%

1KG

1.0%

DE IT

0.8%

DE Market


1 Year Return

40.4%

1KG

-8.4%

DE IT

9.0%

DE Market

Return vs Industry: 1KG exceeded the German IT industry which returned -8.4% over the past year.

Return vs Market: 1KG exceeded the German Market which returned 9% over the past year.


Shareholder returns

1KGIndustryMarket
7 Day7.3%1.0%0.8%
30 Day15.8%-6.6%6.3%
90 Day22.8%-2.9%14.4%
1 Year43.5%40.4%-8.0%-8.4%12.4%9.0%
3 Year183.5%166.0%144.1%137.6%25.6%14.5%
5 Yearn/a263.3%248.2%41.0%21.8%

Price Volatility Vs. Market

How volatile is Kainos Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Kainos Group undervalued compared to its fair value and its price relative to the market?

25.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1KG (€6.46) is trading below our estimate of fair value (€8.64)

Significantly Below Fair Value: 1KG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 1KG is poor value based on its PE Ratio (33.6x) compared to the IT industry average (29.2x).

PE vs Market: 1KG is poor value based on its PE Ratio (33.6x) compared to the German market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: 1KG is poor value based on its PEG Ratio (3.9x)


Price to Book Ratio

PB vs Industry: 1KG is overvalued based on its PB Ratio (11.2x) compared to the DE IT industry average (4.1x).


Next Steps

Future Growth

How is Kainos Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

8.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1KG's forecast earnings growth (8.6% per year) is above the savings rate (0.2%).

Earnings vs Market: 1KG's earnings (8.6% per year) are forecast to grow slower than the German market (12.8% per year).

High Growth Earnings: 1KG's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1KG's revenue (7.2% per year) is forecast to grow faster than the German market (4.9% per year).

High Growth Revenue: 1KG's revenue (7.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1KG's Return on Equity is forecast to be high in 3 years time (30.3%)


Next Steps

Past Performance

How has Kainos Group performed over the past 5 years?

13.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1KG has high quality earnings.

Growing Profit Margin: 1KG's current net profit margins (11.5%) are higher than last year (10.7%).


Past Earnings Growth Analysis

Earnings Trend: 1KG's earnings have grown by 13% per year over the past 5 years.

Accelerating Growth: 1KG's earnings growth over the past year (49.2%) exceeds its 5-year average (13% per year).

Earnings vs Industry: 1KG earnings growth over the past year (49.2%) exceeded the IT industry 22.7%.


Return on Equity

High ROE: 1KG's Return on Equity (33.1%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kainos Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1KG's short term assets (£85.7M) exceeds its short term liabilities (£38.4M)

Long Term Liabilities: 1KG's short term assets (85.7M) exceeds its long term liabilities (5.2M)


Debt to Equity History and Analysis

Debt Level: 1KG is debt free.

Reducing Debt: 1KG has not had any debt for past 5 years.

Debt Coverage: 1KG has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 1KG has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1KG has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 1KG's debt is covered by short term assets.


Next Steps

Dividend

What is Kainos Group's current dividend yield, its reliability and sustainability?

1.68%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%1.4%markettop25%3.6%industryaverage0.6%forecastin3Years2.1%

Current dividend yield vs market & industry

Notable Dividend: 1KG's dividend (1.68%) is higher than the bottom 25% of dividend payers in the German market (1.39%).

High Dividend: 1KG's dividend (1.68%) is low compared to the top 25% of dividend payers in the German market (3.64%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 1KG has been paying a dividend for less than 10 years.

Growing Dividend: 1KG's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (60.8%), 1KG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1KG's dividends in 3 years are forecast to be covered by earnings (59.8% payout ratio).


Next Steps

Management

What is the CEO of Kainos Group's salary, the management and board of directors tenure and is there insider trading?

9.9yrs

Average management tenure


CEO

Brendan Mooney (52yo)

18.8yrs

Tenure

UK£603,000

Compensation

Dr. Brendan Mooney has been the Chief Executive Officer of Kainos Group plc since 2001. Dr. Mooney is responsible for setting the strategic direction of Kainos and for overseeing profitable growth. He has  ...


CEO Compensation Analysis

Compensation vs Market: Brendan's total compensation ($USD774.59K) is below average for companies of similar size in the German market ($USD1.15M).

Compensation vs Earnings: Brendan's compensation has increased by more than 20% in the past year.


Management Age and Tenure

9.9yrs

Average Tenure

51yo

Average Age

Experienced Management: 1KG's management team is seasoned and experienced (9.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUK£922,12317 Jun 19
Paul Gannon
EntityIndividual
Role
Member of the Board of Directors
Senior VP of Business Development & Executive Director
Shares130,500
Max PriceUK£7.07

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Brendan Mooney (52yo)

    CEO & Executive Director

    • Tenure: 18.8yrs
    • Compensation: UK£603.00k
  • Grainne Burns (45yo)

    General Counsel & Company Secretary

    • Tenure: 0yrs
  • Tom Gray (51yo)

    Chief Technology Officer

    • Tenure: 14.8yrs
  • Paul Gannon (56yo)

    Senior VP of Business Development & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£587.00k
  • Richard McCann (54yo)

    CFO, COO & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£544.00k
  • Kristian Rude

    Head of Copenhagen Office

    • Tenure: 2.1yrs
  • Mal Smith (50yo)

    Head of WorkSmart Division

    • Tenure: 0yrs
  • Colette Kidd (45yo)

    Chief People Officer

    • Tenure: 5yrs
  • Peter McKeown

    Deputy Chief Financial Officer

    • Tenure: 0yrs

Board Members

  • Andy Malpass (57yo)

    Senior Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: UK£56.00k
  • Tom Burnet (51yo)

    Independent Chairman

    • Tenure: 0.2yrs
    • Compensation: UK£44.00k
  • Brendan Mooney (52yo)

    CEO & Executive Director

    • Tenure: 18.8yrs
    • Compensation: UK£603.00k
  • Paul Gannon (56yo)

    Senior VP of Business Development & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£587.00k
  • Chris Cowan (60yo)

    Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: UK£40.00k
  • Richard McCann (54yo)

    CFO, COO & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£544.00k

Company Information

Kainos Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kainos Group plc
  • Ticker: 1KG
  • Exchange: DB
  • Founded: 1986
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: UK£670.690m
  • Listing Market Cap: UK£782.276m
  • Shares outstanding: 121.50m
  • Website: https://www.kainos.com

Number of Employees


Location

  • Kainos Group plc
  • Kainos House
  • 4-6 Upper Crescent
  • Belfast
  • County Antrim
  • BT7 1NT
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KNOSLSE (London Stock Exchange)YesOrdinary SharesGBGBPJul 2015
1KGDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2015
KNOSLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJul 2015

Biography

Kainos Group plc provides digital technology services and platforms for public and private organizations worldwide. It operates through two divisions, Digital Services and Digital Platforms. The Digital Se ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/12 21:48
End of Day Share Price2019/11/12 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.