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KNOS

Kainos GroupLSE:KNOS Stock Report

Market Cap

UK£2.5b

7D

-1.0%

1Y

61.6%

Updated

26 Oct, 2021

Data

Company Financials +
KNOS fundamental analysis
Snowflake Score
Valuation0/6
Future Growth3/6
Past Performance6/6
Financial Health6/6
Dividends2/6

KNOS Overview

Kainos Group plc provides digital technology services and platforms for public and private organizations in the United Kingdom, the Republic of Ireland, the United States, and internationally.

Kainos Group Competitors

Softcat

LSE:SCT

UK£4.0b

Oracle

NYSE:ORCL

US$265.1b

SAP

XTRA:SAP

€148.7b

Honeywell International

NasdaqGS:HON

US$150.3b

Price History & Performance

Summary of all time highs, changes and price drops for Kainos Group
Historical stock prices
Current Share PriceUK£20.00
52 Week HighUK£10.76
52 Week LowUK£20.82
Beta0.39
1 Month Change0.50%
3 Month Change19.55%
1 Year Change61.55%
3 Year Change411.51%
5 Year Change875.61%
Change since IPO1,049.43%

Recent News & Updates

Sep 17
We Take A Look At Whether Kainos Group plc's (LON:KNOS) CEO May Be Underpaid

We Take A Look At Whether Kainos Group plc's (LON:KNOS) CEO May Be Underpaid

The impressive results at Kainos Group plc ( LON:KNOS ) recently will be great news for shareholders. At the upcoming...

Sep 14
Does Kainos Group (LON:KNOS) Deserve A Spot On Your Watchlist?

Does Kainos Group (LON:KNOS) Deserve A Spot On Your Watchlist?

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Shareholder Returns

KNOSGB ITGB Market
7D-1.0%-2.1%0.5%
1Y61.6%43.9%26.7%

Return vs Industry: KNOS exceeded the UK IT industry which returned 43.9% over the past year.

Return vs Market: KNOS exceeded the UK Market which returned 26.7% over the past year.

Price Volatility

Is KNOS's price volatile compared to industry and market?
KNOS volatility
KNOS Beta0.39
Industry Beta0.90
Market Beta1

Stable Share Price: KNOS is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: KNOS's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19861,725Brendan Mooneyhttps://www.kainos.com

Kainos Group plc provides digital technology services and platforms for public and private organizations in the United Kingdom, the Republic of Ireland, the United States, and internationally. It operates through two divisions, Digital Services and Workday Practice. The Digital Services division delivers customized online digital solutions, including cloud and engineering, data and artificial intelligence, intelligent automation, and service and experience design for public sector, commercial sector, and healthcare organizations.

Kainos Group Fundamentals Summary

How do Kainos Group's earnings and revenue compare to its market cap?
KNOS fundamental statistics
Market CapUK£2.45b
Earnings (TTM)UK£39.60m
Revenue (TTM)UK£234.69m

62.4x

P/E Ratio

10.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KNOS income statement (TTM)
RevenueUK£234.69m
Cost of RevenueUK£116.40m
Gross ProfitUK£118.30m
ExpensesUK£78.70m
EarningsUK£39.60m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

Nov 15, 2021

Earnings per share (EPS)0.32
Gross Margin50.41%
Net Profit Margin16.87%
Debt/Equity Ratio0%

How did KNOS perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

66%

Payout Ratio

Valuation

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

62.37x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KNOS (£20) is trading above our estimate of fair value (£6.12)

Significantly Below Fair Value: KNOS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: KNOS is poor value based on its PE Ratio (62.4x) compared to the UK IT industry average (44.4x).

PE vs Market: KNOS is poor value based on its PE Ratio (62.4x) compared to the UK market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: KNOS is poor value based on its PEG Ratio (9.4x)


Price to Book Ratio

PB vs Industry: KNOS is overvalued based on its PB Ratio (28.2x) compared to the GB IT industry average (4.7x).


Future Growth

How is Kainos Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

6.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KNOS's forecast earnings growth (6.7% per year) is above the savings rate (0.9%).

Earnings vs Market: KNOS's earnings (6.7% per year) are forecast to grow slower than the UK market (12.7% per year).

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

Revenue vs Market: KNOS's revenue (8% per year) is forecast to grow faster than the UK market (5% per year).

High Growth Revenue: KNOS's revenue (8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KNOS's Return on Equity is forecast to be high in 3 years time (34.1%)


Past Performance

How has Kainos Group performed over the past 5 years?

24.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KNOS has high quality earnings.

Growing Profit Margin: KNOS's current net profit margins (16.9%) are higher than last year (10.4%).


Past Earnings Growth Analysis

Earnings Trend: KNOS's earnings have grown significantly by 24.5% per year over the past 5 years.

Accelerating Growth: KNOS's earnings growth over the past year (113.3%) exceeds its 5-year average (24.5% per year).

Earnings vs Industry: KNOS earnings growth over the past year (113.3%) exceeded the IT industry 8.7%.


Return on Equity

High ROE: KNOS's Return on Equity (45.2%) is considered outstanding.


Financial Health

How is Kainos Group's financial position?


Financial Position Analysis

Short Term Liabilities: KNOS's short term assets (£138.7M) exceed its short term liabilities (£72.7M).

Long Term Liabilities: KNOS's short term assets (£138.7M) exceed its long term liabilities (£4.1M).


Debt to Equity History and Analysis

Debt Level: KNOS is debt free.

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

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

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


Balance Sheet


Dividend

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

1.07%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KNOS's dividend (1.07%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.4%).

High Dividend: KNOS's dividend (1.07%) is low compared to the top 25% of dividend payers in the UK market (4.03%).


Stability and Growth of Payments

Stable Dividend: KNOS has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: KNOS's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (66.2%), KNOS's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KNOS's dividends in 3 years are forecast to be covered by earnings (60.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.4yrs

Average management tenure


CEO

Brendan Mooney (54 yo)

20.75yrs

Tenure

UK£591,000

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 ($USD814.63K) is below average for companies of similar size in the UK market ($USD1.67M).

Compensation vs Earnings: Brendan's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: KNOS's management team is seasoned and experienced (10.4 years average tenure).


Board Members

Experienced Board: KNOS's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: KNOS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Kainos Group plc
  • Ticker: KNOS
  • Exchange: LSE
  • Founded: 1986
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: UK£2.450b
  • Shares outstanding: 123.50m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 21:13
End of Day Share Price2021/10/26 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.