LSE:KNOS

Stock Analysis Report

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Executive Summary

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. More Details


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


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: KNOS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

25.5%

KNOS

1.9%

GB IT

-1.0%

GB Market


1 Year Return

158.1%

KNOS

19.5%

GB IT

-14.8%

GB Market

Return vs Industry: KNOS exceeded the UK IT industry which returned 19.5% over the past year.

Return vs Market: KNOS exceeded the UK Market which returned -14.8% over the past year.


Shareholder returns

KNOSIndustryMarket
7 Day25.5%1.9%-1.0%
30 Day26.0%6.8%-1.6%
90 Day52.0%3.2%-3.6%
1 Year161.1%158.1%20.5%19.5%-11.6%-14.8%
3 Year372.3%349.1%45.9%39.8%-8.9%-20.2%
5 Year486.6%426.7%127.3%107.6%16.2%-10.0%

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

Valuation

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

82.82x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KNOS (£12.8) is trading above our estimate of fair value (£4.78)

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 (82.8x) compared to the GB IT industry average (37.2x).

PE vs Market: KNOS is poor value based on its PE Ratio (82.8x) compared to the UK market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: KNOS is poor value based on its PEG Ratio (9.1x)


Price to Book Ratio

PB vs Industry: KNOS is overvalued based on its PB Ratio (26.4x) compared to the GB IT industry average (2.6x).


Next Steps

Future Growth

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

9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KNOS's forecast earnings growth (9.1% per year) is above the savings rate (1.2%).

Earnings vs Market: KNOS's earnings (9.1% per year) are forecast to grow slower than the UK market (24.2% 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 (6% 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 (30.2%)


Next Steps

Past Performance

How has Kainos Group performed over the past 5 years?

13.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KNOS has a high level of non-cash earnings.

Growing Profit Margin: KNOS's current net profit margins (10.4%) are lower than last year (11.2%).


Past Earnings Growth Analysis

Earnings Trend: KNOS's earnings have grown by 13.8% per year over the past 5 years.

Accelerating Growth: KNOS's earnings growth over the past year (9.5%) is below its 5-year average (13.8% per year).

Earnings vs Industry: KNOS earnings growth over the past year (9.5%) underperformed the IT industry 9.5%.


Return on Equity

High ROE: KNOS's Return on Equity (31.4%) is considered high.


Next Steps

Financial Health

How is Kainos Group's financial position?


Financial Position Analysis

Short Term Liabilities: KNOS's short term assets (£89.3M) exceed its short term liabilities (£49.3M).

Long Term Liabilities: KNOS's short term assets (£89.3M) exceed its long term liabilities (£5.0M).


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


Next Steps

Dividend

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

1.12%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate KNOS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate KNOS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if KNOS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if KNOS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: KNOS is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of KNOS's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

5.9yrs

Average management tenure


CEO

Brendan Mooney (53 yo)

19.75yrs

Tenure

UK£683,000

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 ($USD885.13K) is below average for companies of similar size in the UK market ($USD1.76M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Brendan Mooney
CEO & Executive Director19.75yrsUK£683.00k11.61%
£ 181.8m
Richard McCann
CFO, COO & Executive Directorno dataUK£693.00k3.85%
£ 60.3m
Paul Gannon
Senior VP of Business Development & Executive Directorno dataUK£697.00k6.15%
£ 96.4m
Tom Gray
Chief Technology Officer15.75yrsno datano data
Grainne Burns
General Counsel & Company Secretaryno datano datano data
Malachy Smith
Head of WorkSmart Divisionno datano datano data
Colette Kidd
Chief People Officer5.92yrsno datano data
Kristian Rude
Head of Copenhagen Office3yrsno datano data
Peter McKeown
Chief Operating Officer of Workday Practice0.75yrno datano data

5.9yrs

Average Tenure

52yo

Average Age

Experienced Management: KNOS's management team is seasoned and experienced (5.9 years average tenure).


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 company bio, 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£1.566b
  • Shares outstanding: 122.33m
  • 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
KNNN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2015

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 22:25
End of Day Share Price2020/10/20 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.