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Kainos Group

LSE:KNOS
Snowflake Description

Flawless balance sheet with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
KNOS
LSE
£729M
Market Cap
  1. Home
  2. GB
  3. Software
Company description

Kainos Group plc provides digital technology services and platforms for public and private organizations worldwide. The last earnings update was 55 days ago. More info.


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KNOS Share Price and Events
7 Day Returns
-2.9%
LSE:KNOS
1%
GB IT
0.2%
GB Market
1 Year Returns
47.5%
LSE:KNOS
4.2%
GB IT
-2%
GB Market
KNOS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Kainos Group (KNOS) -2.9% -10.9% 8.7% 47.5% 256.2% -
GB IT 1% 1.9% 11.2% 4.2% 70.7% 58.7%
GB Market 0.2% 1.1% 0.1% -2% 11.2% 6.3%
1 Year Return vs Industry and Market
  • KNOS outperformed the IT industry which returned 4.2% over the past year.
  • KNOS outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -2% over the past year.
Price Volatility
KNOS
Industry
5yr Volatility vs Market

Value

 Is Kainos Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Kainos Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Kainos Group.

LSE:KNOS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.8%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:KNOS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
IT Unlevered Beta Simply Wall St/ S&P Global 0.99
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.986 (1 + (1- 19%) (0%))
0.991
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.99
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.991 * 6.65%)
7.81%

Discounted Cash Flow Calculation for LSE:KNOS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Kainos Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:KNOS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 7.81%)
2020 6.07 Analyst x3 5.63
2021 9.76 Analyst x3 8.40
2022 12.32 Analyst x4 9.83
2023 29.30 Analyst x1 21.69
2024 39.73 Est @ 35.61% 27.28
2025 49.78 Est @ 25.29% 31.70
2026 58.78 Est @ 18.07% 34.71
2027 66.43 Est @ 13.02% 36.39
2028 72.73 Est @ 9.48% 36.95
2029 77.83 Est @ 7.01% 36.68
Present value of next 10 years cash flows £249.25
LSE:KNOS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £77.83 × (1 + 1.23%) ÷ (7.81% – 1.23%)
£1,196.00
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £1,196.00 ÷ (1 + 7.81%)10
£563.59
LSE:KNOS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £249.25 + £563.59
£812.84
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £812.84 / 121.05
£6.71
LSE:KNOS Discount to Share Price
Calculation Result
Value per share (GBP) From above. £6.71
Current discount Discount to share price of £6.02
= -1 x (£6.02 - £6.71) / £6.71
10.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Kainos Group is available for.
Intrinsic value
10%
Share price is £6.02 vs Future cash flow value of £6.71
Current Discount Checks
For Kainos Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Kainos Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Kainos Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Kainos Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Kainos Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:KNOS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in GBP £0.14
LSE:KNOS Share Price ** LSE (2019-07-19) in GBP £6.02
United Kingdom of Great Britain and Northern Ireland IT Industry PE Ratio Median Figure of 21 Publicly-Listed IT Companies 27.99x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 792 Publicly-Listed Companies 16.31x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Kainos Group.

LSE:KNOS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:KNOS Share Price ÷ EPS (both in GBP)

= 6.02 ÷ 0.14

42.05x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kainos Group is overvalued based on earnings compared to the GB IT industry average.
  • Kainos Group is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Kainos Group's expected growth come at a high price?
Raw Data
LSE:KNOS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 42.05x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
9.9%per year
United Kingdom of Great Britain and Northern Ireland IT Industry PEG Ratio Median Figure of 18 Publicly-Listed IT Companies 1.86x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 572 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

LSE:KNOS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 42.05x ÷ 9.9%

4.23x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kainos Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Kainos Group's assets?
Raw Data
LSE:KNOS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in GBP £0.41
LSE:KNOS Share Price * LSE (2019-07-19) in GBP £6.02
United Kingdom of Great Britain and Northern Ireland IT Industry PB Ratio Median Figure of 44 Publicly-Listed IT Companies 3.04x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,377 Publicly-Listed Companies 1.51x
LSE:KNOS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:KNOS Share Price ÷ Book Value per Share (both in GBP)

= 6.02 ÷ 0.41

14.83x

* Primary Listing of Kainos Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kainos Group is overvalued based on assets compared to the GB IT industry average.
X
Value checks
We assess Kainos Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Kainos Group has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Kainos Group expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Kainos Group expected to grow at an attractive rate?
  • Kainos Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Kainos Group's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Kainos Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:KNOS Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:KNOS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 9.9%
LSE:KNOS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 8%
United Kingdom of Great Britain and Northern Ireland IT Industry Earnings Growth Rate Market Cap Weighted Average 25.4%
United Kingdom of Great Britain and Northern Ireland IT Industry Revenue Growth Rate Market Cap Weighted Average 10.2%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.9%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:KNOS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:KNOS Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-03-31 211 39 24 1
2022-03-31 193 29 23 4
2021-03-31 180 24 21 5
2020-03-31 165 20 19 5
LSE:KNOS Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-03-31 151 23 17
2018-12-31 137 21 15
2018-09-30 122 19 13
2018-06-30 110 17 12
2018-03-31 97 14 12
2017-12-31 91 14 11
2017-09-30 84 15 11
2017-06-30 84 16 11
2017-03-31 84 17 10
2016-12-31 82 15 12
2016-09-30 80 13 14
2016-06-30 78 12 13

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Kainos Group's earnings are expected to grow by 9.9% yearly, however this is not considered high growth (20% yearly).
  • Kainos Group's revenue is expected to grow by 8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:KNOS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Kainos Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:KNOS Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-03-31 0.19 0.19 0.19 1.00
2022-03-31 0.19 0.23 0.17 3.00
2021-03-31 0.18 0.20 0.16 3.00
2020-03-31 0.16 0.17 0.15 3.00
LSE:KNOS Past Financials Data
Date (Data in GBP Millions) EPS *
2019-03-31 0.14
2018-12-31 0.13
2018-09-30 0.11
2018-06-30 0.11
2018-03-31 0.10
2017-12-31 0.10
2017-09-30 0.09
2017-06-30 0.09
2017-03-31 0.09
2016-12-31 0.10
2016-09-30 0.12
2016-06-30 0.11

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Kainos Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Kainos Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Kainos Group has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Kainos Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Kainos Group's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Kainos Group's year on year earnings growth rate has been positive over the past 5 years.
  • Kainos Group's 1-year earnings growth exceeds its 5-year average (45.2% vs 11.9%)
  • Kainos Group's earnings growth has exceeded the GB IT industry average in the past year (45.2% vs 10.3%).
Earnings and Revenue History
Kainos Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Kainos Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:KNOS Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 151.29 16.94 48.09
2018-12-31 136.86 15.04 44.61
2018-09-30 122.43 13.14 41.13
2018-06-30 109.56 12.40 36.77
2018-03-31 96.68 11.67 32.40
2017-12-31 90.50 11.18 30.28
2017-09-30 84.33 10.69 28.16
2017-06-30 83.92 10.55 28.46
2017-03-31 83.50 10.42 28.77
2016-12-31 81.73 12.04 27.30
2016-09-30 79.96 13.67 25.84
2016-06-30 78.28 13.05 24.70
2016-03-31 76.59 12.43 23.57
2015-12-31 72.89 10.74 23.02
2015-09-30 69.18 9.06 22.46
2015-06-30 64.98 9.41 21.56
2015-03-31 60.78 9.77 20.65
2014-03-31 41.92 5.46 14.44
2013-03-31 29.93 3.48 11.28

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Kainos Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Kainos Group used its assets more efficiently than the GB IT industry average last year based on Return on Assets.
  • Kainos Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Kainos Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Kainos Group has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Kainos Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Kainos Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Kainos Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Kainos Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Kainos Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Kainos Group has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Kainos Group Company Filings, last reported 3 months ago.

LSE:KNOS Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 48.17 0.00 42.49
2018-12-31 48.17 0.00 42.49
2018-09-30 45.83 0.00 38.84
2018-06-30 45.83 0.00 38.84
2018-03-31 35.73 0.00 28.96
2017-12-31 35.73 0.00 28.96
2017-09-30 36.15 0.00 27.31
2017-06-30 36.15 0.00 27.31
2017-03-31 29.99 0.00 23.72
2016-12-31 29.99 0.00 23.72
2016-09-30 31.72 0.00 20.93
2016-06-30 31.72 0.00 20.93
2016-03-31 25.92 0.00 15.05
2015-12-31 25.92 0.00 15.05
2015-09-30 18.68 0.00 9.71
2015-06-30 18.68 0.00 9.71
2015-03-31 23.73 0.00 16.79
2014-03-31 15.13 0.00 5.77
2013-03-31 9.97 0.00 3.04
  • Kainos Group has no debt.
  • Kainos Group has not taken on any debt in the past 5 years.
  • Kainos Group has no debt, it does not need to be covered by operating cash flow.
  • Kainos Group has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Kainos Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Kainos Group has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.54%
Current annual income from Kainos Group dividends. Estimated to be 1.92% next year.
If you bought £2,000 of Kainos Group shares you are expected to receive £31 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Kainos Group's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.95%).
  • Kainos Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.43%).
Upcoming dividend payment

Purchase Kainos Group before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:KNOS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland IT Industry Average Dividend Yield Market Cap Weighted Average of 22 Stocks 2.4%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:KNOS Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-03-31 0.14 1.00
2022-03-31 0.13 4.00
2021-03-31 0.12 5.00
2020-03-31 0.10 5.00
LSE:KNOS Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-05-28 0.093 1.473
2018-05-30 0.066 1.531
2018-05-29 0.066 1.682
2017-07-31 0.063 1.955
2017-05-30 0.063 2.327
2016-07-29 0.060 2.969
2016-05-31 0.060 3.842
2015-11-23 0.036 1.707

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Kainos Group has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Kainos Group only paid a dividend in the past 4 years.
Current Payout to shareholders
What portion of Kainos Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.7x coverage).
X
Income/ dividend checks
We assess Kainos Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Kainos Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Kainos Group has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Brendan Mooney
COMPENSATION £423,000
AGE 52
TENURE AS CEO 18.5 years
CEO Bio

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 over 25 years’ of technical, business development and management experience. He joined Kainos Group in 1989 and served as its Managing Director since 2001. His previous roles at Kainos have included consultancy, sales and general management. He spent 8 years in London, Dublin and USA. He serves as a Non-Executive Director at Meridio, Property News and the Probation Service for Northern Ireland. Dr. Mooney serves as an Executive Director of Kainos Group plc. He served as a Member of the Meridio board from 2001 to 2004. He has been awarded the Chartered Director accreditation by the Institute of Directors and was a Lay Magistrate. He is a Software engineer by training. He studied Computer Science at University of Ulster, Jordanstown and was awarded an honorary Doctorate (DSc.) for services to business development.

CEO Compensation
  • Brendan's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Brendan's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Kainos Group management team in years:

9.6
Average Tenure
51
Average Age
  • The average tenure for the Kainos Group management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Brendan Mooney

TITLE
CEO & Executive Director
COMPENSATION
£423K
AGE
52
TENURE
18.5 yrs

Richard McCann

TITLE
CFO, COO & Executive Director
COMPENSATION
£364K
AGE
54

Paul Gannon

TITLE
Senior VP of Business Development & Executive Director
COMPENSATION
£598K
AGE
56

Tom Gray

TITLE
Chief Technology Officer
AGE
51
TENURE
14.5 yrs

Grainne Burns

TITLE
General Counsel & Company Secretary
AGE
45

Mal Smith

TITLE
Head of WorkSmart Division
AGE
50

Colette Kidd

TITLE
Chief People Officer
AGE
45
TENURE
4.7 yrs

Kristian Rude

TITLE
Head of Copenhagen Office
TENURE
1.8 yrs

Peter McKeown

TITLE
Deputy Chief Financial Officer
Board of Directors

John Lillywhite

TITLE
Non-Independent Non-Executive Chairman
COMPENSATION
£80K
AGE
78

Brendan Mooney

TITLE
CEO & Executive Director
COMPENSATION
£423K
AGE
52

Richard McCann

TITLE
CFO, COO & Executive Director
COMPENSATION
£364K
AGE
54

Paul Gannon

TITLE
Senior VP of Business Development & Executive Director
COMPENSATION
£598K
AGE
56

Tom Burnet

TITLE
Independent Non-Executive Director
COMPENSATION
£44K
AGE
51

Andy Malpass

TITLE
Senior Independent Non-Executive Director
COMPENSATION
£56K
AGE
57

Chris Cowan

TITLE
Independent Non-Executive Director
COMPENSATION
£40K
AGE
60
Who owns this company?
Recent Insider Trading
  • Kainos Group individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
17. Jun 19 Sell Paul Gannon Individual 14. Jun 19 14. Jun 19 -130,500 £6.29 £-820,950
X
Management checks
We assess Kainos Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Kainos Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Estimating The Intrinsic Value Of Kainos Group plc (LON:KNOS)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Kainos Group plc (LON:KNOS) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) estimate 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF (£, Millions) £6.1m £9.8m £12.3m £29.3m £39.7m £49.8m £58.8m £66.4m £72.7m £77.8m Growth Rate Estimate Source Analyst x3 Analyst x3 Analyst x4 Analyst x1 Est @ 35.61% Est @ 25.29% Est @ 18.07% Est @ 13.02% Est @ 9.48% Est @ 7.01% Present Value (£, Millions) Discounted @ 7.85% £5.6 £8.4 £9.8 £21.7 £27.2 £31.6 £34.6 £36.3 £36.8 £36.6 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= £248.7m The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 7.9%.

Simply Wall St -

What Should We Expect From Kainos Group plc's (LON:KNOS) Earnings In The Next Couple Of Years?

Below is my commentary, albeit very simple and high-level, on how market analysts view Kainos Group's earnings growth trajectory over the next few years and whether the future looks even brighter than the past. … View our latest analysis for Kainos Group Analysts' outlook for the coming year seems optimistic, with earnings increasing by a robust 11%. … LSE:KNOS Past and Future Earnings, July 9th 2019 Although it is useful to understand the growth rate each year relative to today’s value, it may be more insightful to determine the rate at which the earnings are growing on average every year.

Simply Wall St -

Despite Its High P/E Ratio, Is Kainos Group plc (LON:KNOS) Still Undervalued?

We'll look at Kainos Group plc's (LON:KNOS) P/E ratio and reflect on what it tells us about the company's share price. … View our latest analysis for Kainos Group How Do I Calculate A Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Kainos Group: P/E of 45.54 = £6.52 ÷ £0.14 (Based on the year to March 2019.) Is A High P/E Ratio Good?

Simply Wall St -

Here's What You Should Know About Kainos Group plc's (LON:KNOS) 1.4% Dividend Yield

It's positive to see that Kainos Group's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. … Looking at the data, we can see that Kainos Group has been paying a dividend for the past four years. … Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Kainos Group has grown its earnings per share at 22% per annum over the past five years.

Simply Wall St -

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

In contrast to all that, I prefer to spend time on companies like Kainos Group (LON:KNOS), which has not only revenues, but also profits. … So it is good to see that Kainos Group insiders have a significant amount of capital invested in the stock. … For companies with market capitalizations between UK£315m and UK£1.3b, like Kainos Group, the median CEO pay is around UK£899k.

Simply Wall St -

Was Kainos Group plc's (LON:KNOS) Earnings Growth Better Than The Industry's?

Let's see whether it is solely attributable to industry tailwinds, or if Kainos Group has experienced some company-specific growth. … While Kainos Group has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. … I recommend you continue to research Kainos Group to get a better picture of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for KNOS’s future growth?

Simply Wall St -

Why Kainos Group plc (LON:KNOS) Looks Like A Quality Company

One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. … Combining Kainos Group's Debt And Its 35% Return On Equity Kainos Group is free of net debt, which is a positive for shareholders. … A company that can achieve a high return on equity without debt could be considered a high quality business.

Simply Wall St -

If You Had Bought Kainos Group (LON:KNOS) Stock Three Years Ago, You Could Pocket A 179% Gain Today

To wit, the Kainos Group plc (LON:KNOS) share price has flown 179% in the last three years. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During three years of share price growth, Kainos Group achieved compound earnings per share growth of 12% per year.

Simply Wall St -

Here's What We Think About Kainos Group plc's (LON:KNOS) CEO Pay

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Brendan Mooney's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that Kainos Group plc has a market cap of UK£673m, and is paying total annual CEO compensation of UK£423k.

Simply Wall St -

At UK£5.70, Is Kainos Group plc (LON:KNOS) Worth Looking At Closely?

received a lot of attention from a substantial price increase on the LSE over the last few months. … Less-covered, small caps tend to present more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing? … Today I will analyse the most recent data on Kainos Group’s outlook and valuation to see if the opportunity still exists

Simply Wall St -

Company Info

Description

Kainos Group plc provides digital technology services and platforms for public and private organizations worldwide. The company operates through two divisions, Digital Services and Digital Platforms. The Digital Services division delivers customized online digital solutions, principally for central, regional, and local government departments and agencies, as well as for commercial sector organizations. This division also offers consulting, project management, integration, and post deployment services for Workday’s software suite, which includes cloud-based software for human capital management and financial management that enables enterprises to organize their staff and to support financial reporting requirements. The Digital Platforms division provides Smart, a cloud-based software as a service solution that allows Workday customers to automatically verify their Workday configuration. This division also provides Evolve Electronic Medical Record, a software product that removes paper from the care process by digitizing patient records; and Evolve Integrated Care, a cloud-based software as a service solution to automate common care pathways for healthcare delivery organizations. Kainos Group plc was founded in 1986 and is headquartered in Belfast, the United Kingdom.

Details
Name: Kainos Group plc
KNOS
Exchange: LSE
Founded: 1986
£728,710,591
121,048,271
Website: http://www.kainos.com
Address: Kainos Group plc
Kainos House,
4-6 Upper Crescent,
Belfast,
County Antrim, BT7 1NT,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE KNOS Ordinary Shares London Stock Exchange GB GBP 10. Jul 2015
DB 1KG Ordinary Shares Deutsche Boerse AG DE EUR 10. Jul 2015
Number of employees
Current staff
Staff numbers
1,296
Kainos Group employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/22 00:06
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/11
Last earnings filing: 2019/05/28
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.