OM:KNOW

Stock Analysis Report

Executive Summary

Knowit AB (publ), a consultancy company, provides digital and cross-functional solutions in the Nordic region.


Snowflake Analysis

Very undervalued with flawless balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

20.6%

KNOW

12.4%

SE IT

11.7%

SE Market


1 Year Return

-33.0%

KNOW

-26.9%

SE IT

-9.7%

SE Market

Return vs Industry: KNOW underperformed the Swedish IT industry which returned -27.3% over the past year.

Return vs Market: KNOW underperformed the Swedish Market which returned -10.3% over the past year.


Shareholder returns

KNOWIndustryMarket
7 Day20.6%12.4%11.7%
30 Day-23.6%-21.8%-16.3%
90 Day-36.0%-30.5%-21.1%
1 Year-31.2%-33.0%-25.6%-26.9%-7.1%-9.7%
3 Year20.8%11.2%-7.9%-12.5%2.2%-12.9%
5 Year177.9%129.0%56.5%41.9%10.1%-13.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KNOW (SEK133.4) is trading below our estimate of fair value (SEK345.06)

Significantly Below Fair Value: KNOW is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: KNOW is good value based on its PE Ratio (11.1x) compared to the IT industry average (15x).

PE vs Market: KNOW is good value based on its PE Ratio (11.1x) compared to the Swedish market (14.1x).


Price to Earnings Growth Ratio

PEG Ratio: KNOW is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: KNOW is good value based on its PB Ratio (2.1x) compared to the SE IT industry average (2.2x).


Next Steps

Future Growth

How is Knowit forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

11.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KNOW's forecast earnings growth (11.5% per year) is above the savings rate (-0.4%).

Earnings vs Market: KNOW's earnings (11.5% per year) are forecast to grow faster than the Swedish market (7.8% per year).

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

Revenue vs Market: KNOW's revenue (6.1% per year) is forecast to grow faster than the Swedish market (4.1% per year).

High Growth Revenue: KNOW's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KNOW's Return on Equity is forecast to be low in 3 years time (19.6%).


Next Steps

Past Performance

How has Knowit performed over the past 5 years?

27.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KNOW has high quality earnings.

Growing Profit Margin: KNOW's current net profit margins (7%) are lower than last year (7.2%).


Past Earnings Growth Analysis

Earnings Trend: KNOW's earnings have grown significantly by 27% per year over the past 5 years.

Accelerating Growth: KNOW's earnings growth over the past year (4.1%) is below its 5-year average (27% per year).

Earnings vs Industry: KNOW earnings growth over the past year (4.1%) underperformed the IT industry 4.1%.


Return on Equity

High ROE: KNOW's Return on Equity (19.5%) is considered low.


Next Steps

Financial Health

How is Knowit's financial position?


Financial Position Analysis

Short Term Liabilities: KNOW's short term assets (SEK996.9M) exceed its short term liabilities (SEK770.0M).

Long Term Liabilities: KNOW's short term assets (SEK996.9M) exceed its long term liabilities (SEK215.1M).


Debt to Equity History and Analysis

Debt Level: KNOW's debt to equity ratio (5.4%) is considered satisfactory.

Reducing Debt: KNOW's debt to equity ratio has reduced from 31.3% to 5.4% over the past 5 years.

Debt Coverage: KNOW's debt is well covered by operating cash flow (457.3%).

Interest Coverage: KNOW earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: KNOW's debt is covered by short term assets (assets are 14.9x debt).


Next Steps

Dividend

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

4.80%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: KNOW's dividend (4.8%) is higher than the bottom 25% of dividend payers in the Swedish market (2.14%).

High Dividend: KNOW's dividend (4.8%) is low compared to the top 25% of dividend payers in the Swedish market (6.55%).


Stability and Growth of Payments

Stable Dividend: KNOW's dividends per share have been stable in the past 10 years.

Growing Dividend: KNOW's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.1%), KNOW's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KNOW's dividends in 3 years are forecast to be covered by earnings (66% payout ratio).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Per Wallentin (48yo)

9s

Tenure

kr10,181,000

Compensation

Mr. Per Wallentin has been the Chief Executive Officer and President of Knowit Aktiebolag (publ) (Know IT AB ) since February 4, 2011. Mr. Wallentin worked at Know IT since 1999. He holds an M.B.A. and Deg ...


CEO Compensation Analysis

Compensation vs Market: Per's total compensation ($USD1.02M) is above average for companies of similar size in the Swedish market ($USD532.67K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Per Wallentin
President & CEO9yrskr10.18m0.21% SEK5.3m
Marie Björklund
Chief Financial Officer1.17yrsno datano data
Fredrik Ekerhovd
Executive Vice President of Knowit Experienceno datano data0.19% SEK4.9m
Christina Johansson
no datano data0.0091% SEK233.5k
Åsa Holmberg
Executive Vice President of Knowit Solutions2.17yrsno data0.0062% SEK160.0k
Tommy Berg
Executive Vice President of Knowit Insight1.17yrsno datano data

1.7yrs

Average Tenure

48yo

Average Age

Experienced Management: KNOW's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jon Risfelt
Chairman7.17yrskr305.00k0.025% SEK633.6k
Stefan Gardefjord
Director2.17yrskr147.00k0.0052% SEK133.3k
Peder Ramel
Director2.17yrskr147.00k0.010% SEK266.9k
Gunilla Henriette Asker
Independent Director2.17yrskr147.00k0.0026% SEK66.8k
Mats Olsson
Chairman of the Board18.25yrskr558.00k0.21% SEK5.3m
Camilla Kirstein
Independent Director6.17yrskr248.00k0.0052% SEK133.3k
Kia Pettersson
Director2.17yrskr180.00k0.0062% SEK160.0k

2.2yrs

Average Tenure

60yo

Average Age

Experienced Board: KNOW's board of directors are not considered experienced ( 2.2 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: Insufficient data to determine if insiders have bought more shares than they have sold 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

Knowit AB (publ)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Knowit AB (publ)
  • Ticker: KNOW
  • Exchange: OM
  • Founded: 1990
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: kr2.568b
  • Shares outstanding: 19.25m
  • Website: https://www.knowit.se

Number of Employees


Location

  • Knowit AB (publ)
  • Klarabergsgatan 60
  • Stockholm
  • Stockholm County
  • 103 68
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KNOWOM (OMX Nordic Exchange Stockholm)YesCommon SharesSESEKJan 1998
0GNKLSE (London Stock Exchange)YesCommon SharesGBSEKJan 1998
KNOWSBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBSEKJan 1998

Biography

Knowit AB (publ), a consultancy company, provides digital and cross-functional solutions in the Nordic region. The company operates in three segments: Experience, Insight, and Solutions. It offers services in the areas of strategy and digitalization, analysis and insight, branding and communication, design and innovation, digital marketing, Web development and platforms, E-commerce and PIM, mobile solutions, architecture, big data, business intelligence, cloud, defense solutions, digital transformation, finance technology, Internet of Things, machine learning and artificial intelligence, mobility, robotics, quality assurance, sourcing management, SysDevops, and technical transformation. The company also provides services in the areas of digital law, energy management, human resource management, IT strategy, organization development, project management, quality management, scaled agile and lean, and security. It serves banking and finance, insurance, energy, manufacturing, life science and medical, media, education, gaming, public, retail, services, and telecom sectors. The company was formerly known as Know IT AB (publ.) and changed its name to Knowit AB (publ) in April 2012. Knowit AB (publ) was founded in 1990 and is headquartered in Stockholm, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 20:33
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.