Executive Summary
Knowit AB (publ), a consultancy company, provides digital and cross-functional solutions in the Nordic region.
Rewards
Risk Analysis
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
| KNOW | Industry | Market | |
|---|---|---|---|
| 7 Day | 20.6% | 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 Year | 20.8%11.2% | -7.9%-12.5% | 2.2%-12.9% |
| 5 Year | 177.9%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
1 week ago | Simply Wall St
Need To Know: Knowit AB (publ) (STO:KNOW) Insiders Have Been Selling Shares2 weeks ago | Simply Wall St
What Is Knowit's (STO:KNOW) P/E Ratio After Its Share Price Tanked?3 weeks ago | Simply Wall St
Knowit (STO:KNOW) Could Easily Take On More DebtValuation
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President & CEO | 9yrs | kr10.18m | 0.21% SEK5.3m | |
| Chief Financial Officer | 1.17yrs | no data | no data | |
| Executive Vice President of Knowit Experience | no data | no data | 0.19% SEK4.9m | |
| no data | no data | 0.0091% SEK233.5k | ||
| Executive Vice President of Knowit Solutions | 2.17yrs | no data | 0.0062% SEK160.0k | |
| Executive Vice President of Knowit Insight | 1.17yrs | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 7.17yrs | kr305.00k | 0.025% SEK633.6k | |
| Director | 2.17yrs | kr147.00k | 0.0052% SEK133.3k | |
| Director | 2.17yrs | kr147.00k | 0.010% SEK266.9k | |
| Independent Director | 2.17yrs | kr147.00k | 0.0026% SEK66.8k | |
| Chairman of the Board | 18.25yrs | kr558.00k | 0.21% SEK5.3m | |
| Independent Director | 6.17yrs | kr248.00k | 0.0052% SEK133.3k | |
| Director | 2.17yrs | kr180.00k | 0.0062% 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| KNOW | OM (OMX Nordic Exchange Stockholm) | Yes | Common Shares | SE | SEK | Jan 1998 |
| 0GNK | LSE (London Stock Exchange) | Yes | Common Shares | GB | SEK | Jan 1998 |
| KNOWS | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Common Shares | GB | SEK | Jan 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/30 20:33 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.