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Kainos Group plc
(LSE:KNOS)
Select Model
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Rating:73Outperform
Price Target:
1,322.00 p
▲(7.48% Upside)
Action:Reiterated
Date:08/19/26
The score is driven primarily by strong financial performance (re-accelerating revenue growth, solid profitability and free cash flow, and very low leverage). Technicals are supportive but appear overextended (very high RSI/Stoch), while valuation is a constraint due to a relatively high P/E despite a moderate dividend yield.
Positive Factors
Revenue Growth Reacceleration
The return to double-digit growth indicates resilient demand for digital transformation and Workday services. Sustained expansion would support future scale, client penetration and operating cash generation across the group’s service-led model.
Negative Factors
Margin Compression
Lower EBIT and EBITDA margins indicate cost pressure and reduced operating leverage despite renewed revenue growth. If this persists, incremental sales may translate less effectively into profit and could constrain investment or shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth Reacceleration
The return to double-digit growth indicates resilient demand for digital transformation and Workday services. Sustained expansion would support future scale, client penetration and operating cash generation across the group’s service-led model.
Read all positive factors
Kainos Group plc (KNOS) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£1.44B
Dividend Yield2.35%
Average Volume (3M)564.88K
Price to Earnings (P/E)35.5
Beta (1Y)1.26
Revenue Growth17.39%
EPS Growth24.79%
CountryUK
Employees3,216
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.35
Shares Outstanding116,214,460
10 Day Avg. Volume410,963
30 Day Avg. Volume564,884
Financial Highlights & Ratios
PEG Ratio0.83
Price to Book (P/B)8.70
Price to Sales (P/S)2.03
P/FCF Ratio16.57
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£1,286.25Price Target Upside4.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)0.52
Revenue Forecast (FY)£542.13M
Kainos Group plc Business Overview & Revenue Model
Company Description
Kainos Group plc is a UK-based provider of digital technology services. The company is structured into two main segments: Digital Services and Workday Practice. The Digital Services arm is responsible for the complete development lifecycle of besp...
How the Company Makes Money
Kainos makes money primarily by delivering technology services and selling/supporting software products. Its largest revenue streams are: (1) Services revenue from time-and-materials and/or fixed-price project work where it designs, builds, and ru...
Kainos Group plc Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
86
Very Positive
Cash Flow
78
Positive
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 431.10M | 367.25M | 382.39M | 374.81M | 302.63M |
| Gross Profit | 198.91M | 175.91M | 187.31M | 177.16M | 140.25M |
| EBITDA | 55.56M | 54.47M | 73.33M | 56.23M | 51.15M |
| Net Income | 42.50M | 35.56M | 48.72M | 41.65M | 35.77M |
Balance Sheet | |||||
| Total Assets | 273.51M | 267.06M | 278.84M | 233.60M | 207.22M |
| Cash, Cash Equivalents and Short-Term Investments | 82.81M | 131.19M | 123.46M | 108.30M | 76.61M |
| Total Debt | 6.14M | 5.56M | 5.90M | 1.38M | 3.36M |
| Total Liabilities | 173.05M | 129.07M | 122.03M | 104.25M | 99.53M |
| Stockholders Equity | 100.46M | 137.99M | 156.81M | 129.35M | 107.69M |
Cash Flow | |||||
| Free Cash Flow | 52.77M | 55.44M | 67.35M | 60.79M | 38.82M |
| Operating Cash Flow | 60.81M | 58.81M | 73.02M | 63.29M | 44.64M |
| Investing Cash Flow | -16.62M | 7.86M | -27.15M | -2.50M | -4.63M |
| Financing Cash Flow | -90.33M | -59.69M | -28.36M | -29.37M | -26.53M |
Kainos Group plc Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | £1.44B | 35.51 | 41.45% | 2.42% | 17.39% | 24.79% | |
68 Neutral | £197.04M | 80.77 | 5.22% | 0.83% | 19.00% | -53.85% | |
63 Neutral | £119.95M | 29.89 | 7.38% | 2.48% | -7.27% | -15.76% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | £364.51M | -4.95 | -14.39% | 2.80% | 0.82% | -997.08% | |
55 Neutral | £387.71M | 46.80 | 4.85% | 3.33% | ― | ― |
* Technology Sector Average
GB:KNOS
Kainos Group plc
1,230.00
361.86
41.68%
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GB:NET
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1.95
1.75%
Kainos Group plc Corporate Events
Business Operations and StrategyFinancial Disclosures
Kainos lifts FY27 guidance after strong start to year
Positive
Aug 18, 2026
Kainos has reported a strong start to its financial year, building on double‑digit revenue growth, robust sales and record backlog achieved in the year to 31 March 2026, and now expects revenue and adjusted profit before tax for FY27 to come...
Regulatory Filings and ComplianceShareholder Meetings
Kainos Publishes 2026 AGM Notice and Annual Report for Shareholders
Neutral
Aug 13, 2026
Kainos Group plc, the London-listed digital services and software provider, serves public sector, commercial and healthcare customers through its Digital Services, Workday Services and Workday Products divisions. The company’s offerings rang...
Regulatory Filings and Compliance
Kainos updates total voting rights as share capital reaches 116.2 million
Neutral
Aug 3, 2026
Kainos Group plc, listed on the London Stock Exchange under the ticker KNOS, focuses on helping organisations tackle complex digital projects and build long-term capability in the digital age. Its diversified offering across digital services and W...
Financial DisclosuresRegulatory Filings and Compliance
Kainos Publishes 2026 Annual Report for Investors and Stakeholders
Neutral
Jul 24, 2026
Kainos Group plc, a UK‑based IT services and software provider listed on the London Stock Exchange, delivers digital platforms for public sector, commercial and healthcare customers and offers specialist Workday implementation and complement...
Regulatory Filings and Compliance
Kainos discloses major share sale by director’s associate
Neutral
Jul 1, 2026
Kainos Group plc reported that Kerry McCann, a person closely associated with director and CFO Richard McCann, sold 760,911 ordinary shares at an average price of £7.79 per share on 1 July 2026. Following this transaction, Richard McCann and ...
Business Operations and Strategy
Kainos Extends SAYE Share Option Grants to Staff and CFO
Positive
Jul 1, 2026
Kainos Group plc has granted options over ordinary shares under its all-employee Save As You Earn (SAYE) Plan to eligible staff, including executive directors and managers. Among the participants is Chief Financial Officer and Chief Operating Offi...
Regulatory Filings and Compliance
Kainos Updates Total Voting Rights and Share Capital Structure
Neutral
Jul 1, 2026
Kainos Group plc, listed on the London Stock Exchange under the ticker KNOS, focuses on helping organisations tackle complex digital projects and build long-term capability in the digital age. Its offerings span bespoke digital services and specia...
Business Operations and Strategy
Kainos CFO Richard McCann Boosts Stake After Exercising Share Options
Positive
Jun 8, 2026
Kainos Group plc reported that Chief Financial Officer and Chief Operating Officer Richard McCann has exercised his 2016 Performance Share Plan options over 57,403 ordinary shares in the company, retaining all shares acquired. Following this trans...
Business Operations and StrategyExecutive/Board Changes
Kainos links new executive share awards to EPS, TSR and ESG targets
Positive
Jun 4, 2026
Kainos Group plc has granted new performance share plan awards in the form of nominal value options over ordinary shares to its executive directors and senior managers, including the CEO and CFO, with a three-year vesting period starting 4 April 2...
Business Operations and StrategyRegulatory Filings and Compliance
Kainos updates total voting rights as share capital reaches 116 million
Neutral
Jun 1, 2026
Kainos Group plc, a UK-based IT services and software developer listed on the London Stock Exchange, focuses on digital transformation for public sector, commercial and healthcare clients. Its three core divisions span custom digital platforms, Wo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.