Knowit AB (KNOW) AI Stock Analysis

• Market Cap: €3.83B
• Dividend Yield: 2.63%
• Average Volume (3M): 26.82K
• Price to Earnings (P/E): 45.8
• Beta (1Y): 0.90
• Revenue Growth: -9.43%
• EPS Growth: -58.34%
• Country: SE
• Employees: 3,772
• Sector: Technology
• Sector Strength: 65
• Industry: Information Technology Services
• EPS (TTM): 1.40
• Shares Outstanding: 27,408,600
• 10 Day Avg. Volume: 29,787
• 30 Day Avg. Volume: 26,817
• PEG Ratio: -2.14
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.06
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Knowit AB's overall stock score reflects a mixed financial performance with strengths in cash flow generation and balance sheet stability but challenges in revenue growth and profit margins. The technical analysis suggests a cautious outlook with potential for short-term weakness. The high P/E ratio indicates potential overvaluation, offsetting the appeal of the dividend yield. These factors collectively position the stock for a moderate performance outlook in the near term.

Knowit AB Business Overview & Revenue Model

Company Description

Knowit AB (KNOW) is a leading Nordic consultancy firm specializing in IT, management, and digital communication solutions. The company operates through several business areas, including digital solutions, experience, connectivity, and insight. Knowit focuses on providing innovative and sustainable solutions that help businesses improve their operations and customer experiences. The firm is committed to driving digital transformation and enhancing business value through expertise in technology, design, and communication.

How the Company Makes Money

Knowit AB generates revenue primarily through its consultancy services, which are offered across its various business areas. The company earns income by providing IT solutions, strategic management consulting, and digital communication services to a diverse range of clients, including private enterprises and public sector organizations. Key revenue streams include project-based consulting fees, long-term service contracts, and subscription-based models for digital products and platforms. Additionally, Knowit benefits from significant partnerships with technology providers and industry leaders, which enhance its service offerings and market reach, contributing to its overall earnings.

Knowit AB Financial Statement Overview

Summary

Knowit AB demonstrates a commendable financial position with sound cash flow management and stable balance sheet metrics. The income statement shows mixed performance with modest profit margins and a decline in revenue growth. However, the company displays strong cash flow generation and effective leverage management, providing a solid foundation for future stability.

Income Statement

The income statement reveals a mixed performance. The Gross Profit Margin for TTM is a modest 2.7%, showing a decline from the previous year due to reduced gross profit despite steady revenue. The Net Profit Margin stands at 1.3%, indicating profitability, albeit lower compared to the previous fiscal year. The Revenue Growth Rate over the last year shows a decrease of approximately 12.3%, suggesting challenges in sustaining revenue growth. However, the EBIT and EBITDA Margins are relatively stable, indicating efficient operational management.

Balance Sheet

The balance sheet presents a stable yet cautious financial position. The Debt-to-Equity Ratio for TTM is 0.24, reflecting a sustainable leverage level. The Equity Ratio is strong at 60.8%, highlighting a robust equity base. However, the Return on Equity (ROE) has decreased to 2.0% in the TTM, showing a decline in profitability relative to equity. This could point to potential inefficiencies in using shareholder funds.

Cash Flow

Cash flow analysis shows a solid financial health. The Free Cash Flow Growth Rate is strong, increasing by approximately 53.4% over the previous year, indicating improved cash generation. The Operating Cash Flow to Net Income Ratio is high at 6.7, suggesting strong cash flow conversion from earnings. The Free Cash Flow to Net Income Ratio is also robust at 6.5, reflecting efficient cash management.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.24B	6.42B	7.10B	6.83B	4.81B	3.38B
	Gross Profit
169.10M	888.73M	1.07B	1.17B	861.19M	575.34M
	EBIT
169.10M	199.94M	309.80M	447.14M	363.29M	322.69M
	EBITDA
517.20M	553.22M	750.46M	840.23M	582.08M	421.53M
	Net Income Common Stockholders
83.50M	106.09M	239.63M	385.02M	290.48M	249.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
362.70M	397.82M	127.61M	497.65M	851.38M	675.55M
	Total Assets
6.72B	6.81B	7.03B	7.61B	6.34B	3.06B
	Total Debt
988.20M	0.00	1.08B	1.59B	892.94M	522.92M
	Net Debt
625.50M	613.10M	953.86M	1.10B	41.56M	-152.64M
	Total Liabilities
2.63B	2.67B	2.86B	3.40B	2.44B	1.52B
	Stockholders Equity
4.08B	4.14B	4.15B	4.19B	3.88B	1.53B
Cash Flow		Free Cash Flow
540.50M	600.71M	352.32M	401.92M	450.67M	430.45M
	Operating Cash Flow
560.60M	626.17M	399.77M	475.35M	462.78M	441.32M
	Investing Cash Flow
-69.11M	-40.16M	-207.53M	-750.92M	-411.94M	-97.39M
	Financing Cash Flow
-322.10M	-328.00M	-575.71M	-88.09M	126.62M	56.39M

Knowit AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 139.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:KNOW, the sentiment is Negative. The current price of 139.8 is below the 20-day moving average (MA) of 141.13, below the 50-day MA of 149.38, and below the 200-day MA of 144.23, indicating a bearish trend. The MACD of -1.95 indicates Positive momentum. The RSI at 43.52 is Neutral, neither overbought nor oversold. The STOCH value of 26.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:KNOW.

Knowit AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXS	77 Outperform	kr1.57B	25.22	13.40%	1.42%	9.87%	-14.05%
SOF.B	75 Outperform	kr1.13B	14.09	25.51%	6.01%	1.57%	-1.85%
LIME	74 Outperform	kr5.08B	54.02	29.90%	0.88%	17.11%	9.23%
PACT	72 Outperform	€3.05B	14.34	18.16%	1.69%	1.45%	3.17%
B3	69 Neutral	kr562.19M	6.48	42.33%	5.47%	6.75%	119.93%
Sector *	60 Neutral	$10.96B	10.27	-6.73%	2.97%	7.73%	-11.60%
KNOW	60 Neutral	€3.83B	45.75	1.97%	2.63%	-9.43%	-58.34%