Karnov Group AB (KAR) AI Stock Analysis

• Market Cap: €12.21B
• Dividend Yield: N/A
• Average Volume (3M): 104.36K
• Price to Earnings (P/E): 193.2
• Beta (1Y): 0.34
• Revenue Growth: 6.07%
• EPS Growth: 80.61%
• Country: SE
• Employees: 1,200
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.56
• Shares Outstanding: 107,876,144
• 10 Day Avg. Volume: 88,454
• 30 Day Avg. Volume: 104,363
• PEG Ratio: 1.42
• Price to Book (P/B): 3.74
• Price to Sales (P/S): 3.42
• P/FCF Ratio: 60.07
• 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: €124.95
• Price Target Upside: 13.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: kr113.00 ▲(2.54% Upside)

Karnov Group AB's overall stock score is primarily influenced by its strong revenue growth and improved profitability margins. However, the stock's high P/E ratio indicates overvaluation, and technical indicators suggest neutral to bearish momentum. The lack of dividend yield further detracts from its attractiveness to investors.

Karnov Group AB Business Overview & Revenue Model

Company Description

Karnov Group AB (publ) provides online and offline information products and services for professionals in the areas of legal, tax and accounting, environmental, and health and safety in Denmark, Norway, Sweden, and other European countries. The company principally offers subscription-based online solutions. It also publishes and sells printed books and journals, as well as hosts legal training courses. The company provides its products under the Karnov, Norstedts Juridik, Notisum, Legal Cross Border, Forlaget Andersen, LEXNordics, DIBkunnskap, and Echoline brand names. It serves law firms, tax and accounting firms, and corporates, as well as the public sector, including courts, libraries, universities, and other public authorities and municipalities. The company was founded in 1867 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

Karnov Group generates revenue through a combination of subscription fees, licensing agreements, and sales of information products. The company primarily relies on its subscription model, where customers pay for access to its digital platforms and content, ensuring a steady stream of recurring revenue. Additionally, Karnov monetizes its extensive database of legal and regulatory information through licensing arrangements with other organizations and offering premium services. Strategic partnerships with law firms, accounting firms, and educational institutions further bolster its revenue, providing access to a broader customer base and enhancing its product offerings.

Karnov Group AB Financial Statement Overview

Summary

Karnov Group AB shows strong revenue growth and improved profitability margins, indicating effective operational management. However, challenges with cash flow generation and low return on equity may impact long-term financial stability. Improved leverage management is a positive aspect, but the company needs to focus on enhancing cash flow efficiency and shareholder returns.

Income Statement

Karnov Group AB shows strong revenue growth with a TTM revenue growth rate of 99.9%, indicating robust expansion. However, the gross profit margin has decreased significantly from 86.5% in 2024 to 58.5% in TTM, suggesting increased cost pressures. The net profit margin improved to 2.1% in TTM from a negative margin in 2024, reflecting better profitability management. EBIT and EBITDA margins have also improved, indicating operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.96 in TTM from 1.21 in 2024, indicating better leverage management. However, the return on equity remains low at 2.37%, suggesting limited returns for shareholders. The equity ratio is stable, reflecting a balanced asset structure.

Cash Flow

Free cash flow growth is negative, indicating challenges in generating cash from operations. The operating cash flow to net income ratio is low at 0.22, suggesting potential liquidity issues. However, the free cash flow to net income ratio of 0.72 indicates that a significant portion of net income is converted into free cash flow, which is a positive sign.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.66B	2.59B	2.47B	1.11B	878.07M	771.42M
Gross Profit	1.75B	2.24B	276.60M	639.18M	518.41M	452.75M
EBITDA	662.10M	547.70M	554.10M	313.90M	329.37M	332.97M
Net Income	63.20M	-33.10M	38.20M	59.90M	84.91M	99.90M
Balance Sheet
Total Assets	6.89B	7.49B	6.93B	7.45B	4.52B	3.69B
Cash, Cash Equivalents and Short-Term Investments	88.20M	402.80M	450.60M	671.20M	951.47M	552.92M
Total Debt	2.29B	2.87B	2.44B	2.75B	1.31B	1.30B
Total Liabilities	4.49B	5.12B	4.60B	5.13B	2.37B	2.14B
Stockholders Equity	2.40B	2.37B	2.34B	2.32B	2.15B	1.54B
Cash Flow
Free Cash Flow	317.30M	147.80M	174.00M	182.88M	250.81M	296.35M
Operating Cash Flow	443.20M	315.50M	337.00M	275.95M	314.16M	378.99M
Investing Cash Flow	-203.90M	-601.90M	-220.90M	-1.74B	-385.45M	-112.35M
Financing Cash Flow	-755.20M	235.80M	-337.70M	1.15B	467.64M	235.45M

Karnov Group AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 110.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:KAR, the sentiment is Neutral. The current price of 110.2 is above the 20-day moving average (MA) of 109.60, below the 50-day MA of 111.65, and above the 200-day MA of 101.92, indicating a neutral trend. The MACD of 0.19 indicates Negative momentum. The RSI at 48.26 is Neutral, neither overbought nor oversold. The STOCH value of 29.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:KAR.

Karnov Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VOLO	66 Neutral	€8.37B	34.87	14.16%	1.89%	9.65%	19.40%
BUFAB	65 Neutral	€19.29B	32.72	15.33%	1.06%	-1.37%	14.78%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ALIG	62 Neutral	€15.00B	21.29	9.59%	2.18%	-1.74%	26.36%
KAR	56 Neutral	€12.21B	193.21	2.68%	―	6.07%	80.61%
BERG.B	55 Neutral	€8.71B	-120.30	-3.67%	1.25%	4.65%	-136.09%

Karnov Group AB Corporate Events

Karnov Group Appoints Nomination Committee for 2026 AGM

Karnov Group AB has announced the appointment of its Nomination Committee for the 2026 Annual General Meeting, consisting of representatives from Long Path Partners, Invesco, Vor Capital, and Karnov Group itself. This strategic move is part of the company’s governance process, potentially impacting its operational direction and stakeholder engagement as it prepares for the upcoming AGM.

The most recent analyst rating on (SE:KAR) stock is a Hold with a SEK119.00 price target. To see the full list of analyst forecasts on Karnov Group AB stock, see the SE:KAR Stock Forecast page.

Karnov Group AB Reports Strong H1 2025 Performance with AI-Driven Growth

Karnov Group AB reported solid growth in the first half of 2025, driven by its AI solutions and strategic divestments. The company’s net sales increased, and adjusted EBITA margins improved significantly, reflecting strong operational performance and cost-efficiency initiatives. The divestment of the Spanish legal training business is expected to positively impact future margins, while the company’s AI solutions continue to bolster organic growth, particularly in the Northern region.

The most recent analyst rating on (SE:KAR) stock is a Hold with a SEK136.00 price target. To see the full list of analyst forecasts on Karnov Group AB stock, see the SE:KAR Stock Forecast page.