Karnov Group AB (KAR) AI Stock Analysis

• Market Cap: €12.30B
• Dividend Yield: N/A
• Average Volume (3M): 139.49K
• Price to Earnings (P/E): 201.7
• Beta (1Y): 0.23
• Revenue Growth: 6.07%
• EPS Growth: 80.61%
• Country: SE
• Employees: 1,200
• Sector: Industrials
• Sector Strength: 74
• Industry: Specialty Business Services
• EPS (TTM): 0.09
• Shares Outstanding: 107,876,144
• 10 Day Avg. Volume: 122,807
• 30 Day Avg. Volume: 139,492
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €123.02
• Price Target Upside: 4.07% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 58 Neutral
• Price Target: kr123.00 ▲(4.06% Upside)

Karnov Group AB's overall stock score is primarily influenced by its strong revenue growth and improved profitability margins. However, the high P/E ratio suggests potential overvaluation, and challenges with cash flow generation and low return on equity pose risks to long-term financial stability. Technical indicators show a neutral trend, providing limited support for a strong investment case.

Karnov Group AB Business Overview & Revenue Model

Company Description

Karnov Group AB (KAR) is a leading provider of mission-critical information in the fields of legal, tax, and accounting in the Nordic region. The company offers a comprehensive range of digital and physical products and services designed to support professionals across these sectors in their daily work. Karnov Group is known for its robust database of legal information, expert analysis, and a suite of tools that enable efficient and informed decision-making.

How the Company Makes Money

Karnov Group AB generates revenue primarily through subscriptions to its digital platforms and databases, which provide access to an extensive repository of legal, tax, and accounting information. The company also earns revenue from the sale of physical publications, training services, and specialized software tools tailored to the needs of legal and financial professionals. Key revenue streams include long-term subscription contracts, licensing fees, and educational services. Partnerships with law firms, government agencies, and educational institutions further enhance its revenue by broadening its customer base and expanding its market reach.

Karnov Group AB Financial Statement Overview

Summary

Karnov Group AB demonstrates solid operational efficiency and cash management with strong EBITDA margins and cash flow metrics. While revenue growth is steady, profitability metrics have shown improvement, though net income remains relatively low. The balance sheet reflects a balanced approach to financing, but the reliance on debt warrants monitoring.

Income Statement

Karnov Group AB shows solid gross profit margins consistently above 50% and a positive revenue growth trend. The TTM data indicates a 1.6% revenue growth compared to the previous year, reflecting steady expansion. However, the net profit margin has been volatile, with a significant improvement to 2.1% in TTM after a negative margin in the previous year. EBITDA margins remain strong at 24.1%, indicating operational efficiency.

Balance Sheet

The company maintains a reasonable debt-to-equity ratio of 0.96 in TTM, which is manageable but signifies some reliance on debt. The equity ratio stands at 33.9%, indicating a balanced asset financing structure. Return on equity improved to 2.4% in TTM, signaling better utilization of equity capital, though still modest.

Cash Flow

Free cash flow has shown impressive growth, with a 120.4% increase in TTM, reflecting strong cash generation capability. The operating cash flow to net income ratio is robust at 8.05, indicating effective conversion of profits into cash. Free cash flow to net income ratio is also strong at 5.81, underscoring efficient cash management.

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	559.50M	330.10M	331.86M	335.93M
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: Positive
• Last Price: 118.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 118.2 is above the 20-day moving average (MA) of 116.16, above the 50-day MA of 116.71, and above the 200-day MA of 95.49, indicating a bullish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 53.71 is Neutral, neither overbought nor oversold. The STOCH value of 35.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:KAR.

Karnov Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$10.73B	15.74	7.56%	2.01%	2.76%	-15.10%
KAR	58 Neutral	€12.30B	201.74	2.68%	―	6.07%	80.61%
BLRB	―	€782.78M	41.40	-2.39%	―	―	―
1MH	―	€476.17M	23.37	6.28%	―	―	―
VOG	―	€754.78M	38.85	13.61%	―	―	―
2GP	―	€1.50B	22.77	9.98%	―	―	―
29B0	―	€1.57B	28.28	15.89%	―	―	―

Karnov Group AB Corporate Events

Karnov Group Divests Spanish Legal Training Business to Focus on Core Offerings

Karnov Group AB has announced the divestment of its legal training business in Spain, operated by its subsidiary Aranzadi LA LEY, to JUC Service ApS. This strategic move allows Karnov to streamline its product portfolio in Spain, focusing on its core online legal information solutions, and is expected to positively impact the company’s adjusted EBITA margin. The transaction, which involves approximately 40 employees and had net sales of SEK 60 million in 2024, is set to close on 31 July 2025. Despite the divestment, Karnov will maintain a strong presence in Spain with around 525 employees across several offices.

The most recent analyst rating on (SE:KAR) stock is a Buy with a SEK100.00 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 Annual General Meeting Resolutions and Strategic Initiatives

Karnov Group AB held its annual general meeting on May 15, 2025, where key resolutions were passed, including the adoption of financial statements for 2024 and the decision to carry forward the year’s results without issuing dividends. The meeting also approved board and auditor fees, re-elected board members and auditors, and established a long-term incentive program for senior executives. Additionally, the board was authorized to issue new shares, potentially increasing the company’s share capital by up to 10%. These decisions reflect Karnov’s strategic focus on growth and operational stability, impacting its market positioning and stakeholder interests.

The most recent analyst rating on (SE:KAR) stock is a Buy with a SEK115.00 price target. To see the full list of analyst forecasts on Karnov Group AB stock, see the SE:KAR Stock Forecast page.