Karnov Group AB (KAR) AI Stock Analysis

• Market Cap: €11.97B
• Dividend Yield: N/A
• Average Volume (3M): 106.33K
• Price to Earnings (P/E): 189.5
• Beta (1Y): 0.24
• Revenue Growth: 6.07%
• EPS Growth: 80.61%
• Country: SE
• Employees: 1,200
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.09
• Shares Outstanding: 107,876,144
• 10 Day Avg. Volume: 73,468
• 30 Day Avg. Volume: 106,325
• 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: €113.97
• Price Target Upside: 2.67% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 56 Neutral
• Price Target: kr114.00 ▲(2.70% Upside)

Karnov Group AB's overall stock score is primarily influenced by its strong financial performance, particularly in revenue growth and improved profitability margins. However, significant challenges in cash flow generation and a high P/E ratio indicating overvaluation weigh down the score. Technical indicators suggest weak momentum, but the oversold condition could offer a potential rebound opportunity.

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 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: 111.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 111 is below the 20-day moving average (MA) of 114.44, below the 50-day MA of 116.70, and above the 200-day MA of 97.96, indicating a neutral trend. The MACD of -1.55 indicates Positive momentum. The RSI at 41.79 is Neutral, neither overbought nor oversold. The STOCH value of 17.95 is Positive, 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
ALIG	76 Outperform	kr16.69B	22.97	9.97%	1.93%	-0.39%	34.10%
VOLO	65 Neutral	kr8.59B	38.88	13.66%	1.85%	8.49%	0.93%
KAR	56 Neutral	€11.97B	189.45	2.68%	―	6.07%	80.61%
BUFAB	55 Neutral	kr16.91B	28.48	15.39%	1.18%	-4.08%	27.56%
BERG.B	54 Neutral	kr8.70B	-182.99	-2.78%	1.22%	6.11%	-124.15%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Karnov Group AB Corporate Events

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.

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.