Karnov Group AB (KAR) AI Stock Analysis

• Market Cap: kr10.73B
• Dividend Yield: N/A
• Average Volume (3M): 104.36K
• Price to Earnings (P/E): 90.3
• Beta (1Y): 0.38
• Revenue Growth: 5.13%
• EPS Growth: 6875.95%
• Country: SE
• Employees: 1,200
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.79
• 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: kr124.84
• Price Target Upside: 25.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: kr103.00 ▲(3.52% Upside)

Karnov Group AB's overall stock score is primarily influenced by its stable financial performance, despite challenges in cash flow and asset utilization. The technical analysis indicates a bearish trend, with the stock trading below key moving averages and showing oversold conditions. The high P/E ratio suggests overvaluation, which, combined with the lack of a dividend yield, impacts the valuation negatively. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

The robust revenue growth rate indicates Karnov's successful market expansion and product adoption, strengthening its competitive position and ensuring a steady stream of income.

Profitability Margins

Improved profitability margins reflect effective cost management and operational efficiency, enhancing Karnov's ability to reinvest in growth and innovation.

Leverage Management

Better leverage management reduces financial risk and enhances Karnov's financial stability, providing more flexibility for strategic investments and growth initiatives.

Negative Factors

Cash Flow Challenges

Negative cash flow growth suggests potential liquidity issues, which could limit Karnov's ability to fund operations and invest in future growth without external financing.

Gross Profit Margin Decline

A declining gross profit margin indicates rising costs or pricing pressures, which could erode profitability and impact Karnov's ability to maintain competitive pricing.

Low Return on Equity

Low return on equity may deter investors seeking higher returns, potentially impacting Karnov's ability to attract capital for growth and expansion.

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 demonstrates strong revenue growth and improving profitability margins, which are positive indicators for future performance. However, the company faces challenges in cash flow generation and asset utilization. While leverage has decreased, profitability relative to equity remains low, suggesting a need for better capital efficiency. Overall, the financial health is stable with potential for improvement in cash flow management and asset returns.

Income Statement

Karnov Group AB shows a strong revenue growth trajectory with a 25.2% increase in TTM, indicating robust demand for its services. However, the gross profit margin has decreased from 86.5% in 2024 to 65.9% in TTM, suggesting rising costs or pricing pressures. The net profit margin improved to 2.4% in TTM from a negative margin in 2024, reflecting better cost management. EBIT and EBITDA margins have also improved, indicating operational efficiency gains.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.96 in TTM from 1.21 in 2024, showing a reduction in leverage. However, the return on equity remains low at 2.67%, indicating limited profitability relative to shareholder equity. The equity ratio is stable, suggesting a balanced capital structure but with room for improvement in asset utilization.

Cash Flow

Karnov Group AB's 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 that cash generation is not keeping pace with accounting profits. However, the free cash flow to net income ratio is relatively healthy at 71.6%, indicating that a significant portion of profits is being converted into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.67B	2.59B	2.47B	1.11B	878.07M	771.42M
Gross Profit	1.77B	2.24B	276.60M	639.18M	518.41M	452.75M
EBITDA	735.20M	547.70M	554.10M	313.90M	329.37M	332.97M
Net Income	118.90M	-33.10M	38.20M	59.90M	84.91M	99.90M
Balance Sheet
Total Assets	6.66B	7.49B	6.93B	7.45B	4.52B	3.69B
Cash, Cash Equivalents and Short-Term Investments	44.90M	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	4.24B	5.12B	4.60B	5.13B	2.37B	2.14B
Stockholders Equity	2.43B	2.37B	2.34B	2.32B	2.15B	1.54B
Cash Flow
Free Cash Flow	311.80M	147.80M	174.00M	182.88M	250.81M	296.35M
Operating Cash Flow	474.50M	315.50M	337.00M	275.95M	314.16M	378.99M
Investing Cash Flow	-149.70M	-601.90M	-220.90M	-1.74B	-385.45M	-112.35M
Financing Cash Flow	-758.70M	235.80M	-337.70M	1.15B	467.64M	235.45M

Karnov Group AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 99.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 99.5 is below the 20-day moving average (MA) of 99.54, below the 50-day MA of 104.25, and below the 200-day MA of 103.68, indicating a bearish trend. The MACD of -1.63 indicates Negative momentum. The RSI at 45.78 is Neutral, neither overbought nor oversold. The STOCH value of 45.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	kr8.31B	34.61	14.16%	1.91%	9.65%	19.40%
ALIG	65 Neutral	kr15.36B	21.81	9.59%	2.09%	-1.74%	26.36%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BUFAB	62 Neutral	kr19.39B	32.89	15.33%	1.03%	-1.37%	14.78%
KAR	54 Neutral	kr10.73B	90.27	2.68%	―	5.13%	6875.95%
BERG.B	48 Neutral	kr8.46B	-116.82	-3.67%	1.25%	4.65%	-136.09%

Karnov Group AB Corporate Events

Karnov Group AB Calls for Extraordinary General Meeting

Karnov Group AB has announced an extraordinary general meeting (EGM) scheduled for January 8, 2026, in Stockholm, Sweden. Shareholders can participate in person, through a proxy, or via postal voting. The agenda includes the election of a chairman and a resolution authorizing the board to manage acquisitions and transfers of series A shares. This move could impact the company’s shareholding structure and market operations.

Karnov Group AB Reports Strong Growth and Strategic Divestments in 2025

Karnov Group AB reported a strong financial performance for the first nine months of 2025, with significant growth in adjusted EBITA and profit margins. The company divested its Spanish legal training business and entered an agreement to sell its EHS businesses, sharpening its focus on AI-supported legal solutions, which are expected to drive long-term profitable growth.

Karnov Group Divests EHS Division to Focus on AI Legal Solutions

Karnov Group AB has agreed to sell its Environment, Health, and Safety (EHS) division to Infopro Digital Group for EUR 92 million. This strategic divestment allows Karnov to focus on its core strength in AI-supported legal knowledge and workflow solutions, aiming for long-term profitable growth. The transaction highlights Karnov’s commitment to enhancing its AI-based offerings while exiting the EHS market, which will now be supported by Infopro Digital Group.

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.