Knowit AB (KNOW) AI Stock Analysis

• Market Cap: €3.20B
• Dividend Yield: 3.38%
• Average Volume (3M): 52.30K
• Price to Earnings (P/E): 32.7
• Beta (1Y): 1.01
• Revenue Growth: -9.85%
• EPS Growth: -38.24%
• Country: SE
• Employees: 3,772
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.72
• Shares Outstanding: 27,408,600
• 10 Day Avg. Volume: 78,108
• 30 Day Avg. Volume: 52,304
• PEG Ratio: -0.64
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 6.28
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: kr127.00 ▲(14.41% Upside)

Knowit AB's overall stock score reflects a combination of stable financial health and technical momentum, offset by valuation concerns. The company's strong balance sheet and short-term bullish signals are positive, but profitability challenges and a high P/E ratio weigh on the score.

Knowit AB Business Overview & Revenue Model

Company Description

Knowit AB (publ), a consultancy company, provides digital solutions in the Nordic region. The company operates through four segments: Solutions, Experience, Connectivity, and Insight. It offers services in the areas of product and service development, security, and cloud services; Website and mobile solutions, analysis and insight, E-commerce, digital marketing and CRM, and design and branding; and digital transformation and innovation, system development and management, data driven operations and analytics, and system solution and platform. The company also provides services in the areas of working capital and supply chain management; finance transformation; digital human resource and payroll; digitalization and IT operations; sourcing and procurement; growth and digital strategies; profitability programs and management; and commercial excellence and pricing strategy. In addition, it offers digital and agile transformation; automation and data analytics; project management; realization and implementation; quality management; organizational development and design; and change leadership and management solutions. It serves banking and finance, insurance, energy, manufacturing, life science and medical, manufacturing, media and education, public, retail and services, and telecom sectors. The company was formerly known as Know IT AB (publ.) and changed its name to Knowit AB (publ) in April 2012. Knowit AB (publ) was incorporated in 1990 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

Knowit AB generates revenue through a combination of consulting fees and project-based work. The company's primary revenue streams include consulting services in IT and management, where they charge clients for expertise in areas such as digital transformation and software development. Additionally, Knowit engages in long-term contracts with clients that provide stable income over time. Significant partnerships with technology providers and collaborations with organizations across various industries also enhance their service offerings and contribute to their earnings. The company's ability to provide tailored solutions that meet specific client needs further strengthens their market position and revenue generation capabilities.

Knowit AB Financial Statement Overview

Summary

Knowit AB's financial performance is mixed. The company has a stable balance sheet with low leverage, but faces challenges in profitability and cash generation. Declining revenue and free cash flow growth rates are concerning, though the capital structure remains strong.

Income Statement

Knowit AB's income statement shows a mixed performance. The company has experienced a decline in revenue growth with a negative rate of -3.06% in the TTM period, indicating potential challenges in maintaining sales momentum. Gross profit margin is moderate at 28.41%, but net profit margin is low at 1.34%, suggesting limited profitability. EBIT and EBITDA margins are also modest, reflecting operational challenges. The company needs to focus on improving profitability and reversing the declining revenue trend.

Balance Sheet

The balance sheet of Knowit AB is relatively stable. The debt-to-equity ratio is low at 0.22, indicating a conservative approach to leverage. Return on equity is modest at 1.98%, suggesting room for improvement in generating returns for shareholders. The equity ratio is healthy, reflecting a strong capital structure. Overall, the company maintains a solid financial position, but there is potential to enhance shareholder returns.

Cash Flow

Cash flow analysis reveals some concerns for Knowit AB. The free cash flow growth rate is negative at -8.38% in the TTM period, indicating a decline in cash generation capabilities. However, the operating cash flow to net income ratio is healthy at 0.33, and the free cash flow to net income ratio is strong at 0.97, suggesting efficient cash conversion. The company should focus on reversing the negative cash flow growth trend.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.05B	6.42B	7.10B	6.83B	4.81B	3.38B
Gross Profit	1.72B	888.73M	1.07B	1.17B	861.19M	575.34M
EBITDA	503.50M	553.22M	750.46M	840.23M	582.08M	421.53M
Net Income	81.00M	106.09M	239.63M	385.02M	290.48M	249.78M
Balance Sheet
Total Assets	6.50B	6.81B	7.03B	7.61B	6.34B	3.06B
Cash, Cash Equivalents and Short-Term Investments	240.90M	397.82M	127.61M	497.65M	851.38M	675.55M
Total Debt	887.80M	1.02B	1.08B	1.59B	892.94M	522.92M
Total Liabilities	2.48B	2.67B	2.86B	3.40B	2.44B	1.52B
Stockholders Equity	4.03B	4.14B	4.15B	4.19B	3.88B	1.53B
Cash Flow
Free Cash Flow	495.20M	600.71M	352.32M	401.92M	450.67M	430.45M
Operating Cash Flow	508.80M	626.17M	399.77M	475.35M	462.78M	441.32M
Investing Cash Flow	-40.41M	-40.16M	-207.53M	-750.92M	-411.94M	-97.39M
Financing Cash Flow	-380.40M	-328.00M	-575.71M	-88.09M	126.62M	56.39M

Knowit AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 111.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 111 is below the 20-day moving average (MA) of 112.19, above the 50-day MA of 108.42, and below the 200-day MA of 128.45, indicating a neutral trend. The MACD of 2.27 indicates Positive momentum. The RSI at 47.56 is Neutral, neither overbought nor oversold. The STOCH value of 4.35 is Positive, 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	68 Neutral	€2.10B	28.59	15.90%	1.14%	10.92%	-2.56%
CAG	67 Neutral	kr788.44M	16.33	―	3.74%	-4.42%	-6.27%
SOF.B	66 Neutral	€1.19B	15.79	―	6.04%	4.00%	-12.19%
PACT	63 Neutral	kr2.69B	17.08	14.35%	2.37%	-4.36%	-31.55%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KNOW	61 Neutral	€3.20B	32.71	2.38%	3.38%	-9.85%	-38.24%
DUST	49 Neutral	kr2.59B	-0.55	―	―	-5.00%	-1757.14%

Knowit AB Corporate Events

Knowit AB to Present Interim Report for January-September 2025

Knowit AB announced it will release its interim report for January-September 2025 on October 24. The report’s presentation will be conducted via an audiocast by CEO Per Wallentin and CFO Marie Björklund, who will discuss the results and answer questions. This event highlights Knowit’s commitment to transparency and stakeholder engagement, potentially impacting its market perception and investor relations.

The most recent analyst rating on (SE:KNOW) stock is a Hold with a SEK118.00 price target. To see the full list of analyst forecasts on Knowit AB stock, see the SE:KNOW Stock Forecast page.

Knowit Expands into Management Consulting with New Framework Agreements

Knowit has secured new framework agreements with Kammarkollegiet, marking a significant expansion into the management consulting sector. These agreements, which can be utilized by approximately 350 public authorities in Sweden, aim to support the digitalization and modernization of the public sector. The agreements, effective from August and September 2025, have a total maximum value of SEK 3.6 billion and will last for four years. This development strengthens Knowit’s position as a leading partner in digital transformation and management consulting, enhancing its ability to drive sustainable transformation in collaboration with Swedish authorities.

The most recent analyst rating on (SE:KNOW) stock is a Hold with a SEK118.00 price target. To see the full list of analyst forecasts on Knowit AB stock, see the SE:KNOW Stock Forecast page.

Coop Norge Partners with Knowit and Mambu for Core Banking Modernization

Coop Norge has partnered with Knowit and Mambu to upgrade its core banking system, aiming to enhance the management of member deposits across Norway. This collaboration will modernize Coop’s infrastructure, ensuring security, transparency, and scalability, while also improving member experience and regulatory compliance. The project, which will run for four years with possible extensions, highlights Knowit’s role as a lead system integrator and Mambu’s provision of a cloud-based core banking platform.