Knowit AB (KNOW) AI Stock Analysis

• Market Cap: €3.11B
• Dividend Yield: 2.03%
• Average Volume (3M): 52.30K
• Price to Earnings (P/E): 31.8
• Beta (1Y): 1.08
• 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: 56 Neutral
• Price Target: kr109.00 ▼(-3.88% Downside)

Knowit AB's overall stock score reflects its mixed financial performance, bearish technical indicators, and relatively high valuation. The company's strong balance sheet is a positive factor, but declining revenue and cash flow issues pose risks. Technical analysis indicates weak momentum, and the high P/E ratio suggests potential overvaluation.

Positive Factors

Stable Balance Sheet

A low debt-to-equity ratio indicates a conservative approach to leverage, providing financial stability and flexibility for future investments.

Strong Cash Conversion

Efficient cash conversion highlights the company's ability to generate cash from operations, supporting ongoing business activities and potential growth investments.

Healthy Capital Structure

A healthy equity ratio indicates a robust capital structure, ensuring the company can withstand financial challenges and pursue strategic opportunities.

Negative Factors

Declining Revenue Growth

Negative revenue growth suggests challenges in maintaining sales momentum, which could impact long-term market position and profitability if not addressed.

Low Profit Margins

Low profit margins indicate operational challenges and limited profitability, which may hinder the company's ability to reinvest in growth and innovation.

Negative Cash Flow Growth

Declining cash flow growth can strain financial resources, limiting the company's ability to fund new projects and respond to market changes effectively.

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 generates revenue primarily through consulting services, projects, and long-term contracts with clients. Its revenue model is based on billing for hours worked by consultants, project fees, and retainer agreements for ongoing services. Key revenue streams include custom software development, IT system integration, and management consulting services. The company also benefits from significant partnerships with technology providers and other firms, which enhance its service offerings and expand its market reach. Additionally, Knowit's focus on digital transformation solutions positions it well to capture growing demand from organizations seeking to innovate and adapt to changing market conditions.

Knowit AB Financial Statement Overview

Summary

Knowit AB's financial performance shows mixed results. Revenue growth is declining, and profit margins are low, indicating challenges in profitability. The balance sheet is strong with low leverage, but cash flow issues are concerning, with a significant decline in free cash flow growth.

Income Statement

Knowit AB's income statement reveals a mixed performance. The TTM data shows a decrease in revenue growth rate, indicating a contraction in sales. Gross profit margin is moderate at 28.41%, but net profit margin is low at 1.34%, suggesting challenges in converting sales into profits. EBIT and EBITDA margins have also declined, reflecting reduced operational efficiency. Despite these challenges, the company has shown resilience in maintaining a positive net income.

Balance Sheet

The balance sheet of Knowit AB is relatively strong with a low debt-to-equity ratio of 0.22, indicating prudent financial leverage. The equity ratio is healthy, suggesting a stable capital structure. However, the return on equity has decreased over time, currently at 1.98%, which may point to inefficiencies in generating returns from shareholders' equity.

Cash Flow

Cash flow analysis shows a significant decline in free cash flow growth rate, down by 42.25% in the TTM period, which could impact future investments. The operating cash flow to net income ratio is 0.33, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is strong at 97.33%, showing effective cash conversion from profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.95B	6.42B	7.10B	6.83B	4.81B	3.38B
Gross Profit	325.30M	888.73M	1.07B	1.17B	861.19M	575.34M
EBITDA	520.50M	553.22M	750.46M	745.27M	582.08M	421.53M
Net Income	97.40M	106.09M	239.63M	385.02M	290.48M	249.78M
Balance Sheet
Total Assets	6.43B	6.81B	7.03B	7.61B	6.34B	3.06B
Cash, Cash Equivalents and Short-Term Investments	211.50M	397.82M	127.61M	497.65M	851.38M	675.55M
Total Debt	819.70M	1.02B	1.08B	1.59B	892.94M	522.92M
Total Liabilities	2.41B	2.67B	2.86B	3.40B	2.44B	1.52B
Stockholders Equity	4.02B	4.14B	4.15B	4.19B	3.88B	1.53B
Cash Flow
Free Cash Flow	286.00M	600.71M	352.32M	401.92M	450.67M	430.45M
Operating Cash Flow	297.30M	626.17M	399.77M	475.35M	462.78M	441.32M
Investing Cash Flow	38.69M	-40.16M	-207.53M	-750.92M	-411.94M	-97.39M
Financing Cash Flow	-479.50M	-328.00M	-575.71M	-88.09M	126.62M	56.39M

Knowit AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 113.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:KNOW, the sentiment is Neutral. The current price of 113.4 is below the 20-day moving average (MA) of 113.55, above the 50-day MA of 111.51, and below the 200-day MA of 122.45, indicating a neutral trend. The MACD of 1.56 indicates Positive momentum. The RSI at 50.78 is Neutral, neither overbought nor oversold. The STOCH value of 45.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	€2.08B	28.31	15.90%	1.13%	10.92%	-2.56%
SOF.B	66 Neutral	€1.15B	15.21	27.44%	6.29%	4.00%	-12.08%
PACT	63 Neutral	€3.00B	19.04	14.35%	2.13%	-4.36%	-31.55%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CAG	60 Neutral	kr766.93M	15.89	―	3.83%	-4.42%	-6.27%
KNOW	56 Neutral	€3.11B	31.81	2.38%	2.03%	-9.85%	-38.24%
DUST	46 Neutral	kr2.37B	-0.51	―	―	-5.00%	-1757.14%

Knowit AB Corporate Events

Knowit Expands Partnership with Equinor on Advanced Sensor Technology

Knowit has expanded its collaboration with Equinor through a new three-year agreement to further develop and operate the Distributed Fiber Optic Sensing (DFOS) platform. This partnership aims to enhance the technology’s accessibility and scalability, allowing Equinor to derive more value from field data, thereby improving safety, resource utilization, and reducing emissions in the energy sector. The project highlights Knowit’s expertise in IT, physics, and real-time analytics, reinforcing its role as a key technology partner in the energy and infrastructure sectors.

Knowit Partners with Tet Digital to Enhance Sustainable Mobility Solutions

Knowit has secured a strategic partnership with Tet Digital AS, alongside consultancy firm Bekk, to enhance Tet Digital’s capacity in product development, technology, design, and data insights. This collaboration, valued at approximately NOK 550 million for Knowit’s share, aims to strengthen Tet Digital’s digital mobility solutions and sustainable mobility initiatives in Norway. The partnership is expected to bolster Tet Digital’s organizational capabilities, focusing on competence development, knowledge sharing, and agile product teams, thereby reinforcing its role in developing digital products for the mobility sector.

Knowit AB Forms Nomination Committee for 2026 AGM

Knowit AB has announced the formation of its Nomination Committee ahead of the Annual General Meeting in 2026. The committee, which includes representatives from the three largest shareholders and the Chairman of the Board, will play a crucial role in shaping the company’s governance by proposing board members and other key decisions. This move underscores Knowit AB’s commitment to shareholder engagement and transparent governance, potentially impacting its strategic direction and stakeholder relations.

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.