Knowit AB (KNOW) AI Stock Analysis

• Market Cap: €3.14B
• Dividend Yield: 3.32%
• Average Volume (3M): 33.49K
• Price to Earnings (P/E): 38.6
• Beta (1Y): 0.84
• Revenue Growth: -11.20%
• EPS Growth: -55.97%
• Country: SE
• Employees: 3,772
• Sector: Technology
• Sector Strength: 89
• Industry: Information Technology Services
• EPS (TTM): 0.03
• Shares Outstanding: 27,408,600
• 10 Day Avg. Volume: 27,734
• 30 Day Avg. Volume: 33,492
• 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: €134.05
• Price Target Upside: 17.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 56 Neutral
• Price Target: kr118.00 ▲(3.15% Upside)

Knowit AB's overall stock score reflects a combination of mixed financial performance, bearish technical indicators, and moderate valuation. The most significant factor is the company's financial challenges, including declining revenue and cash flow growth. Technical analysis further indicates a bearish trend, while the valuation suggests potential overvaluation despite a reasonable dividend yield.

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 demonstrates a commendable financial position with sound cash flow management and stable balance sheet metrics. The income statement shows mixed performance with modest profit margins and a decline in revenue growth. However, the company displays strong cash flow generation and effective leverage management, providing a solid foundation for future stability.

Income Statement

The income statement reveals a mixed performance. The Gross Profit Margin for TTM is a modest 2.7%, showing a decline from the previous year due to reduced gross profit despite steady revenue. The Net Profit Margin stands at 1.3%, indicating profitability, albeit lower compared to the previous fiscal year. The Revenue Growth Rate over the last year shows a decrease of approximately 12.3%, suggesting challenges in sustaining revenue growth. However, the EBIT and EBITDA Margins are relatively stable, indicating efficient operational management.

Balance Sheet

The balance sheet presents a stable yet cautious financial position. The Debt-to-Equity Ratio for TTM is 0.24, reflecting a sustainable leverage level. The Equity Ratio is strong at 60.8%, highlighting a robust equity base. However, the Return on Equity (ROE) has decreased to 2.0% in the TTM, showing a decline in profitability relative to equity. This could point to potential inefficiencies in using shareholder funds.

Cash Flow

Cash flow analysis shows a solid financial health. The Free Cash Flow Growth Rate is strong, increasing by approximately 53.4% over the previous year, indicating improved cash generation. The Operating Cash Flow to Net Income Ratio is high at 6.7, suggesting strong cash flow conversion from earnings. The Free Cash Flow to Net Income Ratio is also robust at 6.5, reflecting efficient cash management.

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: 114.40
• 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:KNOW, the sentiment is Negative. The current price of 114.4 is below the 20-day moving average (MA) of 117.21, below the 50-day MA of 124.74, and below the 200-day MA of 136.28, indicating a bearish trend. The MACD of -3.52 indicates Negative momentum. The RSI at 34.51 is Neutral, neither overbought nor oversold. The STOCH value of 39.90 is Neutral, 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
Sector *	61 Neutral	$36.30B	7.30	-7.27%	1.97%	7.76%	-6.42%
KNOW	56 Neutral	€3.14B	38.59	1.97%	3.32%	-11.20%	-55.97%
SF7	―	€111.01M	14.99	32.08%	―	―	―
1TI	―	€170.66M	31.84	13.08%	―	―	―
PIU0	―	€216.67M	14.03	15.85%	―	―	―
CAG	74 Outperform	kr792.02M	16.72		3.50%	―	―
DUST	42 Neutral	kr2.18B	―		―	-5.76%	-1194.45%

Knowit AB Corporate Events

Knowit AB Announces Interim Report Presentation

Knowit AB will release its interim report for January-June 2025 on July 18, followed by a presentation featuring CEO Per Wallentin and CFO Marie Björklund. The presentation will be available via audiocast, providing insights into the company’s performance and allowing stakeholders to engage with the leadership. This event underscores Knowit’s commitment to transparency and stakeholder engagement, potentially impacting its market positioning and investor relations.

Innovation Norway Partners with Knowit and Mambu for Core Banking Transformation

Innovation Norway has chosen Knowit and Mambu to modernize its core banking platform, a significant step in the digital transformation of public financial services in Norway. This collaboration aims to optimize loan, grant, and guarantee functions, enhancing efficiency and scalability for Innovation Norway and its clients. The new solution will streamline processes, improve data quality, and provide real-time insights, aligning with Innovation Norway’s goals of increased digitalization and operational efficiency. The project, which spans four years with potential extensions, is expected to empower Norwegian businesses by providing a flexible and scalable financial platform.

Knowit AB Expands Fintech Offerings with Insicon Acquisition

Knowit AB has acquired Insicon, a Swedish company offering a comprehensive business system for the insurance industry, to strengthen its fintech position in the European market. This acquisition enables Knowit to expand its platform offerings to the insurance sector, leveraging Insicon’s cloud-based solutions and development capabilities in Serbia, which is expected to enhance Knowit’s competitive edge in replacing outdated IT systems in the banking, finance, and insurance sectors.

Knowit AB Strengthens Defense Sector Position with Milso Acquisition

Knowit AB has announced the acquisition of Milso AB, a consulting firm specializing in technology, management, and IT services for the defense sector. This strategic move aims to bolster Knowit’s position in the defense industry, particularly in light of the evolving security environment and Sweden’s increased focus on defense within the EU. The acquisition allows Knowit to deepen existing client partnerships and undertake larger, more complex projects, leveraging Milso’s expertise and established contracts in the defense sector. The integration of Milso is expected to enhance Knowit’s capabilities and offer new development opportunities, with the acquisition set to be completed in the third quarter.

Knowit Secures Major Framework Agreement with Finland’s DVV

Knowit has secured a new five-year framework agreement with Finland’s Digital and Population Data Services Agency (DVV), valued at approximately EUR 250 million, shared with other partners. The agreement, which continues a long-standing partnership since 2014, involves providing IT expert services for DVV’s digital infrastructure, including system design, development, and maintenance. Knowit ranked in the top positions for two out of three service areas it bid on, highlighting its significant role in advancing digital public services in Finland. This contract underscores Knowit’s strong position in the public sector digitalization market, reinforcing its commitment to impactful digital solutions.

Knowit Secures Strategic IT Consulting Agreement with Swedish Government

Knowit has secured a significant framework agreement with Kammarkollegiet to provide IT consulting solutions to approximately 350 government agencies in Sweden. This agreement enhances Knowit’s role as a key digital transformation partner for the public sector, offering expertise in system development, architecture, security, and user experience. The four-year contract, starting in August 2025, underscores Knowit’s strategic importance in facilitating public sector digitalization, with a total maximum value of SEK 1.4 billion.