Knowit AB (KNOW) AI Stock Analysis

• Market Cap: kr3.04B
• Dividend Yield: 2.03%
• Average Volume (3M): 52.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.97
• Revenue Growth: -9.85%
• EPS Growth: -38.24%
• Country: SE
• Employees: 3,772
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.27
• Shares Outstanding: 27,408,600
• 10 Day Avg. Volume: 78,108
• 30 Day Avg. Volume: 52,304
• PEG Ratio: 0.03
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 10.30
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 6.59
• Revenue Forecast (FY): kr5.87B

• Rating: 58 Neutral
• Price Target: kr115.00 ▼(-3.04% Downside)
• Action: Reiterated Date: 02/08/26
• Date: Action: Reiterated 02/08/26

The score is held back primarily by the sharp deterioration in profitability and negative P/E, despite solid free cash flow and a manageable balance sheet. Technicals are a notable offset, with the stock trading above key moving averages and showing positive momentum.

Positive Factors

Strong cash generation

Consistent positive operating and free cash flow provides durable internal funding for operations, working capital and strategic investments. Strong FCF cushions the business against earnings volatility, supports dividends/repayment capacity, and preserves flexibility for M&A or cyclical downturns over months.

Manageable leverage

Low and improving debt-to-equity gives the company balance-sheet flexibility to invest and absorb shocks without heavy interest burden. This structural strength reduces refinancing risk, preserves credit capacity for strategic moves, and supports steadier capital allocation over the medium term.

Diverse end-to-end services

A broad service mix across software, cloud, analytics, cybersecurity and advisory creates multiple revenue channels and cross-sell opportunities. This structural diversification aligns with ongoing digital transformation demand, helping sustain revenue sources and reduce dependence on any single technology or sector over time.

Negative Factors

Marked profitability deterioration

The shift to a substantial net loss and compressed gross margins signals weakened earnings quality and margin sustainability. If margins do not recover, persistent losses could erode equity, constrain reinvestment, and limit ability to restore shareholder returns, raising medium-term financial risk.

Softening revenue trend

Receding top-line after prior modest growth suggests demand or win-rate pressures. Sustained revenue decline reduces operational leverage, makes margin recovery harder, and can force strategic cost cuts that impair growth capabilities over a multi-month horizon if new sales momentum isn't regained.

Project-based revenue cyclicality

A predominantly project/consulting revenue model exposes results to utilization swings, contract timing and client budget cycles. Limited recurring licensing revenue means revenue and margin visibility is weaker, increasing the risk of quarter-to-quarter volatility that can persist across several months during downturns.

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 primarily makes money by selling professional services on a project and consulting basis. Revenue is generated when customers engage Knowit’s consultants and specialists to design, build, modernize, and operate digital solutions (e.g., application development, cloud enablement, data/analytics initiatives, experience design, and cybersecurity) and to provide management and strategy consulting related to digital transformation. The company’s key revenue streams are typically service fees billed under time-and-materials arrangements (hourly/daily consulting rates) and fixed-price or outcome-based project contracts, depending on the scope and delivery model. Additional revenue can come from ongoing managed services and long-term support/maintenance agreements where Knowit operates or continuously improves solutions after initial delivery. If the company has material recurring software licensing, proprietary product revenue, or specific named strategic partnerships that are significant to earnings, this information is not available here and is therefore null.

Knowit AB Financial Statement Overview

Summary

Mixed fundamentals: the latest year swung to a net loss (-284.8M) with very thin gross profitability (~2.9%) and revenue down ~2.5%, which is a meaningful deterioration. Offsetting this, leverage remains manageable (debt-to-equity ~0.21) and cash generation is strong with positive operating cash flow (321.5M) and growing free cash flow (312.9M, +~9.4%).

Income Statement

Profitability has deteriorated meaningfully: the latest annual period shows a net loss (-284.8M) and very thin gross profitability (~2.9%), versus positive net income in 2020–2024. Revenue has also softened, declining ~2.5% in the latest year after a small decline in 2024 and modest growth in 2023. The key strength is that the business was consistently profitable with healthier margins in prior years, but the most recent year reflects a clear break in that trend and raises near-term earnings-quality risk.

Balance Sheet

Leverage looks manageable for the sector, with debt-to-equity around ~0.21 in the latest year (improving from ~0.25–0.38 in prior years), providing balance-sheet flexibility. Equity remains substantial relative to the asset base. The main weakness is shareholder returns turning negative in the latest period due to the net loss, which could pressure capital efficiency if the earnings downturn persists.

Cash Flow

Cash generation is a bright spot: operating cash flow (321.5M) and free cash flow (312.9M) remained solid and free cash flow grew ~9.4% in the latest year, despite the reported net loss. Free cash flow has also been broadly resilient over time, and the company continues to convert a large portion of earnings into free cash flow historically. The weakness is that operating cash flow has stepped down from 2024 levels, indicating some near-term volatility even as free cash flow remains positive.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.80B	6.42B	7.10B	6.83B	4.81B
Gross Profit	168.90M	888.73M	1.07B	1.17B	861.19M
EBITDA	132.20M	553.22M	750.46M	745.27M	582.08M
Net Income	-284.80M	106.09M	239.63M	385.02M	290.48M
Balance Sheet
Total Assets	5.97B	6.81B	7.03B	7.61B	6.34B
Cash, Cash Equivalents and Short-Term Investments	325.70M	397.82M	127.61M	497.65M	851.38M
Total Debt	758.50M	1.02B	1.08B	1.59B	892.94M
Total Liabilities	2.34B	2.67B	2.86B	3.40B	2.44B
Stockholders Equity	3.63B	4.14B	4.15B	4.19B	3.88B
Cash Flow
Free Cash Flow	312.90M	600.71M	352.32M	401.92M	450.67M
Operating Cash Flow	321.50M	626.17M	399.77M	475.35M	462.78M
Investing Cash Flow	41.20M	-40.16M	-207.53M	-750.92M	-411.94M
Financing Cash Flow	-378.90M	-328.00M	-575.71M	-88.09M	126.62M

Knowit AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 118.60
• 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 118.6 is above the 20-day moving average (MA) of 111.88, above the 50-day MA of 115.79, and above the 200-day MA of 115.02, indicating a bearish trend. The MACD of -1.56 indicates Negative momentum. The RSI at 44.32 is Neutral, neither overbought nor oversold. The STOCH value of 53.54 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
EXS	65 Neutral	kr1.49B	20.39	15.90%	1.13%	10.92%	-2.56%
CAG	63 Neutral	kr766.93M	15.82	―	3.83%	-4.42%	-6.27%
PACT	62 Neutral	kr2.69B	24.25	14.35%	2.13%	-4.36%	-31.55%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SOF.B	59 Neutral	kr1.10B	17.36	23.47%	6.29%	4.00%	-12.08%
KNOW	58 Neutral	kr3.04B	-2.35	2.38%	2.03%	-9.85%	-38.24%
DUST	50 Neutral	kr1.92B	-22.97	―	―	-5.00%	-1757.14%

Knowit AB Corporate Events

Knowit Wins Two-Year Extension on Swedish Naval Command System Contracts

Knowit’s defence-focused subsidiary, Knowit Defence Technology, has secured a two-year extension of seven framework agreements with the Swedish Defence Materiel Administration (FMV) for work on naval command systems, reinforcing the consultancy’s long-standing position as a key technology partner to Sweden’s defence and security sector. The decision, which includes the possibility of further extensions that could keep the agreements in force through 2029 and 2030 if all options are exercised, underlines FMV’s continued confidence in Knowit’s expertise in communication, situational awareness and interoperability, and strengthens the company’s role in both national and international defence collaborations.

The most recent analyst rating on (SE:KNOW) stock is a Hold with a SEK109.00 price target. To see the full list of analyst forecasts on Knowit AB stock, see the SE:KNOW Stock Forecast page.

Knowit Sets Date for 2025 Year-End Report and Investor Audiocast

Knowit AB will publish its year-end report for January–December 2025 on 6 February 2026 and will host an English-language audiocast later that morning, where President and CEO Per Wallentin and CFO Marie Björklund will present and comment on the results. The webcast, aimed at investors and other stakeholders, underscores the company’s ongoing effort to maintain transparent financial communication and engagement with the capital market, with the report and a recording of the presentation made accessible via Knowit’s financial information webpage.

The most recent analyst rating on (SE:KNOW) stock is a Hold with a SEK109.00 price target. To see the full list of analyst forecasts on Knowit AB stock, see the SE:KNOW Stock Forecast page.