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): 1.06
• 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): N/A
• Revenue Forecast (FY): N/A

• 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

Balance-sheet strength

Low leverage (debt/equity ~0.21) provides durable financial flexibility. With modest debt the company can fund working capital, weather project seasonality, pursue selective M&A or invest in capabilities without immediate refinancing pressure, helping stabilize long-term operations.

Cash generation

Consistent positive operating and free cash flow, and ~9.4% FCF growth, indicate strong cash conversion versus reported earnings. Reliable cash generation sustains investment in talent and technology, funds dividends or buybacks, and reduces dependency on external financing over months to years.

Market positioning

A diversified consulting offering across digital transformation, software, integration and strategy, plus tech partnerships, aligns with secular demand for digitalization. This breadth and partner ecosystem support sticky client relationships and repeat revenue across economic cycles.

Negative Factors

Profitability deterioration

A large recent net loss and razor-thin gross margin materially weaken earnings quality. Persistent low margins limit reinvestment capacity and resilience to cost shocks; reversing this deterioration is key to restoring sustainable profitability and long-term shareholder returns.

Revenue weakness

Declining top-line after prior modest growth suggests demand or pricing pressure in core consulting services. Sustained revenue contraction compresses operating leverage and makes margin recovery harder, raising medium-term execution risk unless new bookings or service mix improve.

Business-model cyclicality

Heavy reliance on billable hours and project work exposes margins to utilization swings, pricing pressure and client budget cycles. In competitive consulting markets this structural model creates earnings volatility and makes margins sensitive to staffing, pricing and demand over several quarters.

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

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: 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 118.6 is above the 20-day moving average (MA) of 117.70, above the 50-day MA of 117.28, and above the 200-day MA of 116.73, indicating a bearish trend. The MACD of -0.84 indicates Positive momentum. The RSI at 39.13 is Neutral, neither overbought nor oversold. The STOCH value of 6.00 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	65 Neutral	kr1.57B	19.00	15.90%	1.13%	10.92%	-2.56%
CAG	63 Neutral	kr749.01M	15.90	―	3.83%	-4.42%	-6.27%
PACT	62 Neutral	kr2.63B	21.40	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	16.37	27.44%	6.29%	4.00%	-12.08%
KNOW	58 Neutral	kr3.04B	-10.62	2.38%	2.03%	-9.85%	-38.24%
DUST	50 Neutral	kr2.05B	-0.45	―	―	-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.

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.

The most recent analyst rating on (SE:KNOW) stock is a Hold with a SEK127.00 price target. To see the full list of analyst forecasts on Knowit AB stock, see the SE:KNOW Stock Forecast page.