Kainos Group Plc (KNOS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Bytes Technology Group Plc

Darktrace Plc

Softcat Plc

Kainos Group Plc

Computacenter Plc

Redcentric Plc

FDM Group (Holdings) Plc

KR1 Plc

Corero Network Security Plc

NCC Group Plc

Instem Plc

Why is Kainos Group Plc ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 35.28%

Healthy long term growth as Net Sales has grown by an annual rate of 13.82% and Operating profit at 3.62%
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 48.44

Flat results in Mar 25

ROCE(HY) Lowest at 24.12%
OPERATING PROFIT(Q) Lowest at GBP 20.35 MM
OPERATING PROFIT MARGIN(Q) Lowest at 11.05 %

With ROE of 32.04%, it has a expensive valuation with a 8.45 Price to Book Value

Over the past year, while the stock has generated a return of 42.73%, its profits have fallen by -8.7%

Market Beating Performance

The stock has generated a return of 42.73% in the last 1 year, much higher than market (FTSE 100) returns of 15.94%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kainos Group Plc should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

No Data Found

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.82%

EBIT Growth (5y)

3.62%

EBIT to Interest (avg)

48.44

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.92

Sales to Capital Employed (avg)

2.77

Tax Ratio

18.38%

Dividend Payout Ratio

99.86%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

313.55%

ROE (avg)

35.28%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

8.45

EV to EBIT

22.08

EV to EBITDA

19.76

EV to Capital Employed

186.46

EV to Sales

2.81

PEG Ratio

Dividend Yield

ROCE (Latest)

844.50%

ROE (Latest)

32.04%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 137.51 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 5.39%

DIVIDEND PAYOUT RATIO(Y)

Highest at 234.07%

DEBT-EQUITY RATIO (HY)

Lowest at -92.86 %

-10What is not working for the Company

ROCE(HY)

Lowest at 24.12%

OPERATING PROFIT(Q)

Lowest at GBP 20.35 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 11.05 %

PRE-TAX PROFIT(Q)

Lowest at GBP 20.31 MM

NET PROFIT(Q)

Fallen at -30.01%

EPS(Q)

Lowest at GBP 0.08

Here's what is working for Kainos Group Plc

Operating Cash Flow

Highest at GBP 137.51 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Debtors Turnover Ratio

Highest at 5.39% and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Debt-Equity Ratio

Lowest at -92.86 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend Payout Ratio

Highest at 234.07%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Kainos Group Plc

Pre-Tax Profit

At GBP 20.31 MM has Fallen at -34.09%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (GBP MM)

Operating Profit

Lowest at GBP 20.35 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (GBP MM)

Operating Profit Margin

Lowest at 11.05 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at GBP 20.31 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (GBP MM)

Net Profit

Lowest at GBP 18.77 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (GBP MM)

Net Profit

Fallen at -30.01%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (GBP MM)

EPS

Lowest at GBP 0.08

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (GBP)

Non Operating Income

Highest at GBP 0.27 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income