Kainos Group plc
Kainos Group plc Fundamental Analysis
Kainos Group plc (KNNNF) shows moderate financial fundamentals with a PE ratio of 21.05, profit margin of 9.86%, and ROE of 41.44%. The company generates $0.4B in annual revenue with strong year-over-year growth of 17.39%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 70.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze KNNNF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentKNNNF demonstrates superior asset utilization.
Valuation Score
ExcellentKNNNF trades at attractive valuation levels.
Growth Score
ExcellentKNNNF delivers strong and consistent growth momentum.
Financial Health Score
ExcellentKNNNF maintains a strong and stable balance sheet.
Profitability Score
ModerateKNNNF maintains healthy but balanced margins.
Key Financial Metrics
Is KNNNF Expensive or Cheap?
P/E Ratio
KNNNF trades at 21.05 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, KNNNF's PEG of 1.13 indicates fair valuation.
Price to Book
The market values Kainos Group plc at 8.89 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 16.57 times EBITDA. This signals the market has high growth expectations.
How Well Does KNNNF Make Money?
Net Profit Margin
For every $100 in sales, Kainos Group plc keeps $9.86 as profit after all expenses.
Operating Margin
Core operations generate 11.34 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $41.44 in profit for every $100 of shareholder equity.
ROA
Kainos Group plc generates $15.51 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Kainos Group plc produces operating cash flow of $60.30M, showing steady but balanced cash generation.
Free Cash Flow
Kainos Group plc generates strong free cash flow of $52.34M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.44 in free cash annually.
FCF Yield
KNNNF converts 6.09% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.05
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.13
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.89
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.02
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.17
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.41
vs 25 benchmark
ROA
Return on assets percentage
0.16
vs 25 benchmark
ROCE
Return on capital employed
0.44
vs 25 benchmark
How KNNNF Stacks Against Its Sector Peers
| Metric | KNNNF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.05 | 36.84 | Better (Cheaper) |
| ROE | 41.44% | 970.00% | Weak |
| Net Margin | 9.86% | 5926859214.00% | Weak |
| Debt/Equity | 0.06 | 0.39 | Strong (Low Leverage) |
| Current Ratio | 1.17 | 4.94 | Neutral |
| ROA | 15.51% | -295460.00% (disorted) | Strong |
KNNNF outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Kainos Group plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
86.96%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
9.24%
Industry Style: Growth, Innovation, High Beta
GrowingFCF CAGR
3.26%
Industry Style: Growth, Innovation, High Beta
Growing