Added to YB: 2025-06-05
Pitch date: 2025-06-03
KNOS.L [bullish]
Kainos Group plc
+48.28%
current return
Author Info
Northwest Frontier Capital is a generalist analyst with established track record of in Small and Mid-Cap and TMT investing across both the buy and sell-side. Philosophy based on identifying high quality companies with strong fundamentals, skilled management teams and clear competitive advantages, that can invest at high incremental ROIC on a persistent basis. Then looking to purchase these companies at intrinsic value and hold for the long-term. Sign up for the newsletter.
Company Info
Kainos Group plc engages in the provision of digital technology services in the United Kingdom, Ireland, the Americas, Central Europe, and internationally.
Market Cap
GBP 849.4M
Pitch Price
GBP 7.15
Price Target
11.09 (+5%)
Dividend
4.04%
EV/EBITDA
12.66
P/E
24.91
EV/Sales
1.98
Sector
IT Services
Category
value
Kainos plc: 3 ways it is undervalued
KNOS.L: Kainos at 15.5% 5-yr rev CAGR, 20% margins, 30%+ ROIC now mispriced after 38% share drop. UK govt budget cycles causing temporary slowdown. SOTP analysis shows 32% upside, with Workday Products SaaS business (growing 27% with 27% margins) severely undervalued at current multiples. Zero growth priced in despite strong FCF.
Read full article (22 min)