# Knights Group Holdings plc (KGH.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Industrials / Professional Services. Price 169p, market value 145 millionp.

## Valuation
- **P/E (trailing): 33.8×** (5-yr avg 1713.6×, 3-yr avg 1978.3×). Knights Group Holdings plc trades at 33.8× trailing earnings, well below its own five-year average of 1713.6×: cheap by its own standards. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 4.9×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 0.4×**. Each dollar of revenue is priced at 0.4×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.4×**. The shares trade at 1.4× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 4.4×**. Enterprise value is 4.4× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 21.6%** (5-yr avg 0.1%). Free cash flow equals 21.6% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 3.0%**. The inverse of the P/E: 3.0% of the price is earned each year.

## Profitability
- **Gross margin: 69.3%**. Knights Group Holdings plc keeps 69.3% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 12.1%**. 12.1% of revenue is left after running the business.
- **Net margin: 2.3%**. 2.3% of each dollar of sales reaches the bottom line.
- **Return on equity: 4.5%**. 4.5% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 11.0%**. Return on all capital, debt included, is 11.0%.
- **Return on assets: 4.3%**. Each dollar of assets produces 4.3% of profit.

## Growth
- **Revenue growth (1 yr): 28.4%** (3-yr 13.5%/yr, 5-yr 15.0%/yr). Revenue grew 28.4% over the last year, against 15.0% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): -38.2%** (3-yr -17.2%/yr, 5-yr 5.0%/yr). Earnings per share fell 38.2%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 7.3%/yr**. Free cash flow has compounded at 7.3% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 1.17**. Debt is 1.17 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 2.0×**. It would take 2.0 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 3.0×**. Operating profit covers interest 3.0×, thin but manageable.
- **Current ratio: 2.26** (quick 2.26). Current assets cover the next year's liabilities 2.26 times.
- **Altman Z-score: 2.26**. A Z-score of 2.26 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 3.27%** (0p per share, trailing). Knights Group Holdings plc yields 3.27%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 90%** (26% of free cash flow). 90% of earnings goes out as dividends, leaving a thin cushion.
- **Consecutive years of increases: 4**. 4 straight years of increases.
- **Dividend growth (5 yr): 34.3%/yr** (1-yr 9.3%). The dividend has compounded at 34.3% a year over five years, doubling roughly every 2 years at that pace.
- **Shareholder yield: 4.5%**. Dividends plus net buybacks return 4.5% of the market value a year.

## Analyst view
- **Analyst consensus: strong_buy** (5 analysts). 5 analysts cover Knights Group Holdings plc; the consensus is strong_buy, with an average price target of 283p (+68% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -3.4%** (YTD -4.0%, 3-mo -8.1%). The shares are down 3.4% over twelve months including dividends.
- **From 52-week high: -20.7%** (16.6% above the low). Trading 21% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 45**. An RSI of 45 is neutral.
- **Beta (1 yr): 0.26** (volatility 42%). Beta of 0.26 against the FTSE All-Share: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=KGH.L · Page: https://foliofundamentals.com/stocks/kgh.l

Not investment advice.