# Kainos Group plc (KNOS.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Technology / Software. Price 1220p, market value 1.4 billionp.

## Valuation
- **P/E (trailing): 34.9×** (5-yr avg 3134.4×, 3-yr avg 2310.2×). Kainos Group plc trades at 34.9× trailing earnings, well below its own five-year average of 3134.4×: cheap by its own standards. The Technology median in the September 2026 study was 32.1×. Forward P/E is 20.9×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.84**. A PEG of 0.84 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 1.8×**. Each dollar of revenue is priced at 1.8×.
- **Price / book: 14.3×**. The shares trade at 14.3× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 11.8×**. Enterprise value is 11.8× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 7.7%** (5-yr avg 0.0%). Free cash flow equals 7.7% of the market value, above its five-year average of 0.0%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 2.9%**. The inverse of the P/E: 2.9% of the price is earned each year.

## Profitability
- **Gross margin: 46.9%**. Kainos Group plc keeps 46.9% of revenue after the direct cost of what it sells.
- **Operating margin: 11.5%**. 11.5% of revenue is left after running the business.
- **Net margin: 9.9%**. 9.9% of each dollar of sales reaches the bottom line.
- **Return on equity: 42.3%**. 42.3% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 297.8%**. Return on all capital, debt included, is 297.8%: comfortably above what that capital costs.
- **Return on assets: 28.5%**. Each dollar of assets produces 28.5% of profit.

## Growth
- **Revenue growth (1 yr): 17.4%** (3-yr 4.8%/yr, 5-yr 12.9%/yr). Revenue grew 17.4% over the last year, against 12.9% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 25.0%** (3-yr 2.0%/yr, 5-yr 1.8%/yr). Earnings per share rose 25.0%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): -4.6%/yr**. Free cash flow has compounded at -4.6% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 0.06**. Debt is 0.06 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Kainos Group plc holds more cash than debt.
- **Interest coverage: 127.7×**. Operating profit covers interest 127.7× over, a safe margin.
- **Current ratio: 1.17** (quick 1.17). Current assets cover the next year's liabilities 1.17 times.
- **Altman Z-score: 7.73**. A Z-score of 7.73 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 2.38%** (0p per share, trailing). Kainos Group plc yields 2.38%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 81%** (65% of free cash flow). 81% of earnings goes out as dividends, leaving a thin cushion.
- **Consecutive years of increases: 11**. 11 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 17.1%/yr** (1-yr 1.8%). The dividend has compounded at 17.1% a year over five years, doubling roughly every 4 years at that pace.
- **Shareholder yield: 7.9%**. Dividends plus net buybacks return 7.9% of the market value a year.

## Analyst view
- **Analyst consensus: strong_buy** (10 analysts). 10 analysts cover Kainos Group plc; the consensus is strong_buy, with an average price target of 1275p (+5% 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): 40.9%** (YTD 23.0%, 3-mo 45.5%). The shares are up 40.9% over twelve months including dividends.
- **From 52-week high: -5.7%** (77.8% above the low). Trading 6% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 70**. An RSI of 70 is in overbought territory; short-term pullbacks are common from here.
- **Beta (1 yr): 0.25** (volatility 43%). Beta of 0.25 against the FTSE All-Share: the shares move much less than the market.

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

Not investment advice.