Fact based stock research
Kainos Group (LSE:KNOS)
GB00BZ0D6727
How to read the free ranks
For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Kainos Group stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 66 (better than 66% compared with investment alternatives), Kainos Group (IT Consulting & oth. Services, United Kingdom) shares have above-average financial characteristics compared with similar stocks. Shares of Kainos Group are a good value (attractively priced) with a consolidated Value Rank of 53 (better than 53% of alternatives), are safely financed (Safety Rank of 96, which means low debt burdens), but show below-average growth (Growth Rank of 17). ...read more
RECOMMENDATION: A Combined Rank of 66, is a buy recommendation based on Kainos Group's financial characteristics. As the company Kainos Group's key financial metrics exhibit good value (Obermatt Value Rank of 53) but low growth (Obermatt Growth Rank of 17) while being safely financed (Obermatt Safety Rank of 96), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 53% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | United Kingdom |
| Industry | IT Consulting & oth. Services |
| Index | FTSE All Shares, FTSE 250, FTSE 350 |
| Size class | Medium |
14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Kainos Group
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 48 |
|
19 |
|
31 |
|
53 |
|
| GROWTH | ||||||||
| GROWTH | 97 |
|
65 |
|
23 |
|
17 |
|
| SAFETY | ||||||||
| SAFETY | 50 |
|
88 |
|
92 |
|
96 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
9 |
|
53 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
33 |
|
53 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 66 (better than 66% compared with investment alternatives), Kainos Group (IT Consulting & oth. Services, United Kingdom) shares have above-average financial characteristics compared with similar stocks. Shares of Kainos Group are a good value (attractively priced) with a consolidated Value Rank of 53 (better than 53% of alternatives), are safely financed (Safety Rank of 96, which means low debt burdens), but show below-average growth (Growth Rank of 17). ...read more
RECOMMENDATION: A Combined Rank of 66, is a buy recommendation based on Kainos Group's financial characteristics. As the company Kainos Group's key financial metrics exhibit good value (Obermatt Value Rank of 53) but low growth (Obermatt Growth Rank of 17) while being safely financed (Obermatt Safety Rank of 96), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 53% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 48 |
|
19 |
|
31 |
|
53 |
|
| GROWTH | ||||||||
| GROWTH | 97 |
|
65 |
|
23 |
|
17 |
|
| SAFETY | ||||||||
| SAFETY | 50 |
|
88 |
|
92 |
|
96 |
|
| COMBINED | ||||||||
| COMBINED | 73 |
|
60 |
|
40 |
|
66 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 53 (better than 53% compared with alternatives), Kainos Group shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Kainos Group. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 78% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 40 which means that the stock price compared with what market professionals expect for future profits is higher than 60% of comparable companies, indicating a low value concerning Kainos Group's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 49 which means that the stock price compared with what market professionals expect for future profit levels is higher than 51% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 20 is also low. Compared with invested capital, the stock price is higher than for 80% of comparable investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 53, is a buy recommendation based on Kainos Group's stock price compared with the company's operational size and dividend yields. Should dividend investors pick Kainos Group? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose Kainos Group only if they reasonably expect the low current profit levels to be transitory. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 27 |
|
24 |
|
25 |
|
40 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 62 |
|
31 |
|
34 |
|
49 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 2 |
|
4 |
|
14 |
|
20 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 83 |
|
67 |
|
72 |
|
78 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 48 |
|
19 |
|
31 |
|
53 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 17 (better than 17% compared with alternatives), Kainos Group shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with all four metrics below average for Kainos Group. Sales Growth has a rank of 45, which means that currently professionals expect the company to grow less than 55% of its competitors. The same is valid for Profit Growth, with a rank of 22, and Capital Growth with 30. In addition, Stock Returns have a below market rank of 13, which means that the stock returns have recently been below 87% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 17, is a sell recommendation for growth and momentum investors. These are all bad growth momentum indicators. These are negative signals for investors interested in growth companies. Value is likely good for this company, as investors may have left this stock in the cold. If that is the case, investors should look at the company's outlook, especially Sentiment performance, because it may be a turnaround situation that could entail above-average stock returns in the future. But it remains a risky bet, as no growth signals are in the green zone yet. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is low here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 82 |
|
43 |
|
48 |
|
45 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 33 |
|
22 |
|
44 |
|
22 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
70 |
|
19 |
|
30 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 94 |
|
89 |
|
19 |
|
13 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 97 |
|
65 |
|
23 |
|
17 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 96 (better than 96% compared with alternatives) for 2024, the company Kainos Group has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Kainos Group is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for Kainos Group. Leverage is at 84, meaning the company has a below-average debt-to-equity ratio. It has less debt than 84% of its competitors. Refinancing is at a rank of 61, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 61% of its competitors. Finally, Liquidity is also good at a rank of 96, which means that the company generates more profit to service its debt than 96% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 96 (better than 96% compared with alternatives), Kainos Group has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with Kainos Group but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 54 |
|
81 |
|
84 |
|
84 |
|
| REFINANCING | ||||||||
| REFINANCING | 33 |
|
27 |
|
45 |
|
61 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 69 |
|
100 |
|
100 |
|
96 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 50 |
|
88 |
|
92 |
|
96 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
21 |
|
31 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
23 |
|
34 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
40 |
|
80 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
54 |
|
62 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
9 |
|
53 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Kainos Group from November 14, 2024.
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