olivLaw · European equity research
Kainos Group plc KNOS.L
United Kingdom · London Stock Exchange · ISIN GB00BZ0D6727 · Vertical: Listed companies from United Kingdom
Kainos Group plc is a UK digital services and software company focused on the Workday platform and on projects for the public sector and healthcare. Revenue growth and faster AI adoption make the company a case worth following in the coming years, if these trends hold. The company reported revenue of 431.1 million GBP in fiscal 2026.
At the close of 05 Nov 2026, Kainos Group plc (KNOS.L) stock was 12.54 GBP (−1.42% on the day), with market capitalisation 1.5 bn GBP, P/E 35.7 on diluted EPS of 0.35 GBP over the last 12 months, dividend yield 2.31%, beta 0.68, 52-week range 6.99–13.41 GBP.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 46.5
- neutral
- Bollinger (20, 2)
- 12.32 – 13.41
- in the lower half of the band · %B 0.20 · band width 8.5%
- SMA 50 / 200
- 12.47 / 9.36
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 0.13 / 0.22
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | +1.3% | −0.6% | +1.9 pp | — |
| 3 months | +38.6% | −4.2% | +42.8 pp | — |
| 6 months | +51.5% | +4.3% | +47.2 pp | — |
| Year to date | +24.9% | +7.5% | +17.4 pp | — |
| 1 year | +32.6% | +9.9% | +22.6 pp | +5.8% |
| 3 years | +7.5% | +49.8% | −42.3 pp | +26.3% |
| 5 years | −38.0% | +42.8% | −80.8 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 100 percentile of its own 3-quarter history (min 20.8, median 23.5, max 25.0; quarters with earnings only).
Fiscal years
| Fiscal year | 2024 | 2025 | 2026 |
|---|---|---|---|
| Revenue | 382.4 m | 367.2 m | 431.1 m |
| Revenue YoY | unavailable | −4.0% | +17.4% |
| Net income | 48.7 m | 35.6 m | 42.5 m |
| Net income YoY | unavailable | −27.0% | +19.5% |
| Diluted EPS | 0.39 | 0.28 | 0.35 |
| Diluted EPS YoY | unavailable | −26.9% | +24.5% |
| net % | 12.7% | 9.7% | 9.9% |
| Free cash flow | 63.4 m | 55.4 m | 49.7 m |
Balance sheet & financial health
Fiscal year 2026 · 31 Mar 2026
- Cash
- 82.8 m GBP
- Financial debt
- unavailable GBP
- Net debt
- unavailable GBP
- Equity
- 100.5 m GBP
- Total assets
- 273.5 m GBP
- Debt / equity
- unavailable
- Current ratio
- 1.17x
- ROE
- 35.6%
- ROA
- 15.7%
- FCF margin
- 11.5%
Financial statements (source on every figure)
Revenue and net income (GBP)
Margins
Income statement · GBP
| Line | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|
| Revenue | 382.4 m | 367.2 m | 431.1 m | esef· 02 Sept 2026verified |
| Cost of revenue | 195.1 m | 191.3 m | 232.2 m | esef· 02 Sept 2026verified |
| Gross profit | 187.3 m | 175.9 m | 198.9 m | esef· 02 Sept 2026verified |
| Operating income | 60.8 m | 42.5 m | 54.8 m | esef· 02 Sept 2026verified |
| Interest expense | 334.0 k | 333.0 k | 383.0 k | esef· 02 Sept 2026verified |
| Pre-tax income | 64.8 m | 48.6 m | 58.1 m | esef· 02 Sept 2026verified |
| Income tax | 16.1 m | 13.1 m | 15.6 m | esef· 02 Sept 2026verified |
| Net income | 48.7 m | 35.6 m | 42.5 m | esef· 02 Sept 2026verified |
| Diluted EPS | 0.39 | 0.28 | 0.35 | esef· 02 Sept 2026verified |
| Dividend per share | 0.24 | 0.29 | 0.29 | esef· 02 Sept 2026derived |
Balance sheet · GBP
| Line | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|
| Cash | 121.6 m | 128.3 m | 82.8 m | esef· 02 Sept 2026verified |
| Receivables | 41.8 m | 38.5 m | 55.7 m | esef· 02 Sept 2026verified |
| Current assets | 205.3 m | 202.4 m | 192.0 m | esef· 02 Sept 2026verified |
| Property, plant & equipment, net | 12.3 m | 12.1 m | 13.1 m | esef· 02 Sept 2026verified |
| Goodwill | 38.2 m | 37.3 m | 44.3 m | esef· 02 Sept 2026verified |
| Intangibles (excl. goodwill) | 5.2 m | 4.2 m | 8.9 m | esef· 02 Sept 2026verified |
| Total assets | 278.8 m | 267.1 m | 273.5 m | esef· 02 Sept 2026verified |
| Accounts payable | 50.1 m | 54.3 m | 76.5 m | esef· 02 Sept 2026verified |
| Current liabilities | 113.2 m | 121.2 m | 163.5 m | esef· 02 Sept 2026verified |
| Total liabilities | 122.0 m | 129.1 m | 173.1 m | esef· 02 Sept 2026verified |
| Equity | 156.8 m | 138.0 m | 100.5 m | esef· 02 Sept 2026verified |
| Shares outstanding at year end | 124.9 m | 125.2 m | 119.7 m | esef· 02 Sept 2026derived |
Cash flow · GBP
| Line | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | 69.0 m | 58.8 m | 57.7 m | esef· 02 Sept 2026verified |
| Capex | 5.7 m | 3.4 m | 8.0 m | esef· 02 Sept 2026verified |
| Free cash flow | 63.4 m ≈ | 55.4 m ≈ | 49.7 m ≈ | esef· 02 Sept 2026derived |
| Investing cash flow | -27.2 m | 7.9 m | -13.2 m | esef· 02 Sept 2026verified |
| Financing cash flow | -28.4 m | -59.7 m | -90.7 m | esef· 02 Sept 2026verified |
| Dividends paid | 30.4 m | 35.7 m | 34.6 m | esef· 02 Sept 2026verified |
| Share repurchases | 0 | 22.6 m | 55.7 m | esef· 02 Sept 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- score weight coverage: 52.1% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 1.5 bn GBP
Key indicators
Coverage and freshness
Score by group
52% · Insufficient data
Estimated value range
unavailable — no valuation assumptions for the reporting currency
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
Assumptions (illustrative, editorial)
- Risk-free rate
- 6.5%
- Equity risk premium
- 6.0%
- Beta (default)
- 1.00
- Cost of equity
- 12.5%
- Terminal growth
- 3.0%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 52.1% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 9.9% | 46 (vs peers) | 12% |
| FCF conversion · Quality | 116.9% | 100 (on a fixed band) | 12% |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 143.0x | 100 (on a fixed band) | 12% |
| Current ratio · Balance sheet | 1.2x | 31 (on a fixed band) | 8% |
| P/E (TTM) · Valuation | 35.7x | 6 (vs peers) | 20% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 3.3% | 41 (on a fixed band) | 16% |
| Shareholder yield (distributions) · Returns | 6.0% | 86 (on a fixed band) | 12% |
| Payout ratio (FCF) · Returns | 69.7% | 72 (on a fixed band) | 8% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet72/100 · 2/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality73/100 · 2/3 factors with a value
- Returns80/100 · 2/2 factors with a value
- Valuation21/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
KAINOS GROUP PLC (KNOS.L). Latest full fiscal year: 2026; data up to 2026-03-31.
Figures computed from the financial statements: revenue 431.1 m GBP in 2026; YoY growth 17.4%; net margin 9.9%; ROE 35.6%.
The estimated value range is 3.40–4.81 GBP per share (median of 2 methods, agreement: high); assumptions are illustrative. Against the central value of 4.10 GBP, the price of 12.54 GBP leaves a potential of -67.3% (value / price − 1) and a margin of safety of -205.9% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (score weight coverage: 52.1% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 116.9%
- Interest coverage: 143.0x
- Shareholder yield (distributions): 6.0%
- Payout ratio (FCF): 69.7%
What contradicts it
- P/E (TTM): 35.7x
- The price is above the estimated value range
Not assessed (insufficient data or a ratio without meaning): ROIC, Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, EV/EBITDA.
Versus the vertical median
Listed companies from United Kingdom · same country · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BATS.LBritish American Tobacco P.L.C. | 104.3 bn | 13.5 | 16.5% | 30.3% | −1.0% | +7% / +88% |
| ABF.LAssociated British Foods PLC | 14.7 bn | 14.3 | 9.2% | 5.3% | −3.1% | −5% / −15% |
| 0EV1.LCarnival PLC | 5.5 bn | 4.1 | 46.7% | 13.4% | +6.4% | unavailable / unavailable |
| BAB.LBabcock International Group PLC | 5.1 bn | 24.7 | 34.7% | 4.1% | +7.2% | −10% / +158% |
| AUTO.LAutotrader Group PLC | 4.8 bn | 16.4 | 60.2% | 47.1% | +3.9% | −13% / −23% |
| BBY.LBalfour Beatty PLC | 4.2 bn | 16.3 | 23.2% | 2.8% | +15.2% | +20% / +160% |
| ABDN.LAberdeen Group PLC | 4.1 bn | 10.8 | 8.0% | 28.9% | −2.1% | +11% / +41% |
| BKG.LThe Berkeley Group Holdings PLC | 3.6 bn | 11.3 | 8.8% | 13.4% | −4.2% | −0% / −22% |
| BME.LB&M European Value Retail PLC | 2.9 bn | 17.4 | 21.2% | 2.8% | +3.7% | +68% / −51% |
| AJB.LAj Bell PLC | 2.4 bn | 22.8 | 49.9% | 33.1% | +18.0% | +8% / +128% |
| KNOS.LKainos Group PLC | 1.5 bn | 35.7 | 35.6% | 9.9% | +17.4% | +20% / +30% |
| ASHM.LAshmore Group PLC | 1.4 bn | 13.9 | 13.1% | 71.6% | −0.1% | +28% / +18% |
| BCG.LBaltic Classifieds Group PLC | 1.2 bn | 23.2 | 15.8% | 57.6% | +6.9% | −99% / −99% |
| APN.LApplied Nutrition PLC | 763.6 m | 36.2 | 41.2% | 19.7% | +24.2% | +71% / unavailable |
| BAG.LA.G. Barr P.L.C. | 671.9 m | 14.4 | 14.4% | 10.8% | +4.0% | −7% / +26% |
| ASC.LAsos PLC | 494.5 m | — | -81.3% | -12.0% | −14.7% | +71% / +8% |
| ALFA.LAlfa Financial Software Holdings PLC | 486.8 m | 16.3 | 61.5% | 23.8% | +15.3% | −28% / +10% |
| AML.LAston Martin Lagonda Global Holdings PLC | 344.3 m | — | -93.4% | -39.2% | −20.6% | −45% / −85% |
| APTD.LAptitude Software Group PLC | 111.3 m | 28.5 | 7.2% | 6.2% | −7.3% | −30% / −23% |
| AMGO.LAmigo Holdings PLC | 9.9 m | — | — | — | −81.9% | +325% / +844% |
| ASBE.LAssociated British Engineering PLC | 605.3 k | — | -19.1% | — | unavailable | unavailable / unavailable |
| AMIF.LAmicorp Fs (uk) PLC | 221.6 k | 0.1 | 27.5% | 9.1% | +8.1% | unavailable / unavailable |
| AAF.LAirtel Africa PLC | — | — | 24.1% | 10.6% | +29.5% | −7% / +164% |
| AAL.LAnglo American PLC | — | — | -19.3% | -20.2% | +4.5% | +30% / +76% |
| ACG.LAcg Metals Limited | — | — | -80.3% | -32.0% | +134.8% | +60% / +63% |
1- and 3-year price returns: for KNOS.L from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (GBP)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 8.29 Total return -32% · Per year -32% | 14.59 Total return 19% · Per year 19% | 21.88 Total return 78% · Per year 78% |
| 3 years | 9.83 Total return -15% · Per year -5% | 19.29 Total return 63% · Per year 18% | 31.50 Total return 163% · Per year 38% |
| 5 years | 11.66 Total return 5% · Per year 1% | 25.51 Total return 122% · Per year 17% | 45.37 Total return 286% · Per year 31% |
- Exit P/E± 4.82
- Net margin± 3.38
- Annual revenue growth± 2.52
- Annual dilution± 0.28
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Kainos Group plc is a UK digital services and software company focused on the Workday platform and on projects for the public sector and healthcare. Revenue growth and faster AI adoption make the company a case worth following in the coming years, if these trends hold. The company reported revenue of 431.1 million GBP in fiscal 2026 1.
SWOT
Strengths
- The company has a debt-free balance sheet, a high level of recurring revenue and a broad customer base, according to management 1.
- The strategic relationship with Workday and recognised partner status in its ecosystem are important assets 1.
- Domain expertise, especially in the public sector and healthcare, supports the company's position on complex projects 1.
Weaknesses
- Reliance on a small number of platforms and partners could expose the company to changes in their strategies 1.
- Carbon emissions from business travel rose in the latest year, which raises questions about decarbonisation goals 1.
- A services-based business depends on the ability to recruit and retain staff with specialised skills 1.
Opportunities
- If AI becomes part of customers' existing systems, the company could expand its integration and product work 1.
- The government's digital modernisation plan could open large public sector contracts 1.
- Growth in the global Workday customer base could create additional demand for implementation and extension services 1.
Threats
- Macroeconomic and geopolitical uncertainty could lead clients to postpone transformation projects 1.
- Competition from large platforms and global integrators could pressure margins and market share 1.
- Rapid changes in AI technology could make some existing services less relevant if the company does not adapt 1.
Risks
- Climate-related reputational riskmedium
Management considers climate-related reputational risk a principal risk and pursues emission targets aligned with SBTi 1.
- Revenue recognition riskhigh
The auditor identified revenue recognition on fixed price contracts as a fraud risk, since progress estimates may be influenced 1.
- Dependence on Workdaymedium
A large part of activity is tied to one platform provider, which could affect revenue if the relationship changes 1.
- Macroeconomic uncertaintymedium
An uncertain economic and geopolitical environment could reduce client budgets for new projects 1.
- Rapid technological changemedium
Fast adoption of AI and AI agents could change demand for the company's traditional services 1.
Investment thesis
What would need to be true (bull case)
- If demand for digital transformation in the public sector and healthcare holds, the company could benefit from its solid backlog and growth in Workday Products 1.
- Its recognised Workday partner position and AI expertise could allow the company to win new projects in the coming years 1.
- A debt-free balance sheet gives flexibility to invest in products and new centres of excellence 1.
What would break the thesis
What to watch
- Evolution of the contracted backlog and revenue from Workday ProductsQ1 2027
- Progress of AI projects and value of the newly identified pipeline2027
- Results of public sector contracts linked to the digital modernisation plan2027
- Trend in business travel emissions against SBTi targetsnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Kainos provides digital transformation, software development and consulting services, organised into several divisions including Digital Services, Workday Products and Workday Services 1. The company relies on its strategic relationship with Workday and is one of the platform's important partners globally 1. Management describes a portfolio built on trust, domain expertise and responsible delivery 1.
Revenue is supported by a substantial contracted backlog, which management highlights as the company enters its new financial year 1. The company has no borrowings, and the board considers it has adequate resources to continue operations 1.
Kainos aims to help customers use AI inside their critical systems and to build software products where AI is a defining feature 1. The company is also building partnerships with other AI providers alongside Microsoft and Workday 1.
Segments
Workday Products
This division develops software products that extend the Workday platform for specific customer needs, and is one of the growth engines the company expects for the new financial year 1.
Workday Services
This division implements and supports Workday solutions, and Workday's success in attracting new customers is a key driver for this activity 1.
Digital Services
This division provides digital transformation services and bespoke systems projects, including for public sector and healthcare clients 1.
Market context
The UK government has set out a digital government roadmap to 2030 which, according to its own estimates, could deliver annual savings and productivity benefits of about 45 billion GBP 1. The NHS, the company's principal healthcare client, is pursuing faster digitisation, which opens further opportunities 1.
The HR and finance software market is moving toward integrated cloud suites, and Workday has more than 11,500 customers worldwide 1. Kainos views this trend as favourable for its implementation business 1.
Trends
- Digital modernisation of the public sectortailwind
The UK government's plan to replace legacy systems could create sustained demand for digital transformation services 1.
- Adoption of integrated cloud suitestailwind
Organisations increasingly prefer single platforms for HR and finance, which supports demand for Workday implementations 1.
- Artificial intelligencemixed
Management sees AI as the most significant opportunity since the move to cloud, but pressure to demonstrate returns and governance could slow some projects 1.
- Macroeconomic uncertaintyheadwind
The company notes that the macroeconomic and geopolitical environment remains uncertain, which could influence client spending decisions 1.
Competitive position
In the Workday ecosystem, the main competitors of the platform are Oracle and SAP, which have large implementation partner networks 1. Kainos differentiates itself through a smaller but highly certified group of consultants and domain experience 1.
In digital transformation and AI projects, the company competes with other consultancies and systems integrators, and its stated advantage lies in customer relationships and responsible delivery 1.
- OracleORCL
Direct competitor to Workday in HR and finance suites, cited in the source as the platform's main rival 1.
- SAP
Competitor to Workday in enterprise management and finance software, cited in the source as a main rival of the platform 1.
- Global systems integrators and consultancies
Firms offering implementation and digital transformation services, not individually identified in the source 1.
- UK digital service providers for the public sector
UK companies competing for government and healthcare contracts, not individually identified in the source 1.
News & filings
In the press
No news in our archive over the last 180 days.
Annual reports (ESEF)
- Annual report 202602 Sept 2026
- Annual report 202521 Aug 2025
Sources
- [1] Annual report, fiscal year ended 2026-03-31 (ESEF) · SEC / Kainos Group plc · 31 Mar 2026
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.