# Kainos Group (KNOS.LSE)

Canonical: https://gigainvestors.com/s/KNOS.LSE

Analysis as of: 2026-10-16T07:40:57.893Z. Financial observations: FY2013–FY2026.

Listing currency: GBX. Reporting currency: GBP.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 1,287.00 per share; close as of 2026-10-15.

Estimated value: low GBX 621.53 per share, central GBX 783.52 per share, high GBX 905.56 per share. Buy at or below the central value GBX 783.52 per share. Valuation as of 2026-10-16T07:40:57.893Z; scenarios are not confidence intervals.

Expected annual return: 7.1% at the stated quote. About 7.1% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.18×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.16×

- FY2018: 0.15×

- FY2019: 0.14×

- FY2020: 0.12×

- FY2021: 0.21×

- FY2022: 0.15×

- FY2023: 0.13×

- FY2024: 0.16×

- FY2025: 0.12×

- FY2026: 0.12×

### moat: pass

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC, median of available years: >100%

- ROIC, second-lowest year: 38.0%

- Typical minus recent gross margin: 1.4 pp

- Typical gross margin (annual median): 47.6%

- Recent gross margin (lower of latest and 3-year median): 46.1%

- Years with nonpositive capital: 2

- Capital spending / revenue: 1.3%

- ROIC including acquisitions, ten-year median: 96.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 82.4%

- FY2018: 84.5%

- FY2019: >100%

- FY2020: 98.6%

- FY2021: >100%

- FY2022: >100%

- FY2023: >100%

- FY2024: >100%

- FY2025: 21.7%

- FY2026: 38.0%

### economics: pass

- Owner earnings / net income, 5-yr: 1.02×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: GBP 208M

- Net income, five-year total: GBP 204M

- Return on incremental invested capital: 258.8%

- Working capital / revenue, annual change: -0.1 pp

- Working capital / revenue, change between three-year averages: -1.9 pp

- Working capital / revenue, final three-year average: 4.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.98×

- FY2023: 1.08×

- FY2024: 1.03×

- FY2025: 1.03×

- FY2026: 0.97×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 84.5% vs 38.0%

- Per-share earnings: 0.10 to 0.36 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.1%

- Ordinary dilution, 5-year annual growth: -0.9%

- Market cap gain: GBP 595M

- Cumulative retained earnings: GBP 17M

- Diluted shares, 10-year annual growth: -0.1%

- Diluted shares, 5-year annual growth: -0.9%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 17.8%

- Per-share value change: GBP 0.26

- Per-share value, starting three-year median: GBP 0.10

- Per-share value, ending three-year median: GBP 0.36

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 4.6%

- Buyback history: 2 years

- Debt-funded buybacks: Yes

- Acquisition spending: GBP 72M

- Cumulative net income, 10 years: GBP 301M

- ROIC, first three-year median: 84.5%

- ROIC, last three-year median: 38.0%

Chart: Earnings per share; fiscal year observations.

- FY2017: GBP 0.09

- FY2018: GBP 0.10

- FY2019: GBP 0.14

- FY2020: GBP 0.15

- FY2021: GBP 0.32

- FY2022: GBP 0.28

- FY2023: GBP 0.33

- FY2024: GBP 0.38

- FY2025: GBP 0.29

- FY2026: GBP 0.36

### accounting: pass

- Sloan accruals: -6.7%

- Receivables to sales index (DSRI): 1.33×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 8.8%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.43×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.53×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -12.8%

- FY2018: -3.8%

- FY2019: -6.1%

- FY2020: -5.0%

- FY2021: -12.4%

- FY2022: -4.3%

- FY2023: -8.7%

- FY2024: -8.7%

- FY2025: -8.7%

- FY2026: -6.7%

## Holders

## Price story

Down 35% since Oct 2021 · sales +17.4%

Story as of 2026-10-16T10:00:11.749Z; price observation 2026-10-15.

Price needs cash profits to grow 11% a year for ten years

### Sales · FY2025–2026

sales +17.4%; source https://filings.xbrl.org/213800H2PQMIF3OVZY47/2026-03-31/ESEF/GB/0/213800H2PQMIF3OVZY47-2026-03-31/reports/213800H2PQMIF3OVZY47-2026-03-31-T01.xhtml; observed 2026-09-02.

- FY2017: GBP 84M 

- FY2018: GBP 97M 

- FY2019: GBP 151M 

- FY2020: GBP 179M 

- FY2021: GBP 235M 

- FY2022: GBP 303M 

- FY2023: GBP 375M 

- FY2024: GBP 382M 

- FY2025: GBP 367M 

- FY2026: GBP 431M 

### Gross margin · FY2026

gross margin 46.1%; source https://filings.xbrl.org/213800H2PQMIF3OVZY47/2026-03-31/ESEF/GB/0/213800H2PQMIF3OVZY47-2026-03-31/reports/213800H2PQMIF3OVZY47-2026-03-31-T01.xhtml; observed 2026-09-02.

- FY2017: 50.3% 

- FY2018: 48.2% 

- FY2019: 45.7% 

- FY2020: 47.0% 

- FY2021: 50.4% 

- FY2022: 46.3% 

- FY2023: 47.3% 

- FY2024: 49.0% 

- FY2025: 47.9% 

- FY2026: 46.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software application; annual sales are GBP 431.1 million.

- Source: https://eodhd.com/api/fundamentals/KNOS.LSE.json#2026-03-31 (filed 2026-09-02); FY2026: revenue 431098000; grossProfit 198908000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); KNOS.LSE: Kainos Group plc engages in the provision of information technology services in the United Kingdom, Ireland, North Americas, Central Europe, and internationally. The company operates through Digital Services, Workday Services, and Workday Products segments. The Digital Services segment develops and supports customized digital service platforms to improve customer service and productivity. The Workday Services segment provides comprehensive range of services to support customers deploying Workday's Finance, HR, and Planning products. The Workday Products segment develops Software as a Service products comprising Smart Test which creates automated and customized tests; Smart Audit that delivers automated, always-on security, and compliance controls and monitoring for workday customers; Smart Shield which provides privacy and control of sensitive data to deliver Workday reports; Employee Document Management which delivers a compliant, automated, digital employee document solution; and Pay Transparency Analyzer that enables customers to comply with the new EU Pay Transparency Directive. The company also engages in the property business; software development activities; and provision of software services. It serves the financial services, insurance, payment, education, life sciences and healthcare industries, as well as government. Kainos Group plc was founded in 1986 and is headquartered in Belfast, the United Kingdom.

### Why customers stay

Margins ranged from 46.1% to 49% during 2024–26; it earns over 100% on its capital.

- Source: https://eodhd.com/api/fundamentals/KNOS.LSE.json#2024-03-31 (filed 2026-09-02); FY2024: grossProfit / revenue = 49%.

- Source: https://eodhd.com/api/fundamentals/KNOS.LSE.json#2025-03-31 (filed 2026-09-02); FY2025: grossProfit / revenue = 47.9%.

- Source: https://eodhd.com/api/fundamentals/KNOS.LSE.json#2026-03-31 (filed 2026-09-02); FY2026: grossProfit / revenue = 46.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-02); 10-year return on capital observations [[2017,0.8236785736785737],[2018,0.8446629072634294],[2019,1.0212737182206846],[2020,0.9863882548243078],[2021,5.74092824519262],[2022,2.3739666958242376],[2023,11.650547430952713],[2024,43.65338787952463],[2025,0.21662679957078698],[2026,0.38043868847617845]]; median 1.0038309865224961. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 5.3% of cash earnings on expansion; earns over 100% on new investment.

- Source: https://eodhd.com/api/fundamentals/KNOS.LSE.json#2017-03-31 (filed 2026-09-02); FY2017: growth capex 0; upkeep 813000; owner earnings 10500000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/KNOS.LSE.json#2018-03-31 (filed 2026-09-02); FY2018: growth capex 154000; upkeep 976000; owner earnings 11666000. Growth capex / owner earnings = 0.01320075432881879.

- Source: https://eodhd.com/api/fundamentals/KNOS.LSE.json#2019-03-31 (filed 2026-09-02); FY2019: growth capex 869000; upkeep 1147000; owner earnings 16939000. Growth capex / owner earnings = 0.05130172973611193.

- Source: https://eodhd.com/api/fundamentals/KNOS.LSE.json#2020-03-31 (filed 2026-09-02); FY2020: growth capex 949944.1923471913; upkeep 7236055.807652809; owner earnings 13760944.192347191. Growth capex / owner earnings = 0.06903190501095696.

- Source: https://eodhd.com/api/fundamentals/KNOS.LSE.json#2021-03-31 (filed 2026-09-02); FY2021: growth capex 0; upkeep 1468000; owner earnings 40494400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/KNOS.LSE.json#2022-03-31 (filed 2026-09-02); FY2022: growth capex 737000; upkeep 5082000; owner earnings 35095800. Growth capex / owner earnings = 0.020999663777432058.

- Source: https://eodhd.com/api/fundamentals/KNOS.LSE.json#2023-03-31 (filed 2026-09-02); FY2023: growth capex 0; upkeep 2499000; owner earnings 44924200. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/KNOS.LSE.json#2024-03-31 (filed 2026-09-02); FY2024: growth capex 0; upkeep 5662000; owner earnings 50101400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/KNOS.LSE.json#2025-03-31 (filed 2026-09-02); FY2025: growth capex 0; upkeep 3369000; owner earnings 36573400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/KNOS.LSE.json#2026-03-31 (filed 2026-09-02); FY2026: growth capex 2174000; upkeep 5867000; owner earnings 41272800. Growth capex / owner earnings = 0.05267391599309957.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-02); Incremental return on capital 2.5882905765432933, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-02); Dividend observations: [[2017,7208000],[2018,7581000],[2019,8917000],[2020,12147000],[2021,16026000],[2022,27419000],[2023,28434000],[2024,30422000],[2025,35748000],[2026,34632000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/api/fundamentals/KNOS.LSE.json#2026-03-31 (filed 2026-09-02); FY2026: cash repurchases 55682000 GBP.

### Are managers owners

Insiders own 30.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); KNOS.LSE SharesStats.PercentInsiders = 30.799 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 11% yearly over ten years; actual growth was 12.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-02); Ten-year compound average after fade. Initial solved rate 0.1930677527314104. Price 1287; FX 100; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2016 owner earnings/share 0.10309355323085091 → FY2026 0.3473907480977712. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 202.50 per share

- 2016-11: GBX 223.75 per share

- 2016-12: GBX 204.50 per share

- 2017-01: GBX 201.00 per share

- 2017-02: GBX 220.00 per share

- 2017-03: GBX 228.00 per share

- 2017-04: GBX 242.75 per share

- 2017-05: GBX 232.25 per share

- 2017-06: GBX 270.75 per share

- 2017-07: GBX 290.00 per share

- 2017-08: GBX 294.00 per share

- 2017-09: GBX 291.50 per share

- 2017-10: GBX 284.25 per share

- 2017-11: GBX 315.00 per share

- 2017-12: GBX 339.50 per share

- 2018-01: GBX 350.00 per share

- 2018-02: GBX 348.00 per share

- 2018-03: GBX 340.00 per share

- 2018-04: GBX 365.00 per share

- 2018-05: GBX 407.00 per share

- 2018-06: GBX 400.00 per share

- 2018-07: GBX 370.00 per share

- 2018-08: GBX 391.00 per share

- 2018-09: GBX 419.00 per share

- 2018-10: GBX 391.00 per share

- 2018-11: GBX 428.00 per share

- 2018-12: GBX 400.00 per share

- 2019-01: GBX 421.00 per share

- 2019-02: GBX 493.00 per share

- 2019-03: GBX 552.00 per share

- 2019-04: GBX 528.00 per share

- 2019-05: GBX 616.00 per share

- 2019-06: GBX 652.00 per share

- 2019-07: GBX 562.00 per share

- 2019-08: GBX 498.00 per share

- 2019-09: GBX 452.00 per share

- 2019-10: GBX 508.00 per share

- 2019-11: GBX 592.00 per share

- 2019-12: GBX 742.00 per share

- 2020-01: GBX 790.00 per share

- 2020-02: GBX 746.00 per share

- 2020-03: GBX 658.00 per share

- 2020-04: GBX 700.00 per share

- 2020-05: GBX 836.00 per share

- 2020-06: GBX 749.00 per share

- 2020-07: GBX 1,100.00 per share

- 2020-08: GBX 1,120.00 per share

- 2020-09: GBX 993.00 per share

- 2020-10: GBX 1,234.00 per share

- 2020-11: GBX 1,216.00 per share

- 2020-12: GBX 1,218.00 per share

- 2021-01: GBX 1,244.00 per share

- 2021-02: GBX 1,316.00 per share

- 2021-03: GBX 1,492.00 per share

- 2021-04: GBX 1,528.00 per share

- 2021-05: GBX 1,423.00 per share

- 2021-06: GBX 1,475.00 per share

- 2021-07: GBX 1,727.00 per share

- 2021-08: GBX 1,962.00 per share

- 2021-09: GBX 1,877.00 per share

- 2021-10: GBX 1,980.00 per share

- 2021-11: GBX 1,858.00 per share

- 2021-12: GBX 1,917.00 per share

- 2022-01: GBX 1,521.00 per share

- 2022-02: GBX 1,507.00 per share

- 2022-03: GBX 1,323.00 per share

- 2022-04: GBX 1,218.00 per share

- 2022-05: GBX 1,261.00 per share

- 2022-06: GBX 1,109.00 per share

- 2022-07: GBX 1,365.00 per share

- 2022-08: GBX 1,362.00 per share

- 2022-09: GBX 1,287.00 per share

- 2022-10: GBX 1,237.00 per share

- 2022-11: GBX 1,595.00 per share

- 2022-12: GBX 1,543.00 per share

- 2023-01: GBX 1,473.00 per share

- 2023-02: GBX 1,391.00 per share

- 2023-03: GBX 1,382.00 per share

- 2023-04: GBX 1,240.00 per share

- 2023-05: GBX 1,282.00 per share

- 2023-06: GBX 1,232.00 per share

- 2023-07: GBX 1,310.00 per share

- 2023-08: GBX 1,215.00 per share

- 2023-09: GBX 1,149.00 per share

- 2023-10: GBX 1,122.00 per share

- 2023-11: GBX 965.50 per share

- 2023-12: GBX 1,119.00 per share

- 2024-01: GBX 1,147.00 per share

- 2024-02: GBX 1,103.00 per share

- 2024-03: GBX 965.50 per share

- 2024-04: GBX 981.00 per share

- 2024-05: GBX 1,152.00 per share

- 2024-06: GBX 1,058.00 per share

- 2024-07: GBX 1,098.00 per share

- 2024-08: GBX 1,106.00 per share

- 2024-09: GBX 883.00 per share

- 2024-10: GBX 747.00 per share

- 2024-11: GBX 776.00 per share

- 2024-12: GBX 809.00 per share

- 2025-01: GBX 818.00 per share

- 2025-02: GBX 697.00 per share

- 2025-03: GBX 664.00 per share

- 2025-04: GBX 731.50 per share

- 2025-05: GBX 727.00 per share

- 2025-06: GBX 744.50 per share

- 2025-07: GBX 740.00 per share

- 2025-08: GBX 707.00 per share

- 2025-09: GBX 944.50 per share

- 2025-10: GBX 942.00 per share

- 2025-11: GBX 1,043.00 per share

- 2025-12: GBX 1,004.00 per share

- 2026-01: GBX 900.00 per share

- 2026-02: GBX 755.00 per share

- 2026-03: GBX 730.00 per share

- 2026-04: GBX 831.50 per share

- 2026-05: GBX 871.50 per share

- 2026-06: GBX 767.00 per share

- 2026-07: GBX 880.50 per share

- 2026-08: GBX 1,247.00 per share

- 2026-09: GBX 1,225.00 per share

- 2026-10: GBX 1,287.00 per share

## Annual estimated value (GBX per share)

- FY2017: low GBX 117.96 per share, central GBX 131.68 per share, high GBX 149.94 per share

- FY2018: low GBX 135.65 per share, central GBX 151.28 per share, high GBX 172.09 per share

- FY2019: low GBX 201.91 per share, central GBX 225.30 per share, high GBX 256.45 per share

- FY2020: low GBX 220.52 per share, central GBX 246.78 per share, high GBX 281.73 per share

- FY2021: low GBX 309.61 per share, central GBX 343.87 per share, high GBX 389.46 per share

- FY2022: low GBX 361.50 per share, central GBX 403.60 per share, high GBX 459.65 per share

- FY2023: low GBX 580.45 per share, central GBX 810.08 per share, high GBX 938.14 per share

- FY2024: low GBX 617.07 per share, central GBX 858.20 per share, high GBX 992.69 per share

- FY2025: low GBX 562.99 per share, central GBX 703.90 per share, high GBX 806.65 per share

- FY2026: low GBX 603.61 per share, central GBX 760.92 per share, high GBX 879.45 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original ESEF filing](https://filings.xbrl.org/213800H2PQMIF3OVZY47/2026-03-31/ESEF/GB/0/213800H2PQMIF3OVZY47-2026-03-31/reports/213800H2PQMIF3OVZY47-2026-03-31-T01.xhtml); period 2026-03-31, filed 2026-09-02.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.