| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 3.00 | -97 |
| Intrinsic value (DCF) | 58.07 | -41 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Karnov Group AB (publ) is a leading provider of online and offline information products and services for legal, tax, accounting, environmental, and health and safety professionals across Denmark, Norway, Sweden, and other European markets. Headquartered in Stockholm, Sweden, and listed on the London Stock Exchange, Karnov Group operates under well-established brands such as Karnov, Norstedts Juridik, Notisum, and LEXNordics. The company primarily offers subscription-based digital solutions, complemented by printed publications and legal training courses. Serving law firms, tax advisors, corporations, and public sector entities, Karnov Group plays a critical role in the legal and regulatory information sector. Founded in 1867, the company has a long-standing reputation for reliability and expertise in Nordic legal information services. With a market capitalization of approximately SEK 10 billion, Karnov Group is a key player in the European legal tech and professional information industry.
Karnov Group presents a mixed investment profile. The company operates in a stable, subscription-driven industry with recurring revenue streams, which is attractive. However, its recent financials show a net loss of SEK 33.1 million and negative diluted EPS (-SEK 0.31), raising concerns about profitability. Positive aspects include strong operating cash flow (SEK 315.5 million) and a solid cash position (SEK 402.8 million), but high total debt (SEK 2.87 billion) is a risk. The company’s low beta (0.684) suggests lower volatility compared to the broader market, which may appeal to risk-averse investors. Expansion in digital solutions could drive future growth, but competition and debt levels warrant caution.
Karnov Group holds a strong position in the Nordic legal and professional information market, leveraging its well-known brands and deep regional expertise. Its competitive advantage lies in its comprehensive, localized content tailored to Scandinavian legal systems, which is difficult for global competitors to replicate. The shift toward digital subscriptions aligns with industry trends, reducing reliance on print media. However, Karnov faces competition from both local niche providers and larger international players like Thomson Reuters and Wolters Kluwer, which have greater resources and global reach. Karnov’s focus on the Nordic region allows for specialized offerings but limits scalability outside these markets. The company’s ability to integrate digital solutions while maintaining high-quality content will be critical in defending its market share. Pricing pressure from free or low-cost legal information platforms could also pose a long-term threat.