| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 5.90 | -98 |
| Intrinsic value (DCF) | 65.56 | -78 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Knowit AB (publ) is a leading Nordic consultancy firm specializing in digital transformation and IT services. Headquartered in Stockholm, Sweden, the company operates across four key segments: Solutions, Experience, Connectivity, and Insight. Knowit provides a comprehensive suite of services, including product and service development, cybersecurity, cloud solutions, digital marketing, CRM, e-commerce, and data analytics. The company serves a diverse clientele spanning banking, finance, insurance, energy, manufacturing, life sciences, media, education, public sector, retail, and telecom industries. With a strong focus on digital and agile transformation, Knowit helps organizations optimize operations, enhance customer experiences, and drive innovation. Founded in 1990 and listed on the London Stock Exchange, Knowit has established itself as a trusted partner for businesses navigating the complexities of digitalization in the Nordic region. The company's expertise in automation, organizational development, and change management positions it as a critical enabler of digital progress in a rapidly evolving technological landscape.
Knowit AB presents a compelling investment case as a well-established digital consultancy in the Nordic market, with a diversified service portfolio and a strong client base across multiple industries. The company's solid revenue of SEK 6.42 billion and net income of SEK 106 million demonstrate stable performance, while its debt-free balance sheet (with SEK 397.8 million in cash) provides financial flexibility. The dividend yield of approximately 3.75 SEK per share adds income appeal. However, investors should note the competitive nature of the IT consulting sector and potential margin pressures from talent acquisition costs. The company's beta of 0.905 suggests lower volatility than the broader market, which may appeal to risk-averse investors. Knowit's focus on high-growth areas like cloud services, data analytics, and digital transformation could drive future growth, though execution risks in a tightening labor market for tech talent remain a consideration.
Knowit AB competes in the crowded Nordic IT consulting market by differentiating through its full-spectrum digital transformation capabilities and strong regional presence. The company's four-segment structure allows for specialized service delivery while maintaining cross-segment synergies. Knowit's competitive advantage lies in its deep industry knowledge across financial services, healthcare, and public sectors - where regulatory complexity creates higher barriers to entry. The firm's Nordic focus provides cultural and linguistic advantages over global competitors, while its scale (SEK 6.4B revenue) gives it an edge over smaller local players. However, Knowit faces intense competition from both large multinational consultancies (with greater resources) and niche digital agencies (with deeper expertise in specific technologies). The company's zero-debt position provides strategic flexibility but may also indicate under-leveraged growth potential compared to more aggressive competitors. Knowit's profitability (1.65% net margin) appears modest relative to industry leaders, suggesting room for operational improvement. The firm's ability to attract and retain top tech talent will be critical as the war for digital skills intensifies across Europe.