Knowit ABFRA:KOW -0.43%66 ROE % is 3.29% as of Mar. 2026, which is 77% below its 10-year median of 14.16. GuruFocus rates FRA:KOW with a GF Score™ of 66/100 and a GF Value™ of €10.36 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 2,682 Software companies, Knowit AB ranks worse than 71.29% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Knowit AB's annualized net income for the quarter that ended in Mar. 2026 was €11.2 Mil. Knowit AB's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was €339.3 Mil. Therefore, Knowit AB's annualized ROE % for the quarter that ended in Mar. 2026 was 3.29%.
The historical rank and industry rank for Knowit AB's ROE % or its related term are showing as below:
FRA:KOW'
s ROE % Range Over the Past 10 Years
Min: -7.52 Med: 14.16 Max: 21.97
Current: -7.52
During the past 13 years, Knowit AB's highest ROE % was 21.97%. The lowest was -7.52%. And the median was 14.16%.
FRA:KOW's ROE % is ranked worse than 71.29% of 2682
companies
in the Software industry
Industry Median: 4.72
vs FRA:KOW: -7.52
Knowit AB (FRA:KOW) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Knowit AB ROE % Related Terms
Knowit AB ROE % Historical Data
* Premium members only.
The historical data trend for Knowit AB's ROE % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Information Technology Services subindustry, Knowit AB's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Knowit AB ROE % vs Software Industry
For the Software industry and Technology sector, Knowit AB's ROE % distribution charts can be found below:
* The bar in red indicates where Knowit AB's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Knowit AB (FRA:KOW) has a ROE % of 3.29% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Knowit AB and its competitors. This is 77% below median its historical median of 14.16. According to the industry distribution chart, Knowit AB ranks #1912 out of 2682 companies in the Software industry, placing it in the top 71.3%.
Is Knowit AB's ROE % too high?
Knowit AB's current ROE % of 3.29% is 77% below median its 10-year median of 14.16. The Software industry median ROE % is 4.72. Knowit AB's value of 3.29% is 30.3% below this industry median. Based on the distribution chart, Knowit AB ranks #1912 out of 2682 companies in the Software industry, which is below the industry midpoint. Overall, Knowit AB has a GF Score™ of 66/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Knowit AB's ROE % compare to IBM and ACN?
According to the Software industry distribution chart, Knowit AB ranks #1912 out of 2682 companies for ROE %. This places Knowit AB in the lower half of its industry. The industry median ROE % is 4.72. Knowit AB's value of 3.29% is 30.3% below this benchmark. While the company's 10-year median is 14.16 vs. the industry median of 4.72, Knowit AB has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Software company?
The median ROE % among Software companies is 4.72, based on 2,682 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Knowit AB's current ROE % of 3.29% is 30.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Knowit AB and its competitors. For the Software industry, the median ROE % is 4.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Knowit AB's current ROE % is 3.29%, which is 77% below median its own 10-year median of 14.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Knowit AB stock overvalued right now?
Based on GuruFocus' analysis, Knowit AB (FRA:KOW) is currently considered Possible Value Trap. The stock's GF Value™ is €10.36, compared to a current price of €6.90 — trading 33.4% below its estimated fair value. The current ROE % is 3.29%, which is 77% below median its 10-year median of 14.16 and 30.3% below the Software industry median of 4.72. Knowit AB's overall GF Score™ is 66/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Knowit AB (FRA:KOW), the current ROE % is 3.29% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Knowit AB (FRA:KOW) Overvalued in 2026?
Based on GuruFocus' analysis, Knowit AB stock appears to be undervalued.
The current stock price of €6.90 is trading 33.4% below its estimated GF Value™ of €10.36.
GuruFocus considers Knowit AB to be Possible Value Trap.
Key valuation signals for FRA:KOW:
ROE %: 3.29% (77% below median its 10-year median of 14.16)
GF Value™: €10.36 vs. price of €6.90 (33.4% below fair value)
Industry Position: 30.3% below the Software median (#1912 of 2682)
No single metric tells the full story. See the FRA:KOW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Knowit AB is a Nordic consultancy, operating three divisions: IT and system development; Customer experience technology and communications; Management consultancy. The company has about 2200 employees in 20 locations in Sweden, Norway, Denmark, Finland and Germany. Knowit provides services towards most industries, both public and private sector. Knowit AB (Publ) was founded in 1990 and is headquartered in Stockholm, Sweden.
66GF Score
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