Kainos GroupLSE:KNOS -0.89%90 ROE % is 42.76% as of Mar. 2026, which is 20% above its 10-year median of 35.58. GuruFocus rates LSE:KNOS with a GF Score™ of 90/100 and a GF Value™ of £11.66 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 2,681 Software companies, Kainos Group ranks better than 92.5% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Kainos Group's annualized net income for the quarter that ended in Mar. 2026 was £43.8 Mil. Kainos Group's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was £102.5 Mil. Therefore, Kainos Group's annualized ROE % for the quarter that ended in Mar. 2026 was 42.76%.
The historical rank and industry rank for Kainos Group's ROE % or its related term are showing as below:
LSE:KNOS'
s ROE % Range Over the Past 10 Years
Min: 24.12 Med: 35.58 Max: 53.97
Current: 37.17
During the past 13 years, Kainos Group's highest ROE % was 53.97%. The lowest was 24.12%. And the median was 35.58%.
LSE:KNOS's ROE % is ranked better than 92.5% of 2681
companies
in the Software industry
Industry Median: 4.71
vs LSE:KNOS: 37.17
Kainos Group (LSE:KNOS) 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 two times the semi-annual (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (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.
Kainos Group ROE % Related Terms
Kainos Group ROE % Historical Data
* Premium members only.
The historical data trend for Kainos Group'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 Software - Application subindustry, Kainos Group'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.
Kainos Group ROE % vs Software Industry
For the Software industry and Technology sector, Kainos Group's ROE % distribution charts can be found below:
* The bar in red indicates where Kainos Group'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 two times the semi-annual (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Kainos Group (LSE:KNOS) has a ROE % of 42.76% 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 Kainos Group and its competitors. This is 20% above median its historical median of 35.58. Over the past decade, Kainos Group's ROE % has ranged from 24.12 to 53.97. According to the industry distribution chart, Kainos Group ranks #201 out of 2681 companies in the Software industry, placing it in the top 7.5%.
Is Kainos Group's ROE % too high?
Kainos Group's current ROE % of 42.76% is 20% above median its 10-year median of 35.58. Over the past 10 years, this metric has ranged from a low of 24.12 to a high of 53.97. The Software industry median ROE % is 4.71. Kainos Group's value of 42.76% is 807.9% above this industry median. Based on the distribution chart, Kainos Group ranks #201 out of 2681 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Kainos Group has a GF Score™ of 90/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kainos Group's ROE % compare to CRM and SHOP?
According to the Software industry distribution chart, Kainos Group ranks #201 out of 2681 companies for ROE %. This places Kainos Group in the top 8% of its industry — outperforming the majority of peers. The industry median ROE % is 4.71. Kainos Group's value of 42.76% is 807.9% above this benchmark. Historically, Kainos Group's own ROE % has ranged from 24.12 to 53.97 over the past decade. While the company's 10-year median is 35.58 vs. the industry median of 4.71, Kainos Group has consistently been above 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 4.71, based on 2,681 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. Kainos Group's current ROE % of 42.76% is 807.9% above 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 Kainos Group and its competitors. For the Software industry, the median ROE % is 4.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kainos Group's current ROE % is 42.76%, which is 20% above median its own 10-year median of 35.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kainos Group stock overvalued right now?
Based on GuruFocus' analysis, Kainos Group (LSE:KNOS) is currently considered Significantly Undervalued. The stock's GF Value™ is £11.66, compared to a current price of £7.80 — trading 33.1% below its estimated fair value. The current ROE % is 42.76%, which is 20% above median its 10-year median of 35.58 and 807.9% above the Software industry median of 4.71. Kainos Group's overall GF Score™ is 90/100 with 2 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 Kainos Group (LSE:KNOS), the current ROE % is 42.76% 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 Kainos Group (LSE:KNOS) Overvalued in 2026?
Based on GuruFocus' analysis, Kainos Group stock appears to be undervalued.
The current stock price of £7.80 is trading 33.1% below its estimated GF Value™ of £11.66.
GuruFocus considers Kainos Group to be Significantly Undervalued.
Key valuation signals for LSE:KNOS:
ROE %: 42.76% (20% above median its 10-year median of 35.58)
GF Value™: £11.66 vs. price of £7.80 (33.1% below fair value)
Industry Position: 807.9% above the Software median (#201 of 2681)
No single metric tells the full story. See the LSE:KNOS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kainos Group PLC provides information technology services, consulting, and software solutions. It is structured into three divisions namely Digital Services, Workday Services, and Workday Products. Digital Services which derives key revenue, includes full life cycle development and support of digital solutions for government and commercial customers. The Workday Services division specializes in deploying and supporting Workday's Finance, HR, and Planning products. The Workday Products division develops products that complement Workday such as the smart product suite, including Smart Test, Smart Audit, and Smart Shield. Geographically, the company's maximum revenue is generated from the United Kingdom and Ireland and the rest from North America, Central Europe, and the Rest of the world.
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