Kromek Group plc (KMK) AI Stock Analysis

• Market Cap: £38.49M
• Dividend Yield: N/A
• Average Volume (3M): 782.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.08
• Revenue Growth: -9.28%
• EPS Growth: -19.48%
• Country: UK
• Employees: 165
• Sector: Technology
• Sector Strength: 67
• Industry: Hardware, Equipment & Parts
• EPS (TTM): >-0.01
• Shares Outstanding: 641,546,300
• 10 Day Avg. Volume: 1,120,119
• 30 Day Avg. Volume: 782,353
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Kromek Group plc's overall score reflects significant challenges in financial performance, particularly in profitability and cash flow, despite low leverage. Technical indicators show potential resistance, while valuation remains unattractive. However, recent corporate events, including strategic partnerships and leadership changes, provide a more optimistic outlook, potentially enabling profitability and growth.

Kromek Group plc Business Overview & Revenue Model

Company Description

Kromek Group plc, together with its subsidiaries, develops, manufactures, and sells radiation detection components and devices for the medical imaging, civil nuclear industry, CBRNe security, and safety screening markets in the United Kingdom, North America, Asia, Europe, Australasia, and Africa. The company's products provide high-resolution information on material composition and structure that are used in various applications, ranging from the identification of cancerous tissues to hazardous materials, such as explosives, as well as the analysis of radioactive materials. It also offers civil nuclear radiation detection products, which include gamma radiation and neutron detectors, high-specification, high-resolution devices, components, and software for nuclear detection problems, as well as offers a range of radiation detectors that use cadmium zinc telluride (CZT) or scintillator technology for gamma-ray, x-ray, and neutron detection. In addition, the company provides medical imaging products, including CZT gamma detectors for SPECT imaging, CZT bone mineral densitometry detectors, and photon-counting spectral CT systems. Further, it offers CBRNE homeland security products and solutions for government, border control, airport and seaports, HazMat teams, ambulance crews, police, and armed forces, as well as a range of gamma spectroscopy software that enables specialized gamma-ray spectroscopy for the analysis of samples. Additionally, the company provides CZT imaging development platforms, such as the DMatrix and the EV3500 scalable x-ray CZT linear array for laboratory and research imaging; and engages in the scientific research and development activities. It sells its products through distributors, OEMs, and direct sales. The company was incorporated in 2013 and is headquartered in Sedgefield, the United Kingdom.

How the Company Makes Money

Kromek Group plc generates revenue through the sale of its proprietary detection and imaging equipment to customers across the healthcare, security, and nuclear sectors. The company also engages in contract-based projects, often funded by governmental or large institutional clients, to develop customized solutions for specific applications. Additionally, Kromek benefits from ongoing service contracts and the provision of spare parts to maintain its equipment, creating recurring revenue streams. Strategic partnerships and collaborations with industry leaders further enhance its market reach and contribute to its earnings.

Kromek Group plc Financial Statement Overview

Summary

Kromek Group plc is showing some improvements in revenue and gross profit margins but continues to face significant profitability and cash flow challenges. The company's balance sheet is relatively stable with low leverage, but negative returns indicate inefficiencies. Continued focus on improving operational efficiency and cash generation is crucial for financial health.

Income Statement

Kromek Group plc shows a volatile performance in its income statement. While there is a recent increase in revenue from £17.31 million to £19.40 million, the company is still operating at a net loss, with a negative net profit margin. Gross profit margins have improved to 55.2%, indicating better cost management. However, negative EBIT and EBITDA margins highlight ongoing operational challenges.

Balance Sheet

The balance sheet reflects moderate stability with a debt-to-equity ratio of 0.25, which is relatively low and indicates manageable leverage. However, the equity ratio stands at 70.3%, suggesting a solid equity base. Return on equity is negative due to net losses, indicating inefficiency in using shareholders' capital to generate profits.

Cash Flow

The cash flow statement reveals challenges in cash generation, as indicated by negative operating and free cash flows. Free cash flow has deteriorated further, showing significant cash outflows relative to net income. However, positive financing cash flow suggests reliance on external funding to support operations.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
19.40M	17.31M	12.05M	10.35M	13.12M
	Gross Profit
10.71M	6.04M	3.07M	2.65M	4.07M
	EBIT
-1.38M	-6.34M	-6.97M	-6.14M	-5.39M
	EBITDA
2.93M	-1.25M	-1.23M	-1.74M	-14.41M
	Net Income Common Stockholders
-3.29M	-6.10M	-4.92M	-5.35M	-16.54M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
466.00K	1.10M	5.08M	15.60M	9.44M
	Total Assets
70.19M	63.88M	67.42M	70.16M	64.66M
	Total Debt
12.29M	13.38M	11.00M	12.86M	9.77M
	Net Debt
11.82M	12.28M	5.92M	-2.74M	330.00K
	Total Liabilities
20.84M	22.35M	19.99M	20.10M	19.59M
	Stockholders Equity
49.35M	41.52M	47.44M	50.05M	45.07M
Cash Flow		Free Cash Flow
-7.84M	-5.78M	-10.29M	-7.69M	-12.59M
	Operating Cash Flow
-2.80M	-504.00K	-3.84M	-1.62M	-126.00K
	Investing Cash Flow
-5.00M	-5.27M	-6.45M	-6.07M	-11.21M
	Financing Cash Flow
7.18M	1.99M	-1.23M	14.44M	-544.00K

Kromek Group plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:KMK, the sentiment is Positive. The current price of 5.8 is above the 20-day moving average (MA) of 5.32, above the 50-day MA of 5.54, and below the 200-day MA of 5.82, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 62.53 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:KMK.

Kromek Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XAR	61 Neutral	£79.61M	―	-15.96%	―	-13.04%	-387.05%
Sector *	60 Neutral	$10.94B	10.37	-6.73%	2.98%	7.75%	-12.61%
OMG	59 Neutral	£69.85M	97.07	3.66%	5.77%	-6.29%	-86.64%
KMK	52 Neutral	£38.49M	―	-13.12%	―	-9.28%	-19.48%
TTG	49 Neutral	£144.15M	―	-22.95%	8.50%	-15.12%	-690.29%
SRT	47 Neutral	£156.24M	―		―	―	―

Kromek Group plc Corporate Events

Kromek Group Announces New CFO Appointment

Kromek Group plc announced a significant leadership change with Claire Burgess appointed as the new Chief Financial Officer and Company Secretary, succeeding Paul Farquhar who is retiring. Burgess brings over 12 years of experience in senior financial roles within the engineering and technology sectors, which aligns with Kromek’s strategic focus on growth in technology and engineering. Her expertise is expected to support Kromek’s ongoing strategy execution, potentially strengthening its market position and operational capabilities.

Spark’s Take on GB:KMK Stock

According to Spark, TipRanks’ AI Analyst, GB:KMK is a Neutral.

Kromek Group plc’s overall score is influenced heavily by its financial performance challenges, particularly in profitability and cash flow, despite some balance sheet stability. Technical indicators show mixed signals with potential resistance ahead, while valuation remains unattractive due to negative earnings. The recent corporate event with Siemens Healthineers provides a promising outlook, supporting potential profitability and growth.

To see Spark’s full report on GB:KMK stock, click here.

Kromek Group Exceeds FY 2025 Expectations, Eyes Continued Growth

Kromek Group plc announced a successful FY 2025, with revenues and profits exceeding market expectations, driven by a significant partnership with Siemens Healthineers and a recovery in its CBRN Detection segment. The company reduced its debt substantially and anticipates continued revenue growth and profitability in FY 2026, supported by strong contracted revenues and a robust international sales pipeline.

Spark’s Take on GB:KMK Stock

According to Spark, TipRanks’ AI Analyst, GB:KMK is a Neutral.

Kromek Group plc’s overall score is influenced heavily by its financial performance challenges, particularly in profitability and cash flow, despite some balance sheet stability. Technical indicators show mixed signals with potential resistance ahead, while valuation remains unattractive due to negative earnings. The recent corporate event with Siemens Healthineers provides a promising outlook, supporting potential profitability and growth.

To see Spark’s full report on GB:KMK stock, click here.

Kromek Group Secures $25 Million Payment from Siemens Healthineers, Paving Way for Profitability

Kromek Group plc announced it has received a $25 million payment from Siemens Healthineers, marking the first milestone in their multi-year agreement. This payment is expected to enable Kromek to achieve profitability in the current financial year and support revenue growth over the next four years. The funds will also help reduce debt and strengthen the company’s balance sheet, enhancing operational capabilities and stakeholder confidence.