Kadestone Capital Corp. (KDSX) AI Stock Analysis

• Market Cap: C$32.85M
• Dividend Yield: N/A
• Average Volume (3M): 3.70K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.88
• Revenue Growth: N/A
• EPS Growth: -208.53%
• Country: CA
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): -0.04
• Shares Outstanding: 46,928,246
• 10 Day Avg. Volume: 4,066
• 30 Day Avg. Volume: 3,698
• PEG Ratio: -0.06
• Price to Book (P/B): 7.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.42
• 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

• Rating: 47 Neutral
• Price Target: ―

Kadestone Capital Corp.'s stock score reflects significant financial challenges, including negative profitability and high leverage, which weigh heavily on the overall evaluation. Technical analysis indicates some short-term improvement but lacks strong upward momentum. The negative P/E ratio and absence of dividend yield further detract from its valuation appeal. Corporate events highlight increased net losses, adding to the negative sentiment.

Kadestone Capital Corp. Business Overview & Revenue Model

Company Description

Kadestone Capital Corp. (KDSX) is a company engaged in the acquisition, development, and management of real estate assets. It operates within the real estate sector, focusing on identifying undervalued properties and transforming them into profitable ventures. The company's portfolio includes residential, commercial, and mixed-use properties, aiming to deliver value through strategic enhancements and efficient management.

How the Company Makes Money

Kadestone Capital Corp. makes money primarily through the acquisition and development of real estate assets. Its revenue streams include rental income from leased properties, profits from the sale of developed or improved properties, and potential appreciation in property values over time. The company may also engage in joint ventures or partnerships that enhance its ability to finance and manage projects, contributing to its earnings through shared profits and reduced risks. Additionally, Kadestone may benefit from tax incentives or government programs that support real estate development, further impacting its financial performance.

Kadestone Capital Corp. Financial Statement Overview

Summary

Kadestone Capital Corp. is facing multiple financial challenges across its income statement, balance sheet, and cash flow statements. Despite some improvements in certain periods, consistent negative profitability and high leverage remain significant concerns. The company needs to enhance revenue generation and manage debt levels to achieve long-term financial stability.

Income Statement

The income statement reveals a challenging financial position for Kadestone Capital Corp. with declining revenue and consistent negative net income. The company showed a significant revenue drop from 2023 to TTM, alongside substantial negative EBIT and EBITDA margins, highlighting operational inefficiencies. Despite previous improvements in revenue, sustaining profitability remains a challenge.

Balance Sheet

The balance sheet shows a moderate level of financial health, with a debt-to-equity ratio indicating a high leverage situation. The equity ratio decreased slightly, reflecting an increased reliance on debt. Stockholder equity has been declining, pointing to potential financial stability concerns in the future if leverage continues to rise.

Cash Flow

Cash flow analysis indicates cash management challenges, with negative operating and free cash flows in TTM. The operating cash flow to net income ratio is unfavorable, showing inefficiencies in converting sales into operating cash. The free cash flow trend shows a decline, indicating issues in generating cash from operations, which could affect long-term sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	42.64K	0.00	2.31M	-125.93K	210.77K	13.80K
Gross Profit	143.19K	-2.12K	2.31M	-125.93K	225.47K	-11.68K
EBITDA	-4.68M	-4.54M	-3.29M	-3.84M	-2.30M	-2.23M
Net Income	-5.43M	-4.65M	-1.70M	-4.56M	-2.89M	-2.54M
Balance Sheet
Total Assets	15.57M	18.40M	27.50M	27.60M	23.13M	20.66M
Cash, Cash Equivalents and Short-Term Investments	2.93M	6.03M	4.33M	9.90M	5.02M	8.80M
Total Debt	10.02M	11.00M	16.13M	15.42M	8.69M	4.84M
Total Liabilities	11.86M	12.37M	17.23M	16.39M	9.05M	5.12M
Stockholders Equity	3.71M	6.02M	10.27M	11.22M	14.08M	15.54M
Cash Flow
Free Cash Flow	-6.01M	-5.03M	-2.38M	-2.35M	-1.45M	-1.73M
Operating Cash Flow	-5.98M	-5.01M	-2.38M	-2.35M	-1.38M	-1.73M
Investing Cash Flow	-1.66M	7.38M	-1.92M	-199.88K	-6.28M	-8.44M
Financing Cash Flow	-5.75M	-5.50M	-263.73K	6.42M	3.88M	18.15M

Kadestone Capital Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:KDSX, the sentiment is Negative. The current price of 0.75 is below the 20-day moving average (MA) of 0.78, below the 50-day MA of 0.81, and below the 200-day MA of 0.83, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 35.10 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:KDSX.

Kadestone Capital Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IEI	74 Outperform	C$34.64M	5.98	5.32%	2.22%	0.60%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
UFC	65 Neutral	C$45.16M	5.09	10.65%	6.02%	-17.79%	15.08%
RPR.UN	53 Neutral	C$37.34M	-0.12	-155.02%	―	-5.30%	-16.47%
KDSX	47 Neutral	C$32.85M	―	-85.51%	―	―	-208.53%
INO.UN	45 Neutral	C$26.88M	―	-22.37%	―	-10.79%	34.71%

Kadestone Capital Corp. Corporate Events

Kadestone Capital Corp. Reports Increased Net Loss for 2024 Amid Strategic Financial Moves

Kadestone Capital Corp. reported a net loss of $4.65 million for the year ended December 31, 2024, a significant increase from the previous year’s net loss of $1.79 million. This increase was attributed to higher operating expenses, including salaries, consulting fees, and interest expenses. Despite these challenges, the company successfully amended and restated a $10 million term loan and settled a convertible note, indicating strategic financial management. The financial results reflect the company’s ongoing operational spending and efforts to solidify its market position as a leading vertically integrated property company.

Spark’s Take on TSE:KDSX Stock

According to Spark, TipRanks’ AI Analyst, TSE:KDSX is a Neutral.

Kadestone Capital Corp.’s stock score reflects significant financial challenges, including negative profitability and high leverage, which weigh heavily on the overall evaluation. Technical analysis indicates some short-term improvement but lacks strong upward momentum. The negative P/E ratio and absence of dividend yield further detract from its valuation appeal.

To see Spark’s full report on TSE:KDSX stock, click here.