Kinaxis Inc (KXS) AI Stock Analysis

• Market Cap: C$5.60B
• Dividend Yield: N/A
• Average Volume (3M): 95.80K
• Price to Earnings (P/E): 406.1
• Beta (1Y): 0.87
• Revenue Growth: 15.14%
• EPS Growth: -31.45%
• Country: CA
• Employees: 1,674
• Sector: Technology
• Sector Strength: 82
• Industry: Software - Application
• EPS (TTM): 1.22
• Shares Outstanding: 28,097,271
• 10 Day Avg. Volume: 88,184
• 30 Day Avg. Volume: 95,801
• PEG Ratio: -562.12
• Price to Book (P/B): 7.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 33.09
• 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: C$212.50
• Price Target Upside: 6.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

Kinaxis Inc. is positioned well for future growth, with strong revenue increases, cash flow generation, and strategic partnerships outlined in the earnings call. However, overvaluation concerns and technical overbought signals present potential risks. Balancing these factors, the stock receives a moderate score.

Positive Factors

Earnings

KXS had a record quarter of new ARR bookings, demonstrating a strong recovery from previous weaknesses and highlighting growth potential.

Financial Performance

Analyst has raised the FY2025E EBITDA, showing confidence in the company's financial performance.

Market Position

Kinaxis is very well-positioned in its core markets, backed by strong customer and industry feedback, an impressive customer list, and a long-term growth rate.

Negative Factors

Economic Environment

The Street is slightly high on FY2025 SaaS revenue given FX headwinds and a spending environment that remains subdued.

Revenue Estimates

Consensus FY2025 estimates are considered too high, with expectations 2% below consensus on FY2025 SaaS revenue and total revenue, and 6% below on EBITDA.

Kinaxis Inc Business Overview & Revenue Model

Company Description

Kinaxis Inc. (KXS) is a Canadian-based software company that specializes in supply chain management and sales and operations planning solutions. The company's flagship product, RapidResponse, is a cloud-based platform that enables businesses to enhance their supply chain processes by providing real-time analytics, advanced planning capabilities, and collaborative decision-making tools. Kinaxis serves a wide range of industries including automotive, aerospace, consumer products, high-tech, and life sciences, helping organizations improve their operational efficiencies and reduce costs.

How the Company Makes Money

Kinaxis Inc. primarily generates revenue through the sale of subscription-based licenses for its RapidResponse platform. This Software-as-a-Service (SaaS) model allows customers to access and utilize the platform's capabilities via the cloud on a recurring subscription basis. Additionally, the company earns revenue through professional services, which include implementation, training, and support for its software. Kinaxis also benefits from long-term customer relationships and renewals, which contribute to a stable and predictable revenue stream. Strategic partnerships and collaborations with other technology providers and consulting firms further enhance the company's market reach and revenue potential.

Kinaxis Inc Financial Statement Overview

Summary

Kinaxis Inc. demonstrates strong revenue growth and solid cash flow generation, supported by a robust balance sheet with low leverage. However, profitability margins are under pressure, which affects return on equity.

Income Statement

Kinaxis Inc. shows strong revenue growth with a notable increase from $426.97M to $483.11M, indicating a healthy expansion trajectory. Gross profit margin remains solid at 61%, with a slight decline in net profit margin to 0.01% from 2.36% last year, largely due to zero EBIT reported this year, affecting profitability. EBITDA margin, however, remains consistent at around 7.8%. Overall, the company demonstrates impressive revenue growth but faces challenges in maintaining higher profitability margins.

Balance Sheet

The balance sheet reflects a robust equity position with an equity ratio of 57.7%, indicating financial stability. The debt-to-equity ratio is low at 0.12, suggesting prudent leverage management. However, return on equity has decreased to 0.01% from 2.21%, reflecting lower net income. Kinaxis Inc. maintains a healthy cash reserve, contributing to its strong financial standing.

Cash Flow

Operating cash flow increased significantly to $99.21M, showcasing strong cash generation capabilities. Free cash flow also improved to $94.70M, indicating efficient capital management. The operating cash flow to net income ratio is exceptionally high due to the low net income reported, which may not fully reflect operational efficiency. Overall, cash flow metrics show positive trends, but the low net income slightly clouds the picture.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
483.11M	426.97M	366.89M	250.73M	224.19M
	Gross Profit
294.58M	258.90M	235.79M	163.97M	154.06M
	EBIT
0.00	14.10M	25.60M	2.48M	20.97M
	EBITDA
37.67M	40.39M	50.66M	22.89M	36.53M
	Net Income Common Stockholders
56.00K	10.06M	20.08M	-1.17M	13.73M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
298.50M	292.96M	225.82M	233.39M	213.14M
	Total Assets
685.34M	691.98M	648.27M	520.27M	428.41M
	Total Debt
48.94M	51.79M	56.97M	55.76M	16.62M
	Net Debt
-123.26M	-123.05M	-118.38M	-147.46M	-166.34M
	Total Liabilities
289.82M	237.15M	246.84M	199.05M	146.65M
	Stockholders Equity
395.51M	454.83M	401.43M	321.22M	281.76M
Cash Flow		Free Cash Flow
94.70M	77.06M	6.27M	16.30M	45.03M
	Operating Cash Flow
99.21M	79.36M	24.52M	50.14M	59.47M
	Investing Cash Flow
-13.62M	-67.31M	-74.99M	-34.63M	-76.26M
	Financing Cash Flow
-83.69M	-12.04M	26.84M	5.85M	16.64M

Kinaxis Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 199.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:KXS, the sentiment is Positive. The current price of 199.15 is above the 20-day moving average (MA) of 186.94, above the 50-day MA of 171.16, and above the 200-day MA of 165.90, indicating a bullish trend. The MACD of 8.28 indicates Negative momentum. The RSI at 73.59 is Negative, neither overbought nor oversold. The STOCH value of 92.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:KXS.

Kinaxis Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DSG	77 Outperform	$13.44B	69.58	10.92%	―	16.07%	25.71%
ENGH	75 Outperform	$1.49B	17.58	14.76%	3.94%	8.11%	15.83%
DCBO	75 Outperform	C$1.12B	34.94	41.12%	―	20.52%	246.69%
OTEX	74 Outperform	$10.18B	11.56	15.87%	3.71%	-8.74%	307.82%
KXS	70 Outperform	C$5.60B	406.13	2.32%	―	15.14%	-31.45%
LSPD	63 Neutral	C$2.32B	―	-5.18%	―	23.95%	39.68%
Sector *	60 Neutral	$11.64B	10.63	-6.94%	2.93%	7.63%	-11.15%

Kinaxis Inc Corporate Events

Kinaxis Inc. Reports Robust Q1 2025 Results Amid Market Uncertainties

Kinaxis Inc. reported a strong first quarter for 2025 with a 16% growth in SaaS revenue and a 14% increase in annual recurring revenue. The company maintained its fiscal 2025 guidance despite global market uncertainties due to tariffs. Their flagship event, Kinexions, showcased new AI capabilities, enhancing their competitive edge and providing stakeholders with innovative solutions to tackle supply chain challenges.

Spark’s Take on TSE:KXS Stock

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

Kinaxis Inc. shows strong revenue and ARR growth with solid cash flow and financial stability, which are key strengths. However, profitability challenges and negative valuation metrics weigh on the overall score. The company’s strategic advancements and positive earnings call sentiment suggest a favorable outlook, but technical indicators show bearish momentum, adding caution to the stock’s performance.

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

Kinaxis Inc. Achieves Record Growth in Q4 2024

Kinaxis Inc. reported strong fourth-quarter results for 2024, achieving record-breaking incremental business and customer additions. The company saw a 17% growth in SaaS revenue and a 14% increase in annual recurring revenue in constant currency. Despite a loss per diluted share, the adjusted EBITDA margin improved to 25%. The company remains focused on growth in annual recurring revenue and aims to achieve consistent Rule of 40 performance in 2025.