Kinaxis Inc (KXS) AI Stock Analysis

• Market Cap: C$5.23B
• Dividend Yield: N/A
• Average Volume (3M): 59.47K
• Price to Earnings (P/E): 151.1
• Beta (1Y): 0.85
• Revenue Growth: 15.81%
• EPS Growth: 22.17%
• Country: CA
• Employees: 1,674
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 1.39
• Shares Outstanding: 28,196,705
• 10 Day Avg. Volume: 62,729
• 30 Day Avg. Volume: 59,466
• PEG Ratio: -609.93
• Price to Book (P/B): 8.59
• Price to Sales (P/S): 7.03
• P/FCF Ratio: 35.86
• 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$230.63
• Price Target Upside: 24.23% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 70 Outperform
• Price Target: C$202.00 ▲(8.81% Upside)

Kinaxis Inc's strong financial performance and positive earnings call sentiment are major strengths, supported by solid revenue growth and strategic AI initiatives. However, the high P/E ratio and recent technical indicators suggest caution. The stock's valuation and technical trends slightly temper the overall positive outlook.

Positive Factors

Revenue Growth

The strong growth in SaaS revenue indicates robust demand for Kinaxis's platform, supporting long-term revenue expansion and market penetration.

AI Integration Strategy

The strategic focus on AI and partnerships like Databricks enhances Kinaxis's competitive edge, potentially leading to innovative solutions and market leadership.

Financial Health

Kinaxis's low leverage and strong equity position provide financial stability, enabling strategic investments and resilience against economic fluctuations.

Negative Factors

Professional Services Challenges

Sluggish growth in professional services highlights competitive pressures and potential revenue stream vulnerabilities, impacting overall profitability.

Margin Pressure

Declining margins in professional services suggest cost pressures and competitive challenges, which could affect overall profit margins if not addressed.

Low Net Profit Margin

A low net profit margin indicates limited profitability, suggesting the need for efficiency improvements to enhance long-term financial performance.

Kinaxis Inc Business Overview & Revenue Model

Company Description

Kinaxis Inc. is a Canadian-based company that operates in the software and information technology sector, specializing in supply chain management solutions. The company offers a cloud-based platform known as RapidResponse, which provides an integrated suite of applications designed to enhance supply chain operations, including planning, monitoring, and responding to changes in real-time. Kinaxis serves a diverse range of industries, including automotive, consumer products, high-tech, aerospace, and pharmaceuticals, helping businesses optimize their supply chains for better efficiency and agility.

How the Company Makes Money

Kinaxis Inc. generates revenue primarily through the sale of subscriptions to its RapidResponse platform, which operates on a Software-as-a-Service (SaaS) model. Customers subscribe to the platform to access its suite of supply chain management tools, with pricing typically based on the number of users or the extent of services required. This recurring revenue model ensures a steady stream of income. Additionally, Kinaxis may generate revenue through professional services, which include consulting, implementation, and training services to assist clients in integrating and optimizing the use of its software. The company also benefits from strategic partnerships with global consulting firms and technology partners, which can lead to increased visibility and market reach, further driving sales and adoption of its solutions.

Kinaxis Inc Financial Statement Overview

Summary

Kinaxis Inc exhibits solid financial health with consistent revenue growth, strong gross margins, and effective cash flow management. While profitability margins are improving, there is room for further enhancement. The company's low leverage and strong equity position provide a stable financial foundation, positioning it well for future growth.

Income Statement

Kinaxis Inc has shown consistent revenue growth over the years, with a TTM revenue growth rate of 3.65%. The gross profit margin remains strong at 62.07% for TTM, indicating efficient cost management. However, the net profit margin is relatively low at 1.97% for TTM, suggesting room for improvement in profitability. The EBIT and EBITDA margins have improved over the years, reflecting better operational efficiency.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.12 in TTM, indicating low financial leverage. The return on equity has improved to 2.39% in TTM, showing better utilization of equity. The equity ratio is strong, reflecting a solid capital structure, although there is potential for enhancing returns.

Cash Flow

Kinaxis Inc has demonstrated strong cash flow management with a significant free cash flow growth rate of 9.29% in TTM. The operating cash flow to net income ratio is robust at 0.45, indicating good cash generation relative to earnings. The free cash flow to net income ratio is high at 0.94, suggesting effective conversion of profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	514.67M	483.11M	426.97M	366.89M	250.73M	224.19M
Gross Profit	325.54M	294.58M	258.90M	235.79M	163.97M	154.06M
EBITDA	56.07M	25.76M	28.75M	44.83M	5.82M	31.85M
Net Income	24.79M	56.00K	10.06M	20.08M	-1.17M	13.73M
Balance Sheet
Total Assets	702.84M	684.93M	687.00M	654.63M	515.37M	427.55M
Cash, Cash Equivalents and Short-Term Investments	328.69M	298.32M	290.85M	228.04M	231.19M	212.71M
Total Debt	50.84M	48.91M	51.42M	57.53M	55.23M	16.59M
Total Liabilities	262.26M	289.65M	235.45M	249.27M	197.18M	146.36M
Stockholders Equity	440.58M	395.28M	451.56M	405.37M	318.20M	281.19M
Cash Flow
Free Cash Flow	102.06M	90.15M	78.31M	6.08M	16.03M	47.31M
Operating Cash Flow	108.72M	94.45M	80.64M	23.79M	49.30M	62.49M
Investing Cash Flow	-74.55M	-12.97M	-68.40M	-72.76M	-34.05M	-80.13M
Financing Cash Flow	-54.81M	-79.67M	-12.23M	26.04M	5.75M	17.48M

Kinaxis Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 185.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 185.65 is above the 20-day moving average (MA) of 182.68, below the 50-day MA of 191.00, and above the 200-day MA of 182.33, indicating a neutral trend. The MACD of -2.52 indicates Negative momentum. The RSI at 52.10 is Neutral, neither overbought nor oversold. The STOCH value of 89.88 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	73 Outperform	$11.34B	55.87	10.54%	―	15.63%	18.47%
ENGH	71 Outperform	$1.16B	15.53	12.56%	6.29%	0.03%	-10.21%
KXS	70 Outperform	C$5.23B	151.14	5.93%	―	15.81%	22.17%
OTEX	70 Outperform	$13.59B	22.97	10.73%	2.77%	-7.77%	-1.03%
DCBO	68 Neutral	$1.11B	39.07	55.53%	―	18.51%	32.49%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
LSPD	53 Neutral	C$2.24B	―	-36.64%	―	18.75%	-386.84%

Kinaxis Inc Corporate Events

Kinaxis Inc. Reports Record Q2 2025 Results with Strong SaaS Growth

Kinaxis Inc. reported a strong second quarter for 2025, with a 17% increase in SaaS revenue and a record adjusted EBITDA margin of 25%. The company achieved its fourth consecutive Rule of 40 quarter, driven by new business wins and expansion orders. Kinaxis is also seeing early adoption of its new AI capabilities, which are expected to transform supply chain operations and enhance customer value. The company’s annual recurring revenue grew by 15%, and it has raised its SaaS growth guidance for the year, reflecting strong business momentum and profitability.

The most recent analyst rating on (TSE:KXS) stock is a Hold with a C$175.00 price target. To see the full list of analyst forecasts on Kinaxis Inc stock, see the TSE:KXS Stock Forecast page.

Kinaxis Secures Shareholder Approval for Key Resolutions at Annual Meeting

Kinaxis Inc. announced that all resolutions proposed at its Annual Meeting of Shareholders were approved, including the election of seven directors, the appointment of KPMG LLP as auditors, and an advisory vote on executive compensation. This approval reflects strong shareholder support for the company’s governance and strategic direction, reinforcing its position as a leader in supply chain orchestration.

The most recent analyst rating on (TSE:KXS) stock is a Hold with a C$154.00 price target. To see the full list of analyst forecasts on Kinaxis Inc stock, see the TSE:KXS Stock Forecast page.