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Kinaxis Inc. J (TSE:KXS)
TSX:KXS
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Kinaxis Inc
(TSX:KXS)
73Outperform
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 (KXS) vs. S&P 500 (SPY)
Market Cap
C$5.56B
Dividend YieldN/A
Average Volume (3M)92.92K
Price to Earnings (P/E)402.2
Beta (1Y)0.87
Revenue Growth15.14%
EPS Growth-31.45%
CountryCA
Employees1,674
SectorTechnology
Sector Strength77
IndustrySoftware - Application
Share Statistics
EPS (TTM)1.22
Shares Outstanding28,097,271
10 Day Avg. Volume92,559
30 Day Avg. Volume92,920
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)9.69
Price to Sales (P/S)0.00
P/FCF Ratio42.85
Enterprise Value/Market Cap0.70
Enterprise Value/Revenue2.04
Enterprise Value/Gross Profit12.62
Enterprise Value/Ebitda24.98
Forecast
1Y Price Target
C$212.50Price Target Upside7.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Kinaxis Inc Business Overview & Revenue Model
Company DescriptionKinaxis 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 MoneyKinaxis 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 showcases strong financial health with consistent revenue and margin improvements. The income statement reflects solid revenue growth and improved profitability. The balance sheet is stable with manageable debt, and cash flow statements underline strong cash generation and effective capital management, positioning the company well for future opportunities.Income Statement
Kinaxis Inc demonstrates strong financial performance with consistent revenue growth, most notably a recent TTM increase to CAD 496.5M from CAD 483.1M annually. Gross profit margin remains robust at 62.07% TTM, indicating effective cost management. Net profit margin improved to 1.97% TTM from 0.01% annually, signifying enhanced profitability. EBIT and EBITDA margins also showed improvements, reflecting efficient operational management.85
Very Positive
Balance Sheet
The balance sheet of Kinaxis Inc is solid, with a healthy equity ratio of 60.11% TTM, ensuring stability and less reliance on debt. However, the debt-to-equity ratio slightly increased to 0.12 TTM, which remains low but indicates a small rise in leverage. Return on equity improved to 2.38% TTM, showing better utilization of equity compared to the previous period.77
Positive
Cash Flow
Kinaxis Inc exhibits strong cash flow management, with operating cash flow covering net income well, reflected in a ratio of 10.1 TTM. Free cash flow remains robust at CAD 92.94M TTM, growing by 34.6% from the previous year. This indicates effective capital expenditure control and strong cash generation capability.80
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 496.53M | 483.11M | 426.97M | 366.89M | 250.73M | 224.19M | Gross Profit |
| 308.19M | 294.58M | 258.90M | 235.79M | 163.97M | 154.06M | EBIT |
| 25.29M | 12.74M | 14.10M | 25.60M | 2.48M | 20.97M | EBITDA |
| 49.23M | 37.67M | 40.39M | 50.66M | 22.89M | 36.53M | Net Income Common Stockholders |
| 9.78M | 56.00K | 10.06M | 20.08M | -1.17M | 13.73M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 292.96M | 298.50M | 292.96M | 225.82M | 233.39M | 213.14M | Total Assets |
| 691.98M | 685.34M | 691.98M | 648.27M | 520.27M | 428.41M | Total Debt |
| 51.79M | 48.94M | 51.79M | 56.97M | 55.76M | 16.62M | Net Debt |
| -123.05M | -123.26M | -123.05M | -118.38M | -147.46M | -166.34M | Total Liabilities |
| 237.15M | 289.82M | 237.15M | 246.84M | 199.05M | 146.65M | Stockholders Equity |
| 454.83M | 395.51M | 454.83M | 401.43M | 321.22M | 281.76M |
| Cash Flow | Free Cash Flow | ||||
| 92.94M | 94.70M | 77.06M | 6.27M | 16.30M | 45.03M | Operating Cash Flow |
| 98.85M | 99.21M | 79.36M | 24.52M | 50.14M | 59.47M | Investing Cash Flow |
| -93.10M | -13.62M | -67.31M | -74.99M | -34.63M | -76.26M | Financing Cash Flow |
| -77.98M | -83.69M | -12.04M | 26.84M | 5.85M | 16.64M |
Kinaxis Inc Technical Analysis
Positive
197.98
Price Trends
172.70
Positive
170.31
Positive
166.20
Positive
Market Momentum
7.92
Negative
70.61
Negative
85.06
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 197.98 is above the 20-day moving average (MA) of 189.49, above the 50-day MA of 172.70, and above the 200-day MA of 166.20, indicating a bullish trend. The MACD of 7.92 indicates Negative momentum. The RSI at 70.61 is Negative, neither overbought nor oversold. The STOCH value of 85.06 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
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $13.56B | 70.19 | 10.92% | ― | 16.07% | 25.71% | |
75 Outperform | C$1.47B | 17.34 | 14.76% | 3.91% | 8.11% | 15.83% | |
74 Outperform | $10.19B | 11.58 | 15.87% | 3.68% | -8.74% | 307.82% | |
73 Outperform | C$5.56B | 402.15 | 2.32% | ― | 15.14% | -31.45% | |
67 Neutral | $1.13B | 35.32 | 41.12% | ― | 20.52% | 246.69% | |
63 Neutral | C$2.08B | ― | -5.18% | ― | 23.95% | 39.68% | |
60 Neutral | $11.59B | 10.34 | -7.15% | 2.94% | 7.49% | -10.88% |
* Technology Sector Average
Performance Comparison
TSE:KXS
Kinaxis Inc
199.20
44.50
28.77%
TSE:ENGH
Enghouse Systems
26.47
-1.62
-5.77%
TSE:DSG
The Descartes Systems Group
158.79
24.35
18.11%
TSE:OTEX
Open Text
39.42
-1.31
-3.21%
TSE:DCBO
Docebo
37.04
-13.04
-26.04%
TSE:LSPD
Lightspeed POS Inc
15.24
-4.70
-23.57%
Kinaxis Inc Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 4.98%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong growth in ARR, SaaS revenue, and profitability, with successful new customer acquisitions and strategic partnerships. However, the company remains cautious about macroeconomic uncertainties and saw a decline in professional services revenue due to strategic shifts. Overall, the highlights significantly outweigh the lowlights.Q1-2025 Updates
Positive Updates
Record Expansion Business Volume
ARR grew 14%, as reported and in constant currency. SaaS growth was 16%, or 17% in constant currency. The company saw record expansion business volume for the first quarter.
Strong Profitability and EBITDA Margin Growth
Adjusted EBITDA was up 46% and the margin hit 25%. This marks the third consecutive quarter delivering Rule of 40-plus performance.
Successful New Customer Acquisitions
Kinaxis added important new customers, including Sun Pharma, Workwear Outfitters, Delta Faucet Company, Demant A/S, and Veolia, among others. The company also signed one of the world's largest companies in the semiconductor ecosystem.
Gartner Recognition
Kinaxis was recognized as a leader in the 2025 Gartner Magic Quadrant for Supply Chain Planning Solutions for the 11th consecutive time.
Successful Partnerships and Innovations
New partnership with Infor focused on mid-market discrete manufacturing companies. Announced partnership with Databricks to enhance data integration and AI adoption.
Strong Pipeline and Conversion Rates
The company reported higher conversion rates and a healthy pipeline, with a focus on large enterprise cohorts.
Negative Updates
Professional Services Revenue Decline
Professional services revenue was $33.3 million, down 3%, largely due to a strategic shift to move services work to partner networks.
Volatile Macro Environment
The company remains cautious about the macroeconomic environment, particularly the impacts of global tariffs and exchange rate fluctuations.
Company Guidance
During the Kinaxis Inc. fiscal 2025 first quarter results conference call, the company reported strong metrics across several areas, maintaining all guidance elements for the year. Annual Recurring Revenue (ARR) grew by 14%, both as reported and in constant currency, while SaaS growth was reported at 16%, or 17% in constant currency. Adjusted EBITDA saw a significant increase of 46%, achieving a margin of 25%. This marked the third consecutive quarter of delivering Rule of 40-plus performance, which combines SaaS revenue growth and adjusted EBITDA margin. The company also highlighted strong new business with record expansion business volume and maintained a robust pipeline with a balanced contribution to ARR growth from both new and existing customers. Additionally, the company noted a successful partnership with Infor and recognition as a leader in the Gartner Magic Quadrant for Supply Chain Planning Solutions for the 11th consecutive year. Kinaxis Inc Corporate Events
Business Operations and StrategyFinancial Disclosures
Kinaxis Inc. Reports Robust Q1 2025 Results Amid Market Uncertainties
Positive
May 7, 2025
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.
Business Operations and StrategyFinancial Disclosures
Kinaxis Inc. Achieves Record Growth in Q4 2024
Positive
Feb 26, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.