Kromek Group plc (KMK) AI Stock Analysis

• Market Cap: £37.33M
• Dividend Yield: N/A
• Average Volume (3M): 1.62M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.07
• Revenue Growth: -9.28%
• EPS Growth: -19.48%
• Country: UK
• Employees: 165
• Sector: Technology
• Sector Strength: 86
• Industry: Hardware, Equipment & Parts
• EPS (TTM): >-0.01
• Shares Outstanding: 654,986,800
• 10 Day Avg. Volume: 1,876,688
• 30 Day Avg. Volume: 1,624,882
• PEG Ratio: -0.22
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.42
• 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: 56 Neutral
• Price Target: 6.00p ▲(5.26%Upside)

The overall score of 56 reflects a stock with moderate strengths and notable challenges. Positive corporate events and technical indicators provide optimism, but ongoing financial and profitability issues weigh heavily on the score.

Kromek Group plc Business Overview & Revenue Model

Company Description

Kromek Group plc (KMK) is a leading technology company engaged in the development and production of radiation detection solutions across various sectors. The company's core products and services are centered around the design and supply of high-performance imaging and detection components and systems. Kromek serves a range of industries including medical imaging, nuclear detection, and security screening, providing breakthrough technologies that enable efficient and accurate detection and imaging capabilities.

How the Company Makes Money

Kromek Group plc generates revenue primarily through the sale of its proprietary detection and imaging products. The company operates a multifaceted revenue model that includes direct product sales, long-term supply agreements, and license royalties. Key revenue streams for Kromek include the supply of medical imaging components to equipment manufacturers, provision of nuclear detection systems to governmental and private entities, and the sale of security screening technology to airports and other security-critical infrastructures. Additionally, Kromek engages in strategic partnerships and collaborations, which help to expand its market reach and drive innovation, further contributing to its earnings.

Kromek Group plc Financial Statement Overview

Summary

Kromek Group plc's financial performance shows some improvement in revenue and gross profit margins but continues to face challenges with profitability and cash flow. The balance sheet remains moderately stable with low leverage, yet inefficient capital use is evident from negative returns.

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	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	15.98M	19.40M	17.31M	12.05M	10.35M	13.12M
Gross Profit	7.55M	10.71M	6.04M	3.07M	2.65M	4.07M
EBITDA	734.00K	2.93M	-1.25M	-1.23M	-1.74M	-14.41M
Net Income	-5.92M	-3.29M	-6.10M	-4.92M	-5.35M	-16.54M
Balance Sheet
Total Assets	66.84M	70.19M	63.88M	67.42M	70.16M	64.66M
Cash, Cash Equivalents and Short-Term Investments	577.00K	466.00K	1.10M	5.08M	15.60M	9.44M
Total Debt	16.15M	12.29M	13.38M	11.00M	12.86M	9.77M
Total Liabilities	23.91M	20.84M	22.35M	19.99M	20.10M	19.59M
Stockholders Equity	42.93M	49.35M	41.52M	47.44M	50.05M	45.07M
Cash Flow
Free Cash Flow	-1.38M	-7.84M	-5.78M	-10.29M	-7.69M	-12.59M
Operating Cash Flow	-1.26M	-2.80M	-504.00K	-3.84M	-1.62M	-126.00K
Investing Cash Flow	-4.53M	-5.00M	-5.27M	-6.45M	-6.07M	-11.21M
Financing Cash Flow	3.13M	7.18M	1.99M	-1.23M	14.44M	-544.00K

Kromek Group plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.70
• 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 GB:KMK, the sentiment is Negative. The current price of 5.7 is below the 20-day moving average (MA) of 6.08, below the 50-day MA of 5.87, and below the 200-day MA of 5.86, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 36.09 is Neutral, neither overbought nor oversold. The STOCH value of 12.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:KMK.

Kromek Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SOLI	78 Outperform	£116.16M	21.79	8.61%	0.81%	-11.80%	-32.11%
SDI	72 Outperform	£93.05M	27.71	7.69%	―	-5.19%	115.58%
GHH	65 Neutral	£165.40M	30.38	4.79%	1.19%	1.74%	359.50%
Sector *	63 Neutral	£564.00M	24.42	-6.00%	2.45%	3.52%	-29.29%
KMK	56 Neutral	£37.33M	―	-13.12%	―	-9.28%	-19.48%
XAR	54 Neutral	£99.81M	―	-15.96%	―	-13.04%	-387.05%

Kromek Group plc Corporate Events

Kromek Group Sees Major Shift in Shareholder Voting Rights

Kromek Group plc has announced a significant change in its shareholder structure, with Canaccord Genuity Group Inc. reducing its voting rights from 9.2856% to 4.9996%. This adjustment in holdings reflects a strategic decision by Canaccord Genuity, potentially impacting Kromek’s market dynamics and investor relations. The change may influence the company’s governance and decision-making processes, affecting stakeholders’ interests.

Kromek Group to Host Capital Markets Day and Retail Investor Webinar

Kromek Group plc announced it will host a capital markets day on June 18, 2025, for institutional investors and analysts to outline its growth strategy. The event will feature presentations by the CEO, CFO, and other key management, highlighting the company’s future prospects. Additionally, a retail investor webinar is scheduled for June 25, 2025, to engage with a broader audience. These events aim to strengthen stakeholder engagement and provide insights into Kromek’s strategic direction, potentially impacting its market positioning and investor relations.

Kromek Group Secures New Orders for D3 Series Detectors

Kromek Group plc has secured two significant orders worth approximately $900k to supply its D3 series detectors to a European and a US customer. These orders, aimed at enhancing radiation detection capabilities, underscore Kromek’s role in global safety and security amid geopolitical uncertainties, further solidifying its position in the critical security market.

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.

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.