Kromek Group plc (KMK) AI Stock Analysis

• Market Cap: £44.55M
• Dividend Yield: N/A
• Average Volume (3M): 3.19M
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.51
• Revenue Growth: 36.61%
• EPS Growth: N/A
• Country: UK
• Employees: 165
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.01
• Shares Outstanding: 655,096,860
• 10 Day Avg. Volume: 2,321,691
• 30 Day Avg. Volume: 3,192,291
• PEG Ratio: -0.04
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 1.23
• P/FCF Ratio: 2.08
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: 8.00p ▲(8.84% Upside)

Kromek Group plc's overall stock score is driven by strong financial performance, particularly in revenue growth and profitability improvements. The technical analysis indicates positive momentum, although caution is advised due to the RSI nearing overbought levels. Valuation metrics suggest the stock is fairly valued, with the P/E ratio indicating reasonable pricing. The absence of earnings call and corporate events data means these factors did not influence the score.

Kromek Group plc Business Overview & Revenue Model

Company Description

Kromek Group plc (KMK) is a UK-based technology company that specializes in advanced radiation detection solutions. The company operates primarily in the sectors of security, medical imaging, and nuclear instrumentation. Kromek's core products include high-performance detectors and imaging systems that leverage its proprietary technology, particularly in the fields of gamma and X-ray detection. The company focuses on providing critical insights for applications such as airport security screening, medical diagnostics, and monitoring of nuclear facilities.

How the Company Makes Money

Kromek generates revenue through multiple streams, primarily from the sale of its advanced detection systems and related services. The company offers products that cater to various industries, including security and defense, medical imaging, and nuclear power. Key revenue streams include direct sales of detection equipment, long-term contracts with government and private sector clients, and partnerships with other technology firms for joint development projects. Significant partnerships, particularly with governmental agencies and international defense organizations, contribute to stable revenue through ongoing contracts and grants. Additionally, Kromek invests in research and development to innovate and expand its product offerings, which helps to attract new customers and retain existing ones.

Kromek Group plc Financial Statement Overview

Summary

Kromek Group plc has demonstrated a strong recovery in its financial performance, particularly in the income statement, with significant revenue growth and improved profitability margins. The balance sheet remains robust with low leverage and a strong equity position. While cash flow metrics show some areas for improvement, the overall financial health of the company is positive, positioning it well for future growth.

Income Statement

Kromek Group plc has shown a significant improvement in its income statement metrics. The company achieved a strong revenue growth rate of 65.83% in the latest period, indicating robust top-line expansion. Gross profit margin improved to 80.85%, reflecting efficient cost management. The net profit margin turned positive at 14.16%, showcasing a successful turnaround from previous losses. EBIT and EBITDA margins also improved to 17.87% and 23.23%, respectively, highlighting enhanced operational efficiency.

Balance Sheet

The balance sheet of Kromek Group plc is stable, with a low debt-to-equity ratio of 0.08, indicating prudent leverage management. The return on equity improved to 7.19%, reflecting better profitability. The equity ratio stands at 79.22%, suggesting a strong equity base relative to total assets. Overall, the company maintains a solid financial position with manageable debt levels.

Cash Flow

Kromek Group plc's cash flow statement shows mixed results. The free cash flow growth rate is negative, indicating challenges in generating free cash flow. However, the operating cash flow to net income ratio is 1.72, suggesting that operating cash flows are sufficient to cover net income. The free cash flow to net income ratio is close to 1, indicating that the company is effectively converting its net income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	26.51M	26.51M	19.40M	17.31M	12.05M	10.35M
Gross Profit	21.43M	21.43M	10.71M	6.04M	3.07M	2.65M
EBITDA	6.16M	6.16M	2.93M	-1.25M	-1.23M	-1.74M
Net Income	3.75M	3.75M	-3.29M	-6.10M	-4.92M	-5.35M
Balance Sheet
Total Assets	65.87M	65.87M	70.19M	63.88M	67.42M	70.16M
Cash, Cash Equivalents and Short-Term Investments	1.70M	1.70M	466.00K	1.10M	5.08M	15.60M
Total Debt	4.05M	4.05M	12.29M	13.38M	11.00M	12.86M
Total Liabilities	13.69M	13.69M	20.84M	22.35M	19.99M	20.10M
Stockholders Equity	52.18M	52.18M	49.35M	41.52M	47.44M	50.05M
Cash Flow
Free Cash Flow	15.71M	15.71M	-7.84M	-5.78M	-10.29M	-7.69M
Operating Cash Flow	15.90M	15.90M	-2.80M	-504.00K	-3.84M	-1.62M
Investing Cash Flow	-4.66M	-4.55M	-5.00M	-5.27M	-6.45M	-6.07M
Financing Cash Flow	-9.35M	-9.19M	7.18M	1.99M	-1.23M	14.13M

Kromek Group plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:KMK, the sentiment is Positive. The current price of 7.35 is above the 20-day moving average (MA) of 6.86, above the 50-day MA of 6.23, and above the 200-day MA of 5.86, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 61.85 is Neutral, neither overbought nor oversold. The STOCH value of 72.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:KMK.

Kromek Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KMK	75 Outperform	£44.55M	11.53	7.39%	―	36.61%	―
SDI	67 Neutral	£84.70M	21.26	8.38%	―	0.50%	-6.16%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
GHH	56 Neutral	£155.04M	28.39	4.79%	2.47%	1.74%	359.50%
SOLI	55 Neutral	£82.42M	161.11	0.81%	1.72%	-23.42%	-94.25%
XAR	51 Neutral	£99.67M	-8.91	-16.64%	―	-7.35%	-222.10%
WPHO	46 Neutral	£55.41M	-49.15	-17.36%	―	-14.81%	-1362.50%

Kromek Group plc Corporate Events

Kromek Group Announces AGM and Board Changes

Kromek Group plc announced its upcoming Annual General Meeting and the publication of its annual report, alongside significant changes in its board of directors. Long-serving Non-executive Directors Lawrence Kinet and Jerel Whittingham will retire, and Matt Boyle will join as a Non-executive Director and Chair of the Remuneration Committee. Boyle brings extensive experience in engineering and business, having transformed Sevcon Inc into a high-growth electrification company. His appointment is expected to aid Kromek in achieving sustainable, profitable growth.

The most recent analyst rating on (GB:KMK) stock is a Hold with a £6.00 price target. To see the full list of analyst forecasts on Kromek Group plc stock, see the GB:KMK Stock Forecast page.

Kromek Group Achieves First Profit, Driven by Landmark Siemens Agreement

Kromek Group plc announced a significant financial turnaround for the year ending April 2025, achieving profitability for the first time and surpassing market expectations. This success was largely driven by a landmark agreement with Siemens Healthineers in the Advanced Imaging division, resulting in a substantial increase in revenue and a strengthened financial position. The company also made strategic advancements in its CBRN Detection division, securing contracts under UK Government frameworks and expanding its international sales pipeline. These developments position Kromek for continued growth and enhanced market competitiveness.

The most recent analyst rating on (GB:KMK) stock is a Hold with a £6.00 price target. To see the full list of analyst forecasts on Kromek Group plc stock, see the GB:KMK Stock Forecast page.

Kromek Secures UK MoD Biosecurity Award and Global CBRN Orders

Kromek Group plc has announced a new biosecurity award from the UK Ministry of Defence, alongside additional orders in the CBRN Detection segment totaling approximately £860k. The UK MoD contract involves developing methods to enhance the detection of biological agents, complementing Kromek’s existing contracts with UK and US government departments. The company also received orders for its D5 and D3M detectors from various international customers, highlighting the global demand for its solutions. These developments reinforce Kromek’s position as a trusted partner in national defense and provide increased visibility on future revenue, reflecting strong momentum in the CBRN segment.

Kromek Group Strengthens Financial Position with Siemens Payment

Kromek Group plc announced the receipt of a $5.0 million payment from Siemens Healthineers as part of their ongoing Enablement Agreement, marking a total of $30 million received to date. This payment supports Kromek’s milestone achievements and strengthens its financial position, providing a foundation for sustainable growth and enhancing its industry presence.