Kromek Group plc (KMK) AI Stock Analysis

• Market Cap: £39.46M
• Dividend Yield: N/A
• Average Volume (3M): 1.23M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.10
• Revenue Growth: -9.28%
• EPS Growth: -19.48%
• Country: UK
• Employees: 165
• Sector: Technology
• Sector Strength: 83
• Industry: Hardware, Equipment & Parts
• EPS (TTM): >-0.01
• Shares Outstanding: 641,546,300
• 10 Day Avg. Volume: 1,339,198
• 30 Day Avg. Volume: 1,227,124
• PEG Ratio: 0.09
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -24.42
• 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 ▼(-2.44%Downside)

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, together with its subsidiaries, develops, manufactures, and sells radiation detection components and devices for the medical imaging, civil nuclear industry, CBRNe security, and safety screening markets in the United Kingdom, North America, Asia, Europe, Australasia, and Africa. The company's products provide high-resolution information on material composition and structure that are used in various applications, ranging from the identification of cancerous tissues to hazardous materials, such as explosives, as well as the analysis of radioactive materials. It also offers civil nuclear radiation detection products, which include gamma radiation and neutron detectors, high-specification, high-resolution devices, components, and software for nuclear detection problems, as well as offers a range of radiation detectors that use cadmium zinc telluride (CZT) or scintillator technology for gamma-ray, x-ray, and neutron detection. In addition, the company provides medical imaging products, including CZT gamma detectors for SPECT imaging, CZT bone mineral densitometry detectors, and photon-counting spectral CT systems. Further, it offers CBRNE homeland security products and solutions for government, border control, airport and seaports, HazMat teams, ambulance crews, police, and armed forces, as well as a range of gamma spectroscopy software that enables specialized gamma-ray spectroscopy for the analysis of samples. Additionally, the company provides CZT imaging development platforms, such as the DMatrix and the EV3500 scalable x-ray CZT linear array for laboratory and research imaging; and engages in the scientific research and development activities. It sells its products through distributors, OEMs, and direct sales. The company was incorporated in 2013 and is headquartered in Sedgefield, the United Kingdom.

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 is showing some improvements in revenue and gross profit margins but continues to face significant profitability and cash flow challenges. The company's balance sheet is relatively stable with low leverage, but negative returns indicate inefficiencies. Continued focus on improving operational efficiency and cash generation is crucial for financial health.

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
	EBIT
-4.14M	-1.38M	-6.34M	-6.97M	-6.14M	-5.39M
	EBITDA
734.00K	2.93M	-1.25M	-1.23M	-1.74M	-14.41M
	Net Income Common Stockholders
-5.92M	-3.29M	-6.10M	-4.92M	-5.35M	-16.54M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
577.00K	466.00K	1.10M	5.08M	15.60M	9.44M
	Total Assets
66.84M	70.19M	63.88M	67.42M	70.16M	64.66M
	Total Debt
16.15M	12.29M	13.38M	11.00M	12.86M	9.77M
	Net Debt
15.57M	11.82M	12.28M	5.92M	-2.74M	330.00K
	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: Positive
• Last Price: 6.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 6.15 is above the 20-day moving average (MA) of 5.96, above the 50-day MA of 5.56, and above the 200-day MA of 5.83, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 72.08 is Negative, neither overbought nor oversold. The STOCH value of 40.48 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
SOLI	78 Outperform	£110.49M	20.72	8.61%	1.91%	-11.80%	-32.11%
SDI	72 Outperform	£81.76M	23.55	7.69%	―	-5.19%	115.58%
GHH	67 Neutral	£140.79M	27.19	4.79%	2.42%	1.74%	359.50%
Sector *	62 Neutral	$11.80B	10.37	-7.29%	2.91%	7.39%	-7.96%
KMK	56 Neutral	£39.46M	―	-13.12%	―	-9.28%	-19.48%
WPHO		£45.29M	―	-4.38%	―	―	―
XAR	57 Neutral	£96.70M	―	-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.