Kromek Group plc (KMK) AI Stock Analysis

• Market Cap: £42.57M
• Dividend Yield: N/A
• Average Volume (3M): 3.08M
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.14
• 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: 654,986,800
• 10 Day Avg. Volume: 2,030,279
• 30 Day Avg. Volume: 3,077,498
• 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: £7.00
• Price Target Upside: 8.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: 7.00p ▲(8.53% Upside)

Kromek Group plc's overall stock score is driven by strong financial performance, particularly in revenue growth and profitability improvements. The technical analysis supports a bullish trend with positive momentum indicators. Valuation is reasonable, although the lack of a dividend yield may deter income-focused investors. The absence of earnings call and corporate events data did not impact 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 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: 6.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 6.45 is above the 20-day moving average (MA) of 6.43, above the 50-day MA of 5.63, and above the 200-day MA of 5.69, indicating a bullish trend. The MACD of 0.22 indicates Positive momentum. The RSI at 59.43 is Neutral, neither overbought nor oversold. The STOCH value of 47.22 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	76 Outperform	£42.57M	10.93	7.39%	―	36.61%	―
SDI	67 Neutral	£90.46M	22.26	8.38%	―	0.50%	-6.16%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SOLI	55 Neutral	£98.05M	191.67	0.81%	1.54%	-23.42%	-94.25%
GHH	52 Neutral	£144.70M	26.49	4.79%	2.46%	1.74%	359.50%
XAR	46 Neutral	£108.74M	―	-16.64%	―	-7.35%	-222.10%
WPHO	40 Underperform	£51.07M	―	-17.36%	―	-14.81%	-1362.50%

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.