Kromek Group plc (KMK) AI Stock Analysis

• Market Cap: £70.42M
• Dividend Yield: N/A
• Average Volume (3M): 3.19M
• Price to Earnings (P/E): 3.6
• Beta (1Y): 0.85
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): <0.01
• Revenue Forecast (FY): £27.19M

• Rating: 73 Outperform
• Price Target: 12.00 p ▲(41.18% Upside)
• Action: Reiterated Date: 01/14/26
• Date: Action: Reiterated 01/14/26

The score is driven primarily by improved financial performance (strong revenue growth, expanding margins, and low leverage), tempered by mixed free cash flow trends. Technicals are supportive due to a strong uptrend and positive MACD, but overbought RSI/Stoch readings add pullback risk. Valuation is moderate on a 20.508 P/E with no dividend yield.

Positive Factors

Revenue & Margin Recovery

Kromek's large revenue increase and restored high gross and positive net margins reflect a structural improvement in product demand and cost control. Sustained top-line growth with materially higher margins supports durable profitability and reinvestment capacity over the next several quarters.

Low Leverage / Strong Equity Base

A very low debt-to-equity ratio and high equity ratio give Kromek financial flexibility. This reduces refinancing and interest-rate vulnerability, allows funding of contract bids and R&D from internal resources, and provides a stable capital base through procurement cycles.

Healthy Operating Cash Conversion

Operating cash flow materially exceeds reported net income, and free cash flow conversion is near parity, indicating earnings quality. Strong cash conversion underpins sustainable operations, funds program delivery, and helps self-finance near-term investments absent persistent capex shocks.

Negative Factors

Negative Free Cash Flow Growth

Despite profitable operations, negative free cash flow growth signals difficulty expanding cash generation. Over time this can constrain reinvestment, force external financing for growth or working capital, and raise vulnerability if contract receipts slip or expenses rise.

Lumpy Contract-Driven Revenue

A business model tied to program and procurement timing creates recurring revenue volatility. Lumpy receipts complicate capacity planning and margin stability, and can produce multi-quarter swings in revenue and cash that persist until program pipelines become more predictable.

Concentration in Public-Sector Markets

Heavy reliance on government, defense and regulated nuclear customers concentrates demand risk. These markets are exposed to budget cycles, policy shifts and long procurements; adverse funding or regulatory changes can materially and durably reduce order flows and growth visibility.

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 makes money by selling radiation detection and imaging products and, where applicable, associated services into government, defense/security, nuclear, and medical markets. Its revenue model is primarily product-led and typically includes: (1) Sales of detection components and subsystems: supplying detector materials, sensors, and modules to OEMs and integrators that incorporate these parts into finished radiation detection or imaging equipment. (2) Sales of integrated detection systems/solutions: providing complete instruments or deployed solutions for radiation detection and identification, which may be procured directly by end customers such as government agencies or prime contractors. (3) Services and support: revenue from services such as development work, customization, and ongoing support/maintenance tied to delivered products and programs, where contracted. (4) Contract and program-based revenue: earnings influenced by the timing and scale of customer programs (often in regulated/public-sector procurement cycles), with revenue recognized as products ship and contract milestones are met. Specific named partnerships, customer concentration details, and the precise breakdown of revenue by segment are null.

Kromek Group plc Financial Statement Overview

Summary

Strong income statement recovery (65.83% revenue growth, 80.85% gross margin, positive 14.16% net margin) and a solid balance sheet (low 0.08 debt-to-equity, 79.22% equity ratio). Cash flow is the main offset, with negative free cash flow growth despite good cash conversion (operating cash flow to net income of 1.72).

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	Apr 2024	Apr 2023	Apr 2022	Apr 2021	Apr 2020
Income Statement
Total Revenue	37.84M	26.51M	19.40M	17.31M	12.05M	10.35M
Gross Profit	28.58M	21.43M	10.71M	6.04M	3.07M	2.65M
EBITDA	14.16M	6.16M	2.93M	-1.25M	-1.23M	-1.74M
Net Income	12.50M	3.75M	-3.29M	-6.10M	-4.92M	-5.35M
Balance Sheet
Total Assets	65.75M	65.87M	70.19M	63.88M	67.42M	70.16M
Cash, Cash Equivalents and Short-Term Investments	1.25M	1.70M	466.00K	1.10M	5.08M	15.60M
Total Debt	7.81M	4.05M	12.29M	13.38M	11.00M	12.86M
Total Liabilities	8.87M	13.69M	20.84M	22.35M	19.99M	20.10M
Stockholders Equity	56.88M	52.18M	49.35M	41.52M	47.44M	50.05M
Cash Flow
Free Cash Flow	17.12M	15.71M	-7.84M	-5.78M	-10.29M	-7.69M
Operating Cash Flow	17.46M	15.90M	-2.80M	-504.00K	-3.84M	-1.62M
Investing Cash Flow	-4.80M	-4.55M	-5.00M	-5.27M	-6.45M	-6.07M
Financing Cash Flow	-10.54M	-9.19M	7.18M	1.99M	-1.23M	14.13M

Kromek Group plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.50
• 50DMA: Negative
• 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 Negative. The current price of 8.5 is below the 20-day moving average (MA) of 11.49, below the 50-day MA of 10.97, and above the 200-day MA of 7.35, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 39.23 is Neutral, neither overbought nor oversold. The STOCH value of 22.92 is Neutral, 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
DSCV	77 Outperform	£552.70M	10.73	8.49%	2.09%	0.49%	61.73%
KMK	73 Outperform	£70.42M	3.57	7.39%	―	36.61%	―
JDG	69 Neutral	£266.42M	31.22	12.26%	1.89%	5.46%	-26.44%
GHH	65 Neutral	£211.85M	25.56	3.10%	2.19%	10.66%	21.19%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TTG	54 Neutral	£205.84M	-4.83	-31.42%	―	-16.33%	-448.12%
WPHO	39 Underperform	£32.28M	-21.06	-17.36%	―	-14.81%	-1362.50%

Kromek Group plc Corporate Events

Kromek Chairman Increases Stake with Fresh Share Purchase

Kromek Group plc reported that its non-executive chairman, Rakesh Sharma, has increased his personal stake in the company by purchasing 102,669 ordinary shares at 9.74p each. Following this transaction, Sharma now holds 1,310,208 shares, representing approximately 0.2% of Kromek’s issued share capital.

The chairman’s additional investment signals board-level confidence in Kromek’s prospects as it pursues growth in advanced imaging and CBRN detection markets. The move may be viewed positively by investors, reinforcing alignment between leadership and shareholders at a time when the company is commercialising its radiation and bio-detection technologies.

The most recent analyst rating on (GB:KMK) stock is a Buy with a £12.50 price target. To see the full list of analyst forecasts on Kromek Group plc stock, see the GB:KMK Stock Forecast page.

Kromek Swings to Profit on Siemens-Backed Imaging Surge and Strong CBRN Demand

Kromek Group reported a sharp turnaround in performance for the six months to 31 October 2025, with revenue surging to £15.0m from £3.7m a year earlier and a move from a pre-tax loss of £5.7m to a £3.1m profit, driven by strong growth in both its Advanced Imaging and CBRN detection divisions. Advanced Imaging sales jumped to £10.8m, heavily boosted by milestone deliveries under last year’s landmark Siemens Healthineers enablement agreement, while underlying imaging revenue still rose 41%, and CBRN revenue more than doubled to £4.3m on the back of key government wins, including a £1.7m order under the UK Radiological Nuclear Detection Framework and a development contract with the UK Ministry of Defence. Gross margins improved to 71.7% and adjusted EBITDA swung to a £6.0m profit, aided by higher-margin licensing income and ongoing automation and capacity expansion in CZT manufacturing, while an expanded £6.0m revolving credit facility and additional asset finance were secured to support growth. Management highlighted strengthening demand for CZT-based photon-counting CT and nuclear security solutions, renewed engagement with major OEM customers such as Spectrum Dynamics and Analogic, extensive patent activity, and a healthy order book, underpinning confidence that the group will deliver full-year results in line with market expectations and reinforcing its positioning as a key independent supplier in a growing, high-barrier imaging and security market.

The most recent analyst rating on (GB:KMK) stock is a Buy with a £14.50 price target. To see the full list of analyst forecasts on Kromek Group plc stock, see the GB:KMK Stock Forecast page.

Kromek Group to Announce Interim Results and Host Investor Q&A

Kromek Group plc announced it will release its interim results for the six months ended 31 October 2025 on 20 January 2026. The company will host an online Q&A session for investors on 26 January 2026, providing an opportunity for stakeholders to engage with the CEO and CFO. This announcement highlights Kromek’s commitment to transparency and investor engagement, potentially strengthening its market position.

The most recent analyst rating on (GB:KMK) stock is a Buy with a £7.00 price target. To see the full list of analyst forecasts on Kromek Group plc stock, see the GB:KMK Stock Forecast page.

Kromek Group to Announce Interim Results and Host Investor Q&A

Kromek Group plc has announced that it will release its interim results for the six months ending 31 October 2025 on 20 January 2026. The company will host an online Q&A session for investors on 26 January 2026, providing an opportunity for stakeholders to engage with the CEO and CFO. This announcement underscores Kromek’s commitment to transparency and stakeholder engagement, potentially impacting investor confidence and market positioning.

The most recent analyst rating on (GB:KMK) stock is a Buy with a £7.00 price target. To see the full list of analyst forecasts on Kromek Group plc stock, see the GB:KMK Stock Forecast page.