Kromek Group plc (KMK) AI Stock Analysis

• Market Cap: £54.90M
• Dividend Yield: N/A
• Average Volume (3M): 3.19M
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.22
• 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: 72 Outperform
• Price Target: 7.00p ▼(-16.47% Downside)

Kromek Group plc's overall stock score of 72 reflects its strong financial performance and positive corporate events, which are the most significant factors. The technical analysis presents a mixed picture, while the valuation suggests potential undervaluation. The absence of earnings call data does not impact the score significantly.

Positive Factors

Revenue Growth

Kromek's robust revenue growth indicates strong market demand and effective sales strategies, positioning the company well for continued expansion.

Profitability Margins

Improved profitability margins reflect efficient cost management and operational efficiency, enhancing long-term financial stability.

Balance Sheet Health

A strong balance sheet with low leverage provides financial flexibility and reduces risk, supporting sustainable growth and investment capacity.

Negative Factors

Cash Flow Challenges

Negative free cash flow growth can limit the company's ability to invest in new projects and may strain liquidity, impacting long-term growth potential.

Free Cash Flow Conversion

While the ratio suggests effective conversion of net income, it highlights potential constraints in generating surplus cash, affecting reinvestment capacity.

Cash Flow Metrics

Areas for improvement in cash flow metrics could indicate inefficiencies in cash management, potentially affecting operational flexibility and strategic initiatives.

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: 8.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 8.38 is above the 20-day moving average (MA) of 6.79, above the 50-day MA of 6.84, and above the 200-day MA of 5.92, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 82.85 is Negative, neither overbought nor oversold. The STOCH value of 80.64 is Negative, 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	72 Outperform	£54.90M	14.41	7.39%	―	36.61%	―
SDI	70 Neutral	£78.95M	17.12	9.34%	―	7.36%	31.93%
SOLI	68 Neutral	£89.51M	36.97	3.88%	1.59%	8.75%	-54.73%
GHH	67 Neutral	£170.27M	45.86	3.13%	2.11%	10.66%	21.19%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
XAR	56 Neutral	£80.60M	-7.21	-16.64%	―	-7.35%	-222.10%
WPHO	39 Underperform	£39.51M	-35.47	-17.36%	―	-14.81%	-1362.50%

Kromek Group plc Corporate Events

Kromek Director Increases Stake with Share Purchase

Kromek Group plc announced that Matthew Boyle, a Non-executive Director, purchased 285,000 ordinary shares of the company, representing 0.04% of the issued share capital. This transaction indicates confidence in the company’s future prospects and may positively influence stakeholder perception, potentially impacting the company’s market position and investor relations.

Kromek Group Aligns Director Interests with Shareholders Through Option Grants

Kromek Group plc announced the grant and exercise of options for its directors, aimed at aligning their interests with shareholders and supporting the company’s cash position. This strategic move, coupled with changes in the board structure, reflects Kromek’s efforts to strengthen its financial and operational footing, potentially impacting its market positioning and stakeholder relations.

Kromek Group plc Secures Strong Shareholder Support at AGM

Kromek Group plc announced that all resolutions were passed at its recent annual general meeting, reflecting strong shareholder support. This outcome underscores the company’s stable governance and strategic direction, potentially strengthening its market position in the advanced imaging and CBRN detection sectors.

Kromek Group Reports Significant Revenue Growth in H1 2026

Kromek Group plc announced a significant increase in revenue for the first half of 2026, expecting at least £14.5 million compared to £3.7 million in the same period of 2025. This growth is attributed to strong performance in the CBRN Detection division and a major contribution from an agreement with Siemens Healthineers. The company anticipates reporting a profit before tax and positive adjusted EBITDA, marking a turnaround from the previous year’s losses, and reinforcing confidence in meeting market expectations for the full year.

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.

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.