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: 11.50 p ▲(35.29% 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 and profit recovery

Kromek's sharp top-line rebound and return to profitability reflect durable demand for its detectors and improved pricing or product mix. Sustained revenue growth and a positive net margin enhance reinvestment capacity, underwriting longer-term product development and contract delivery.

High gross and operating margins

Very high gross margin and stronger EBIT/EBITDA margins indicate structural cost advantages or differentiated, high-value products. Such margin levels provide pricing flexibility and margin buffer across contract cycles, supporting durable profitability even with customer mix shifts.

Strong balance sheet and low leverage

Minimal leverage and a high equity ratio give Kromek financial resilience through long procurement cycles and program timing. This balance sheet strength supports funding of R&D, capitalization of contracts, and reduces refinancing risk during multiyear government programs.

Negative Factors

Negative free cash flow growth

Negative FCF growth shows the company still struggles to turn accounting profits into expanding discretionary cash, increasing reliance on external funding or working capital management to support growth. This constrains durable self-funded expansion and heightens liquidity sensitivity.

Lumpy, program-driven revenue

Heavy exposure to government and program-timed contracts creates structural revenue lumpiness and long procurement lead times. This reduces predictability of near-term cash flow and backlog conversion, complicating planning and making operating performance sensitive to contract timing.

Small workforce may limit scale

A relatively small employee base constrains internal capacity to scale manufacturing, customization, and global support for defense, nuclear, and medical programs. This may force reliance on partners or subcontractors, slowing delivery and limiting ability to capture large multi-year contracts.

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

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: Neutral
• Last Price: 8.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:KMK, the sentiment is Neutral. The current price of 8.5 is below the 20-day moving average (MA) of 11.46, below the 50-day MA of 10.93, and above the 200-day MA of 7.33, indicating a neutral trend. The MACD of 0.20 indicates Positive momentum. The RSI at 43.86 is Neutral, neither overbought nor oversold. The STOCH value of 18.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	£556.54M	10.73	8.49%	2.09%	0.49%	61.73%
KMK	73 Outperform	£70.42M	3.57	7.39%	―	36.61%	―
JDG	69 Neutral	£279.74M	31.22	12.26%	1.89%	5.46%	-26.44%
GHH	65 Neutral	£211.30M	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	£207.26M	-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.