Kadestone Capital Corp. (KDSX) AI Stock Analysis

• Market Cap: C$22.53M
• Dividend Yield: N/A
• Average Volume (3M): 3.54K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.47
• Revenue Growth: N/A
• EPS Growth: -156.02%
• Country: CA
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): -0.02
• Shares Outstanding: 46,928,246
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 3,535
• PEG Ratio: -0.06
• Price to Book (P/B): 7.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.42
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: C$0.49 ▼(-34.40% Downside)
• Action: Reiterated Date: 01/24/26
• Date: Action: Reiterated 01/24/26

The score is driven primarily by very weak financial performance (shrinking revenue, large losses, sustained cash burn, and higher leverage). Technical indicators add further downside pressure with the stock trading below key moving averages and negative MACD. Valuation provides limited offset because the negative P/E reflects ongoing unprofitability and there is no dividend yield support.

Positive Factors

Asset Base

A sizable asset base (~$14.7M) provides collateral and optionality over the medium term. Assets can support refinancing, secure creditor concessions, or be monetized selectively, giving the company avenues to shore up liquidity and pursue project completion.

Positive Gross Profit at Project Level

Positive gross profit indicates core development projects generate margin before overhead. That suggests the underlying business can be economically viable at scale or with lower fixed costs, making operational recovery possible if revenue or efficiency improves.

Industry - Asset-Backed Development

As an asset-backed real estate developer, the company operates in a sector with durable underlying asset values and financing pathways. This structural positioning allows for strategic asset sales, joint ventures or refinancing that can stabilize operations over a multi-month horizon.

Negative Factors

Sustained Cash Burn

Persistent negative operating and free cash flow (~-$6.2M TTM) is a material structural weakness. Continued cash burn erodes liquidity, forces reliance on external financing or asset disposals, and undermines the firm's ability to fund projects or cover fixed obligations without dilution.

Sharply Declining Revenue

A ~68% TTM revenue decline signals loss of scale and/or execution problems in core projects. Shrinking top-line reduces the company's ability to cover fixed costs, limits margin recovery, and makes it harder to leverage gross-profitability into sustained operating profits.

High Leverage and Weak Equity Base

Elevated leverage (debt-to-equity ~3.0x) combined with declining equity materially reduces financial flexibility. High indebtedness raises refinancing and covenant risk and amplifies downside for shareholders, constraining strategic options absent asset sales or significant capital injections.

Kadestone Capital Corp. Business Overview & Revenue Model

Company Description

Kadestone Capital Corp. operates as a real estate investment and development company. The company operates through two segments, Property Investment and Building Materials. It engages in the acquisition, development, and management of residential and commercial income producing properties; and selling of building materials. The company was incorporated in 2019 and is based in Vancouver, Canada.

How the Company Makes Money

Kadestone Capital Corp. makes money primarily through the acquisition and development of real estate assets. Its revenue streams include rental income from leased properties, profits from the sale of developed or improved properties, and potential appreciation in property values over time. The company may also engage in joint ventures or partnerships that enhance its ability to finance and manage projects, contributing to its earnings through shared profits and reduced risks. Additionally, Kadestone may benefit from tax incentives or government programs that support real estate development, further impacting its financial performance.

Kadestone Capital Corp. Financial Statement Overview

Summary

Financial performance is very weak: revenue is extremely small and down ~68% TTM, net income is deeply negative (~-$5.5M TTM) with large negative operating margins, operating cash flow and free cash flow are both about -$6.2M TTM, and leverage is elevated (~3.0x debt-to-equity) as equity has declined.

Income Statement

Operating performance is very weak. Revenue is extremely small and volatile, with TTM (Trailing-Twelve-Months) revenue down ~68% versus the prior period, and profitability is deeply negative (TTM net income of about -$5.5M with very large negative operating margins). While gross profit is positive in TTM, the scale is insufficient to absorb overhead, keeping losses structurally high.

Balance Sheet

Leverage has increased meaningfully as equity declined while debt stayed high. Total debt is ~$11.3M against equity of ~$2.6M in TTM (debt-to-equity ~3.0x), up from ~1.8x in the latest annual period, which reduces financial flexibility. Total assets remain sizable (~$14.7M TTM), but returns on equity are sharply negative, reflecting continued losses and a weakening capital base.

Cash Flow

Cash generation is a major concern. TTM operating cash flow is roughly -$6.2M and free cash flow is about -$6.2M, indicating ongoing cash burn. Free cash flow roughly tracks net losses (cash burn broadly consistent with reported losses), but there is no evidence yet of internally funded operations; continued funding needs are likely if this trend persists.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.52K	0.00	2.31M	-125.93K	210.77K	13.80K
Gross Profit	112.08K	-2.12K	2.31M	-125.93K	225.47K	-11.68K
EBITDA	-4.90M	-4.54M	-3.29M	-3.84M	-2.30M	-2.23M
Net Income	-5.49M	-4.65M	-1.70M	-4.56M	-2.89M	-2.54M
Balance Sheet
Total Assets	14.75M	18.40M	27.50M	27.60M	23.13M	20.66M
Cash, Cash Equivalents and Short-Term Investments	1.71M	6.03M	4.33M	9.90M	5.02M	8.80M
Total Debt	11.27M	11.00M	16.13M	15.42M	8.69M	4.84M
Total Liabilities	12.11M	12.37M	17.23M	16.39M	9.05M	5.12M
Stockholders Equity	2.63M	6.02M	10.27M	11.22M	14.08M	15.54M
Cash Flow
Free Cash Flow	-6.22M	-5.03M	-2.38M	-2.35M	-1.45M	-1.73M
Operating Cash Flow	-6.19M	-5.01M	-2.38M	-2.35M	-1.38M	-1.73M
Investing Cash Flow	10.13M	7.38M	-1.92M	-199.88K	-6.28M	-8.44M
Financing Cash Flow	-5.75M	-5.50M	-263.73K	6.42M	3.88M	18.15M

Kadestone Capital Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.75
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:KDSX, the sentiment is Positive. The current price of 0.75 is above the 20-day moving average (MA) of 0.52, above the 50-day MA of 0.59, and above the 200-day MA of 0.71, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 60.60 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:KDSX.

Kadestone Capital Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IEI	66 Neutral	C$34.78M	7.79	4.45%	2.31%	2.03%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
HOT.UN	49 Neutral	C$33.76M	-0.28	―	―	-24.95%	-1.42%
INO.UN	48 Neutral	C$35.38M	-0.98	-17.55%	―	-7.30%	55.77%
MPCT.UN	47 Neutral	C$35.37M	-0.64	-9.99%	―	-25.69%	0.12%
KDSX	43 Neutral	C$22.53M	-4.10	-103.14%	―	―	-156.02%

Kadestone Capital Corp. Corporate Events

Kadestone Capital Corp. Reports Increased Losses for Q3 2025

Kadestone Capital Corp. reported a net loss of $3.6 million for the nine months ending September 30, 2025, an increase from the previous year’s loss of $2.76 million. The increased loss was primarily due to higher operating expenses, including salaries, consulting fees, and interest expenses. Despite the losses, the company continues to focus on its vision to become a leading vertically integrated property company, leveraging its synergistic business lines to solidify its market position.