Kadestone Capital Corp. (KDSX) AI Stock Analysis

• Market Cap: C$23.93M
• Dividend Yield: N/A
• Average Volume (3M): 3.54K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.33
• 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)

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

Sizable Asset Base

A tangible asset base of roughly $14.7M provides durable collateral value that management can monetize or reallocate. Over a 2–6 month horizon these assets support refinancing, asset sales or project completions, increasing options to stabilize liquidity despite operational losses.

Positive Gross Profit

Positive TTM gross profit shows the underlying development projects can generate unit-level margins. That structural profitability at the project level suggests margin recovery is feasible if overhead is reduced or scale is achieved, making operational fixes potentially effective long-term.

Asset Coverage vs. Debt

Assets exceed debt on a headline basis, implying some collateral coverage for creditors and potential recovery value. This structural balance sheet characteristic improves restructuring and refinancing prospects over months, providing a buffer versus companies lacking tangible assets.

Negative Factors

Severe Revenue Decline

A ~68% TTM revenue decline materially reduces scale and the ability to spread fixed development costs. Sustained top-line shrinkage undermines long-term profitability prospects and makes it harder to fund operations internally, forcing reliance on external capital or asset disposals.

Large and Persistent Net Losses

Deep, ongoing net losses erode equity and impair returns on capital, limiting strategic flexibility. Over months, continued negative operating margins will further weaken the capital base, complicate access to financing, and heighten the risk that corrective measures must be disruptive or dilutive.

Cash Burn and Elevated Leverage

Persistent cash burn combined with roughly 3.0x debt-to-equity materially tightens liquidity and financing flexibility. Over a 2–6 month window, ongoing negative cash flow implies likely need for external funding or asset sales, increasing refinancing risk and potential dilution for equity holders.

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	Dec 2024	Dec 2023	Dec 2022	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: Negative
• Last Price: 0.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:KDSX, the sentiment is Negative. The current price of 0.75 is above the 20-day moving average (MA) of 0.64, above the 50-day MA of 0.66, and above the 200-day MA of 0.75, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 30.78 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$34.73M	7.14	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$33.83M	-0.28	―	―	-24.95%	-1.42%
INO.UN	48 Neutral	C$38.71M	-1.08	-17.55%	―	-7.30%	55.77%
MPCT.UN	44 Neutral	C$36.41M	-0.91	-9.99%	―	-25.69%	0.12%
KDSX	43 Neutral	C$23.93M	-4.36	-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.