Kelso Technologies (KLS) AI Stock Analysis

• Market Cap: $11.03M
• Dividend Yield: N/A
• Average Volume (3M): 40.38K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.47
• Revenue Growth: 3.66%
• EPS Growth: -33.71%
• Country: CA
• Employees: 40
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): <0.01
• Shares Outstanding: 55,160,088
• 10 Day Avg. Volume: 62,023
• 30 Day Avg. Volume: 40,380
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 0.48
• P/FCF Ratio: -12.61
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 2.12
• Enterprise Value/Ebitda: 82.53
• 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: 52 Neutral
• Price Target: C$0.00 ▼(-100.00% Downside)

The overall stock score for Kelso Technologies is primarily influenced by its financial performance and technical analysis. The company faces significant financial challenges, including declining revenue and profitability issues, which weigh heavily on the score. Technical indicators provide some positive signals, but the valuation remains unattractive due to a negative P/E ratio and lack of dividend yield. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Balance Sheet Health

Kelso Technologies maintains a stable capital structure with low leverage, which provides financial stability and flexibility for future investments.

Cash Flow Improvement

The substantial increase in free cash flow indicates improved cash generation ability, enhancing the company's capacity to fund operations and growth initiatives.

Gross Profit Margin Stability

A stable gross profit margin suggests consistent cost management and pricing power, supporting long-term profitability despite other financial challenges.

Negative Factors

Declining Revenue Growth

Negative revenue growth reflects challenges in market expansion and demand, potentially impacting future profitability and market position.

Profitability Issues

Persistent profitability issues indicate struggles in cost management and revenue generation, which could hinder long-term financial health and shareholder returns.

Negative Operating Cash Flow

Negative operating cash flow suggests operational inefficiencies and cash management challenges, potentially affecting the company's ability to sustain operations without external financing.

Kelso Technologies Business Overview & Revenue Model

Company Description

Kelso Technologies Inc. (KLS) is a Canadian company specializing in the design and manufacturing of innovative products primarily for the rail and industrial sectors. The company focuses on providing solutions that enhance safety, efficiency, and performance in freight transportation, particularly through its advanced tank car fittings, safety products, and other specialized equipment. Kelso's commitment to innovation positions it as a key player in the evolving landscape of transportation and industrial safety.

How the Company Makes Money

Kelso Technologies generates revenue through the sale of its proprietary products and solutions, primarily targeting the rail industry. The company's main revenue streams include the manufacturing and distribution of tank car fittings, safety valves, and other rail-related equipment. Kelso also benefits from long-term contracts and partnerships with major rail operators and manufacturers, which provide a steady flow of orders. Additionally, the company explores opportunities in new markets and sectors, enhancing its revenue potential through diversification and strategic collaborations. By focusing on innovation and safety standards, Kelso positions itself to capitalize on regulatory requirements and the growing demand for safer transportation solutions.

Kelso Technologies Financial Statement Overview

Summary

Kelso Technologies faces financial challenges with declining revenue and profitability issues. The balance sheet is stable with low leverage, but the company struggles with generating returns. Cash flow improvements are notable, yet overall financial performance requires strategic focus to enhance profitability and growth.

Income Statement

Kelso Technologies has experienced declining revenue growth, with a negative growth rate of -2.22% in the TTM (Trailing-Twelve-Months). The company also faces challenges with profitability, as indicated by a negative net profit margin of -16.36% and negative EBIT and EBITDA margins. Despite a relatively stable gross profit margin of 42.84%, the overall income statement reflects financial instability and a need for strategic improvements.

Balance Sheet

The balance sheet shows a low debt-to-equity ratio of 0.052, indicating conservative leverage. However, the return on equity is negative at -17.45%, reflecting challenges in generating returns for shareholders. The equity ratio is not explicitly provided, but the low debt levels suggest a stable capital structure. Overall, the balance sheet is stable but lacks profitability.

Cash Flow

Kelso Technologies has shown significant improvement in free cash flow growth, with a remarkable increase of 789.75% in the TTM. However, the operating cash flow remains negative, and the operating cash flow to net income ratio is low at 0.05. The free cash flow to net income ratio is negative, indicating cash flow challenges. While there is positive momentum in free cash flow, overall cash flow management needs attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.94M	10.68M	10.82M	10.93M	7.43M	11.15M
Gross Profit	4.71M	4.69M	4.58M	4.91M	3.20M	4.79M
EBITDA	121.09K	-686.72K	-543.43K	-118.54K	-1.56M	-88.35K
Net Income	-2.89M	-4.62M	-2.10M	-1.36M	-2.76M	-1.31M
Balance Sheet
Total Assets	6.59M	6.57M	9.70M	12.15M	13.73M	12.02M
Cash, Cash Equivalents and Short-Term Investments	488.27K	153.15K	1.43M	2.71M	3.38M	1.05M
Total Debt	104.14K	115.90K	16.64K	146.72K	287.71K	149.25K
Total Liabilities	1.88M	2.34M	983.02K	1.37M	1.67M	1.06M
Stockholders Equity	4.71M	4.23M	8.72M	10.78M	12.06M	10.96M
Cash Flow
Free Cash Flow	538.13K	-405.16K	-1.12M	-588.43K	-2.25M	-3.28M
Operating Cash Flow	-380.46K	-393.88K	-275.25K	314.41K	-1.82M	-1.56M
Investing Cash Flow	293.10K	-751.04K	-846.83K	-875.50K	-401.29K	-1.71M
Financing Cash Flow	-109.68K	-138.72K	-155.37K	-135.58K	4.54M	-93.71K

Kelso Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.20
• 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 TSE:KLS, the sentiment is Negative. The current price of 0.2 is below the 20-day moving average (MA) of 0.21, below the 50-day MA of 0.20, and above the 200-day MA of 0.17, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.50 is Neutral, neither overbought nor oversold. The STOCH value of 61.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:KLS.

Kelso Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CP	74 Outperform	$91.24B	22.01	9.32%	0.86%	4.02%	21.39%
CNR	71 Outperform	$82.61B	18.22	22.24%	2.61%	0.23%	-13.22%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KLS	52 Neutral	$11.03M	―	11.91%	―	3.66%	-33.71%
BAC	22 Underperform	C$7.72M	-11.11	―	―	―	54.17%

Kelso Technologies Corporate Events

Kelso Technologies Reports Third Consecutive Profitable Quarter Amid Strategic Diversification

Kelso Technologies Inc. reported its third consecutive profitable quarter with a net income of $182,851 for Q3-2025, marking an 11.3% increase in gross revenue year-over-year. The company’s growth was driven by deferred orders and cost management, despite challenges in new tank car constructions due to tariff uncertainties. Kelso is diversifying into related sectors to support growth with minimal capital investment, while also securing an increased line of credit to enhance financial flexibility.

Kelso Technologies Announces Auditor Change

Kelso Technologies Inc. has announced a change in its auditing firm as of October 8, 2025. The former auditor has confirmed their agreement with this change, and the successor auditor has also confirmed their agreement, indicating a smooth transition. This change in auditors may impact the company’s financial reporting processes and could be of interest to stakeholders monitoring the company’s compliance and financial transparency.

Kelso Technologies Appoints New Auditor to Support Growth

Kelso Technologies Inc. has appointed CBIZ CPAs P.C. as its new public accounting firm following the resignation of Smythe LLP due to a change in policies. The decision, made by the Board of Directors on the recommendation of the Audit Committee, is expected to support Kelso’s growth phase, leveraging CBIZ’s extensive coverage as one of the top 10 public accounting firms in the United States.

Kelso Technologies Releases September 2025 Form 6-K

Kelso Technologies Inc. has submitted its Form 6-K for September 2025, highlighting the company’s recent activities and investor presentation. The report, signed by President & CEO Frank Busch on September 26, 2025, provides insights into the company’s current operational focus and strategic direction, which may influence stakeholder perspectives and industry positioning.

Kelso Technologies Announces Leadership Changes with Director Retirement

Kelso Technologies Inc. announced the retirement of Lead Director Paul Cass, effective August 31, 2025, with Independent Director Jesse Crews set to assume the role on September 1, 2025. The company also appointed CFO Sameer Uplenchwar to the board. This leadership transition marks a significant point in Kelso’s history as it aims to rebuild shareholder value and grow the company, leveraging Crews’ extensive rail industry experience.