Kelso Technologies (KLS) AI Stock Analysis

• Market Cap: $8.83M
• Dividend Yield: N/A
• Average Volume (3M): 27.72K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.30
• Revenue Growth: 4.89%
• EPS Growth: -76.95%
• Country: CA
• Employees: 40
• Sector: Industrials
• Sector Strength: 87
• Industry: Railroads
• EPS (TTM): 0.01
• Shares Outstanding: 55,160,088
• 10 Day Avg. Volume: 21,972
• 30 Day Avg. Volume: 27,722
• PEG Ratio: 0.24
• Price to Book (P/B): 1.56
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -28.60
• Enterprise Value/Market Cap: 1.62
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 2.86
• Enterprise Value/Ebitda: -16.90
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: C$0.00 ▼(-100.00%Downside)

Kelso Technologies' overall stock score reflects its challenging financial performance and valuation concerns. However, the recent profitability and strategic corporate events provide optimism for potential future improvement. Technical analysis indicates a neutral market position.

Kelso Technologies Business Overview & Revenue Model

Company Description

Kelso Technologies (KLS) is a company that specializes in the design, engineering, production, and distribution of specialized products for the rail industry. The company's core products include rail tank car equipment, such as valves and related components, which are critical for the safe and efficient transportation of hazardous and non-hazardous materials. Kelso Technologies operates primarily within the transportation and logistics sectors, emphasizing safety, innovation, and compliance with industry regulations.

How the Company Makes Money

Kelso Technologies generates revenue through the sale of its proprietary railroad tank car equipment. The company's key revenue streams include the sale of pressure relief valves, vacuum relief valves, bottom outlet valves, and other specialty components designed to enhance the safety and performance of rail tank cars. Kelso Technologies also benefits from strategic partnerships and long-term agreements with major railroad operators and tank car manufacturers, which provide a steady demand for its products. Additionally, the company engages in ongoing research and development to innovate and expand its product offerings, maintaining its competitive edge in the rail industry.

Kelso Technologies Financial Statement Overview

Summary

Kelso Technologies faces significant financial challenges, including declining revenues, negative profitability, and cash flow issues. While the equity position remains strong, increased leverage and persistent losses are concerning. Despite a recent profitable quarter, historical financial performance remains weak.

Income Statement

Kelso Technologies has experienced a revenue decrease over recent years, with significant declines from 2019 levels. Gross profit margins are moderate, but the consistent negative EBIT and EBITDA margins indicate operational challenges. The net profit margins have been negative for several years, reflecting ongoing profitability issues.

Balance Sheet

The company's balance sheet shows a reasonable equity ratio, indicating a strong capital base. However, the increasing debt-to-equity ratio from prior years suggests rising leverage. ROE is negative due to persistent losses, which is a concern for shareholders.

Cash Flow

Kelso Technologies is struggling with negative free cash flow, although there’s a slight improvement in operating cash flow compared to prior periods. The free cash flow to net income ratio is negative, indicating insufficient cash generation to cover losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.19M	10.68M	10.82M	10.93M	7.43M	11.15M
Gross Profit	4.99M	4.69M	4.58M	4.91M	3.20M	4.79M
EBITDA	273.65K	-686.72K	-543.43K	-118.54K	-1.56M	-88.35K
Net Income	-3.51M	-4.62M	-2.10M	-1.36M	-2.76M	-1.31M
Balance Sheet
Total Assets	6.88M	6.57M	9.70M	12.15M	13.73M	12.02M
Cash, Cash Equivalents and Short-Term Investments	417.19K	153.15K	1.43M	2.71M	3.38M	1.05M
Total Debt	109.07K	115.90K	16.64K	146.72K	287.71K	149.25K
Total Liabilities	2.24M	2.34M	983.02K	1.37M	1.67M	1.06M
Stockholders Equity	4.64M	4.23M	8.72M	10.78M	12.06M	10.96M
Cash Flow
Free Cash Flow	60.48K	-405.16K	-1.12M	-588.43K	-2.25M	-3.28M
Operating Cash Flow	-319.57K	-393.88K	-275.25K	314.41K	-1.82M	-1.56M
Investing Cash Flow	-334.37K	-751.04K	-846.83K	-875.50K	-401.29K	-1.71M
Financing Cash Flow	-122.09K	-138.72K	-155.37K	-135.58K	4.54M	-93.71K

Kelso Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:KLS, the sentiment is Positive. The current price of 0.16 is above the 20-day moving average (MA) of 0.16, above the 50-day MA of 0.16, and above the 200-day MA of 0.16, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.07 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:KLS.

Kelso Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CNR	79 Outperform	$88.89B	19.84	21.81%	3.44%	2.60%	-15.63%
CP	76 Outperform	C$99.90B	26.05	8.50%	0.85%	7.33%	-1.42%
Sector *	62 Neutral	C$6.43B	7.67	3.30%	3.13%	6.91%	-13.05%
KLS	51 Neutral	$8.83M	―	-7.09%	―	4.89%	-76.95%
BAC	22 Underperform	C$8.69M	―	55.19%	―	―	35.14%

Kelso Technologies Corporate Events

Kelso Technologies Reports 2025 AGM Results and Leadership Changes

Kelso Technologies Inc. announced the results of its 2025 Annual General and Special Meeting, where 44.85% of the company’s outstanding shares were voted. The shareholders elected five directors and approved the reappointment of Smythe, LLP as auditors. Additionally, the Omnibus Equity Incentive Plan was adopted. Leadership changes were also noted, with Frank Busch appointed as President and CEO, and Amanda Smith set to become COO on July 1, 2025. These developments reflect Kelso’s commitment to maintaining strong governance and operational leadership, potentially impacting its market positioning and stakeholder confidence.

Kelso Technologies Reports First Profitable Quarter Since 2020

Kelso Technologies Inc. reported its first profitable quarter since Q1-2020, with a net income of $412,337 for Q1-2025. The company achieved a 19.06% year-over-year increase in gross revenue, reaching $3.16 million, and improved its gross profit margin to 44.6%. Despite challenges in international trade affecting tank car demand, Kelso remains optimistic about sustainable revenue growth and is preparing for an expected increase in new tank car builds in 2026/2027. The company announced leadership changes, with Amanda Smith set to become the new COO, as part of its cost reduction strategy.

Kelso Technologies Announces Leadership Changes and Board Appointment

Kelso Technologies Inc. announced the retirement of COO Anthony Andrukaitis, effective June 30, 2025, with Amanda Smith set to assume the role on July 1, 2025. The company also appointed Mark Temen to the Board of Directors, bringing financial expertise to enhance governance. These changes are part of Kelso’s strategy to streamline operations and strengthen leadership, ensuring a smooth transition and continued focus on safety and innovation in transportation equipment.