Kelso Technologies (KLS) AI Stock Analysis

• Market Cap: C$11.03M
• Dividend Yield: N/A
• Average Volume (3M): 40.38K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.34
• 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: 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: 51 Neutral
• Price Target: C$0.21 ▲(3.00% Upside)

Kelso Technologies' overall stock score is primarily influenced by its financial performance challenges and valuation concerns. However, positive corporate events provide some optimism for future growth. Technical analysis indicates a lack of strong momentum, contributing to a cautious outlook.

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. develops, produces, and distributes proprietary equipment used in transportation applications in the United States and Canada. The company offers railway equipment, such as bottom outlet, pressure relief, vacuum relief, and check valves, as well as one-bolt manways, pressure cars, pressure differential parts, tank gauges, laboratory test equipment, and wheel cleaners; emergency response kits; and fueling valves. It also provides trucking components, including one-bolt manways and pressure/vacuum safety valves for tank trailers; and suspension systems for fleet vehicles to access wilderness worksites. The company was formerly known as Kelso Resources Ltd. and changed its name to Kelso Technologies Inc. in July 1994. Kelso Technologies Inc. was incorporated in 1987 and is headquartered in Surrey, Canada.

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. Despite a stable balance sheet with low leverage, 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	12.28M	10.68M	10.82M	10.93M	7.43M	11.15M
Gross Profit	5.20M	4.69M	4.58M	4.91M	3.20M	4.79M
EBITDA	461.64K	-686.72K	-543.43K	-118.54K	-1.56M	-88.35K
Net Income	-2.35M	-4.62M	-2.10M	-1.36M	-2.76M	-1.31M
Balance Sheet
Total Assets	9.07M	6.57M	9.70M	12.15M	13.73M	12.02M
Cash, Cash Equivalents and Short-Term Investments	835.10K	153.15K	1.43M	2.71M	3.38M	1.05M
Total Debt	123.20K	115.90K	16.64K	146.72K	287.71K	149.25K
Total Liabilities	1.62M	2.34M	983.02K	1.37M	1.67M	1.06M
Stockholders Equity	6.81M	4.23M	8.72M	10.78M	12.06M	10.96M
Cash Flow
Free Cash Flow	794.73K	-405.16K	-1.12M	-588.43K	-2.25M	-3.28M
Operating Cash Flow	22.63K	-393.88K	-275.25K	314.41K	-1.82M	-1.56M
Investing Cash Flow	145.37K	-751.04K	-846.83K	-875.50K	-401.29K	-1.71M
Financing Cash Flow	-86.65K	-138.72K	-155.37K	-135.58K	4.54M	-93.71K

Kelso Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.20
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 0.2 is above the 20-day moving average (MA) of 0.20, below the 50-day MA of 0.21, and above the 200-day MA of 0.18, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.00 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, 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	77 Outperform	C$83.55B	18.43	22.24%	2.62%	0.23%	-13.22%
CP	74 Outperform	C$91.03B	21.96	9.32%	0.82%	4.02%	21.39%
WJX	73 Outperform	C$589.03M	12.79	8.84%	5.09%	3.71%	-12.70%
DXT	72 Outperform	C$724.79M	18.21	14.38%	3.02%	-0.73%	221.74%
SIS	72 Outperform	C$1.63B	26.36	10.22%	2.35%	3.93%	33.44%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KLS	51 Neutral	C$11.03M	-3.38	11.91%	―	3.66%	-33.71%

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 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.