Kelso Technologies (KLS) AI Stock Analysis

• Market Cap: $11.03M
• Dividend Yield: N/A
• Average Volume (3M): 40.07K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.16
• Revenue Growth: -4.01%
• EPS Growth: -93.10%
• Country: CA
• Employees: 40
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): <0.01
• Shares Outstanding: 55,160,088
• 10 Day Avg. Volume: 71,795
• 30 Day Avg. Volume: 40,074
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.75
• Enterprise Value/Revenue: 0.76
• Enterprise Value/Gross Profit: 1.76
• Enterprise Value/Ebitda: 68.56
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 50 Neutral
• Price Target: C$0.00 ▼(-100.00% Downside)

Kelso Technologies' overall stock score is primarily impacted by its financial performance challenges, including declining revenue and profitability issues. While technical analysis shows a positive trend, the valuation remains unattractive due to negative earnings. The absence of earnings call data and corporate events means these factors do not influence the score.

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 primarily through the sale of its specialized products and services to customers in the rail and transportation industries. The company's revenue model includes direct sales of its proprietary equipment, as well as potential recurring revenue from maintenance, repair, and service contracts. Key revenue streams are derived from contracts with rail operators, freight companies, and manufacturers of railway equipment. Additionally, strategic partnerships with industry stakeholders enhance Kelso's market reach and can contribute to revenue growth through collaborative projects and joint ventures.

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: Positive
• Last Price: 0.20
• 50DMA: Positive
• 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 0.18, above the 50-day MA of 0.18, and above the 200-day MA of 0.16, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.74 is Neutral, neither overbought nor oversold. The STOCH value of 75.00 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
CP	75 Outperform	95.18B	23.10	9.05%	0.77%	4.77%	20.28%
CNR	66 Neutral	81.35B	17.96	21.19%	2.72%	0.63%	-14.20%
KLS	50 Neutral	$11.03M	―	2.73%	―	-4.01%	-93.10%
BAC	22 Underperform	6.76M	-9.72	0.00%	―	0.00%	64.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Kelso Technologies Corporate Events

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 turning point for Kelso, as the new team aims to rebuild shareholder value and grow the company, leveraging Crews’ extensive rail industry experience.