Kontrol Technologies (KNR) AI Stock Analysis

• Market Cap: C$104.58M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 11.8
• Beta (1Y): N/A
• Revenue Growth: -41.96%
• EPS Growth: N/A
• Country: CA
• Employees: 30
• Sector: Energy
• Sector Strength: 49
• Industry: Information Technology Services
• EPS (TTM): 0.00
• Shares Outstanding: 55,891,170
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: C$0.35
• Price Target Upside: -86.00% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Kontrol Technologies exhibits strengths in valuation and strategic initiatives like share buybacks. However, financial performance and technical analysis highlight challenges with revenue volatility, high debt, and potential overbought conditions. These factors collectively result in a moderate stock score.

Positive Factors

Management Strategy

Management is actively pursuing tuck-in acquisition opportunities to utilize cash reserves and grow the business.

Profitability

Kontrol Technologies is expected to shift to operating profitability, enhancing its financial health and performance.

Valuation

Kontrol Technologies is trading at a discount with its market cap lower than its cash and equivalents, indicating a deep value opportunity.

Negative Factors

Financial Performance

Kontrol Technologies reported Q3 financial results that were softer than expected.

Kontrol Technologies Business Overview & Revenue Model

Company Description

Kontrol Technologies Corp., through its subsidiaries, provides energy management, emission compliance, and air quality solutions and services in Canada and the United States. It offers turn-key solutions to building owners and asset managers in the commercial, industrial, and multi-residential sector, which include software to analyze the management of heating, cooling, and ventilation (HVAC) systems; design and engineering of improvements and/or retrofits; and ongoing mission critical services. The company also provides integrated installations of heating, ventilation, cooling, and business automation systems to its customers; greenhouse gas verification, installation of critical emission management systems, and stack testing for environmental emissions; and Kontrol BioCloud, a solution to provide real-time viral detection technology. In addition, it offers energy auditing, monitoring and verification, energy project assessment, mechanical, electrical, and renewable design, as well as LEED facilitation services; monitoring, operation, and service of essential heating, cooling, ventilation, and utility systems; stack emission testing, continuous emission testing, power generation, due diligence, odour assessment and analytics, compliance, and other engineering services; and monitoring solutions, services, and product sales. The company is headquartered in Vaughan, Canada.

How the Company Makes Money

Kontrol Technologies makes money primarily through the sale and implementation of its energy efficiency solutions and smart building technologies. The company's key revenue streams include consulting services for energy audits and building performance analysis, as well as the sale and installation of its proprietary energy management systems. Additionally, Kontrol generates revenue from ongoing service contracts for monitoring and maintenance of these systems. Significant partnerships with technology providers and property management firms also contribute to its earnings, enhancing its ability to offer comprehensive solutions to a wide range of clients.

Kontrol Technologies Financial Statement Overview

Summary

Kontrol Technologies demonstrates a turnaround in financial performance with positive trends in profitability and cash flow in the most recent period. However, historical volatility and operational inefficiencies present risks. The balance sheet is showing signs of strengthening, but leverage remains a concern. Continued improvement in revenue stability and operational efficiency will be crucial for sustained growth.

Income Statement

Kontrol Technologies has shown significant volatility in its revenue and profitability. While the TTM data indicates a recovery in net income and EBITDA, previous years have seen substantial losses, especially in 2022. The revenue growth has been inconsistent, with a significant drop from 2022 to 2023. Despite recording a gross profit in the TTM, the EBIT margin remains negative, indicating operational inefficiencies.

Balance Sheet

The balance sheet shows improvement in the equity position with a positive stockholders' equity in the TTM, reversing previous negative equity. The debt-to-equity ratio has improved due to a reduction in total debt, enhancing financial stability. However, the equity ratio remains low, indicating potential risks associated with leverage.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow, especially in the TTM period. The operating cash flow to net income ratio is positive, reflecting better cash generation relative to net income. However, past years have shown negative free cash flows, indicating prior challenges in cash management.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
18.83M	89.39M	57.66M	12.35M	14.56M
	Gross Profit
11.41M	-7.06M	15.84M	6.05M	7.06M
	EBIT
2.33M	-40.88M	3.79M	116.24K	-1.21M
	EBITDA
3.40M	-4.22M	5.00M	1.06M	-199.11K
	Net Income Common Stockholders
21.79M	-44.54M	1.03M	-1.90M	-2.69M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.25M	1.98M	3.26M	2.53M	644.31K
	Total Assets
22.75M	24.25M	60.70M	22.20M	17.72M
	Total Debt
15.20M	20.25M	6.91M	9.09M	10.85M
	Net Debt
11.95M	18.27M	3.64M	6.56M	10.21M
	Total Liabilities
19.96M	48.12M	41.17M	14.93M	16.06M
	Stockholders Equity
2.79M	-23.87M	19.53M	7.28M	1.66M
Cash Flow		Free Cash Flow
3.49M	-9.75M	2.86M	188.05K	-607.38K
	Operating Cash Flow
3.55M	-9.22M	4.68M	483.69K	-214.00K
	Investing Cash Flow
-162.01K	-528.50K	-7.11M	-1.79M	-493.37K
	Financing Cash Flow
-2.12M	8.47M	3.15M	3.20M	329.63K

Kontrol Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KNR	58 Neutral	C$104.58M	11.79	138.78%	―	-41.96%	―
Sector *	56 Neutral	$7.06B	3.68	-4.87%	5.83%	0.28%	-51.94%
PVT	54 Neutral	C$33.78M	―	-22.54%	―	-12.88%	-66.10%
BNXA	47 Neutral	C$33.79M	―	73.33%	―	69.35%	70.48%
PAID	38 Underperform	C$12.66M	―	99.64%	―	34.05%	-58.84%

Kontrol Technologies Corporate Events

Kontrol Technologies Unveils BuildX AI Platform and Announces CEO Loan Agreement

Kontrol Technologies has launched BuildX AI, a platform aimed at enhancing the management of commercial and industrial buildings’ HVAC systems by integrating advanced drone technology and sensors for better data analytics. This initiative is expected to provide asset managers with actionable insights, improving operations and capital budgeting. Additionally, Kontrol announced a loan agreement with its CEO, Paul Ghezzi, which is considered a related party transaction but does not require minority securityholder approval due to its value relative to the company’s market capitalization.

Spark’s Take on TSE:KNR Stock

According to Spark, TipRanks’ AI Analyst, TSE:KNR is a Neutral.

Kontrol Technologies exhibits strengths in valuation and strategic initiatives like share buybacks. However, financial performance and technical analysis highlight challenges with revenue volatility, high debt, and potential overbought conditions. These factors collectively result in a moderate stock score.

To see Spark’s full report on TSE:KNR stock, click here.

Kontrol Technologies Initiates Share Buyback Program

Kontrol Technologies Corp. has announced a new Normal Course Issuer Bid (NCIB) to repurchase up to 5% of its common shares through Cboe Canada and other Canadian trading systems over a 12-month period starting April 14, 2025. This initiative, approved by the board, aims to reflect the company’s growth opportunities and enhance shareholder value and liquidity by potentially aligning the market price with the company’s intrinsic value.

Spark’s Take on TSE:KNR Stock

According to Spark, TipRanks’ AI Analyst, TSE:KNR is a Neutral.

Kontrol Technologies receives an overall score of 61, reflecting its ongoing financial recovery and strategic growth plans. The positive trend in financial performance and cash flow, combined with a sound valuation and strategic acquisitions, are key strengths. However, past financial volatility and operational inefficiencies, along with neutral technical indicators, highlight areas needing attention.

To see Spark’s full report on TSE:KNR stock, click here.

Kontrol Technologies Reports Fiscal Year 2024 Financial Results

Kontrol Technologies announced its financial results for the fourth quarter and fiscal year 2024, highlighting a significant gain from the sale of air monitoring and compliance-related assets, which contributed to a net income of $12.2 million from continuing operations. Despite a decrease in revenue compared to the previous year, the company maintains a strategic focus on high gross margins and plans to continue its growth through organic means and strategic acquisitions.