kneat.com (KSI) AI Stock Analysis

• Market Cap: C$561.27M
• Dividend Yield: N/A
• Average Volume (3M): 69.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.92
• Revenue Growth: 43.00%
• EPS Growth: 50.39%
• Country: CA
• Employees: 297
• Sector: Healthcare
• Sector Strength: 71
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -0.03
• Shares Outstanding: 94,014,400
• 10 Day Avg. Volume: 50,670
• 30 Day Avg. Volume: 69,151
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 11.45
• Price to Cash Flow (P/CF): -127.40
• 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$8.13
• Price Target Upside: 36.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Kneat.com shows promising revenue growth and strategic expansion into new markets, but ongoing profitability challenges and unfavorable valuation metrics dampen its overall attractiveness. Recent corporate partnerships bolster future growth potential, yet achieving consistent profitability remains a key priority to enhance stock appeal.

kneat.com Business Overview & Revenue Model

Company Description

kneat.com, inc. designs, develops, and supplies software for data and document management within regulated environments in the United States, Ireland, Canada, and internationally. The company offers Kneat Gx platform, a configurable commercial off-the-shelf application focused on validation lifecycle management and testing for biotechnology, pharmaceutical, and medical device manufacturing industries. Its platform is used in process, computer system, cleaning, analytical instrument, method, utility and facility, equipment, and cold chain validation, as well commissioning and qualification, and electronic logbook management. The company also provides software-related services, including training, installation, upgradation, consulting, and maintenance, as well as process mapping, project management, and other services. kneat.com, inc. is headquartered in Limerick, Ireland.

How the Company Makes Money

Kneat.com generates revenue primarily through the licensing and subscription of its Kneat Gx platform to clients in regulated industries, such as pharmaceutical and biotechnology companies. The company offers its software on a Software-as-a-Service (SaaS) model, where clients pay ongoing fees for access to the platform and its features. Additionally, Kneat.com may earn revenue from providing professional services, such as implementation support, training, and consultation, to assist clients in adopting and optimizing the use of their software solutions. Key factors contributing to its earnings include the increasing demand for digital transformation in compliance processes and the company's ability to secure long-term contracts with major industry players.

kneat.com Financial Statement Overview

Summary

Kneat.com shows strong revenue growth but struggles with profitability. The balance sheet is stable with moderate leverage, while cash flow management is improving but still impacted by high capital expenditures.

Income Statement

The company has shown significant revenue growth over the years, with a notable increase of 43% from 2023 to 2024. However, profitability remains a concern as the company consistently reports negative EBIT and net income, indicating ongoing operational challenges. The gross profit margin is strong, but the net profit margin remains negative due to high operating expenses.

Balance Sheet

The company's balance sheet reflects a stable equity position, with stockholders' equity improving significantly. The debt-to-equity ratio is moderate, suggesting manageable leverage. However, the company needs to focus on improving its return on equity, which remains negative due to net losses. The equity ratio is healthy, indicating a strong asset base relative to liabilities.

Cash Flow

The cash flow from operations has improved, turning positive in 2024, which is a positive sign. However, the free cash flow remains negative, primarily due to substantial capital expenditures. The operating cash flow to net income ratio is favorable as the company generates more cash from operations than its net losses. Focus on enhancing free cash flow is crucial for financial flexibility.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
48.94M	34.22M	23.75M	15.50M	7.42M
	Gross Profit
36.76M	23.13M	14.65M	9.32M	2.88M
	EBIT
-5.95M	-13.53M	-9.77M	-6.35M	-6.56M
	EBITDA
6.27M	-5.77M	-3.20M	-5.11M	-2.30M
	Net Income Common Stockholders
-7.73M	-14.12M	-9.15M	-9.86M	-5.88M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
58.89M	15.25M	12.28M	21.56M	8.66M
	Total Assets
124.58M	64.50M	50.41M	51.28M	33.80M
	Total Debt
29.26M	28.17M	7.09M	7.86M	9.52M
	Net Debt
-29.63M	12.92M	-5.19M	-13.70M	860.92K
	Total Liabilities
59.51M	49.73M	24.43M	17.09M	14.59M
	Stockholders Equity
65.07M	14.76M	25.98M	34.19M	19.21M
Cash Flow		Free Cash Flow
-10.09M	-18.39M	-9.82M	-7.74M	-9.28M
	Operating Cash Flow
9.79M	-1.28M	2.99M	2.31M	-1.98M
	Investing Cash Flow
-17.52M	-15.97M	-11.91M	-10.04M	-6.43M
	Financing Cash Flow
50.62M	20.27M	-383.91K	21.20M	13.11M

kneat.com Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5.97
• 50DMA: Negative
• 100DMA: Negative
• 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:KSI, the sentiment is Neutral. The current price of 5.97 is below the 20-day moving average (MA) of 6.16, below the 50-day MA of 6.37, and above the 200-day MA of 5.44, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 45.98 is Neutral, neither overbought nor oversold. The STOCH value of 74.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:KSI.

kneat.com Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ET	73 Outperform	C$776.88M	12.93	22.71%	7.72%	-4.64%	-19.57%
BLN	68 Neutral	C$563.73M	―	-14.10%	―	31.68%	67.90%
KSI	57 Neutral	C$561.27M	―	-19.36%	―	43.00%	50.39%
Sector *	50 Neutral	$5.51B	2.95	-43.70%	2.78%	16.94%	3.59%

kneat.com Corporate Events

Kneat.com Partners with Global Pharma Leader to Enhance Validation Processes

Kneat.com has signed a Services Agreement with a major multinational generic pharmaceuticals producer to digitalize its drawing management process, enhancing the efficiency and accuracy of engineering and validation processes. This collaboration highlights Kneat’s strong market positioning and its ability to attract leading global companies, further solidifying its reputation in the life sciences industry as a provider of choice for digital validation solutions.

Spark’s Take on TSE:KSI Stock

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

The overall stock score reflects the company’s strong revenue growth and strategic expansions that enhance future prospects, despite ongoing profitability and valuation challenges. Technical indicators suggest a neutral trend, while recent corporate events are a positive sign of growth. Kneat.com is positioned well for future growth but needs to address profitability issues to improve its overall attractiveness.

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

Kneat.com Achieves Record Revenue Growth in 2024

Kneat.com reported record financial results for the fourth quarter and full year of 2024, with significant revenue growth and improved profitability. The company’s total revenue for the fourth quarter reached $13.7 million, marking a 40% year-over-year increase, while its annual recurring revenue grew by 60% to $59.7 million. The company’s strategic expansion included the addition of five large customers and the formalization of its partner program, which now includes major partners like Körber and ALTEN Group. These developments underscore Kneat’s robust business model and its leading role in the digital transformation of validation processes within the life sciences industry.

Kneat to Release 2024 Financial Results and Host Analyst Webcast

Kneat.com announced it will release its financial results for the fourth quarter and full year of 2024 on February 26, 2025. The announcement will be followed by a webcast hosted by the CEO and CFO for sell-side analysts. This release is significant as it provides stakeholders with insights into the company’s financial health and performance, potentially impacting its market positioning and investor relations.

Kneat Expands Digital Validation Services to Global Consumer Goods Leader

Kneat.com has signed a three-year Master Services Agreement with a global consumer food and drink producer to digitize its validation processes, initially focusing on equipment and computer system validation within a specialized health sciences division. This agreement marks a significant expansion into consumer goods, showcasing Kneat’s growing influence beyond traditional life sciences, as more companies seek to mitigate risk and enhance brand protection through digital validation solutions.