kneat.com (KSI) AI Stock Analysis

• Market Cap: C$489.07M
• Dividend Yield: N/A
• Average Volume (3M): 120.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.27
• Revenue Growth: 33.27%
• EPS Growth: 86.18%
• Country: CA
• Employees: 297
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -0.01
• Shares Outstanding: 95,336,075
• 10 Day Avg. Volume: 105,937
• 30 Day Avg. Volume: 120,085
• PEG Ratio: 1.30
• Price to Book (P/B): 7.79
• Price to Sales (P/S): 10.36
• P/FCF Ratio: -50.25
• 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$6.33
• Price Target Upside: 23.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: C$5.00 ▼(-2.53% Downside)

Kneat.com's overall stock score reflects strong SaaS revenue growth and high customer satisfaction, which are offset by profitability challenges and cash flow constraints. The technical indicators suggest a bearish trend, and the valuation is unattractive due to a negative P/E ratio. Strategic investments in R&D are promising, but increased operating expenses and macroeconomic headwinds pose risks.

Positive Factors

SaaS Revenue Growth

Strong SaaS revenue growth indicates robust demand for Kneat's software solutions, enhancing long-term revenue stability and market position.

High Customer Satisfaction

High customer satisfaction reflects strong product quality and service, likely leading to customer retention and competitive advantage.

Strategic R&D Investments

Strategic R&D investments ensure Kneat remains at the forefront of innovation, supporting long-term growth and market leadership.

Negative Factors

Increased Operating Expenses

Rising operating expenses can pressure profit margins and delay profitability, affecting financial health if not managed effectively.

Macroeconomic Headwinds

Macroeconomic headwinds could slow growth and expansion, impacting Kneat's ability to capitalize on market opportunities.

Competitive Pressures

Rising competition may affect Kneat's market share and pricing power, potentially slowing revenue growth and deal closures.

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 a subscription-based model, where clients pay for access to its software solutions on a recurring basis. This includes annual licensing fees for the Kneat GxP platform, which vary based on the scale of implementation and the number of users. Additionally, the company earns revenue from professional services, which can include implementation support, training, and consulting services to help clients optimize their use of the software. Key partnerships with industry leaders and regulatory bodies also enhance Kneat's credibility and market reach, contributing to its earnings by attracting a larger client base seeking reliable compliance solutions.

kneat.com Financial Statement Overview

Summary

kneat.com demonstrates strong revenue growth and a solid gross profit margin, indicating effective cost management. However, profitability remains a concern with negative net profit margins. The balance sheet shows improved leverage and a strong equity base, but returns on equity are low. Cash flow generation is improving, but free cash flow remains negative. Overall, the company is on a positive trajectory but needs to enhance profitability and cash flow generation to strengthen its financial position.

Income Statement

The company has shown a strong revenue growth rate of 7.05% in the TTM period, indicating positive momentum. Gross profit margin remains robust at 75.11%, reflecting efficient cost management. However, the net profit margin is negative at -4.24%, highlighting profitability challenges. The EBIT margin is slightly positive at 3.10%, but the company needs to improve its operational efficiency to enhance profitability.

Balance Sheet

The debt-to-equity ratio has improved to 0.37 in the TTM period, indicating a more balanced capital structure. Return on equity is low at 0.83%, suggesting limited returns for shareholders. The equity ratio stands at 49.29%, showing a solid equity base. Overall, the balance sheet reflects moderate financial stability with room for improvement in profitability.

Cash Flow

Operating cash flow has improved significantly, with a positive operating cash flow to net income ratio of 0.41. However, free cash flow remains negative, although it has shown substantial growth. The free cash flow to net income ratio is negative, indicating challenges in generating free cash flow relative to net income. The company needs to focus on improving cash flow generation to support growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	60.00M	48.94M	34.22M	23.75M	15.50M	7.42M
Gross Profit	41.84M	36.76M	23.13M	14.65M	9.32M	2.88M
EBITDA	15.43M	6.27M	-5.37M	-3.20M	-5.11M	-2.30M
Net Income	-1.19M	-7.73M	-14.12M	-9.15M	-9.86M	-5.88M
Balance Sheet
Total Assets	131.74M	124.58M	64.50M	50.41M	51.28M	33.80M
Cash, Cash Equivalents and Short-Term Investments	59.84M	58.89M	15.25M	12.28M	21.56M	8.66M
Total Debt	30.00M	29.26M	28.17M	7.09M	7.86M	9.52M
Total Liabilities	65.51M	59.51M	49.73M	24.43M	17.09M	14.59M
Stockholders Equity	66.23M	65.07M	14.76M	25.98M	34.19M	19.21M
Cash Flow
Free Cash Flow	-1.56M	-10.09M	-18.39M	-9.82M	-7.74M	-9.28M
Operating Cash Flow	14.21M	9.79M	-1.28M	2.99M	2.31M	-1.98M
Investing Cash Flow	-19.61M	-17.52M	-15.97M	-11.91M	-10.04M	-6.43M
Financing Cash Flow	28.78M	50.62M	20.27M	-383.91K	21.20M	13.11M

kneat.com Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.13
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:KSI, the sentiment is Positive. The current price of 5.13 is above the 20-day moving average (MA) of 4.77, above the 50-day MA of 4.71, and below the 200-day MA of 5.65, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 65.71 is Neutral, neither overbought nor oversold. The STOCH value of 81.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:KSI.

kneat.com Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VHI	68 Neutral	C$555.06M	171.40	1.45%	―	59.34%	-23.48%
KSI	55 Neutral	C$489.07M	-380.00	-2.45%	―	33.27%	86.18%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ADK	50 Neutral	C$35.65M	-7.34	―	―	-48.53%	-9.66%
AIDR	48 Neutral	C$64.58M	-4.36	-207.53%	―	―	7.04%
UDOC	44 Neutral	C$13.82M	-2.77	―	―	―	48.94%
NARA	42 Neutral	C$8.01M	-1.73	―	―	―	81.01%

kneat.com Corporate Events

Kneat Solutions Secures Strategic Deal with Global Specialty Chemicals Leader

Kneat Solutions has entered a strategic partnership with a global specialty chemicals leader by signing a three-year Master Services Agreement. This collaboration showcases Kneat’s leadership in the digital validation market and positions the company to expand its platform’s influence across adjacent compliance functions while further enhancing efficiency and regulatory standards for its customers. This milestone contributes to Kneat’s record-breaking year in customer acquisition, bolstering the company’s reputation as a trusted provider of digital transformation solutions in highly regulated industries.

The most recent analyst rating on (TSE:KSI) stock is a Hold with a C$5.00 price target. To see the full list of analyst forecasts on kneat.com stock, see the TSE:KSI Stock Forecast page.

Kneat to Release Q3 2025 Financial Results

Kneat.com announced it will release its third-quarter financial results for 2025 on November 12, following the close of the TSX market. The announcement highlights Kneat’s continued focus on transparency and engagement with stakeholders, as the company plans a webcast conference call for analysts the following day. This release is part of Kneat’s ongoing efforts to maintain its leadership in the digital validation industry, providing stakeholders with insights into its financial performance and strategic direction.

The most recent analyst rating on (TSE:KSI) stock is a Hold with a C$6.00 price target. To see the full list of analyst forecasts on kneat.com stock, see the TSE:KSI Stock Forecast page.