kneat.com (KSI) AI Stock Analysis

• Market Cap: C$545.61M
• Dividend Yield: N/A
• Average Volume (3M): 79.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• Revenue Growth: 42.93%
• EPS Growth: 85.95%
• Country: CA
• Employees: 297
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.02
• Shares Outstanding: 94,397,030
• 10 Day Avg. Volume: 145,155
• 30 Day Avg. Volume: 79,908
• PEG Ratio: 2.94
• Price to Book (P/B): 7.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -21.05
• 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: 40.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 60 Neutral
• Price Target: C$6.50 ▲(12.46%Upside)

The overall stock score of 60 reflects a mixed picture. Strong revenue growth and positive earnings call sentiment are offset by technical analysis indicating bearish trends and a challenging valuation due to ongoing losses. Financial performance is moderately positive, but profitability issues remain a key risk.

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 healthy revenue growth with an 8.14% increase in TTM. However, negative EBIT and net profit margins indicate profitability issues. The balance sheet is strong with a low debt-to-equity ratio of 0.37, but cash flow challenges persist due to negative free cash flow.

Income Statement

kneat.com has demonstrated consistent revenue growth over recent years, with a notable increase of 8.14% in the TTM period compared to the previous year. However, the company is struggling with profitability, as evidenced by its negative EBIT and net profit margins, indicating that expenses are significantly impacting the bottom line.

Balance Sheet

The balance sheet reflects a solid equity position with a debt-to-equity ratio of 0.37, indicating moderate leverage and financial stability. The equity ratio is relatively strong at 48.9%, suggesting that the company is well-capitalized. However, the company must manage its liabilities effectively to maintain this balance.

Cash Flow

Cash flow analysis reveals positive operating cash flow, which is a good indicator of internal cash generation. However, free cash flow remains negative, highlighting challenges in covering capital expenditures. The company shows improvement in cash flow management, but further efficiency is necessary to enhance free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	52.92M	48.94M	34.22M	23.75M	15.50M	7.42M
Gross Profit	39.75M	36.76M	23.13M	14.65M	9.32M	2.88M
EBITDA	12.78M	6.27M	-5.77M	-3.20M	-5.11M	-2.30M
Net Income	-2.24M	-7.73M	-14.12M	-9.15M	-9.86M	-5.88M
Balance Sheet
Total Assets	136.79M	124.58M	64.50M	50.41M	51.28M	33.80M
Cash, Cash Equivalents and Short-Term Investments	74.13M	58.89M	15.25M	12.28M	21.56M	8.66M
Total Debt	24.57M	29.26M	28.17M	7.09M	7.86M	9.52M
Total Liabilities	69.85M	59.51M	49.73M	24.43M	17.09M	14.59M
Stockholders Equity	66.94M	65.07M	14.76M	25.98M	34.19M	19.21M
Cash Flow
Free Cash Flow	-1.71M	-10.09M	-18.39M	-9.82M	-7.74M	-9.28M
Operating Cash Flow	18.86M	9.79M	-1.28M	2.99M	2.31M	-1.98M
Investing Cash Flow	-16.37M	-17.52M	-15.97M	-11.91M	-10.04M	-6.43M
Financing Cash Flow	31.64M	50.62M	20.27M	-383.91K	21.20M	13.11M

kneat.com Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:KSI, the sentiment is Negative. The current price of 5.78 is below the 20-day moving average (MA) of 6.16, below the 50-day MA of 6.35, and below the 200-day MA of 5.92, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 29.96 is Positive, neither overbought nor oversold. The STOCH value of 7.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:KSI.

kneat.com Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VHI	71 Outperform	C$580.96M	201.12	2.15%	―	35.97%	-59.04%
KSI	60 Neutral	C$545.61M	―	-4.56%	―	42.93%	85.95%
Sector *	59 Neutral	£5.92B	9.22	-57.69%	5.52%	15.15%	-9.83%
AIML	55 Neutral	C$8.67M	―	-244.35%	―	-71.31%	-53.11%
ADK	24 Underperform	C$20.88M	―	366.78%	―	-35.15%	-6.59%
TREIF		$21.07M	―	-507.20%	―	―	―
UDOCF		$10.05M	―	-9999.00%	―	―	―

kneat.com Corporate Events

Kneat Announces Leadership Change with New CFO Appointment

Kneat.com has announced a change in its senior leadership with the retirement of CFO Hugh Kavanagh, who has significantly contributed to the company’s growth. Dave O’Reilly, with a strong background in scaling businesses and financial strategy, will take over as CFO, potentially impacting Kneat’s operations and market positioning positively as the company continues to scale in the Life Sciences sector.

The most recent analyst rating on (TSE:KSI) stock is a Buy with a C$4.90 price target. To see the full list of analyst forecasts on kneat.com stock, see the TSE:KSI Stock Forecast page.

Kneat Secures Major Agreement with Global Healthcare Leader

Kneat.com has announced a multi-year Master Services Agreement with a major healthcare technology and diagnostics company to digitize its validation processes using the Kneat Gx platform. This partnership highlights the growing trend of digital validation in the life sciences industry, as evidenced by the increasing percentage of organizations adopting such technologies. The agreement is expected to enhance efficiency, quality, and compliance for the healthcare company, reinforcing Kneat’s position as a leader in digital validation solutions.

The most recent analyst rating on (TSE:KSI) stock is a Buy with a C$4.90 price target. To see the full list of analyst forecasts on kneat.com stock, see the TSE:KSI Stock Forecast page.

Kneat.com Confirms Board Elections and Auditor Re-Appointment at 2025 AGM

Kneat.com announced the results of its 2025 Annual General Meeting, where all director nominees were elected to the board, and KPMG LLP was re-appointed as auditors. This reaffirms the company’s stable governance and commitment to maintaining high standards in its operations, potentially enhancing stakeholder confidence and industry positioning.

The most recent analyst rating on (TSE:KSI) stock is a Buy with a C$4.90 price target. To see the full list of analyst forecasts on kneat.com stock, see the TSE:KSI Stock Forecast page.

Kneat Secures Major Agreement with Global Diagnostics Leader

Kneat.com has announced a significant three-year Master Services Agreement with a major U.S.-based manufacturer of clinical diagnostics, which operates globally. This agreement will see the diagnostics company initially use Kneat’s digital platform, Kneat Gx, to digitize its equipment validation process, reflecting a broader industry trend towards digitalization for improved quality and compliance. This partnership underscores Kneat’s market position as a leader in digital validation solutions, promising enhanced efficiency and compliance benefits for its clients.

The most recent analyst rating on (TSE:KSI) stock is a Buy with a C$4.90 price target. To see the full list of analyst forecasts on kneat.com stock, see the TSE:KSI Stock Forecast page.

Kneat.com Reports Record Q1 2025 Revenue and Strategic Growth

Kneat.com announced record revenue for the first quarter of 2025, with total revenue reaching $14.7 million, marking a 37% increase year over year. The company also reported a significant rise in Annual Recurring Revenue and gross profit, indicating strong growth and progress toward profitability. Recent strategic partnerships and client acquisitions in the life sciences sector, along with the expansion of its executive team, underscore Kneat’s commitment to scaling its operations and enhancing its market position.

Kneat Expands Leadership Team to Drive Innovation and Growth

Kneat.com has announced an expansion of its executive leadership team to enhance product innovation and strategic planning. Kevin Fitzgerald, co-founder and current Chief Product Officer, will transition to the role of Chief Innovation Officer, focusing on strategic vision and product innovation. Donal O’Sullivan, with over 25 years of experience in software development leadership, will join as the new Chief Product Officer. This leadership change aims to strengthen Kneat’s position in the market by optimizing product excellence and capturing growth opportunities.

Kneat.com to Release Q1 2025 Financial Results

Kneat.com announced it will release its first-quarter financial results for 2025 on May 7, after the TSX market closes. The company will host a webcast conference call on May 8, led by CEO Eddie Ryan and CFO Hugh Kavanagh, to discuss the results with analysts. This announcement is significant as it provides stakeholders with insights into the company’s financial health and operational performance, potentially influencing market perceptions and investment decisions.

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.