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kneat.com (TSE:KSI)
TSX:KSI

kneat.com (KSI) AI Stock Analysis

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kneat.com

(TSX:KSI)

Rating:68Neutral
Price Target:
C$7.50
▲( 14.50% Upside)
Kneat.com exhibits strong revenue growth and strategic expansions, bolstered by positive corporate events and earnings call insights. However, profitability challenges and valuation concerns limit the overall score, despite neutral to positive technical trends.

kneat.com (KSI) vs. iShares MSCI Canada ETF (EWC)

kneat.com Business Overview & Revenue Model

Company DescriptionKneat.com (KSI) is a leading provider of software solutions, specializing in the digitization and automation of validation processes within regulated industries, such as life sciences. The company's core product, Kneat Gx, is a comprehensive platform designed to streamline and enhance compliance management, offering modules for various validation processes, including equipment, process, and computer systems validation.
How the Company Makes MoneyKneat.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 has experienced robust revenue growth and a sound balance sheet. However, significant profitability challenges with negative EBIT and net profit margins weigh down the score.
Income Statement
65
Positive
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
72
Positive
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
60
Neutral
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
52.92M48.94M34.22M23.75M15.50M7.42M
Gross Profit
39.75M36.76M23.13M14.65M9.32M2.88M
EBIT
-5.10M-5.95M-13.53M-9.77M-6.35M-6.56M
EBITDA
12.78M6.27M-5.77M-3.20M-5.11M-2.30M
Net Income Common Stockholders
-2.24M-7.73M-14.12M-9.15M-9.86M-5.88M
Balance SheetCash, Cash Equivalents and Short-Term Investments
15.25M58.89M15.25M12.28M21.56M8.66M
Total Assets
64.50M124.58M64.50M50.41M51.28M33.80M
Total Debt
28.17M29.26M28.17M7.09M7.86M9.52M
Net Debt
12.92M-29.63M12.92M-5.19M-13.70M860.92K
Total Liabilities
49.73M59.51M49.73M24.43M17.09M14.59M
Stockholders Equity
14.76M65.07M14.76M25.98M34.19M19.21M
Cash FlowFree Cash Flow
-1.71M-10.09M-18.39M-9.82M-7.74M-9.28M
Operating Cash Flow
18.86M9.79M-1.28M2.99M2.31M-1.98M
Investing Cash Flow
-16.37M-17.52M-15.97M-11.91M-10.04M-6.43M
Financing Cash Flow
31.64M50.62M20.27M-383.91K21.20M13.11M

kneat.com Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6.55
Price Trends
50DMA
6.22
Positive
100DMA
6.33
Positive
200DMA
5.65
Positive
Market Momentum
MACD
0.14
Negative
RSI
63.13
Neutral
STOCH
54.93
Neutral
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 6.55 is above the 20-day moving average (MA) of 6.36, above the 50-day MA of 6.22, and above the 200-day MA of 5.65, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 63.13 is Neutral, neither overbought nor oversold. The STOCH value of 54.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:KSI.

kneat.com Peers Comparison

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSVHI
72
Outperform
C$554.50M192.342.15%35.97%-59.04%
TSKSI
68
Neutral
C$622.08M-4.56%42.93%85.95%
53
Neutral
$5.24B3.07-43.58%2.80%16.87%-0.11%
52
Neutral
C$19.07M-244.35%-71.31%-53.11%
34
Underperform
C$22.51M-9999.00%-50.06%
34
Underperform
$27.26M
-171.18%46.80%
TSADK
24
Underperform
C$23.43M366.78%-35.15%-6.59%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:KSI
kneat.com
6.55
2.27
53.04%
TSE:AIML
Aiml Resources
0.10
0.06
150.00%
TSE:ADK
Diagnos
0.22
-0.08
-26.67%
TSE:VHI
Vitalhub
10.29
3.32
47.63%
TSE:TRUE
Treatment.com International
0.45
-0.07
-12.75%
TSE:UDOC
UniDoc Health Corp
0.30
-0.30
-50.00%

kneat.com Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: -1.95%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Positive
The earnings call highlighted impressive revenue and ARR growth, alongside strong customer expansions and successful industry events. However, there were increased operating expenses and slightly lower ARR additions compared to the previous year. Overall, the highlights significantly outweigh the lowlights, reflecting strong business performance and future potential.
Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Total revenue for Q1 2025 increased by 37% to $14.7 million compared to Q1 2024. SaaS license revenue grew by 42%.
Significant Increase in Annual Recurring Revenue
ARR reached $63.5 million, up 51% from the previous year, indicating strong continued demand for kneat's solutions.
High Gross Profit Growth
Gross profit increased by 38% to $10.9 million from Q1 2024, reflecting the growth in SaaS revenues and efficient cost management.
Successful Customer Expansion
Over two-thirds of the wins in the quarter were expansions within existing customers, indicating strong product adoption and customer satisfaction.
Promising Industry Event
The Validate user conference was the largest and most beneficial to date, reinforcing customer alignment with kneat's product development strategy.
Negative Updates
Operating Expense Increase
Operating expenses grew by 21% in Q1 2025, driven by sales and marketing and R&D expenses.
Lighter ARR Additions Compared to Previous Year
The net amount of new ARR in Q1 2025 was slightly down compared to Q1 2024, though attributed to quarter-to-quarter fluctuations.
Company Guidance
During the kneat Q1 2025 Earnings Call, the company reported robust growth metrics, including a 51% increase in annual recurring revenue (ARR) compared to the first quarter of the previous year, reaching $63.5 million. Total revenue rose by 37% to $14.7 million, with SaaS license revenue up 42% at $13.8 million. Gross profit increased by 38% to $10.9 million, while operating expenses grew by 21% to $12.3 million. The call highlighted significant customer expansions, with over two-thirds of Q1 wins coming from existing clients, and noted diversity in use cases across different industries. Despite potential market challenges, kneat's strategic accounts continued to invest in digitalization, underscoring the strength of its Gx platform. Additionally, the company announced leadership changes to further its innovation and product development initiatives.

kneat.com Corporate Events

Business Operations and Strategy
Kneat Secures Major Agreement with Global Diagnostics Leader
Positive
May 15, 2025

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.

Business Operations and StrategyFinancial Disclosures
Kneat.com Reports Record Q1 2025 Revenue and Strategic Growth
Positive
May 7, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
Kneat Expands Leadership Team to Drive Innovation and Growth
Positive
May 5, 2025

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.

Financial Disclosures
Kneat.com to Release Q1 2025 Financial Results
Neutral
Apr 30, 2025

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.

Business Operations and Strategy
Kneat.com Partners with Global Pharma Leader to Enhance Validation Processes
Positive
Apr 9, 2025

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.

Business Operations and StrategyFinancial Disclosures
Kneat.com Achieves Record Revenue Growth in 2024
Positive
Feb 26, 2025

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.

Financial Disclosures
Kneat to Release 2024 Financial Results and Host Analyst Webcast
Neutral
Feb 24, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.