Kinaxis Inc (KXS) AI Stock Analysis

• Market Cap: C$5.50B
• Dividend Yield: N/A
• Average Volume (3M): 50.94K
• Price to Earnings (P/E): 158.4
• Beta (1Y): 0.87
• Revenue Growth: 15.81%
• EPS Growth: 22.17%
• Country: CA
• Employees: 1,674
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Application
• EPS (TTM): 1.38
• Shares Outstanding: 28,258,196
• 10 Day Avg. Volume: 60,345
• 30 Day Avg. Volume: 50,941
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$229.50
• Price Target Upside: 17.94% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 70 Outperform
• Price Target: C$216.00 ▲(11.00% Upside)

Kinaxis Inc's overall stock score is driven by strong financial performance and a positive earnings call, highlighting growth in SaaS revenue and profitability. However, technical indicators suggest short-term bearish momentum, and the high P/E ratio indicates potential overvaluation. The company's strategic focus on AI and data integration supports a positive long-term outlook.

Positive Factors

Financial Performance

KXS had a record quarter of new ARR bookings—representing a strong recovery from weakness in Q3/24—helped in part by a growing mix of expansion deals.

Market Position

Kinaxis continues to benefit from a strong competitive position, and recent management changes haven't generally been a source of concern for customer prospects.

Valuation

Analyst views valuation as attractive, and believes the uncertainty pertaining to the CEO transition is adequately priced in.

Negative Factors

Market Conditions

The Street is slightly high on FY2025 SaaS revenue given FX headwinds, a spending environment that remains subdued, and the potential impact that recent management changes may have had on Q4 bookings.

Revenue Estimates

Consensus FY2025 estimates are considered too high, with expectations 2% below consensus on FY2025 SaaS revenue and total revenue, and 6% below on EBITDA.

Kinaxis Inc Business Overview & Revenue Model

Company Description

Kinaxis Inc. is a Canadian-based company that operates in the software and information technology sector, specializing in supply chain management solutions. The company offers a cloud-based platform known as RapidResponse, which provides an integrated suite of applications designed to enhance supply chain operations, including planning, monitoring, and responding to changes in real-time. Kinaxis serves a diverse range of industries, including automotive, consumer products, high-tech, aerospace, and pharmaceuticals, helping businesses optimize their supply chains for better efficiency and agility.

How the Company Makes Money

Kinaxis Inc. generates revenue primarily through the sale of subscriptions to its RapidResponse platform, which operates on a Software-as-a-Service (SaaS) model. Customers subscribe to the platform to access its suite of supply chain management tools, with pricing typically based on the number of users or the extent of services required. This recurring revenue model ensures a steady stream of income. Additionally, Kinaxis may generate revenue through professional services, which include consulting, implementation, and training services to assist clients in integrating and optimizing the use of its software. The company also benefits from strategic partnerships with global consulting firms and technology partners, which can lead to increased visibility and market reach, further driving sales and adoption of its solutions.

Kinaxis Inc Financial Statement Overview

Summary

Kinaxis Inc shows strong financial health with consistent revenue and margin improvements. The income statement reflects robust revenue growth and improved profitability. The balance sheet is solid with a healthy equity ratio and manageable debt levels. Cash flow management is strong, with significant free cash flow growth, indicating effective capital management.

Income Statement

Kinaxis Inc demonstrates strong financial performance with consistent revenue growth, most notably a recent TTM increase to CAD 496.5M from CAD 483.1M annually. Gross profit margin remains robust at 62.07% TTM, indicating effective cost management. Net profit margin improved to 1.97% TTM from 0.01% annually, signifying enhanced profitability. EBIT and EBITDA margins also showed improvements, reflecting efficient operational management.

Balance Sheet

The balance sheet of Kinaxis Inc is solid, with a healthy equity ratio of 60.11% TTM, ensuring stability and less reliance on debt. However, the debt-to-equity ratio slightly increased to 0.12 TTM, which remains low but indicates a small rise in leverage. Return on equity improved to 2.38% TTM, showing better utilization of equity compared to the previous period.

Cash Flow

Kinaxis Inc exhibits strong cash flow management, with operating cash flow covering net income well, reflected in a ratio of 10.1 TTM. Free cash flow remains robust at CAD 92.94M TTM, growing by 34.6% from the previous year. This indicates effective capital expenditure control and strong cash generation capability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	514.67M	483.11M	426.97M	366.89M	250.73M	224.19M
Gross Profit	325.54M	294.58M	258.90M	235.79M	163.97M	154.06M
EBITDA	63.94M	37.67M	40.39M	50.66M	22.89M	36.53M
Net Income	24.79M	56.00K	10.06M	20.08M	-1.17M	13.73M
Balance Sheet
Total Assets	704.33M	685.34M	691.98M	648.27M	520.27M	428.41M
Cash, Cash Equivalents and Short-Term Investments	329.39M	298.50M	292.96M	225.82M	233.39M	213.14M
Total Debt	50.95M	48.94M	51.79M	56.97M	55.76M	16.62M
Total Liabilities	262.82M	289.82M	237.15M	246.84M	199.05M	146.65M
Stockholders Equity	441.51M	395.51M	454.83M	401.43M	321.22M	281.76M
Cash Flow
Free Cash Flow	101.58M	94.70M	77.06M	6.27M	16.30M	45.03M
Operating Cash Flow	108.28M	99.21M	79.36M	24.52M	50.14M	59.47M
Investing Cash Flow	-76.61M	-13.62M	-67.31M	-74.99M	-34.63M	-76.26M
Financing Cash Flow	-53.84M	-83.69M	-12.04M	26.84M	5.85M	16.64M

Kinaxis Inc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 194.59
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:KXS, the sentiment is Neutral. The current price of 194.59 is below the 20-day moving average (MA) of 199.90, below the 50-day MA of 200.35, and above the 200-day MA of 181.01, indicating a neutral trend. The MACD of -1.61 indicates Positive momentum. The RSI at 42.61 is Neutral, neither overbought nor oversold. The STOCH value of 12.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:KXS.

Kinaxis Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KXS	70 Outperform	C$5.50B	158.42	5.93%	―	15.81%	22.17%
ENGH	70 Outperform	$1.23B	15.77	13.26%	5.77%	5.12%	-2.77%
OTEX	70 Outperform	$11.29B	19.25	10.73%	3.23%	-7.77%	-1.03%
DCBO	70 Neutral	$1.26B	43.45	55.53%	―	18.51%	32.49%
DSG	66 Neutral	$11.75B	58.91	10.66%	―	17.42%	22.81%
Sector *	63 Neutral	€2.33B	20.87	4.56%	2.67%	5.30%	-63.21%
LSPD	53 Neutral	C$2.20B	―	-36.64%	―	18.75%	-386.84%

Kinaxis Inc Corporate Events

Kinaxis Inc. Reports Record Q2 2025 Results with Strong SaaS Growth

Kinaxis Inc. reported a strong second quarter for 2025, with a 17% increase in SaaS revenue and a record adjusted EBITDA margin of 25%. The company achieved its fourth consecutive Rule of 40 quarter, driven by new business wins and expansion orders. Kinaxis is also seeing early adoption of its new AI capabilities, which are expected to transform supply chain operations and enhance customer value. The company’s annual recurring revenue grew by 15%, and it has raised its SaaS growth guidance for the year, reflecting strong business momentum and profitability.

The most recent analyst rating on (TSE:KXS) stock is a Hold with a C$175.00 price target. To see the full list of analyst forecasts on Kinaxis Inc stock, see the TSE:KXS Stock Forecast page.

Kinaxis Secures Shareholder Approval for Key Resolutions at Annual Meeting

Kinaxis Inc. announced that all resolutions proposed at its Annual Meeting of Shareholders were approved, including the election of seven directors, the appointment of KPMG LLP as auditors, and an advisory vote on executive compensation. This approval reflects strong shareholder support for the company’s governance and strategic direction, reinforcing its position as a leader in supply chain orchestration.

The most recent analyst rating on (TSE:KXS) stock is a Hold with a C$154.00 price target. To see the full list of analyst forecasts on Kinaxis Inc stock, see the TSE:KXS Stock Forecast page.