Kinaxis Inc (KXS) AI Stock Analysis

• Market Cap: C$5.27B
• Dividend Yield: N/A
• Average Volume (3M): 56.56K
• Price to Earnings (P/E): 151.9
• Beta (1Y): 0.90
• Revenue Growth: 15.81%
• EPS Growth: 22.17%
• Country: CA
• Employees: 1,674
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Application
• EPS (TTM): 1.38
• Shares Outstanding: 28,268,532
• 10 Day Avg. Volume: 54,765
• 30 Day Avg. Volume: 56,564
• 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$231.43
• Price Target Upside: 26.34% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 70 Outperform
• Price Target: C$216.00 ▲(17.92% 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

SaaS Revenue Growth

The strong growth in SaaS revenue indicates robust demand for Kinaxis's platform, supporting sustainable income through its subscription model and enhancing long-term financial stability.

AI Integration Strategy

The strategic focus on AI and data integration positions Kinaxis to enhance its product offerings, potentially driving future growth and maintaining a competitive edge in the supply chain management sector.

Cash Flow Management

Effective cash flow management ensures Kinaxis can reinvest in growth opportunities and maintain operational flexibility, supporting long-term business sustainability.

Negative Factors

Professional Services Challenges

The slow growth in professional services revenue and declining margins highlight competitive pressures, which could impact overall profitability if not addressed.

Low Net Profit Margin

A low net profit margin suggests limited profitability, which may restrict Kinaxis's ability to invest in growth initiatives and withstand economic downturns.

Professional Services Margin Decline

The decline in professional services margins reflects increased cost pressures and competitive challenges, potentially affecting the overall margin profile of the company.

Kinaxis Inc Business Overview & Revenue Model

Company Description

Kinaxis Inc. provides cloud-based subscription software for supply chain operations in the United States, Japan, Hong Kong, The Netherlands, South Korea, the United Kingdom, Singapore, France, Ireland, Germany, India, and Canada. It offers Kinaxis, a cloud-based software-as-a-service platform, which provides advanced planning, sales and operations planning, supply and demand planning, inventory management, and command and control center services. The company also provides professional services, including business transformation, implementation, and continuous learning services; and support services. It serves technology and electronics, aerospace and defense, life sciences and pharmaceuticals, industrial, automotive, consumer products, and retail markets. The company was formerly known as webPLAN Inc. and changed its name to Kinaxis Inc. in May 2005. Kinaxis Inc. was founded in 1984 and is headquartered in Ottawa, Canada.

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 exhibits solid financial health with consistent revenue growth, strong gross margins, and effective cash flow management. While profitability margins are improving, there is room for further enhancement. The company's low leverage and strong equity position provide a stable financial foundation, positioning it well for future growth.

Income Statement

Kinaxis Inc has shown consistent revenue growth over the years, with a TTM revenue growth rate of 3.65%. The gross profit margin remains strong at 62.07% for TTM, indicating efficient cost management. However, the net profit margin is relatively low at 1.97% for TTM, suggesting room for improvement in profitability. The EBIT and EBITDA margins have improved over the years, reflecting better operational efficiency.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.12 in TTM, indicating low financial leverage. The return on equity has improved to 2.39% in TTM, showing better utilization of equity. The equity ratio is strong, reflecting a solid capital structure, although there is potential for enhancing returns.

Cash Flow

Kinaxis Inc has demonstrated strong cash flow management with a significant free cash flow growth rate of 9.29% in TTM. The operating cash flow to net income ratio is robust at 0.45, indicating good cash generation relative to earnings. The free cash flow to net income ratio is high at 0.94, suggesting effective conversion of profits into cash.

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: Negative
• Last Price: 183.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:KXS, the sentiment is Negative. The current price of 183.18 is below the 20-day moving average (MA) of 191.53, below the 50-day MA of 197.27, and above the 200-day MA of 182.32, indicating a neutral trend. The MACD of -3.17 indicates Positive momentum. The RSI at 29.57 is Positive, neither overbought nor oversold. The STOCH value of 25.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$5.27B	151.90	5.93%	―	15.81%	22.17%
Sector *	61 Neutral	$36.70B	12.21	-10.39%	1.84%	8.50%	-7.32%
OTEX	―	$8.96B	21.24	10.73%	3.01%	―	―
DSGX	―	$9.16B	63.19	10.54%	―	―	―
EGHSF	―	$831.07M	15.42	12.56%	5.26%	―	―
LSPD	51 Neutral	C$2.19B	―	-36.64%	―	18.75%	-386.84%
DCBO	―	$864.59M	42.48	55.53%	―	―	―

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.