Kinaxis Inc (KXS) AI Stock Analysis

• Market Cap: C$5.08B
• Dividend Yield: N/A
• Average Volume (3M): 58.54K
• Price to Earnings (P/E): 146.9
• Beta (1Y): 0.84
• Revenue Growth: 15.81%
• EPS Growth: 22.17%
• Country: CA
• Employees: 1,674
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 1.40
• Shares Outstanding: 28,143,800
• 10 Day Avg. Volume: 51,659
• 30 Day Avg. Volume: 58,539
• PEG Ratio: -609.93
• Price to Book (P/B): 8.59
• Price to Sales (P/S): 7.03
• P/FCF Ratio: 35.86
• 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$229.29
• Price Target Upside: 28.41% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 69 Neutral
• Price Target: C$200.00 ▲(12.01% Upside)

Kinaxis Inc's overall stock score is driven by strong financial performance and positive earnings call insights, particularly around SaaS growth and AI strategy. However, the high P/E ratio and technical indicators suggest caution, as the stock may be overvalued and lacks bullish momentum.

Positive Factors

SaaS Revenue Growth

The robust growth in SaaS revenue underscores Kinaxis's strong market position and the increasing adoption of its cloud-based solutions, which is crucial for long-term revenue stability and expansion.

AI Integration Strategy

The strategic focus on AI and partnerships like Databricks enhances Kinaxis's competitive edge by improving its platform capabilities, positioning it well for future technological advancements and customer demand.

Financial Health

Kinaxis's strong balance sheet with low leverage provides financial stability and flexibility, enabling the company to invest in growth opportunities and withstand economic fluctuations.

Negative Factors

Professional Services Challenges

The slow growth in professional services and declining margins indicate potential challenges in this segment, which could affect overall profitability if not addressed.

Pressure on Professional Services Margins

The declining margins in professional services suggest increased competition and pricing pressure, which may impact the company's ability to maintain profitability in this area.

Low Net Profit Margin

The low net profit margin indicates that while revenue is growing, the company faces challenges in converting sales into bottom-line profits, which could affect long-term financial performance.

Kinaxis Inc Business Overview & Revenue Model

Company Description

Kinaxis Inc. (KXS) is a Canadian technology company specializing in supply chain management and sales and operations planning solutions. The company operates primarily in the software sector, offering a cloud-based platform known as RapidResponse, which provides real-time analytics, planning, and collaboration capabilities to help businesses optimize their supply chain processes. Kinaxis serves various industries, including automotive, aerospace and defense, high-tech, and consumer products, focusing on enhancing operational efficiency and responsiveness in a rapidly changing market environment.

How the Company Makes Money

Kinaxis generates revenue primarily through subscriptions to its cloud-based software solutions, particularly the RapidResponse platform. The company employs a recurring revenue model, where customers pay for ongoing access to software services, maintenance, and support, typically on an annual basis. Additionally, Kinaxis earns revenue from professional services, including implementation, consulting, and training, which help clients maximize the value of their software investments. Strategic partnerships with key players in the technology and supply chain sectors further enhance its offerings and market presence, contributing to its overall earnings.

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	56.07M	25.76M	28.75M	44.83M	5.82M	31.85M
Net Income	24.79M	56.00K	10.06M	20.08M	-1.17M	13.73M
Balance Sheet
Total Assets	702.84M	684.93M	687.00M	654.63M	515.37M	427.55M
Cash, Cash Equivalents and Short-Term Investments	328.69M	298.32M	290.85M	228.04M	231.19M	212.71M
Total Debt	50.84M	48.91M	51.42M	57.53M	55.23M	16.59M
Total Liabilities	262.26M	289.65M	235.45M	249.27M	197.18M	146.36M
Stockholders Equity	440.58M	395.28M	451.56M	405.37M	318.20M	281.19M
Cash Flow
Free Cash Flow	102.06M	90.15M	78.31M	6.08M	16.03M	47.31M
Operating Cash Flow	108.72M	94.45M	80.64M	23.79M	49.30M	62.49M
Investing Cash Flow	-74.55M	-12.97M	-68.40M	-72.76M	-34.05M	-80.13M
Financing Cash Flow	-54.81M	-79.67M	-12.23M	26.04M	5.75M	17.48M

Kinaxis Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 178.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 178.56 is below the 20-day moving average (MA) of 181.01, below the 50-day MA of 186.45, and below the 200-day MA of 182.68, indicating a bearish trend. The MACD of -1.74 indicates Positive momentum. The RSI at 40.03 is Neutral, neither overbought nor oversold. The STOCH value of 23.74 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
DSG	76 Outperform	$11.72B	57.41	10.54%	―	15.63%	18.47%
ENGH	71 Outperform	C$1.14B	15.22	12.56%	6.36%	0.03%	-10.21%
OTEX	70 Neutral	$13.96B	23.80	10.73%	2.70%	-7.77%	-1.03%
KXS	69 Neutral	C$5.08B	146.89	5.93%	―	15.81%	22.17%
DCBO	68 Neutral	C$1.09B	38.26	55.53%	―	18.51%	32.49%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
LSPD	51 Neutral	C$2.22B	―	-36.64%	―	18.75%	-386.84%

Kinaxis Inc Corporate Events

Kinaxis Earnings Call: Strong Growth and AI Optimism

Kinaxis Earnings Call Highlights Strong Growth and Optimism

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.