Kinaxis Inc (KXS) AI Stock Analysis

• Market Cap: C$4.95B
• Dividend Yield: N/A
• Average Volume (3M): 58.54K
• Price to Earnings (P/E): 101.5
• Beta (1Y): 0.55
• Revenue Growth: 15.11%
• EPS Growth: 75.40%
• Country: CA
• Employees: 1,674
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 1.29
• Shares Outstanding: 27,960,960
• 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: 37.67
• 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: 29.75% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: C$202.00 ▲(14.20% Upside)

Kinaxis Inc's strong financial performance and positive earnings call sentiment are the primary drivers of the stock score. The company's robust revenue growth and strategic initiatives in AI and SaaS position it well for future growth. However, the high valuation and neutral technical indicators slightly temper the overall score.

Positive Factors

Revenue Growth

The strong growth in ARR and SaaS revenue indicates robust demand for Kinaxis' offerings, supporting long-term revenue expansion and market leadership.

New Partnerships

The strategic partnership with Workday can expand Kinaxis' market reach and product capabilities, driving future growth and competitive advantage.

AI Product Launch

The introduction of AI-driven Maestro agents positions Kinaxis to leverage AI for improved customer solutions, potentially increasing market share and revenue.

Negative Factors

Professional Services Margin Pressure

Declining margins in professional services could impact profitability, suggesting a need for strategic adjustments to maintain financial health.

Subscription Term License Revenue Challenges

The transition from on-premise to SaaS models affects revenue streams, requiring careful management to ensure stable growth during the shift.

Net Profit Margin

A relatively low net profit margin indicates potential inefficiencies, highlighting the need for operational improvements to enhance profitability.

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 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	578.51M	483.11M	426.97M	366.89M	250.73M	224.19M
Gross Profit	360.14M	294.58M	258.90M	235.79M	163.97M	154.06M
EBITDA	83.74M	25.76M	28.75M	44.83M	5.82M	31.85M
Net Income	41.24M	56.00K	10.06M	20.08M	-1.17M	13.73M
Balance Sheet
Total Assets	999.30M	684.93M	687.00M	654.63M	515.37M	427.55M
Cash, Cash Equivalents and Short-Term Investments	465.24M	298.32M	290.85M	228.04M	231.19M	212.71M
Total Debt	68.17M	48.91M	51.42M	57.53M	55.23M	16.59M
Total Liabilities	377.29M	289.65M	235.45M	249.27M	197.18M	146.36M
Stockholders Equity	622.01M	395.28M	451.56M	405.37M	318.20M	281.19M
Cash Flow
Free Cash Flow	117.11M	90.15M	78.31M	6.08M	16.03M	47.31M
Operating Cash Flow	124.61M	94.45M	80.64M	23.79M	49.30M	62.49M
Investing Cash Flow	-103.38M	-12.97M	-68.40M	-72.76M	-34.05M	-80.13M
Financing Cash Flow	-70.01M	-79.67M	-12.23M	26.04M	5.75M	17.48M

Kinaxis Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 176.88
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:KXS, the sentiment is Positive. The current price of 176.88 is above the 20-day moving average (MA) of 175.73, above the 50-day MA of 175.53, and below the 200-day MA of 184.38, indicating a neutral trend. The MACD of 0.18 indicates Negative momentum. The RSI at 52.90 is Neutral, neither overbought nor oversold. The STOCH value of 80.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:KXS.

Kinaxis Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DSG	82 Outperform	C$10.58B	49.10	10.70%	―	14.55%	15.55%
KXS	78 Outperform	C$4.95B	101.46	8.24%	―	15.11%	75.40%
OTEX	72 Outperform	C$11.72B	17.12	12.32%	3.27%	-5.01%	13.21%
ENGH	69 Neutral	C$1.13B	15.27	12.20%	5.62%	-0.72%	-9.27%
LMN	66 Neutral	C$6.90B	51.27	14.07%	―	21.17%	―
DCBO	63 Neutral	C$876.41M	28.78	49.99%	―	16.25%	31.71%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Kinaxis Inc Corporate Events

Kinaxis Inc. Initiates Share Buyback Program to Boost Shareholder Value

Kinaxis Inc. has announced its intention to initiate a normal course issuer bid, allowing the company to repurchase up to 5% of its outstanding shares over the next year. This move, approved by the Toronto Stock Exchange, is aimed at enhancing shareholder value by potentially increasing equity interest for remaining shareholders through share cancellation, reflecting the company’s confidence in its underlying business value.

Kinaxis Inc. Reports Record Q3 2025 Results with Strong SaaS and ARR Growth

Kinaxis Inc. reported a strong third quarter for 2025, with significant growth in SaaS revenue and Annual Recurring Revenue (ARR), both increasing by 17%. The company launched its initial Maestro Agents, which are expected to create a new revenue stream and improve customer outcomes. A notable early adopter, a top-10 global pharmaceutical company, has already seen a tenfold increase in planner productivity. The company’s financial performance and strategic initiatives position it well for continued growth and leadership in the supply chain sector.

Kinaxis Inc. Reports Record Q3 2025 Results and Launches New AI Solutions

Kinaxis Inc. reported a strong third quarter for 2025, with a 17% increase in SaaS revenue and Annual Recurring Revenue (ARR). The company launched its initial Maestro Agents, creating a new revenue stream and enhancing customer outcomes. This development, along with record Adjusted EBITDA and a robust AI product pipeline, positions Kinaxis well for future growth and strengthens its market leadership in the supply chain industry.