Kinaxis Inc (KXS) AI Stock Analysis

• Market Cap: C$5.67B
• Dividend Yield: N/A
• Average Volume (3M): 76.09K
• Price to Earnings (P/E): 407.7
• Beta (1Y): 0.90
• Revenue Growth: 15.14%
• EPS Growth: -31.45%
• Country: CA
• Employees: 1,674
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Application
• EPS (TTM): 1.22
• Shares Outstanding: 28,263,695
• 10 Day Avg. Volume: 62,711
• 30 Day Avg. Volume: 76,094
• PEG Ratio: -0.09
• Price to Book (P/B): 7.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 494.57
• Enterprise Value/Market Cap: 0.53
• Enterprise Value/Revenue: 1.56
• Enterprise Value/Gross Profit: 9.68
• Enterprise Value/Ebitda: 19.15
• 1Y Price Target: C$217.50
• Price Target Upside: 8.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 74 Outperform
• Price Target: C$225.00 ▲(12.20%Upside)

Kinaxis Inc exhibits strong financial performance and positive earnings call highlights, supported by solid technical indicators. However, the high P/E ratio implies overvaluation, which tempers the overall score. The company's successful strategic initiatives and shareholder support contribute positively to the outlook.

Positive Factors

Financial Performance

Analyst has raised the FY2025E EBITDA, showing confidence in the company's financial performance.

New ARR Bookings

KXS had a record quarter of new ARR bookings, indicating a strong recovery and growth potential.

Valuation

Analyst views the valuation as attractive, with uncertainties about the CEO transition being adequately priced in.

Negative Factors

Consensus Estimates

Consensus FY2025 estimates are considered too high, with a 2% lower estimate on FY2025 SaaS revenue and total revenue, and a 6% lower estimate on EBITDA.

SaaS Revenue Expectations

The Street is slightly high on FY2025 SaaS revenue estimates due to FX headwinds and a subdued spending environment.

Kinaxis Inc Business Overview & Revenue Model

Company Description

Kinaxis Inc. (KXS) is a Canadian-based software company that specializes in supply chain management and sales and operations planning solutions. The company's flagship product, RapidResponse, is a cloud-based platform that enables businesses to enhance their supply chain processes by providing real-time analytics, advanced planning capabilities, and collaborative decision-making tools. Kinaxis serves a wide range of industries including automotive, aerospace, consumer products, high-tech, and life sciences, helping organizations improve their operational efficiencies and reduce costs.

How the Company Makes Money

Kinaxis Inc. primarily generates revenue through the sale of subscription-based licenses for its RapidResponse platform. This Software-as-a-Service (SaaS) model allows customers to access and utilize the platform's capabilities via the cloud on a recurring subscription basis. Additionally, the company earns revenue through professional services, which include implementation, training, and support for its software. Kinaxis also benefits from long-term customer relationships and renewals, which contribute to a stable and predictable revenue stream. Strategic partnerships and collaborations with other technology providers and consulting firms further enhance the company's market reach and revenue potential.

Kinaxis Inc Financial Statement Overview

Summary

Kinaxis Inc showcases strong financial health with consistent revenue and margin improvements. The income statement reflects solid revenue growth and improved profitability. The balance sheet is stable with manageable debt, and cash flow statements underline strong cash generation and effective capital management, positioning the company well for future opportunities.

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
496.53M	483.11M	426.97M	366.89M	250.73M	224.19M
	Gross Profit
308.19M	294.58M	258.90M	235.79M	163.97M	154.06M
	EBIT
25.29M	12.74M	14.10M	25.60M	2.48M	20.97M
	EBITDA
49.23M	37.67M	40.39M	50.66M	22.89M	36.53M
	Net Income Common Stockholders
9.78M	56.00K	10.06M	20.08M	-1.17M	13.73M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
314.59M	298.50M	292.96M	225.82M	233.39M	213.14M
	Total Assets
683.39M	685.34M	691.98M	648.27M	520.27M	428.41M
	Total Debt
50.37M	48.94M	51.79M	56.97M	55.76M	16.62M
	Net Debt
-93.12M	-123.26M	-123.05M	-118.38M	-147.46M	-166.34M
	Total Liabilities
272.61M	289.82M	237.15M	246.84M	199.05M	146.65M
	Stockholders Equity
410.78M	395.51M	454.83M	401.43M	321.22M	281.76M
Cash Flow		Free Cash Flow
92.94M	94.70M	77.06M	6.27M	16.30M	45.03M
	Operating Cash Flow
98.85M	99.21M	79.36M	24.52M	50.14M	59.47M
	Investing Cash Flow
-93.10M	-13.62M	-67.31M	-74.99M	-34.63M	-76.26M
	Financing Cash Flow
-77.98M	-83.69M	-12.04M	26.84M	5.85M	16.64M

Kinaxis Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 200.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 200.53 is above the 20-day moving average (MA) of 197.98, above the 50-day MA of 188.43, and above the 200-day MA of 170.97, indicating a bullish trend. The MACD of 3.08 indicates Positive momentum. The RSI at 62.69 is Neutral, neither overbought nor oversold. The STOCH value of 75.63 is Neutral, 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
KXS	74 Outperform	C$5.67B	407.68	2.32%	―	15.14%	-31.45%
OTEX	74 Outperform	$10.03B	11.40	15.87%	3.71%	-8.74%	307.82%
DCBO	71 Outperform	$1.09B	34.83	41.12%	―	20.52%	246.69%
DSG	70 Outperform	$11.41B	58.22	10.66%	―	17.42%	22.81%
ENGH	68 Neutral	$1.25B	16.00	13.26%	5.28%	5.12%	-2.77%
LSPD	63 Neutral	C$2.12B	―	-33.64%	―	23.95%	39.68%
Sector *	62 Neutral	$11.96B	10.09	-7.50%	3.10%	7.33%	-8.11%

Kinaxis Inc Corporate Events

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.

Kinaxis Inc. Reports Robust Q1 2025 Results Amid Market Uncertainties

Kinaxis Inc. reported a strong first quarter for 2025 with a 16% growth in SaaS revenue and a 14% increase in annual recurring revenue. The company maintained its fiscal 2025 guidance despite global market uncertainties due to tariffs. Their flagship event, Kinexions, showcased new AI capabilities, enhancing their competitive edge and providing stakeholders with innovative solutions to tackle supply chain challenges.