Kinaxis Inc (KXS) AI Stock Analysis

• Market Cap: C$5.75B
• Dividend Yield: N/A
• Average Volume (3M): 43.93K
• Price to Earnings (P/E): 413.4
• Beta (1Y): 0.87
• Revenue Growth: 15.14%
• EPS Growth: -31.45%
• Country: CA
• Employees: 1,674
• Sector: Technology
• Sector Strength: 91
• Industry: Software - Application
• EPS (TTM): 1.21
• Shares Outstanding: 28,258,196
• 10 Day Avg. Volume: 45,743
• 30 Day Avg. Volume: 43,929
• PEG Ratio: N/A
• Price to Book (P/B): 9.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 43.95
• Enterprise Value/Market Cap: 0.69
• Enterprise Value/Revenue: 2.09
• Enterprise Value/Gross Profit: 12.92
• Enterprise Value/Ebitda: 25.58
• 1Y Price Target: C$223.57
• Price Target Upside: 9.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 74 Outperform
• Price Target: C$225.00 ▲(10.56%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

Earnings

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.

Valuation

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

Negative Factors

Consensus Estimates

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

Revenue Estimates

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.

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 shows robust financial health with strong revenue growth and profitability improvements. The solid balance sheet and strong cash flow management highlight effective financial strategies, making the company well-positioned 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	483.11M	426.97M	366.89M	250.73M	224.19M
Gross Profit	294.58M	258.90M	235.79M	163.97M	154.06M
EBITDA	37.67M	40.39M	50.66M	22.89M	36.53M
Net Income	56.00K	10.06M	20.08M	-1.17M	13.73M
Balance Sheet
Total Assets	685.34M	691.98M	648.27M	520.27M	428.41M
Cash, Cash Equivalents and Short-Term Investments	298.50M	292.96M	225.82M	233.39M	213.14M
Total Debt	48.94M	51.79M	56.97M	55.76M	16.62M
Total Liabilities	289.82M	237.15M	246.84M	199.05M	146.65M
Stockholders Equity	395.51M	454.83M	401.43M	321.22M	281.76M
Cash Flow
Free Cash Flow	94.70M	77.06M	6.27M	16.30M	45.03M
Operating Cash Flow	99.21M	79.36M	24.52M	50.14M	59.47M
Investing Cash Flow	-13.62M	-67.31M	-74.99M	-34.63M	-76.26M
Financing Cash Flow	-83.69M	-12.04M	26.84M	5.85M	16.64M

Kinaxis Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 203.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 203.51 is above the 20-day moving average (MA) of 202.12, above the 50-day MA of 200.37, and above the 200-day MA of 178.28, indicating a bullish trend. The MACD of 1.68 indicates Negative momentum. The RSI at 53.09 is Neutral, neither overbought nor oversold. The STOCH value of 44.71 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$5.75B	413.39	2.32%	―	15.14%	-31.45%
Sector *	50 Neutral	C$3.12B	5.24	-48.85%	9.09%	2.15%	-10.29%
OTEX	―	$7.63B	12.03	15.87%	3.70%	―	―
DSGX	―	$8.96B	63.06	10.66%	―	―	―
EGHSF	―	$908.51M	16.14	13.26%	4.64%	―	―
LSPD	58 Neutral	C$2.33B	―	-36.64%	―	18.75%	-386.84%
DCBO	―	$890.90M	39.37	41.12%	―	―	―

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.