Kraken Robotics Systems Inc (PNG) AI Stock Analysis

• Market Cap: C$883.63M
• Dividend Yield: N/A
• Average Volume (3M): 1.52M
• Price to Earnings (P/E): 47.4
• Beta (1Y): 0.98
• Revenue Growth: 4.42%
• EPS Growth: 64.01%
• Country: CA
• Employees: 283
• Sector: Technology
• Sector Strength: 89
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.00
• Shares Outstanding: 262,984,830
• 10 Day Avg. Volume: 1,189,507
• 30 Day Avg. Volume: 1,521,053
• PEG Ratio: 1.40
• Price to Book (P/B): 9.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -13.43
• 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$3.50
• Price Target Upside: 2.64% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 76 Outperform
• Price Target: C$4.00 ▲(17.30%Upside)

Kraken Robotics exhibits strong financial performance with robust revenue growth and improved profitability, though cash flow inconsistencies present a risk. The stock's bullish technical indicators support its upward trend, while high valuation metrics imply potential overvaluation. Strategic corporate events, including significant funding and sales, enhance growth prospects.

Kraken Robotics Systems Inc Business Overview & Revenue Model

Company Description

Kraken Robotics Inc., a marine technology company, engages in the design, manufacture, and sale of software-centric sensors, batteries, and underwater robotic systems for unmanned underwater vehicles used in military and commercial applications. It operates in two segments, Sensors and Platforms, and Power. The company offers AquaPix Miniature interferometric synthetic aperture sonar (MINSAS), a configurable MINSAS; and SeaVision, an underwater laser imaging system. It also provides Kraken Active Towed Fish (KATFISH), a towed underwater vehicle for high speed and high resolution seabed mapping; ThunderFish, an autonomous underwater vehicle; and ALARS, an autonomous launch and recovery system that enable an unmanned vehicle and its payloads to be brought aboard to a host ship. In addition, the company designs and manufactures pressure tolerant thrusters, drives, batteries, battery management systems, and electronics; and robotics as a service, as well as implements digital signal processing and user interface software for anti-submarine warfare sonar applications. It has operations in Canada, the United States, Europe, and internationally. The company was formerly known as Kraken Sonar Inc. and changed its name to Kraken Robotics Inc. in September 2017. Kraken Robotics Inc. is headquartered in Mount Pearl, Canada.

How the Company Makes Money

Kraken Robotics Systems Inc generates revenue through the sale of its high-tech marine products, including sonar systems and autonomous underwater vehicles, to a diverse client base spanning defense, commercial, and research sectors. The company earns money by providing these advanced technological solutions on a project basis, through direct sales, and by engaging in ongoing service contracts for maintenance and support. Additionally, Kraken Robotics may enter strategic partnerships and collaborations, leveraging its expertise to access new markets and enhance its product offerings, which further contributes to its revenue streams.

Kraken Robotics Systems Inc Financial Statement Overview

Summary

Kraken Robotics Systems Inc has demonstrated robust revenue growth and improved profitability, with significant increases in net income and revenue. The balance sheet shows a healthy equity position, although inconsistent cash flow generation remains a concern. Overall, the company's financials position it well within its industry, but sustainable cash flow management is crucial.

Income Statement

Kraken Robotics Systems Inc has shown robust revenue growth, with a significant increase from $12.27M in 2020 to $91.29M in 2024, indicating a strong upward trajectory. The company has improved its profitability, evidenced by a positive net income of $20.09M in 2024, compared to a net loss in earlier years. This reflects a solid net profit margin and improved operational efficiency, as seen in higher EBIT and EBITDA margins. The growth rates in revenue and profitability are strong indicators of the company's competitive positioning in the market.

Balance Sheet

The balance sheet shows a healthy equity position with stockholders' equity increasing to $121.74M in 2024. The debt-to-equity ratio is relatively low, reflecting prudent leverage management. However, the significant increase in total assets, nearly doubling from 2023 to 2024, suggests potential risks if asset returns do not align with growth expectations. The equity ratio indicates stability, although attention to asset utilization efficiency is necessary to maintain balance sheet strength.

Cash Flow

The cash flow from operations has been inconsistent, with a negative operating cash flow reported in 2024 of -$12.46M, a concern despite the positive free cash flow in prior years. The company has relied on financing activities to support liquidity, which may pose risks if not managed carefully. The free cash flow to net income ratio indicates that while profitability has improved, cash flow generation needs to be more consistent to support sustainable growth.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	91.29M	69.58M	40.91M	25.63M	12.28M
Gross Profit	44.69M	33.96M	17.04M	11.32M	5.82M
EBITDA	18.12M	11.72M	825.00K	-176.00K	-3.86M
Net Income	20.09M	5.55M	-4.24M	-3.54M	-5.21M
Balance Sheet
Total Assets	164.20M	76.42M	71.36M	65.47M	34.82M
Cash, Cash Equivalents and Short-Term Investments	58.52M	5.17M	8.27M	6.75M	12.92M
Total Debt	19.34M	16.20M	16.27M	15.26M	5.02M
Total Liabilities	42.46M	44.36M	47.71M	37.86M	18.81M
Stockholders Equity	121.73M	32.06M	23.66M	27.60M	16.01M
Cash Flow
Free Cash Flow	-16.06M	870.00K	93.00K	-16.54M	612.26K
Operating Cash Flow	-12.46M	8.43M	5.24M	-11.01M	2.79M
Investing Cash Flow	-5.15M	-9.81M	-3.37M	-7.24M	-3.24M
Financing Cash Flow	70.75M	-2.15M	-41.00K	11.92M	11.10M

Kraken Robotics Systems Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PNG, the sentiment is Positive. The current price of 3.41 is above the 20-day moving average (MA) of 2.95, above the 50-day MA of 2.66, and above the 200-day MA of 2.41, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 77.39 is Negative, neither overbought nor oversold. The STOCH value of 86.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PNG.

Kraken Robotics Systems Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PNG	76 Outperform	C$883.63M	47.36	23.14%	―	4.42%	64.01%
Sector *	63 Neutral	$33.87B	5.80	-11.87%	1.82%	5.31%	-18.50%
YNV	41 Neutral	C$28.19M	―	-89.38%	―	-25.38%	0.98%
HEAT	33 Underperform	C$9.98M	―	-9999.00%	―	―	9.55%

Kraken Robotics Systems Inc Corporate Events

Kraken Robotics Secures $115 Million in Public Offering to Fuel Global Expansion

Kraken Robotics Inc. has successfully completed a $115 million public offering, enhancing its financial position to support growth as a global prime contractor. The proceeds will be used for strategic acquisitions, particularly in the US and Europe, and to strengthen the company’s balance sheet for larger contracts, reflecting investor confidence in Kraken’s vision and strategy.

The most recent analyst rating on (TSE:PNG) stock is a Buy with a C$3.50 price target. To see the full list of analyst forecasts on Kraken Robotics Systems Inc stock, see the TSE:PNG Stock Forecast page.

Kraken Robotics Files Prospectus for $100 Million Public Offering

Kraken Robotics Inc. has filed a final short form prospectus for its bought deal public offering of common shares, aiming to raise gross proceeds of $100,016,000. The offering, led by Desjardins Capital Markets and other underwriters, is expected to close around July 7, 2025, and has received conditional approval from the TSX Venture Exchange. This move is poised to strengthen Kraken’s financial position and potentially enhance its market presence in the marine technology industry.

The most recent analyst rating on (TSE:PNG) stock is a Buy with a C$3.50 price target. To see the full list of analyst forecasts on Kraken Robotics Systems Inc stock, see the TSE:PNG Stock Forecast page.

Kraken Robotics Announces $100 Million Public Offering to Enhance Global Operations

Kraken Robotics Inc. has announced a $100 million public offering of common shares, with Desjardins Capital Markets acting as the lead underwriter. The proceeds from this offering are intended to support Kraken’s transition into a scalable global prime contractor, enhance its acquisition capabilities in the US and EU, and strengthen its balance sheet for bidding on larger contracts. This move is expected to bolster Kraken’s market position and operational capabilities, with the offering subject to regulatory approval and expected to close by July 7, 2025.

The most recent analyst rating on (TSE:PNG) stock is a Buy with a C$3.50 price target. To see the full list of analyst forecasts on Kraken Robotics Systems Inc stock, see the TSE:PNG Stock Forecast page.

Kraken Robotics Strengthens Board with Defense Industry Veteran

Kraken Robotics Inc. has appointed Kristin Robertson, a seasoned executive with over 30 years in the defense industry, to its Board of Directors. Robertson’s extensive experience with major U.S. defense companies like Boeing and RTX Corporation is expected to significantly contribute to Kraken’s growth and innovation in subsea technology. Additionally, the company has issued stock options to employees and directors, reflecting its commitment to incentivizing talent as it progresses in its strategic goals.

The most recent analyst rating on (TSE:PNG) stock is a Buy with a C$3.50 price target. To see the full list of analyst forecasts on Kraken Robotics Systems Inc stock, see the TSE:PNG Stock Forecast page.

Kraken Robotics Reports Q1 2025 Financial Results Amid Optimistic Outlook

Kraken Robotics reported a 23% decrease in revenue for Q1 2025, primarily due to a decline in product revenue as the Canadian Navy project nears completion. Despite this, service revenue increased by 38% driven by demand for their Sub-Bottom Imager and Acoustic Corer services. The company completed the acquisition of 3D at Depth, enhancing their service offerings. Kraken remains optimistic about future growth, citing strong market fundamentals in naval defense and plans to expand manufacturing capacity in Canada.

The most recent analyst rating on (TSE:PNG) stock is a Buy with a C$3.50 price target. To see the full list of analyst forecasts on Kraken Robotics Systems Inc stock, see the TSE:PNG Stock Forecast page.

Kraken Robotics Secures Over $3 Million in Sonar System Sales

Kraken Robotics Inc. has announced new orders exceeding $3 million for its Synthetic Aperture Sonar (SAS) systems, which will be integrated into uncrewed underwater vehicles for clients across Asia Pacific, Europe, and North America. This development highlights the growing demand for Kraken’s technology, which enhances the capabilities of uncrewed systems by providing high-resolution imaging and bathymetric mapping. The orders include a significant contract with the University of Southern Mississippi’s Roger F. Wicker Center for Ocean Enterprise, which will use the technology for research and development. This expansion in sales underscores Kraken’s strong positioning in the subsea intelligence market and its potential impact on research and operational efficiency in oceanographic studies.

The most recent analyst rating on (TSE:PNG) stock is a Buy with a C$3.50 price target. To see the full list of analyst forecasts on Kraken Robotics Systems Inc stock, see the TSE:PNG Stock Forecast page.

Kraken Robotics Subsidiary Achieves Milestone with 1,000th Subsea Metrology

3D At Depth, a subsidiary of Kraken Robotics, has completed its 1,000th subsea metrology project, marking a significant achievement in the underwater technology sector. This milestone highlights the company’s dedication to innovation and precision, enhancing operational efficiency and reducing environmental impact in challenging underwater environments. The project, conducted for TotalEnergies at the Girassol oil field in Angola, demonstrates the effectiveness of 3D At Depth’s advanced LiDAR technology and rapid data delivery capabilities, reinforcing its position as an industry leader in subsea measurement solutions.

Kraken Robotics Achieves Record Financial Growth in 2024

Kraken Robotics reported a strong financial performance for 2024, with a 31% increase in revenue to $91 million and a 47% rise in adjusted EBITDA to $21 million. The company’s SeaPower subsea battery business and Subsea Services saw significant growth, while the sensor business experienced a decline. Kraken plans to expand its manufacturing capacity with a new facility in Canada to meet growing demand. The company’s strategic focus on defense and offshore energy markets positions it well for future opportunities, despite challenges in the sensor segment.

Kraken Robotics to Announce 2024 Financial Results and Host Webcast

Kraken Robotics Inc. has announced the release of its fiscal year 2024 financial results scheduled for April 28, 2025, at 6:30 am ET, followed by a webcast at 8:30 am ET hosted by the company’s President and CEO, Greg Reid, and CFO, Joe Mackay. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic positioning within the subsea intelligence industry, potentially impacting investor confidence and market dynamics.

Kraken Robotics Secures $11 Million in SeaPower Battery Orders Amid Expansion Plans

Kraken Robotics has secured $11 million in new orders for its SeaPower pressure tolerant batteries, bringing the total orders for the year to $45 million, primarily driven by demand from the defense industry for uncrewed underwater vehicles (UUVs). These batteries are notable for their ability to withstand deep ocean pressures without needing a pressure housing, supporting longer and more complex UUV missions. To accommodate growing demand, Kraken plans to open a new battery facility in Nova Scotia, which will significantly increase production capacity. This expansion positions Kraken for continued growth in the subsea power sector and enhances its industry standing, with new battery designs for smaller UUVs expected by late 2025.