KINAXIS INC (KXS.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:KXS - CA49448Q1090 - Common Stock
144.46 CAD
-1.6 (-1.1%)
KXS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 68 industry peers in the Software industry. While KXS has a great health rating, its profitability is only average at the moment. KXS is growing strongly while it is still valued neutral. This is a good combination! These ratings would make KXS suitable for growth investing!
1. Profitability
1.1 Basic Checks
- In the past year KXS was profitable.
- KXS had a positive operating cash flow in the past year.
- Of the past 5 years KXS 4 years were profitable.
- In the past 5 years KXS always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.86%, KXS is in the better half of the industry, outperforming 77.94% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 7.80%, KXS is in the better half of the industry, outperforming 73.53% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 8.32%, KXS is in the better half of the industry, outperforming 72.06% of the companies in the same industry.
- KXS had an Average Return On Invested Capital over the past 3 years of 3.06%. This is significantly below the industry average of 12.48%.
- The 3 year average ROIC (3.06%) for KXS is below the current ROIC(8.32%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.86% | ||
| ROE | 7.8% | ||
| ROIC | 8.32% |
ROA(3y)1.52%
ROA(5y)1.51%
ROE(3y)2.41%
ROE(5y)2.35%
ROIC(3y)3.06%
ROIC(5y)N/A
1.3 Margins
- KXS has a better Profit Margin (6.61%) than 75.00% of its industry peers.
- KXS's Profit Margin has declined in the last couple of years.
- KXS has a better Operating Margin (10.84%) than 73.53% of its industry peers.
- In the last couple of years the Operating Margin of KXS has declined.
- With a decent Gross Margin value of 64.23%, KXS is doing good in the industry, outperforming 67.65% of the companies in the same industry.
- KXS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.84% | ||
| PM (TTM) | 6.61% | ||
| GM | 64.23% |
OM growth 3YN/A
OM growth 5Y-26.78%
PM growth 3YN/A
PM growth 5Y-75.12%
GM growth 3Y-0.26%
GM growth 5Y-2.99%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KXS is destroying value.
- KXS has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, KXS has more shares outstanding
- Compared to 1 year ago, KXS has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 8.28 indicates that KXS is not in any danger for bankruptcy at the moment.
- KXS has a better Altman-Z score (8.28) than 85.29% of its industry peers.
- KXS has a debt to FCF ratio of 0.47. This is a very positive value and a sign of high solvency as it would only need 0.47 years to pay back of all of its debts.
- The Debt to FCF ratio of KXS (0.47) is better than 85.29% of its industry peers.
- KXS has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.10, KXS is in the better half of the industry, outperforming 60.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.47 | ||
| Altman-Z | 8.28 |
ROIC/WACC0.81
WACC10.21%
2.3 Liquidity
- KXS has a Current Ratio of 2.24. This indicates that KXS is financially healthy and has no problem in meeting its short term obligations.
- With a decent Current ratio value of 2.24, KXS is doing good in the industry, outperforming 72.06% of the companies in the same industry.
- KXS has a Quick Ratio of 2.24. This indicates that KXS is financially healthy and has no problem in meeting its short term obligations.
- KXS has a better Quick ratio (2.24) than 72.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.24 | ||
| Quick Ratio | 2.24 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 36.13% over the past year.
- The Earnings Per Share has been growing by 12.01% on average over the past years. This is quite good.
- Looking at the last year, KXS shows a quite strong growth in Revenue. The Revenue has grown by 12.01% in the last year.
- The Revenue has been growing by 20.33% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)36.13%
EPS 3Y61.03%
EPS 5Y12.01%
EPS Q2Q%17.72%
Revenue 1Y (TTM)12.01%
Revenue growth 3Y24.44%
Revenue growth 5Y20.33%
Sales Q2Q%10.75%
3.2 Future
- Based on estimates for the next years, KXS will show a very strong growth in Earnings Per Share. The EPS will grow by 26.93% on average per year.
- KXS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.74% yearly.
EPS Next Y58.31%
EPS Next 2Y33.65%
EPS Next 3Y26.93%
EPS Next 5YN/A
Revenue Next Year12.14%
Revenue Next 2Y13.31%
Revenue Next 3Y12.88%
Revenue Next 5Y17.74%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 32.91, the valuation of KXS can be described as expensive.
- Based on the Price/Earnings ratio, KXS is valued a bit cheaper than the industry average as 72.06% of the companies are valued more expensively.
- KXS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 25.05 indicates a quite expensive valuation of KXS.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of KXS indicates a somewhat cheap valuation: KXS is cheaper than 67.65% of the companies listed in the same industry.
- KXS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.91 | ||
| Fwd PE | 25.05 |
4.2 Price Multiples
- KXS's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, KXS is valued a bit cheaper than the industry average as 69.12% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.54 | ||
| EV/EBITDA | 31.78 |
4.3 Compensation for Growth
- KXS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of KXS may justify a higher PE ratio.
- A more expensive valuation may be justified as KXS's earnings are expected to grow with 26.93% in the coming years.
PEG (NY)0.56
PEG (5Y)2.74
EPS Next 2Y33.65%
EPS Next 3Y26.93%
5. Dividend
5.1 Amount
- No dividends for KXS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
KINAXIS INC / KXS.CA FAQ
What is the ChartMill fundamental rating of KINAXIS INC (KXS.CA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to KXS.CA.
What is the valuation status for KXS stock?
ChartMill assigns a valuation rating of 5 / 10 to KINAXIS INC (KXS.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for KINAXIS INC?
KINAXIS INC (KXS.CA) has a profitability rating of 6 / 10.
What is the valuation of KINAXIS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for KINAXIS INC (KXS.CA) is 32.91 and the Price/Book (PB) ratio is 6.68.
What is the earnings growth outlook for KINAXIS INC?
The Earnings per Share (EPS) of KINAXIS INC (KXS.CA) is expected to grow by 58.31% in the next year.