KINAXIS INC (KXS.CA) Stock Fundamental Analysis
TSX:KXS - Toronto Stock Exchange - CA49448Q1090 - Common Stock - Currency: CAD
Overall KXS gets a fundamental rating of 6 out of 10. We evaluated KXS against 66 industry peers in the Software industry. KXS has an excellent financial health rating, but there are some minor concerns on its profitability. KXS is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make KXS suitable for growth investing!
1. Profitability
1.1 Basic Checks
KXS had positive earnings in the past year.
In the past year KXS had a positive cash flow from operations.
KXS had positive earnings in 4 of the past 5 years.
KXS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KXS has a Return On Assets of 2.89%. This is in the better half of the industry: KXS outperforms 68.18% of its industry peers.
KXS has a better Return On Equity (4.91%) than 69.70% of its industry peers.
KXS has a better Return On Invested Capital (2.54%) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.89% | ||
| ROE | 4.91% | ||
| ROIC | 2.54% |
ROA(3y)1.44%
ROA(5y)2.83%
ROE(3y)2.28%
ROE(5y)4.37%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
KXS has a better Profit Margin (4.33%) than 69.70% of its industry peers.
KXS's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 4.38%, KXS is doing good in the industry, outperforming 68.18% of the companies in the same industry.
In the last couple of years the Operating Margin of KXS has declined.
KXS's Gross Margin of 61.20% is fine compared to the rest of the industry. KXS outperforms 60.61% of its industry peers.
KXS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.38% | ||
| PM (TTM) | 4.33% | ||
| GM | 61.2% |
OM growth 3Y-29.13%
OM growth 5Y-24.87%
PM growth 3Y-27.22%
PM growth 5Y-24.42%
GM growth 3Y-4.09%
GM growth 5Y-2.5%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KXS is destroying value.
The number of shares outstanding for KXS has been increased compared to 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 8.16 indicates that KXS is not in any danger for bankruptcy at the moment.
KXS has a Altman-Z score of 8.16. This is amongst the best in the industry. KXS outperforms 87.88% of its industry peers.
The Debt to FCF ratio of KXS is 0.50, which is an excellent value as it means it would take KXS, only 0.50 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of KXS (0.50) is better than 87.88% of its industry peers.
A Debt/Equity ratio of 0.11 indicates that KXS is not too dependend on debt financing.
KXS has a better Debt to Equity ratio (0.11) than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.5 | ||
| Altman-Z | 8.16 |
ROIC/WACC0.2
WACC12.6%
2.3 Liquidity
A Current Ratio of 1.89 indicates that KXS should not have too much problems paying its short term obligations.
KXS has a Current ratio of 1.89. This is in the better half of the industry: KXS outperforms 68.18% of its industry peers.
KXS has a Quick Ratio of 1.89. This is a normal value and indicates that KXS is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of KXS (1.89) is better than 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.89 |
3. Growth
3.1 Past
KXS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.46%, which is quite impressive.
KXS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.53% yearly.
KXS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.96%.
The Revenue has been growing by 23.16% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)34.46%
EPS 3Y12.62%
EPS 5Y10.53%
EPS Q2Q%51.92%
Revenue 1Y (TTM)13.96%
Revenue growth 3Y23.95%
Revenue growth 5Y23.16%
Sales Q2Q%12.44%
3.2 Future
KXS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.60% yearly.
KXS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.34% yearly.
EPS Next Y65.13%
EPS Next 2Y41.92%
EPS Next 3Y35.48%
EPS Next 5Y26.6%
Revenue Next Year13.11%
Revenue Next 2Y14.14%
Revenue Next 3Y14.23%
Revenue Next 5Y17.34%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 49.16, the valuation of KXS can be described as expensive.
72.73% of the companies in the same industry are more expensive than KXS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.39, KXS is valued quite expensively.
Based on the Price/Forward Earnings ratio of 36.32, the valuation of KXS can be described as expensive.
KXS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KXS is cheaper than 78.79% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 94.38, KXS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.16 | ||
| Fwd PE | 36.32 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as KXS.
68.18% of the companies in the same industry are more expensive than KXS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.8 | ||
| EV/EBITDA | 64.01 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
KXS's earnings are expected to grow with 35.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.75
PEG (5Y)4.67
EPS Next 2Y41.92%
EPS Next 3Y35.48%
5. Dividend
5.1 Amount
KXS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
KINAXIS INC
TSX:KXS (2/11/2025, 7:00:00 PM)
167.64
-2.43 (-1.43%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners55.97%
Inst Owner ChangeN/A
Ins Owners0.22%
Ins Owner ChangeN/A
Market Cap4.72B
Analysts77.33
Price Target197.24 (17.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.05%
Min EPS beat(2)10.7%
Max EPS beat(2)29.41%
EPS beat(4)3
Avg EPS beat(4)13.5%
Min EPS beat(4)-2.5%
Max EPS beat(4)29.41%
EPS beat(8)6
Avg EPS beat(8)30.12%
EPS beat(12)7
Avg EPS beat(12)18.63%
EPS beat(16)9
Avg EPS beat(16)14.56%
Revenue beat(2)1
Avg Revenue beat(2)-0.82%
Min Revenue beat(2)-1.9%
Max Revenue beat(2)0.25%
Revenue beat(4)2
Avg Revenue beat(4)-0.62%
Min Revenue beat(4)-2.39%
Max Revenue beat(4)1.54%
Revenue beat(8)2
Avg Revenue beat(8)-0.84%
Revenue beat(12)5
Avg Revenue beat(12)0.2%
Revenue beat(16)7
Avg Revenue beat(16)0.19%
PT rev (1m)0.15%
PT rev (3m)1.37%
EPS NQ rev (1m)-0.81%
EPS NQ rev (3m)21.6%
EPS NY rev (1m)0%
EPS NY rev (3m)9.57%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-4.08%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.16 | ||
| Fwd PE | 36.32 | ||
| P/S | 7 | ||
| P/FCF | 32.8 | ||
| P/OCF | 32 | ||
| P/B | 7.94 | ||
| P/tB | 10.28 | ||
| EV/EBITDA | 64.01 |
EPS(TTM)3.41
EY2.03%
EPS(NY)4.62
Fwd EY2.75%
FCF(TTM)5.11
FCFY3.05%
OCF(TTM)5.24
OCFY3.13%
SpS23.95
BVpS21.11
TBVpS16.31
PEG (NY)0.75
PEG (5Y)4.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.89% | ||
| ROE | 4.91% | ||
| ROCE | 4.43% | ||
| ROIC | 2.54% | ||
| ROICexc | 6.89% | ||
| ROICexgc | 15.29% | ||
| OM | 4.38% | ||
| PM (TTM) | 4.33% | ||
| GM | 61.2% | ||
| FCFM | 21.34% |
ROA(3y)1.44%
ROA(5y)2.83%
ROE(3y)2.28%
ROE(5y)4.37%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-44.16%
ROICexcg growth 5Y-39.94%
ROICexc growth 3Y-36.05%
ROICexc growth 5Y-46.78%
OM growth 3Y-29.13%
OM growth 5Y-24.87%
PM growth 3Y-27.22%
PM growth 5Y-24.42%
GM growth 3Y-4.09%
GM growth 5Y-2.5%
F-Score8
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.5 | ||
| Debt/EBITDA | 0.98 | ||
| Cap/Depr | 10.02% | ||
| Cap/Sales | 0.54% | ||
| Interest Coverage | 12.37 | ||
| Cash Conversion | 224.23% | ||
| Profit Quality | 492.96% | ||
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.89 | ||
| Altman-Z | 8.16 |
F-Score8
WACC12.6%
ROIC/WACC0.2
Cap/Depr(3y)82.45%
Cap/Depr(5y)87.7%
Cap/Sales(3y)6.34%
Cap/Sales(5y)6.31%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)34.46%
EPS 3Y12.62%
EPS 5Y10.53%
EPS Q2Q%51.92%
EPS Next Y65.13%
EPS Next 2Y41.92%
EPS Next 3Y35.48%
EPS Next 5Y26.6%
Revenue 1Y (TTM)13.96%
Revenue growth 3Y23.95%
Revenue growth 5Y23.16%
Sales Q2Q%12.44%
Revenue Next Year13.11%
Revenue Next 2Y14.14%
Revenue Next 3Y14.23%
Revenue Next 5Y17.34%
EBIT growth 1Y29.59%
EBIT growth 3Y-12.15%
EBIT growth 5Y-7.48%
EBIT Next Year225.28%
EBIT Next 3Y69.25%
EBIT Next 5Y50.65%
FCF growth 1Y1077.29%
FCF growth 3Y19.61%
FCF growth 5Y37.62%
OCF growth 1Y242.6%
OCF growth 3Y10.09%
OCF growth 5Y23.24%