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. KXS is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. 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.
- KXS had a positive operating cash flow in the past year.
- 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
- The Return On Assets of KXS (4.86%) is better than 77.94% of its industry peers.
- 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.
- KXS's Return On Invested Capital of 8.32% is fine compared to the rest of the industry. KXS outperforms 72.06% of its industry peers.
- 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 Operating Margin of 10.84%. This is in the better half of the industry: KXS outperforms 73.53% of its industry peers.
- In the last couple of years the Operating Margin of KXS has declined.
- Looking at the Gross Margin, with a value of 64.23%, KXS is in the better half of the industry, outperforming 67.65% of the companies in the same industry.
- In the last couple of years the Gross Margin of KXS has declined.
| 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.
- Compared to 1 year ago, KXS has less shares outstanding
- KXS has more shares outstanding than it did 5 years ago.
- 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.
- KXS has a better Debt to FCF ratio (0.47) 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.
- KXS has a Debt to Equity ratio of 0.10. This is in the better half of the industry: KXS outperforms 60.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.47 | ||
| Altman-Z | 8.28 |
ROIC/WACC0.81
WACC10.21%
2.3 Liquidity
- A Current Ratio of 2.24 indicates that KXS has no problem at all paying 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 Quick ratio of 2.24. This is in the better half of the industry: KXS outperforms 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.
- The Revenue has grown by 12.01% in the past year. This is quite good.
- KXS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.33% yearly.
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
- The Earnings Per Share is expected to grow by 26.93% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 17.74% on average over the next years. This is quite good.
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
- 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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 32.91 indicates a quite expensive valuation of KXS.
- Compared to the rest of the industry, the Price/Earnings ratio of KXS indicates a somewhat cheap valuation: KXS is cheaper than 72.06% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.60. KXS is around the same levels.
- KXS is valuated quite expensively with a Price/Forward Earnings ratio of 25.05.
- Based on the Price/Forward Earnings ratio, KXS is valued a bit cheaper than 67.65% of the companies 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
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as KXS.
- 69.12% 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 | 28.54 | ||
| EV/EBITDA | 31.78 |
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.
- 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
- KXS does not give a dividend.
| 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.