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 62 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 could make KXS a good candidate 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.
In the past 5 years KXS always reported a positive cash flow from operatings.
1.2 Ratios
KXS's Return On Assets of 1.43% is in line compared to the rest of the industry. KXS outperforms 59.68% of its industry peers.
With a decent Return On Equity value of 2.38%, KXS is doing good in the industry, outperforming 61.29% of the companies in the same industry.
KXS's Return On Invested Capital of 4.65% is fine compared to the rest of the industry. KXS outperforms 70.97% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KXS is significantly below the industry average of 12.92%.
The last Return On Invested Capital (4.65%) for KXS is above the 3 year average (3.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.43% | ||
| ROE | 2.38% | ||
| ROIC | 4.65% |
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 (1.97%) than 61.29% of its industry peers.
In the last couple of years the Profit Margin of KXS has declined.
KXS has a Operating Margin of 6.00%. This is in the better half of the industry: KXS outperforms 69.35% of its industry peers.
In the last couple of years the Operating Margin of KXS has declined.
KXS has a Gross Margin of 62.84%. This is in the better half of the industry: KXS outperforms 66.13% of its industry peers.
KXS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6% | ||
| PM (TTM) | 1.97% | ||
| GM | 62.84% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KXS is destroying value.
Compared to 1 year ago, KXS has less shares outstanding
The number of shares outstanding for KXS has been increased compared to 5 years ago.
Compared to 1 year ago, KXS has an improved debt to assets ratio.
2.2 Solvency
KXS has an Altman-Z score of 10.73. This indicates that KXS is financially healthy and has little risk of bankruptcy at the moment.
KXS has a better Altman-Z score (10.73) than 88.71% of its industry peers.
KXS has a debt to FCF ratio of 0.54. This is a very positive value and a sign of high solvency as it would only need 0.54 years to pay back of all of its debts.
KXS has a Debt to FCF ratio of 0.54. This is amongst the best in the industry. KXS outperforms 83.87% of its industry peers.
A Debt/Equity ratio of 0.11 indicates that KXS is not too dependend on debt financing.
The Debt to Equity ratio of KXS (0.11) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.54 | ||
| Altman-Z | 10.73 |
ROIC/WACC0.47
WACC9.82%
2.3 Liquidity
KXS has a Current Ratio of 2.12. This indicates that KXS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.12, KXS is in the better half of the industry, outperforming 67.74% of the companies in the same industry.
KXS has a Quick Ratio of 2.12. This indicates that KXS is financially healthy and has no problem in meeting its short term obligations.
KXS has a better Quick ratio (2.12) than 67.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.12 | ||
| Quick Ratio | 2.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 50.56% over the past year.
KXS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.01% yearly.
KXS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.53%.
The Revenue has been growing by 20.33% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)50.56%
EPS 3Y61.03%
EPS 5Y12.01%
EPS Q2Q%51.72%
Revenue 1Y (TTM)11.53%
Revenue growth 3Y24.44%
Revenue growth 5Y20.33%
Sales Q2Q%11.24%
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 26.84% on average per year.
The Revenue is expected to grow by 17.74% on average over the next years. This is quite good.
EPS Next Y40.07%
EPS Next 2Y31.26%
EPS Next 3Y26.84%
EPS Next 5YN/A
Revenue Next Year11.57%
Revenue Next 2Y12.99%
Revenue Next 3Y13.27%
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
KXS is valuated quite expensively with a Price/Earnings ratio of 55.24.
KXS's Price/Earnings ratio is a bit cheaper when compared to the industry. KXS is cheaper than 67.74% of the companies in the same industry.
KXS is valuated expensively when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 36.09, 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 72.58% of the companies in the same industry.
KXS is valuated expensively when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.24 | ||
| Fwd PE | 36.09 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as KXS.
KXS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. KXS is cheaper than 62.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.99 | ||
| EV/EBITDA | 69.73 |
4.3 Compensation for Growth
KXS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as KXS's earnings are expected to grow with 26.84% in the coming years.
PEG (NY)1.38
PEG (5Y)4.6
EPS Next 2Y31.26%
EPS Next 3Y26.84%
5. Dividend
5.1 Amount
No dividends for KXS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:KXS (7/4/2025, 7:00:00 PM)
201.07
-0.08 (-0.04%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners52.35%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap5.68B
Analysts75.71
Price Target220.7 (9.76%)
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)1
Avg EPS beat(2)-12.37%
Min EPS beat(2)-36.93%
Max EPS beat(2)12.18%
EPS beat(4)3
Avg EPS beat(4)3.84%
Min EPS beat(4)-36.93%
Max EPS beat(4)29.41%
EPS beat(8)5
Avg EPS beat(8)9.79%
EPS beat(12)7
Avg EPS beat(12)15.94%
EPS beat(16)9
Avg EPS beat(16)12.64%
Revenue beat(2)0
Avg Revenue beat(2)-1.5%
Min Revenue beat(2)-2.19%
Max Revenue beat(2)-0.8%
Revenue beat(4)1
Avg Revenue beat(4)-1.16%
Min Revenue beat(4)-2.19%
Max Revenue beat(4)0.25%
Revenue beat(8)2
Avg Revenue beat(8)-0.85%
Revenue beat(12)3
Avg Revenue beat(12)-0.86%
Revenue beat(16)6
Avg Revenue beat(16)-0.03%
PT rev (1m)8.19%
PT rev (3m)10.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.27%
EPS NY rev (1m)0%
EPS NY rev (3m)3.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.24 | ||
| Fwd PE | 36.09 | ||
| P/S | 8.42 | ||
| P/FCF | 44.99 | ||
| P/OCF | 42.3 | ||
| P/B | 10.18 | ||
| P/tB | 12.89 | ||
| EV/EBITDA | 69.73 |
EPS(TTM)3.64
EY1.81%
EPS(NY)5.57
Fwd EY2.77%
FCF(TTM)4.47
FCFY2.22%
OCF(TTM)4.75
OCFY2.36%
SpS23.88
BVpS19.75
TBVpS15.6
PEG (NY)1.38
PEG (5Y)4.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.43% | ||
| ROE | 2.38% | ||
| ROCE | 6.46% | ||
| ROIC | 4.65% | ||
| ROICexc | 14.6% | ||
| ROICexgc | 35.38% | ||
| OM | 6% | ||
| PM (TTM) | 1.97% | ||
| GM | 62.84% | ||
| FCFM | 18.72% |
ROA(3y)1.52%
ROA(5y)1.51%
ROE(3y)2.41%
ROE(5y)2.35%
ROIC(3y)3.06%
ROIC(5y)N/A
ROICexc(3y)7.28%
ROICexc(5y)N/A
ROICexgc(3y)14.81%
ROICexgc(5y)N/A
ROCE(3y)4.25%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-22.78%
ROICexc growth 3YN/A
ROICexc growth 5Y-35.23%
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%
F-Score7
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.54 | ||
| Debt/EBITDA | 0.84 | ||
| Cap/Depr | 24.66% | ||
| Cap/Sales | 1.19% | ||
| Interest Coverage | 16.74 | ||
| Cash Conversion | 183.9% | ||
| Profit Quality | 950.14% | ||
| Current Ratio | 2.12 | ||
| Quick Ratio | 2.12 | ||
| Altman-Z | 10.73 |
F-Score7
WACC9.82%
ROIC/WACC0.47
Cap/Depr(3y)33.23%
Cap/Depr(5y)71.64%
Cap/Sales(3y)2.15%
Cap/Sales(5y)5.28%
Profit Quality(3y)56633.6%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)50.56%
EPS 3Y61.03%
EPS 5Y12.01%
EPS Q2Q%51.72%
EPS Next Y40.07%
EPS Next 2Y31.26%
EPS Next 3Y26.84%
EPS Next 5YN/A
Revenue 1Y (TTM)11.53%
Revenue growth 3Y24.44%
Revenue growth 5Y20.33%
Sales Q2Q%11.24%
Revenue Next Year11.57%
Revenue Next 2Y12.99%
Revenue Next 3Y13.27%
Revenue Next 5Y17.74%
EBIT growth 1Y67.88%
EBIT growth 3YN/A
EBIT growth 5Y-11.89%
EBIT Next Year434.7%
EBIT Next 3Y97.98%
EBIT Next 5Y62.02%
FCF growth 1Y225.01%
FCF growth 3Y79.75%
FCF growth 5Y30.65%
OCF growth 1Y138.59%
OCF growth 3Y25.55%
OCF growth 5Y22.07%