KINAXIS INC (KXS.CA) Stock Fundamental Analysis
TSX:KXS - Toronto Stock Exchange - CA49448Q1090 - Common Stock - Currency: CAD
KXS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 60 industry peers in the Software industry. KXS has an excellent financial health rating, but there are some minor concerns on its profitability. KXS is growing strongly while it is still valued neutral. This is a good combination! This makes KXS very considerable 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.
Of the past 5 years KXS 4 years were profitable.
KXS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of KXS (0.01%) is better than 61.67% of its industry peers.
KXS has a Return On Equity of 0.01%. This is in the better half of the industry: KXS outperforms 63.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.79%, KXS is in the better half of the industry, outperforming 63.33% 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 13.09%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.01% | ||
| ROE | 0.01% | ||
| ROIC | 2.79% |
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 Profit Margin of 0.01%. This is in the better half of the industry: KXS outperforms 61.67% of its industry peers.
In the last couple of years the Profit Margin of KXS has declined.
KXS has a better Operating Margin (3.57%) than 63.33% of its industry peers.
In the last couple of years the Operating Margin of KXS has declined.
KXS has a Gross Margin of 61.77%. This is in the better half of the industry: KXS outperforms 61.67% of its industry peers.
KXS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.57% | ||
| PM (TTM) | 0.01% | ||
| GM | 61.77% |
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.
The number of shares outstanding for KXS has been reduced compared to 1 year ago.
Compared to 5 years ago, KXS has more shares outstanding
KXS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 9.00 indicates that KXS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.00, KXS belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
The Debt to FCF ratio of KXS is 0.52, which is an excellent value as it means it would take KXS, only 0.52 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.52, KXS belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
KXS has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.11, KXS is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.52 | ||
| Altman-Z | 9 |
ROIC/WACC0.29
WACC9.69%
2.3 Liquidity
KXS has a Current Ratio of 1.97. This is a normal value and indicates that KXS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.97, KXS is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
A Quick Ratio of 1.97 indicates that KXS should not have too much problems paying its short term obligations.
KXS has a better Quick ratio (1.97) than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.97 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 48.75% over the past year.
Measured over the past years, KXS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.01% on average per year.
Looking at the last year, KXS shows a quite strong growth in Revenue. The Revenue has grown by 13.15% 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)48.75%
EPS 3Y61.03%
EPS 5Y12.01%
EPS Q2Q%0%
Revenue 1Y (TTM)13.15%
Revenue growth 3Y24.44%
Revenue growth 5Y20.33%
Sales Q2Q%10.67%
3.2 Future
The Earnings Per Share is expected to grow by 26.84% 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 Y40.07%
EPS Next 2Y31.26%
EPS Next 3Y26.84%
EPS Next 5YN/A
Revenue Next Year12.16%
Revenue Next 2Y13.29%
Revenue Next 3Y13.35%
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
Based on the Price/Earnings ratio of 54.80, the valuation of KXS can be described as expensive.
68.33% of the companies in the same industry are more expensive than KXS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.79. KXS is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 39.14 indicates a quite expensive valuation of KXS.
76.67% of the companies in the same industry are more expensive than KXS, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of KXS to the average of the S&P500 Index (21.38), we can say KXS is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.8 | ||
| Fwd PE | 39.14 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KXS is on the same level as its industry peers.
KXS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. KXS is cheaper than 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.77 | ||
| EV/EBITDA | 78.03 |
4.3 Compensation for Growth
The 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)1.37
PEG (5Y)4.56
EPS Next 2Y31.26%
EPS Next 3Y26.84%
5. Dividend
5.1 Amount
KXS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:KXS (4/25/2025, 7:00:00 PM)
180.85
+0.19 (+0.11%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners53.9%
Inst Owner ChangeN/A
Ins Owners0.23%
Ins Owner ChangeN/A
Market Cap5.09B
Analysts77.14
Price Target204 (12.8%)
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)-3.76%
Min EPS beat(2)-36.93%
Max EPS beat(2)29.41%
EPS beat(4)3
Avg EPS beat(4)4.9%
Min EPS beat(4)-36.93%
Max EPS beat(4)29.41%
EPS beat(8)5
Avg EPS beat(8)9.28%
EPS beat(12)7
Avg EPS beat(12)16.39%
EPS beat(16)9
Avg EPS beat(16)12.95%
Revenue beat(2)0
Avg Revenue beat(2)-2.04%
Min Revenue beat(2)-2.19%
Max Revenue beat(2)-1.9%
Revenue beat(4)2
Avg Revenue beat(4)-0.57%
Min Revenue beat(4)-2.19%
Max Revenue beat(4)1.54%
Revenue beat(8)2
Avg Revenue beat(8)-0.87%
Revenue beat(12)4
Avg Revenue beat(12)-0.09%
Revenue beat(16)6
Avg Revenue beat(16)-0.01%
PT rev (1m)0.86%
PT rev (3m)1.96%
EPS NQ rev (1m)2.73%
EPS NQ rev (3m)0.87%
EPS NY rev (1m)3.45%
EPS NY rev (3m)3.45%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)-1.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.8 | ||
| Fwd PE | 39.14 | ||
| P/S | 7.6 | ||
| P/FCF | 38.77 | ||
| P/OCF | 37 | ||
| P/B | 9.28 | ||
| P/tB | 11.85 | ||
| EV/EBITDA | 78.03 |
EPS(TTM)3.3
EY1.82%
EPS(NY)4.62
Fwd EY2.56%
FCF(TTM)4.66
FCFY2.58%
OCF(TTM)4.89
OCFY2.7%
SpS23.8
BVpS19.48
TBVpS15.27
PEG (NY)1.37
PEG (5Y)4.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.01% | ||
| ROE | 0.01% | ||
| ROCE | 3.88% | ||
| ROIC | 2.79% | ||
| ROICexc | 8.49% | ||
| ROICexgc | 20.46% | ||
| OM | 3.57% | ||
| PM (TTM) | 0.01% | ||
| GM | 61.77% | ||
| FCFM | 19.6% |
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 Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.52 | ||
| Debt/EBITDA | 1.03 | ||
| Cap/Depr | 18.11% | ||
| Cap/Sales | 0.93% | ||
| Interest Coverage | 10.07 | ||
| Cash Conversion | 235.17% | ||
| Profit Quality | 169104% | ||
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.97 | ||
| Altman-Z | 9 |
F-Score7
WACC9.69%
ROIC/WACC0.29
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)48.75%
EPS 3Y61.03%
EPS 5Y12.01%
EPS Q2Q%0%
EPS Next Y40.07%
EPS Next 2Y31.26%
EPS Next 3Y26.84%
EPS Next 5YN/A
Revenue 1Y (TTM)13.15%
Revenue growth 3Y24.44%
Revenue growth 5Y20.33%
Sales Q2Q%10.67%
Revenue Next Year12.16%
Revenue Next 2Y13.29%
Revenue Next 3Y13.35%
Revenue Next 5Y17.74%
EBIT growth 1Y22.39%
EBIT growth 3YN/A
EBIT growth 5Y-11.89%
EBIT Next Year429.56%
EBIT Next 3Y97.49%
EBIT Next 5Y64.37%
FCF growth 1Y22.89%
FCF growth 3Y79.75%
FCF growth 5Y30.65%
OCF growth 1Y25.02%
OCF growth 3Y25.55%
OCF growth 5Y22.07%