KINAXIS INC (KXS.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:KXS - CA49448Q1090 - Common Stock
147.66 CAD
-1.43 (-0.96%)
Taking everything into account, KXS scores 6 out of 10 in our fundamental rating. KXS was compared to 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 growing strongly while it is still valued neutral. This is a good combination! With these ratings, KXS could be worth investigating further 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.
- 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
- KXS has a better Return On Assets (4.86%) than 77.94% of its industry peers.
- The Return On Equity of KXS (7.80%) is better than 73.53% of its industry peers.
- The Return On Invested Capital of KXS (8.32%) is better than 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 last Return On Invested Capital (8.32%) for KXS is above the 3 year average (3.06%), which is a sign of increasing profitability.
| 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
- Looking at the Profit Margin, with a value of 6.61%, KXS is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- KXS's Profit Margin has declined in the last couple of years.
- The Operating Margin of KXS (10.84%) is better than 73.53% of its industry peers.
- In the last couple of years the Operating Margin of KXS has declined.
- KXS has a better Gross Margin (64.23%) than 67.65% of its industry peers.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KXS is destroying value.
- KXS has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for KXS has been increased compared to 5 years ago.
- The debt/assets ratio for KXS has been reduced compared to a year ago.
2.2 Solvency
- KXS has an Altman-Z score of 8.36. This indicates that KXS is financially healthy and has little risk of bankruptcy at the moment.
- KXS has a better Altman-Z score (8.36) 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.
- A Debt/Equity ratio of 0.10 indicates that KXS is not too dependend on debt financing.
- KXS's Debt to Equity ratio of 0.10 is fine compared to the rest 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 | 8.36 |
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.
- Looking at the Current ratio, with a value of 2.24, KXS is in the better half of 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.
- Looking at the Quick ratio, with a value of 2.24, KXS is in the better half of the industry, outperforming 72.06% of the companies in the same industry.
| 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.
- KXS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.01%.
- 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
- 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
- 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
- With a Price/Earnings ratio of 33.26, KXS can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, KXS is valued a bit cheaper than 72.06% of the companies in the same industry.
- When comparing the Price/Earnings ratio of KXS to the average of the S&P500 Index (28.87), we can say KXS is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 25.33, 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 67.65% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.96. KXS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.26 | ||
| Fwd PE | 25.33 |
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 70.59% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.86 | ||
| EV/EBITDA | 32.2 |
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 has a very decent profitability rating, which may justify a higher PE ratio.
- KXS's earnings are expected to grow with 26.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.57
PEG (5Y)2.77
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 33.26 and the Price/Book (PB) ratio is 6.76.
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.