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KWESST MICRO SYSTEMS INC (KWE.CA) Stock Fundamental Analysis

Canada - TSX Venture Exchange - TSX-V:KWE - CA5015067039 - Common Stock

5.52 CAD
+0.1 (+1.85%)
Last: 10/3/2025, 7:00:00 PM
Fundamental Rating

2

Overall KWE gets a fundamental rating of 2 out of 10. We evaluated KWE against 11 industry peers in the Aerospace & Defense industry. KWE scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. KWE does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

In the past year KWE has reported negative net income.
In the past year KWE has reported a negative cash flow from operations.
In the past 5 years KWE always reported negative net income.
In the past 5 years KWE always reported negative operating cash flow.
KWE.CA Yearly Net Income VS EBIT VS OCF VS FCFKWE.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2020 2021 2022 2023 2024 -5M -10M -15M

1.2 Ratios

KWE has a Return On Assets of -87.77%. This is in the lower half of the industry: KWE underperforms 75.00% of its industry peers.
KWE has a Return On Equity of -124.06%. This is in the better half of the industry: KWE outperforms 75.00% of its industry peers.
Industry RankSector Rank
ROA -87.77%
ROE -124.06%
ROIC N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
KWE.CA Yearly ROA, ROE, ROICKWE.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2020 2021 2022 2023 2024 0 500 -500 1K -1K -1.5K

1.3 Margins

The Gross Margin of KWE (33.43%) is better than 91.67% of its industry peers.
KWE's Gross Margin has declined in the last couple of years.
KWE does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 33.43%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.81%
GM growth 5YN/A
KWE.CA Yearly Profit, Operating, Gross MarginsKWE.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2020 2021 2022 2023 2024 0 -500 -1K

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5

2. Health

2.1 Basic Checks

KWE does not have a ROIC to compare to the WACC, probably because it is not profitable.
There is no outstanding debt for KWE. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
KWE.CA Yearly Shares OutstandingKWE.CA Yearly Shares OutstandingYearly Shares Outstanding 2020 2021 2022 1K 2K 3K
KWE.CA Yearly Total Debt VS Total AssetsKWE.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2020 2021 2022 2M 4M 6M 8M

2.2 Solvency

Based on the Altman-Z score of -5.85, we must say that KWE is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of KWE (-5.85) is worse than 75.00% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that KWE is not too dependend on debt financing.
KWE has a Debt to Equity ratio of 0.01. This is amongst the best in the industry. KWE outperforms 100.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF N/A
Altman-Z -5.85
ROIC/WACCN/A
WACC8.9%
KWE.CA Yearly LT Debt VS Equity VS FCFKWE.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2020 2021 2022 2023 2024 0 5M -5M -10M -15M

2.3 Liquidity

A Current Ratio of 4.13 indicates that KWE has no problem at all paying its short term obligations.
KWE has a better Current ratio (4.13) than 100.00% of its industry peers.
A Quick Ratio of 3.76 indicates that KWE has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 3.76, KWE belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 4.13
Quick Ratio 3.76
KWE.CA Yearly Current Assets VS Current LiabilitesKWE.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2020 2021 2022 2M 4M 6M

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2

3. Growth

3.1 Past

KWE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 44.70%, which is quite impressive.
KWE shows a strong growth in Revenue. In the last year, the Revenue has grown by 121.91%.
KWE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.53% yearly.
EPS 1Y (TTM)44.7%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-1.26%
Revenue 1Y (TTM)121.91%
Revenue growth 3Y5.53%
Revenue growth 5YN/A
Sales Q2Q%157.62%

3.2 Future

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next Y71.91%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
KWE.CA Yearly Revenue VS EstimatesKWE.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2020 2021 2022 2023 2024 2M 4M 6M 8M 10M
KWE.CA Yearly EPS VS EstimatesKWE.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 -50 -100

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0

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for KWE. In the last year negative earnings were reported.
Also next year KWE is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
KWE.CA Price Earnings VS Forward Price EarningsKWE.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 -10 20

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
KWE.CA Per share dataKWE.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 -50 -100 -150 -200

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

KWE does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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KWESST MICRO SYSTEMS INC

TSX-V:KWE (10/3/2025, 7:00:00 PM)

5.52

+0.1 (+1.85%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)05-14 2024-05-14/bmo
Earnings (Next)N/A N/A
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap7.56M
Revenue(TTM)3.04M
Net Income(TTM)-8.42M
Analysts84.44
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 2.49
P/FCF N/A
P/OCF N/A
P/B 1.11
P/tB 1.86
EV/EBITDA N/A
EPS(TTM)-217.86
EYN/A
EPS(NY)-0.51
Fwd EYN/A
FCF(TTM)-6.59
FCFYN/A
OCF(TTM)-6.52
OCFYN/A
SpS2.22
BVpS4.95
TBVpS2.96
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA -87.77%
ROE -124.06%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 33.43%
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
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
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.81%
GM growth 5YN/A
F-Score5
Asset Turnover0.32
Health
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 8.12%
Cap/Sales 3.3%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 4.13
Quick Ratio 3.76
Altman-Z -5.85
F-Score5
WACC8.9%
ROIC/WACCN/A
Cap/Depr(3y)185.77%
Cap/Depr(5y)242.61%
Cap/Sales(3y)100.53%
Cap/Sales(5y)75.01%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)44.7%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-1.26%
EPS Next Y71.91%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)121.91%
Revenue growth 3Y5.53%
Revenue growth 5YN/A
Sales Q2Q%157.62%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y30.49%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y25.22%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y15.24%
OCF growth 3YN/A
OCF growth 5YN/A

KWESST MICRO SYSTEMS INC / KWE.CA FAQ

Can you provide the ChartMill fundamental rating for KWESST MICRO SYSTEMS INC?

ChartMill assigns a fundamental rating of 2 / 10 to KWE.CA.


What is the valuation status for KWE stock?

ChartMill assigns a valuation rating of 0 / 10 to KWESST MICRO SYSTEMS INC (KWE.CA). This can be considered as Overvalued.


Can you provide the profitability details for KWESST MICRO SYSTEMS INC?

KWESST MICRO SYSTEMS INC (KWE.CA) has a profitability rating of 1 / 10.


What is the financial health of KWESST MICRO SYSTEMS INC (KWE.CA) stock?

The financial health rating of KWESST MICRO SYSTEMS INC (KWE.CA) is 5 / 10.