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

TSX-V:KWE - TSX Venture Exchange - CA5015067039 - Common Stock - Currency: CAD

15.21  +7.49 (+97.02%)

Fundamental Rating

2

KWE gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 11 industry peers in the Aerospace & Defense industry. The financial health of KWE is average, but there are quite some concerns on its profitability. KWE has a expensive valuation and it also scores bad on growth.


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.
KWE had a negative operating cash flow in the past year.
KWE had negative earnings in each of the past 5 years.
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

With a Return On Assets value of -87.77%, KWE is not doing good in the industry: 81.82% of the companies in the same industry are doing better.
With a decent Return On Equity value of -124.06%, KWE is doing good in the industry, outperforming 72.73% of the companies in the same industry.
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

KWE has a better Gross Margin (33.43%) than 90.91% 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.
KWE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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

KWE has an Altman-Z score of -5.29. This is a bad value and indicates that KWE is not financially healthy and even has some risk of bankruptcy.
KWE has a Altman-Z score of -5.29. This is in the lower half of the industry: KWE underperforms 72.73% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that KWE is not too dependend on debt financing.
The Debt to Equity ratio of KWE (0.01) is better than 100.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF N/A
Altman-Z -5.29
ROIC/WACCN/A
WACC8.8%
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

KWE has a Current Ratio of 4.13. This indicates that KWE is financially healthy and has no problem in meeting its short term obligations.
KWE's Current ratio of 4.13 is amongst the best of the industry. KWE outperforms 100.00% of its industry peers.
KWE has a Quick Ratio of 3.76. This indicates that KWE is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 3.76, KWE belongs to the top 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

The Earnings Per Share has grown by an impressive 44.70% over the past year.
The Revenue has grown by 121.91% in the past year. This is a very strong growth!
Measured over the past years, KWE shows a small growth in Revenue. The Revenue has been growing by 5.53% on average per year.
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

KWE reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for KWE. No positive earnings are expected for the next year.
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 -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 (6/18/2025, 7:00:00 PM)

15.21

+7.49 (+97.02%)

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 Owners2.65%
Inst Owner ChangeN/A
Ins Owners0.43%
Ins Owner ChangeN/A
Market Cap10.19M
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 3.35
P/FCF N/A
P/OCF N/A
P/B 1.5
P/tB 2.51
EV/EBITDA N/A
EPS(TTM)-217.86
EYN/A
EPS(NY)-0.51
Fwd EYN/A
FCF(TTM)-13.48
FCFYN/A
OCF(TTM)-13.33
OCFYN/A
SpS4.54
BVpS10.12
TBVpS6.06
PEG (NY)N/A
PEG (5Y)N/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
ROICexcg growth 3YN/A
ROICexcg 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 -5.29
F-Score5
WACC8.8%
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