KWESST MICRO SYSTEMS INC(NASDAQ:KWE) stock Fundamental Analysis

Fundamental Rating

Overall KWE gets a fundamental rating of 2 out of 10. We evaluated KWE against 65 industry peers in the Aerospace & Defense industry. While KWE seems to be doing ok healthwise, there are quite some concerns on its profitability. KWE is valued expensive and it does not seem to be growing.

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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.

KWE had negative earnings in each of the past 5 years.

In the past 5 years KWE always reported negative operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of -130.06%, KWE is doing worse than 92.31% of the companies in the same industry.

KWE's Return On Equity of -209.39% is on the low side compared to the rest of the industry. KWE is outperformed by 83.08% of its industry peers.

		Industry Rank	Sector Rank
ROA	-130.06%
ROE	-209.39%
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

1.3 Margins

With an excellent Gross Margin value of 41.75%, KWE belongs to the best of the industry, outperforming 83.08% of the companies in the same industry.

In the last couple of years the Gross Margin of KWE has declined.

The Profit Margin and Operating Margin are not available for KWE so they could not be analyzed.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	N/A
GM	41.75%

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

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ROA

ROE

ROIC

Operating and Profit Margin

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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.

2.2 Solvency

An Altman-Z score of 5.18 indicates that KWE is not in any danger for bankruptcy at the moment.

The Altman-Z score of KWE (5.18) is better than 66.15% of its industry peers.

A Debt/Equity ratio of 0.02 indicates that KWE is not too dependend on debt financing.

KWE has a better Debt to Equity ratio (0.02) than 89.23% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.02
Debt/FCF	N/A
Altman-Z	5.18

ROIC/WACCN/A

WACC8.54%

2.3 Liquidity

A Current Ratio of 2.57 indicates that KWE has no problem at all paying its short term obligations.

KWE has a Current ratio (2.57) which is in line with its industry peers.

KWE has a Quick Ratio of 2.28. This indicates that KWE is financially healthy and has no problem in meeting its short term obligations.

KWE has a better Quick ratio (2.28) than 78.46% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.57
Quick Ratio	2.28

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

KWE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -368.07%.

KWE shows a strong growth in Revenue. In the last year, the Revenue has grown by 116.64%.

KWE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.53% yearly.

EPS 1Y (TTM)-368.07%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-60.51%

Revenue 1Y (TTM)116.64%

Revenue growth 3Y5.53%

Revenue growth 5YN/A

Sales Q2Q%587.77%

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.

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4. Valuation

4.1 Price/Earnings Ratio

KWE reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.

Also next year KWE is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	N/A

4.2 Price Multiples

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	N/A

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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5. Dividend

5.1 Amount

KWE does not give a dividend.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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KWESST MICRO SYSTEMS INC

NASDAQ:KWE (5/2/2025, 8:06:17 PM)

After market: 7.5501 +1.75 (+30.17%)

5.8

+0.81 (+16.23%)

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 Owners1.7%

Inst Owner Change0%

Ins Owners0.08%

Ins Owner ChangeN/A

Market Cap64.61M

Analysts84.44

Price TargetN/A

Short Float %N/A

Short Ratio0.01

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)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 Rank	Sector Rank
PE	N/A
Fwd PE	N/A
P/S	39.48
P/FCF	N/A
P/OCF	N/A
P/B	17.83
P/tB	43.61
EV/EBITDA	N/A

EPS(TTM)-7.45

EYN/A

EPS(NY)-0.37

Fwd EYN/A

FCF(TTM)-0.62

FCFYN/A

OCF(TTM)-0.61

OCFYN/A

SpS0.15

BVpS0.33

TBVpS0.13

PEG (NY)N/A

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	-130.06%
ROE	-209.39%
ROCE	N/A
ROIC	N/A
ROICexc	N/A
ROICexgc	N/A
OM	N/A
PM (TTM)	N/A
GM	41.75%
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 Turnover0.28

Health

		Industry Rank	Sector Rank
Debt/Equity	0.02
Debt/FCF	N/A
Debt/EBITDA	N/A
Cap/Depr	9.21%
Cap/Sales	5.17%
Interest Coverage	N/A
Cash Conversion	N/A
Profit Quality	N/A
Current Ratio	2.57
Quick Ratio	2.28
Altman-Z	5.18

F-Score5

WACC8.54%

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)-368.07%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-60.51%

EPS Next Y71.91%

EPS Next 2YN/A

EPS Next 3YN/A

EPS Next 5YN/A

Revenue 1Y (TTM)116.64%

Revenue growth 3Y5.53%

Revenue growth 5YN/A

Sales Q2Q%587.77%

Revenue Next YearN/A

Revenue Next 2YN/A

Revenue Next 3YN/A

Revenue Next 5YN/A

EBIT growth 1Y22.02%

EBIT growth 3YN/A

EBIT growth 5YN/A

EBIT Next YearN/A

EBIT Next 3YN/A

EBIT Next 5YN/A

FCF growth 1Y10.22%

FCF growth 3YN/A

FCF growth 5YN/A

OCF growth 1Y-5.28%

OCF growth 3YN/A

OCF growth 5YN/A

KWESST MICRO SYSTEMS INC (KWE) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

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