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KWESST MICRO SYSTEMS INC (KWE) Stock Fundamental Analysis

NASDAQ:KWE - Nasdaq - CA5015067039 - Common Stock - Currency: USD

6.75  +0.34 (+5.3%)

After market: 6.9499 +0.2 (+2.96%)

Fundamental Rating

2

KWE gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals 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 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

KWE had negative earnings in the past year.
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 Yearly Net Income VS EBIT VS OCF VS FCFKWE 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

The Return On Assets of KWE (-87.77%) is worse than 90.77% of its industry peers.
With a Return On Equity value of -124.06%, KWE is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
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 Yearly ROA, ROE, ROICKWE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2020 2021 2022 2023 2024 0 1K -1K -2K

1.3 Margins

KWE has a Gross Margin of 33.43%. This is in the better half of the industry: KWE outperforms 72.31% of its industry peers.
KWE's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for KWE so they could not be analyzed.
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 Yearly Profit, Operating, Gross MarginsKWE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2020 2021 2022 2023 2024 0 -500 -1K

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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.
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 Yearly Shares OutstandingKWE Yearly Shares OutstandingYearly Shares Outstanding 2020 2021 2022 1K 2K 3K
KWE Yearly Total Debt VS Total AssetsKWE 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 -6.15. This is a bad value and indicates that KWE is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of KWE (-6.15) is worse than 89.23% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that KWE is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.01, KWE belongs to the best of the industry, outperforming 89.23% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF N/A
Altman-Z -6.15
ROIC/WACCN/A
WACC8.84%
KWE Yearly LT Debt VS Equity VS FCFKWE 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.
The Current ratio of KWE (4.13) is better than 83.08% 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.
KWE's Quick ratio of 3.76 is amongst the best of the industry. KWE outperforms 92.31% of its industry peers.
Industry RankSector Rank
Current Ratio 4.13
Quick Ratio 3.76
KWE Yearly Current Assets VS Current LiabilitesKWE 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%.
The Revenue has been growing slightly by 5.53% on average over the past years.
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 Yearly Revenue VS EstimatesKWE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2020 2021 2022 2023 2024 2M 4M 6M 8M 10M
KWE Yearly EPS VS EstimatesKWE 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.
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 Price Earnings VS Forward Price EarningsKWE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 40 60

4.2 Price Multiples

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

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

NASDAQ:KWE (6/13/2025, 8:16:48 PM)

After market: 6.9499 +0.2 (+2.96%)

6.75

+0.34 (+5.3%)

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 Change-30.33%
Ins Owners0.43%
Ins Owner ChangeN/A
Market Cap4.52M
Analysts84.44
Price TargetN/A
Short Float %N/A
Short Ratio0.05
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 2.03
P/FCF N/A
P/OCF N/A
P/B 0.91
P/tB 1.52
EV/EBITDA N/A
EPS(TTM)-159.85
EYN/A
EPS(NY)-0.38
Fwd EYN/A
FCF(TTM)-9.89
FCFYN/A
OCF(TTM)-9.78
OCFYN/A
SpS3.33
BVpS7.43
TBVpS4.44
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 -6.15
F-Score5
WACC8.84%
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