KINAXIS INC (KXS.CA) Stock Fundamental Analysis
TSX:KXS - Toronto Stock Exchange - CA49448Q1090 - Common Stock - Currency: CAD
Taking everything into account, KXS scores 6 out of 10 in our fundamental rating. KXS was compared to 63 industry peers in the Software industry. While KXS has a great health rating, its profitability is only average at the moment. KXS is not overvalued while it is showing excellent growth. This is an interesting combination. This makes KXS very considerable 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.
KXS had positive earnings in 4 of the past 5 years.
In the past 5 years KXS always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.43%, KXS is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
KXS has a Return On Equity of 2.38%. This is in the better half of the industry: KXS outperforms 65.08% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.65%, KXS is in the better half of the industry, outperforming 69.84% of the companies in the same industry.
KXS had an Average Return On Invested Capital over the past 3 years of 3.06%. This is significantly below the industry average of 13.74%.
The 3 year average ROIC (3.06%) for KXS is below the current ROIC(4.65%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.43% | ||
| ROE | 2.38% | ||
| ROIC | 4.65% |
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
KXS has a better Profit Margin (1.97%) than 63.49% of its industry peers.
KXS's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 6.00%, KXS is in the better half of the industry, outperforming 68.25% of the companies in the same industry.
In the last couple of years the Operating Margin of KXS has declined.
KXS has a Gross Margin of 62.84%. This is in the better half of the industry: KXS outperforms 65.08% of its industry peers.
In the last couple of years the Gross Margin of KXS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6% | ||
| PM (TTM) | 1.97% | ||
| GM | 62.84% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KXS is destroying value.
The number of shares outstanding for KXS has been reduced compared to 1 year ago.
KXS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, KXS has an improved debt to assets ratio.
2.2 Solvency
KXS has an Altman-Z score of 10.30. This indicates that KXS is financially healthy and has little risk of bankruptcy at the moment.
KXS's Altman-Z score of 10.30 is amongst the best of the industry. KXS outperforms 90.48% of its industry peers.
The Debt to FCF ratio of KXS is 0.54, which is an excellent value as it means it would take KXS, only 0.54 years of fcf income to pay off all of its debts.
KXS has a Debt to FCF ratio of 0.54. This is amongst the best in the industry. KXS outperforms 84.13% of its industry peers.
A Debt/Equity ratio of 0.11 indicates that KXS is not too dependend on debt financing.
The Debt to Equity ratio of KXS (0.11) is better than 65.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.54 | ||
| Altman-Z | 10.3 |
ROIC/WACC0.48
WACC9.62%
2.3 Liquidity
KXS has a Current Ratio of 2.12. This indicates that KXS is financially healthy and has no problem in meeting its short term obligations.
KXS has a Current ratio of 2.12. This is in the better half of the industry: KXS outperforms 73.02% of its industry peers.
KXS has a Quick Ratio of 2.12. This indicates that KXS is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.12, KXS is doing good in the industry, outperforming 73.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.12 | ||
| Quick Ratio | 2.12 |
3. Growth
3.1 Past
KXS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 48.75%, which is quite impressive.
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 11.53%.
The Revenue has been growing by 20.33% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)48.75%
EPS 3Y61.03%
EPS 5Y12.01%
EPS Q2Q%158.68%
Revenue 1Y (TTM)11.53%
Revenue growth 3Y24.44%
Revenue growth 5Y20.33%
Sales Q2Q%11.24%
3.2 Future
Based on estimates for the next years, KXS will show a very strong growth in Earnings Per Share. The EPS will grow by 26.84% on average per year.
The Revenue is expected to grow by 17.74% on average over the next years. This is quite good.
EPS Next Y40.07%
EPS Next 2Y31.26%
EPS Next 3Y26.84%
EPS Next 5YN/A
Revenue Next Year11.57%
Revenue Next 2Y12.99%
Revenue Next 3Y13.27%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 59.30, KXS can be considered very expensive at the moment.
Based on the Price/Earnings ratio, KXS is valued a bit cheaper than 69.84% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.82. KXS is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 34.42, the valuation of KXS can be described as expensive.
Based on the Price/Forward Earnings ratio, KXS is valued a bit cheaper than the industry average as 76.19% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, KXS is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.3 | ||
| Fwd PE | 34.42 |
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 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.73 | ||
| EV/EBITDA | 66.1 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 26.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.48
PEG (5Y)4.94
EPS Next 2Y31.26%
EPS Next 3Y26.84%
5. Dividend
5.1 Amount
No dividends for KXS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:KXS (5/23/2025, 7:00:00 PM)
195.68
-0.83 (-0.42%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners53.9%
Inst Owner ChangeN/A
Ins Owners0.23%
Ins Owner ChangeN/A
Market Cap5.53B
Analysts77.14
Price Target204 (4.25%)
Short Float %N/A
Short RatioN/A
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)0
Avg Revenue beat(2)-1.5%
Min Revenue beat(2)-2.19%
Max Revenue beat(2)-0.8%
Revenue beat(4)1
Avg Revenue beat(4)-1.16%
Min Revenue beat(4)-2.19%
Max Revenue beat(4)0.25%
Revenue beat(8)2
Avg Revenue beat(8)-0.85%
Revenue beat(12)3
Avg Revenue beat(12)-0.86%
Revenue beat(16)6
Avg Revenue beat(16)-0.03%
PT rev (1m)1.59%
PT rev (3m)3.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.97%
EPS NY rev (1m)0%
EPS NY rev (3m)3.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.41%
Revenue NY rev (1m)-0.52%
Revenue NY rev (3m)-3.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.3 | ||
| Fwd PE | 34.42 | ||
| P/S | 8 | ||
| P/FCF | 42.73 | ||
| P/OCF | 40.18 | ||
| P/B | 9.67 | ||
| P/tB | 12.24 | ||
| EV/EBITDA | 66.1 |
EPS(TTM)3.3
EY1.69%
EPS(NY)5.69
Fwd EY2.91%
FCF(TTM)4.58
FCFY2.34%
OCF(TTM)4.87
OCFY2.49%
SpS24.46
BVpS20.24
TBVpS15.98
PEG (NY)1.48
PEG (5Y)4.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.43% | ||
| ROE | 2.38% | ||
| ROCE | 6.46% | ||
| ROIC | 4.65% | ||
| ROICexc | 14.6% | ||
| ROICexgc | 35.38% | ||
| OM | 6% | ||
| PM (TTM) | 1.97% | ||
| GM | 62.84% | ||
| FCFM | 18.72% |
ROA(3y)1.52%
ROA(5y)1.51%
ROE(3y)2.41%
ROE(5y)2.35%
ROIC(3y)3.06%
ROIC(5y)N/A
ROICexc(3y)7.28%
ROICexc(5y)N/A
ROICexgc(3y)14.81%
ROICexgc(5y)N/A
ROCE(3y)4.25%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-22.78%
ROICexc growth 3YN/A
ROICexc growth 5Y-35.23%
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%
F-Score7
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.54 | ||
| Debt/EBITDA | 0.84 | ||
| Cap/Depr | 24.66% | ||
| Cap/Sales | 1.19% | ||
| Interest Coverage | 16.74 | ||
| Cash Conversion | 183.9% | ||
| Profit Quality | 950.14% | ||
| Current Ratio | 2.12 | ||
| Quick Ratio | 2.12 | ||
| Altman-Z | 10.3 |
F-Score7
WACC9.62%
ROIC/WACC0.48
Cap/Depr(3y)33.23%
Cap/Depr(5y)71.64%
Cap/Sales(3y)2.15%
Cap/Sales(5y)5.28%
Profit Quality(3y)56633.6%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)48.75%
EPS 3Y61.03%
EPS 5Y12.01%
EPS Q2Q%158.68%
EPS Next Y40.07%
EPS Next 2Y31.26%
EPS Next 3Y26.84%
EPS Next 5YN/A
Revenue 1Y (TTM)11.53%
Revenue growth 3Y24.44%
Revenue growth 5Y20.33%
Sales Q2Q%11.24%
Revenue Next Year11.57%
Revenue Next 2Y12.99%
Revenue Next 3Y13.27%
Revenue Next 5Y17.74%
EBIT growth 1Y67.88%
EBIT growth 3YN/A
EBIT growth 5Y-11.89%
EBIT Next Year429.56%
EBIT Next 3Y97.49%
EBIT Next 5Y64.37%
FCF growth 1Y225.01%
FCF growth 3Y79.75%
FCF growth 5Y30.65%
OCF growth 1Y138.59%
OCF growth 3Y25.55%
OCF growth 5Y22.07%