Kinaxis Inc.
Kinaxis Inc. Fundamental Analysis
Kinaxis Inc. (KXS.TO) shows moderate financial fundamentals with a PE ratio of 40.54, profit margin of 12.90%, and ROE of 16.46%. The company generates $0.5B in annual revenue with strong year-over-year growth of 13.15%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 74.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze KXS.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakKXS.TO struggles to generate sufficient returns from assets.
Valuation Score
ModerateKXS.TO shows balanced valuation metrics.
Growth Score
ModerateKXS.TO shows steady but slowing expansion.
Financial Health Score
ExcellentKXS.TO maintains a strong and stable balance sheet.
Profitability Score
ModerateKXS.TO maintains healthy but balanced margins.
Key Financial Metrics
Is KXS.TO Expensive or Cheap?
P/E Ratio
KXS.TO trades at 40.54 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, KXS.TO's PEG of 0.54 indicates potential undervaluation.
Price to Book
The market values Kinaxis Inc. at 6.82 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 27.59 times EBITDA. This signals the market has high growth expectations.
How Well Does KXS.TO Make Money?
Net Profit Margin
For every $100 in sales, Kinaxis Inc. keeps $12.90 as profit after all expenses.
Operating Margin
Core operations generate 14.51 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.46 in profit for every $100 of shareholder equity.
ROA
Kinaxis Inc. generates $9.79 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Kinaxis Inc. produces operating cash flow of $116.84M, showing steady but balanced cash generation.
Free Cash Flow
Kinaxis Inc. generates strong free cash flow of $111.18M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.02 in free cash annually.
FCF Yield
KXS.TO converts 3.95% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
40.54
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.54
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.82
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.19
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.11
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.97
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How KXS.TO Stacks Against Its Sector Peers
| Metric | KXS.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 40.54 | 34.22 | Worse (Expensive) |
| ROE | 16.46% | 1033.00% | Weak |
| Net Margin | 12.90% | -48116.00% (disorted) | Strong |
| Debt/Equity | 0.11 | 0.44 | Strong (Low Leverage) |
| Current Ratio | 1.97 | 5.66 | Neutral |
| ROA | 9.79% | -288969.00% (disorted) | Weak |
KXS.TO outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Kinaxis Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
133.92%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-99.78%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
140.17%
Industry Style: Growth, Innovation, High Beta
High Growth