TSX:KXS

Stock Analysis Report

Executive Summary

Kinaxis Inc. provides cloud-based subscription software for supply chain operations in the United States, Europe, Asia, and Canada.

Snowflake

Fundamentals

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Kinaxis's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KXS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.8%

KXS

3.2%

CA Software

0.5%

CA Market


1 Year Return

57.9%

KXS

30.9%

CA Software

7.9%

CA Market

Return vs Industry: KXS exceeded the Canadian Software industry which returned 30.9% over the past year.

Return vs Market: KXS exceeded the Canadian Market which returned 7.9% over the past year.


Shareholder returns

KXSIndustryMarket
7 Day2.8%3.2%0.5%
30 Day25.7%5.6%3.2%
90 Day29.5%1.6%3.9%
1 Year57.9%57.9%33.2%30.9%11.5%7.9%
3 Year60.0%60.0%71.4%67.2%17.1%6.6%
5 Year460.9%460.9%156.1%148.1%27.7%9.0%

Price Volatility Vs. Market

How volatile is Kinaxis's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Kinaxis undervalued compared to its fair value and its price relative to the market?

110.1x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KXS (CA$102.65) is trading above our estimate of fair value (CA$51.65)

Significantly Below Fair Value: KXS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: KXS is poor value based on its PE Ratio (110.1x) compared to the Software industry average (22.7x).

PE vs Market: KXS is poor value based on its PE Ratio (110.1x) compared to the Canadian market (14.5x).


Price to Earnings Growth Ratio

PEG Ratio: KXS is poor value based on its PEG Ratio (5.3x)


Price to Book Ratio

PB vs Industry: KXS is overvalued based on its PB Ratio (9.5x) compared to the CA Software industry average (2x).


Next Steps

Future Growth

How is Kinaxis forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

20.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KXS's forecast earnings growth (20.8% per year) is above the savings rate (1.9%).

Earnings vs Market: KXS's earnings (20.8% per year) are forecast to grow faster than the Canadian market (9.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: KXS's revenue (15.9% per year) is forecast to grow faster than the Canadian market (4.7% per year).

High Growth Revenue: KXS's revenue (15.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KXS's Return on Equity is forecast to be low in 3 years time (11.5%).


Next Steps

Past Performance

How has Kinaxis performed over the past 5 years?

26.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KXS has a high level of non-cash earnings.

Growing Profit Margin: KXS's current net profit margins (10.6%) are lower than last year (11.6%).


Past Earnings Growth Analysis

Earnings Trend: KXS has become profitable over the past 5 years, growing earnings by 26.4% per year.

Accelerating Growth: KXS's earnings growth over the past year (8.6%) is below its 5-year average (26.4% per year).

Earnings vs Industry: KXS earnings growth over the past year (8.6%) underperformed the Software industry 19.4%.


Return on Equity

High ROE: KXS's Return on Equity (8.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kinaxis's financial position?


Financial Position Analysis

Short Term Liabilities: KXS's short term assets ($251.1M) exceeds its short term liabilities ($75.2M)

Long Term Liabilities: KXS's short term assets ($251.1M) exceeds its long term liabilities (14.7M)


Debt to Equity History and Analysis

Debt Level: KXS is debt free.

Reducing Debt: KXS had no debt 5 years ago.

Debt Coverage: KXS has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: KXS has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: KXS has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if KXS's debt is covered by short term assets.


Next Steps

Dividend

What is Kinaxis's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.7%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate KXS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate KXS's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if KXS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if KXS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of KXS's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

What is the CEO of Kinaxis's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

John Sicard (56yo)

3.8yrs

Tenure

US$2,020,349

Compensation

Mr. John Ernest Sicard has been the Chief Executive Officer and President of Kinaxis Inc. since January 1, 2016. Mr. Sicard joined Kinaxis in 1994. He served as the Chief Products Officer of Kinaxis Inc. u ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD2.02M) is about average for companies of similar size in the Canadian market ($USD2.15M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.8yrs

Average Tenure

Experienced Management: KXS's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

2.9yrs

Average Tenure

58yo

Average Age

Experienced Board: KXS's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$169,96018 Jun 19
Paul Carreiro
EntityIndividual
Role
Senior Key Executive
Chief Revenue Officer
Shares2,000
Max PriceUS$85.00
SellUS$251,13014 Jun 19
Richard Monkman
EntityIndividual
Role
Chief Financial Officer
CFO, VP of Corporate Services & Corporate Secretary
Shares3,000
Max PriceUS$83.71
SellUS$152,00030 May 19
John Sicard
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares1,900
Max PriceUS$80.00
SellUS$400,00022 Mar 19
John Sicard
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares5,000
Max PriceUS$80.00
SellUS$110,56312 Mar 19
Paul Carreiro
EntityIndividual
Role
Senior Key Executive
Chief Revenue Officer
Shares1,500
Max PriceUS$73.71
SellUS$129,48021 Dec 18
Richard Monkman
EntityIndividual
Role
Chief Financial Officer
CFO, VP of Corporate Services & Corporate Secretary
Shares2,000
Max PriceUS$64.74

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Duncan Klett

    Co-Founder

    • Tenure: 35.8yrs
  • Richard Monkman

    CFO, VP of Corporate Services & Corporate Secretary

    • Tenure: 14.1yrs
    • Compensation: US$2.13m
  • John Sicard (56yo)

    CEO, President & Director

    • Tenure: 3.8yrs
    • Compensation: US$2.02m
  • Rick Wadsworth

    Vice President Investor Relations

    • Tenure: 0yrs
  • Paul Carreiro

    Chief Revenue Officer

    • Tenure: 2.1yrs
    • Compensation: US$1.67m
  • Jay Muelhoefer (47yo)

    Chief Marketing Officer

    • Tenure: 1.7yrs
    • Compensation: US$1.90m
  • David Kelly

    Executive Vice President of Professional Services

    • Tenure: 3.8yrs
    • Compensation: US$827.59k
  • Megan Paterson

    Chief Human Resources Officer

    • Tenure: 4.8yrs
  • Andrew McDonald

    Chief Product Officer

    • Tenure: 1.1yrs
    • Compensation: US$1.83m
  • Mike Mauger

    Executive Vice President of Global Customer Care

    • Tenure: 0.7yrs

Board Members

  • Andrew Gort (65yo)

    Member of Strategic Advisory Council

    • Tenure: 0yrs
  • Ian Giffen (62yo)

    Independent Chairman of the Board

    • Tenure: 1.4yrs
    • Compensation: US$256.53k
  • Angel Mendez (58yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$214.03k
  • Bob Courteau (63yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$206.53k
  • Pamela Passman (57yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$319.30k
  • John Sicard (56yo)

    CEO, President & Director

    • Tenure: 3.8yrs
    • Compensation: US$2.02m
  • Jill Denham (58yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$214.03k
  • Kelly Thomas (57yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$319.30k

Company Information

Kinaxis Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kinaxis Inc.
  • Ticker: KXS
  • Exchange: TSX
  • Founded: 1984
  • Industry: Application Software
  • Sector: Software
  • Market Cap: CA$2.692b
  • Shares outstanding: 26.23m
  • Website: https://www.kinaxis.com

Number of Employees


Location

  • Kinaxis Inc.
  • 700 Silver Seven Road
  • Ottawa
  • Ontario
  • K2V 1C3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KXSTSX (The Toronto Stock Exchange)YesCommon SharesCACADJun 2014
KXSC.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJun 2014
9KXDB (Deutsche Boerse AG)YesCommon SharesDEEURJun 2014

Biography

Kinaxis Inc. provides cloud-based subscription software for supply chain operations in the United States, Europe, Asia, and Canada. The company offers RapidResponse, which provide supply chain planning and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/19 00:44
End of Day Share Price2019/11/18 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.