TSXV:PNG

Stock Analysis Report

Kraken Robotics

Executive Summary

Kraken Robotics Inc., a marine technology company, designs, manufactures, and sells software-centric sensors and underwater robotic systems for unmanned underwater vehicles used in military and commercial applications in Canada, the United States, France, Italy, Israel, the United Kingdom, Germany, and internationally.

Rewards

Earnings are forecast to grow 125.84% per year

Risk Analysis

Has less than 1 year of cash runway

Shareholders have been diluted in the past year

Does not have a meaningful market cap (CA$97M)



Snowflake Analysis

Exceptional growth potential with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: PNG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.5%

PNG

-1.0%

CA Electronic

-0.4%

CA Market


1 Year Return

61.5%

PNG

-8.9%

CA Electronic

10.5%

CA Market

Return vs Industry: PNG exceeded the Canadian Electronic industry which returned -8.9% over the past year.

Return vs Market: PNG exceeded the Canadian Market which returned 10.5% over the past year.


Shareholder returns

PNGIndustryMarket
7 Day-4.5%-1.0%-0.4%
30 Day-8.7%-1.3%0.8%
90 Day18.9%0.9%1.7%
1 Year61.5%61.5%-5.8%-8.9%14.1%10.5%
3 Year334.5%334.5%-11.2%-15.8%16.1%5.6%
5 Yearn/a4.0%-7.3%41.2%20.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

9.42x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: PNG (CA$0.63) is trading above our estimate of fair value (CA$0.13)

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


Price To Earnings Ratio

PE vs Industry: PNG is unprofitable, so we can't compare its PE Ratio to the Electronic industry average.

PE vs Market: PNG is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PNG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PNG is overvalued based on its PB Ratio (9.4x) compared to the CA Electronic industry average (2.1x).


Next Steps

Future Growth

How is Kraken Robotics forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

125.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PNG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.4%).

Earnings vs Market: PNG is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: PNG's is expected to become profitable in the next 3 years.

Revenue vs Market: PNG's revenue (65.2% per year) is forecast to grow faster than the Canadian market (4.9% per year).

High Growth Revenue: PNG's revenue (65.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PNG's Return on Equity is forecast to be high in 3 years time (25.2%)


Next Steps

Past Performance

How has Kraken Robotics performed over the past 5 years?

-17.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PNG is currently unprofitable.

Growing Profit Margin: PNG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PNG is unprofitable, and losses have increased over the past 5 years at a rate of -17.1% per year.

Accelerating Growth: Unable to compare PNG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PNG is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (108.9%).


Return on Equity

High ROE: PNG has a negative Return on Equity (-36.95%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kraken Robotics's financial position?


Financial Position Analysis

Short Term Liabilities: PNG's short term assets (CA$12.5M) exceed its short term liabilities (CA$4.8M).

Long Term Liabilities: PNG's short term assets (CA$12.5M) exceed its long term liabilities (CA$2.3M).


Debt to Equity History and Analysis

Debt Level: PNG's debt to equity ratio (3.5%) is considered satisfactory.

Reducing Debt: PNG had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet

Inventory Level: PNG has a high level of physical assets or inventory.

Debt Coverage by Assets: PNG's debt is covered by short term assets (assets are 35x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: PNG has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if PNG has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.7%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate PNG'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 PNG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PNG'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 PNG'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 Kraken Robotics's salary, the management and board of directors tenure and is there insider trading?

0.4yrs

Average management tenure


CEO

Karl Kenny 0

0yrs

Tenure

CA$244,310

Compensation

Mr. Karl Kenny serves as the Chief Executive Officer and President at Kraken Sonar Inc. Mr. Kenny Co-Founded Marport Deep Sea Technologies Inc. (formerly, Marport Canada Inc.). Mr. Kenny has been Chief Str ...


CEO Compensation Analysis

Compensation vs Market: Karl's total compensation ($USD184.80K) is above average for companies of similar size in the Canadian market ($USD136.16K).

Compensation vs Earnings: Karl's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

0.4yrs

Average Tenure

Experienced Management: PNG's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Age and Tenure

3.2yrs

Average Tenure

Experienced Board: PNG's board of directors are considered experienced (3.2 years average tenure).


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

BuyCA$23,32007 Jun 19
Greg Reid
EntityIndividual
Role
Chief Operating Officer
Corporate Secretary & COO
Shares44,000
Max PriceCA$0.53
BuyCA$1,000,00127 Dec 18
Ocean Infinity Ltd.
EntityCompany
Shares2,500,000
Max PriceCA$0.40

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 47.1%.


Management Team

  • Greg Reid

    Corporate Secretary & COO

    • Tenure: 0.4yrs
    • Compensation: CA$252.81k
  • Joe MacKay

    Chief Financial Officer

    • Tenure: 0.4yrs
  • Karl Kenny

    President

    • Tenure: 0yrs
    • Compensation: CA$244.31k
  • Sean Chapman

    Chief Sonar Engineer

    • Tenure: 6.9yrs
  • Dave Shea

    Senior Vice President of Engineering

    • Tenure: 0.4yrs
  • Jakob Schwendner

    Managing Director of Kraken Robotik GmbH

    • Tenure: 0yrs
  • Carl Thiede

    Managing Director of Kraken Power GmbH

    • Tenure: 0yrs
  • Jeremy Dillon

    Chief Scientist

    • Tenure: 1.5yrs

Board Members

  • Moya Cahill

    Independent Director

    • Tenure: 4.8yrs
  • Larry Puddister

    Independent Director

    • Tenure: 3.2yrs
  • Karl Kenny

    President

    • Tenure: 0yrs
    • Compensation: CA$244.31k
  • Shaun McEwan

    Independent Director

    • Tenure: 3yrs
  • Mike Connor

    Independent Director

    • Tenure: 2.2yrs

Company Information

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


Key Information

  • Name: Kraken Robotics Inc.
  • Ticker: PNG
  • Exchange: TSXV
  • Founded: 2008
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: CA$96.976m
  • Shares outstanding: 146.93m
  • Website: https://www.krakenrobotics.com

Number of Employees


Location

  • Kraken Robotics Inc.
  • 189 Glencoe Drive
  • Mount Pearl
  • Newfoundland and Labrador
  • A1N 4P6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PNGTSXV (TSX Venture Exchange)YesNew Common SharesCACADFeb 2015
KRKN.FOTCPK (Pink Sheets LLC)YesNew Common SharesUSUSDFeb 2015
2KQDB (Deutsche Boerse AG)YesNew Common SharesDEEURFeb 2015

Biography

Kraken Robotics Inc., a marine technology company, designs, manufactures, and sells software-centric sensors and underwater robotic systems for unmanned underwater vehicles used in military and commercial  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 00:41
End of Day Share Price2019/12/06 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.