Kinaxis Inc is an attractive growth stock
24.02.2016 • About Kinaxis Inc (
$KXS) • By InTwits
Pay attention to Kinaxis Inc as a growth stock. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Kinaxis Inc showed growth in the last financial year. Kinaxis Inc's revenue surged on 30.3% in FY2015. EBITDA also increased considerably: 90.2% for the same period.
In the last 3 years the company showed fast revenue growth of 25.1% from 2012 to 2015 annually. EBITDA surged on 43.1% from 2012 to 2015 annually.
Kinaxis Inc ($KXS) financials for the last 5 years
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 38 | 47 | 61 | 70 | 91 |
|---|
| Revenue growth, % | | 22.7% | 30.3% | 15.2% | 30.3% |
|---|
| Gross margin, % | 74.5% | 71.8% | 70.4% | 70.4% | 71.8% |
|---|
| SG&A, % | 38.6% | 39.4% | 35.3% | 33.7% | 29.1% |
|---|
| EBITDA | 12 | 9 | 14 | 13 | 26 |
|---|
| EBITDA growth, % | | -26.9% | 60.8% | -4.2% | 90.2% |
|---|
| EBITDA margin, % | 31.3% | 18.7% | 23.0% | 19.2% | 28.0% |
|---|
| Net Income | -4 | 5 | -10 | -0 | 13 |
|---|
| Net Income margin, % | -10.9% | 10.6% | -16.0% | -0.315% | 13.9% |
|---|
| |
| CAPEX | 1 | 1 | 1 | 3 | 4 |
|---|
| CAPEX/Revenue, % | 2.16% | 2.92% | 2.30% | 4.98% | 4.75% |
|---|
| Debt | 0 | 65 | 79 | 0 | 0 |
|---|
| Cash | 0 | 49 | 14 | 57 | 99 |
|---|
| Net Debt/EBITDA | 0.0x | 1.9x | 4.7x | -4.2x | -3.9x |
|---|
| |
| ROIC, % | | | 61.8% | 63.6% | 44.0% |
|---|
| ROE, % | | | | | 22.6% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. Kinaxis Inc showed fast EBITDA margin growth of 8.80 pp from 19.2% to 28% in 2015. In the last 3 years the company's EBITDA margin surged on 9.30 pp from 18.7% in 2012 to 28% in 2015.
Kinaxis Inc shows attractive ROIC at 44.0% for the last 12 months which assumes stable development model. During the last three years it surged - it was in FY2012. It's average level of ROIC for the last three years was 56.5%.
The company showed fast Net Income margin growth of 14.2 pp from -0.300% to 13.9% in 2015. In the last 3 years Net Income margin surged on 3.30 pp from 10.6% in 2012 to 13.9% in 2015.
Kinaxis Inc operates at ROE of 22.6%.
Capital expenditures (CAPEX)
In FY2015 the company had CAPEX/Revenue of 4.75%. The company showed fast CAPEX/Revenue growth of 1.83 pp from 2.92% in 2012 to 4.75% in 2015. It's average level of CAPEX/Revenue for the last three years was 4.01%.
Leverage (Debt)
Having such a fast growth profile Kinaxis Inc keeps negative net debt at -3.9x Net Debt/EBITDA. In the longer period leverage dropped on 5.75x from 1.86x in 2012 to -3.89x in 2015.
Management team
Kinaxis Inc is headed by John Sicard as a CEO.
Peers in Technology
Below we provide Kinaxis Inc benchmarking against other companies in Technology industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Mitel Networks Corp ($MNW) | -9.0% | 3.8% | -5.7% | 91.4% | |
| Redknee Solutions Inc ($RKN) | | -4.5% | 151.6% | 81.4% | -13.6% |
| Intrinsyc Technologies Corp ($ITC) | -19.0% | -26.8% | -21.7% | 70.8% | |
| Espial Group Inc ($ESP) | 10.2% | -9.5% | -5.5% | 59.4% | |
| iLOOKABOUT Corp ($ILA) | -7.6% | 19.6% | 8.9% | 58.8% | |
| |
|---|
| Median (33 companies) | 5.3% | 3.7% | 11.4% | 13.7% | 10.1% |
|---|
| Kinaxis Inc ($KXS) | | 22.7% | 30.3% | 15.2% | 30.3% |
Top companies by Gross margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| ProntoForms Corp ($PFM) | 90.1% | 96.1% | 98.1% | 98.0% | |
| Constellation Software Inc/Canada ($CSU) | 85.5% | 86.2% | 85.5% | 86.1% | 86.2% |
| Symbility Solutions Inc ($SY) | 82.1% | 80.6% | 79.9% | 81.0% | |
| Espial Group Inc ($ESP) | 77.9% | 77.5% | 81.7% | 78.5% | |
| Absolute Software Corp ($ABT) | 71.6% | 73.6% | 76.3% | 78.4% | 81.1% |
| |
|---|
| Median (31 companies) | 49.7% | 52.4% | 48.8% | 51.1% | 48.1% |
|---|
| Kinaxis Inc ($KXS) | 74.5% | 71.8% | 70.4% | 70.4% | 71.8% |
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Wi-LAN Inc ($WIN) | 26.5% | 40.9% | 12.2% | 56.2% | 53.2% |
| Computer Modelling Group Ltd ($CMG) | 51.5% | 53.8% | 52.2% | 51.5% | 50.8% |
| Open Text Corp ($OTC) | 27.1% | 26.5% | 29.1% | 30.0% | 31.8% |
| Sandvine Corp ($SVC) | 5.1% | 0.9% | 24.0% | 28.2% | 35.1% |
| Enghouse Systems Ltd ($ESL) | 24.8% | 25.4% | 23.6% | 24.7% | 21.9% |
| |
|---|
| Median (33 companies) | 8.5% | 8.3% | 5.5% | 7.0% | 18.0% |
|---|
| Kinaxis Inc ($KXS) | 31.3% | 18.7% | 23.0% | 19.2% | 28.0% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Halogen Software Inc ($HGN) | | 4.9% | 9.0% | 8.4% | |
| Intermap Technologies Corp ($IMP) | 0.4% | 1.0% | 3.2% | 7.4% | |
| BlackBerry Ltd ($BB) | 5.2% | 4.9% | 3.8% | 4.2% | 2.6% |
| ProntoForms Corp ($PFM) | 1.3% | 1.1% | 0.8% | 3.6% | |
| Sandvine Corp ($SVC) | 7.3% | 4.9% | 3.2% | 3.2% | 4.8% |
| |
|---|
| Median (33 companies) | 1.3% | 1.5% | 1.4% | 1.2% | 1.3% |
|---|
| Kinaxis Inc ($KXS) | 2.2% | 2.9% | 2.3% | 5.0% | 4.7% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Computer Modelling Group Ltd ($CMG) | 75.5% | 74.2% | 68.6% | 62.9% | 63.5% |
| SMART Technologies Inc ($SMA) | 43.2% | 21.4% | -18.9% | 28.1% | 43.8% |
| Constellation Software Inc/Canada ($CSU) | 45.8% | 45.9% | 22.4% | 24.7% | 38.5% |
| Sandvine Corp ($SVC) | -1.7% | -4.9% | 16.9% | 20.2% | 21.7% |
| CGI Group Inc ($GIB.A) | 14.7% | 5.7% | 10.9% | 17.1% | 18.0% |
| |
|---|
| Median (33 companies) | 5.1% | 3.1% | -4.8% | 0.5% | 9.8% |
|---|
| Kinaxis Inc ($KXS) | | | 61.8% | 63.6% | 44.0% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Data Group Ltd ($DGI) | 3.2x | 3.5x | 3.7x | 4.0x | |
| Critical Control Energy Services Corp ($CCZ) | 1.9x | | 1.4x | 2.7x | |
| Mitel Networks Corp ($MNW) | 4.9x | 3.7x | 3.8x | 2.6x | |
| Open Text Corp ($OTC) | 0.0x | 0.1x | 0.2x | 1.8x | 1.5x |
| CGI Group Inc ($GIB.A) | 1.3x | 6.0x | 2.4x | 1.3x | 1.0x |
| |
|---|
| Median (21 companies) | -0.5x | -0.4x | -0.6x | -1.3x | -0.1x |
|---|
| Kinaxis Inc ($KXS) | 0.0x | 1.9x | 4.7x | -4.2x | -3.9x |
