skip to content
  1. Home
  2. >
  3. Questions
  4. >
  5. KXS: KXS is down $30 over the last 3 years and I am trying to understand why. [Kinaxis Inc.]
You can view 2 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: KXS is down $30 over the last 3 years and I am trying to understand why. The economy seems to need the solutions the company sells yet shareholder results are lacking. Are they asking to much for the product, are they losing sales, are they paying themselves to much or does the market just not have faith in the company?

Thank you for your thoughts on KXS.
Asked by Mike on December 12, 2023
5i Research Answer:

KXS hit its peak in late 2021, along with many other tech stocks. There was a covid 'frenzy' in the logistics sector following all the problems companies had in the early days of covid. Interest rates were near zero and tech stocks were surging. Then, KXS lost money in 2021 and the glow came off. Fundamentally, things are now good. Sales are expected to double from 2021 levels to 2024, the company is debt-free with $290M cash, EPS should more than double this year from last and rise 25% again in 2024. The last quarter was a blowout. The stock is expensive, which may hold back performance. It has a relatively long sales cycle, so does not make a lot of announcements. But it also doesn't dilute shareholders, and we think its 3-year outlook is much better than its 3-year history.