Oh my goodness, have you heard about Kinaxis? Their stock price has increased by a whopping 21% over the past year and 16% just this year alone! It’s making investors scratch their heads wondering if it’s a smart move to invest in this supply-chain management company. Kinaxis provides subscription-based software to big shot companies like Ford, Cisco, and Qualcomm, among others. Contracts run for years, which means no customer contributes more than 5% of their revenue – wow, talk about diversification!
Their software helps improve the supply chain, which is a major area that needs improvement. If you’re seeking growth in the ecommerce, tech, and supply-chain industry, then investing in Kinaxis’s software is a no-brainer.
Hold up, it gets even more interesting! In March 2023, Kinaxis reported fourth-quarter results that were even better than what analysts had projected. They brought in a whopping $98.5 million in revenue, which is a 44% increase year over year! Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also exceeded expectations, coming in at $21.1 million. The company is expecting to see revenue growth of 25% to 27% this year, and their software-as-a-service (SaaS) growth is off the charts! As a result, several analysts have upgraded the stock to a buy, an outperformer, and they’re predicting even higher potential upside.
But hold on, don’t get too excited just yet. While Kinaxis’s shares may not be at all-time highs achieved during the pandemic, their contracts for two to seven years are still going strong. Analysts believe the company will benefit from secular tailwinds in the medium term, while small and medium businesses are also becoming clients, which means more diversification. There’s a huge demand for quality companies that can achieve stable supply-chain models, and Kinaxis’s software has definitely proven itself capable of achieving that.
So, what do you think? Kinaxis’s stock may be worth considering for long-term investment, as it has proven its ability to achieve profitable results with even more room to grow. Although, just to keep you in the loop, the Motley Fool Canada’s market-beating analyst team didn’t include Kinaxis in their list of the 5 best stocks for investors to buy in April 2023.
Are you ready to invest in Kinaxis and see your portfolio soar? Then head over to Kinaxis’s website and make the move today!
