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Kinaxis Inc (TSE:KXS): Are Analysts Bullish?

In December 2017, Kinaxis Inc (TSX:KXS) released its most recent earnings announcement, which revealed that the business benefited from a strong tailwind, leading to a high double-digit earnings growth of 89.70%. Investors may find it useful to understand how market analysts predict Kinaxis’s earnings growth trajectory over the next few years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. View our latest analysis for Kinaxis

Market analysts’ prospects for this coming year seems pessimistic, with earnings falling by a double-digit -12.58%. However, the next few years seem to illustrate a completely different picture, with expected earnings growth rates generating double digit 27.63% compared to today’s level and continues to increase.

TSX:KXS Future Profit May 2nd 18
TSX:KXS Future Profit May 2nd 18

Although it is helpful to be aware of the growth each year relative to today’s figure, it may be more valuable estimating the rate at which the business is growing on average every year. The advantage of this approach is that we can get a bigger picture of the direction of Kinaxis’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute this rate, I’ve appended a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 13.39%. This means that, we can expect Kinaxis will grow its earnings by 13.39% every year for the next few years.

Next Steps:

For Kinaxis, I’ve put together three important aspects you should further research:

  1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.

  2. Valuation: What is KXS worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether KXS is currently mispriced by the market.

  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of KXS? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

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