Kromek Group plc (KMK) AI Stock Analysis

• Market Cap: £34.32M
• Dividend Yield: N/A
• Average Volume (3M): 722.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.29
• Revenue Growth: -9.28%
• EPS Growth: -19.48%
• Country: UK
• Employees: 165
• Sector: Technology
• Sector Strength: 43
• Industry: Hardware, Equipment & Parts
• EPS (TTM): >-0.01
• Shares Outstanding: 641,546,300
• 10 Day Avg. Volume: 761,755
• 30 Day Avg. Volume: 722,558
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.85
• Price to Cash Flow (P/CF): -10.40
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Kromek Group plc receives a score of 48, reflecting its current challenges and opportunities. While the company's financial performance and technical indicators remain weak, recent corporate events, particularly the agreements with Siemens Healthineers, offer a promising outlook for future profitability and growth. However, the negative valuation metrics and operational inefficiencies continue to weigh heavily on the stock.

Kromek Group plc Business Overview & Revenue Model

Company Description

Kromek Group plc (KMK) is a UK-based technology company specializing in the development and production of detection and imaging equipment. The company operates primarily in the sectors of healthcare, security, and nuclear markets. Its core products and services include advanced radiation detection solutions, such as gamma radiation detectors and radiation imaging systems, which are used in various applications including medical imaging, security screening, and nuclear safety.

How the Company Makes Money

Kromek Group plc generates revenue through the sale of its proprietary detection and imaging equipment to customers across the healthcare, security, and nuclear sectors. The company also engages in contract-based projects, often funded by governmental or large institutional clients, to develop customized solutions for specific applications. Additionally, Kromek benefits from ongoing service contracts and the provision of spare parts to maintain its equipment, creating recurring revenue streams. Strategic partnerships and collaborations with industry leaders further enhance its market reach and contribute to its earnings.

Kromek Group plc Financial Statement Overview

Summary

Kromek Group plc is showing some improvements in revenue and gross profit margins but continues to face significant profitability and cash flow challenges. The company's balance sheet is relatively stable with low leverage, but negative returns indicate inefficiencies. Continued focus on improving operational efficiency and cash generation is crucial for financial health.

Income Statement

Kromek Group plc shows a volatile performance in its income statement. While there is a recent increase in revenue from £17.31 million to £19.40 million, the company is still operating at a net loss, with a negative net profit margin. Gross profit margins have improved to 55.2%, indicating better cost management. However, negative EBIT and EBITDA margins highlight ongoing operational challenges.

Balance Sheet

The balance sheet reflects moderate stability with a debt-to-equity ratio of 0.25, which is relatively low and indicates manageable leverage. However, the equity ratio stands at 70.3%, suggesting a solid equity base. Return on equity is negative due to net losses, indicating inefficiency in using shareholders' capital to generate profits.

Cash Flow

The cash flow statement reveals challenges in cash generation, as indicated by negative operating and free cash flows. Free cash flow has deteriorated further, showing significant cash outflows relative to net income. However, positive financing cash flow suggests reliance on external funding to support operations.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
19.40M	17.31M	12.05M	10.35M	13.12M
	Gross Profit
10.71M	6.04M	3.07M	2.65M	4.07M
	EBIT
-1.38M	-6.34M	-6.97M	-6.14M	-5.39M
	EBITDA
2.93M	-1.25M	-1.23M	-1.74M	-14.41M
	Net Income Common Stockholders
-3.29M	-6.10M	-4.92M	-5.35M	-16.54M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
466.00K	1.10M	5.08M	15.60M	9.44M
	Total Assets
70.19M	63.88M	67.42M	70.16M	64.66M
	Total Debt
12.29M	13.38M	11.00M	12.86M	9.77M
	Net Debt
11.82M	12.28M	5.92M	-2.74M	330.00K
	Total Liabilities
20.84M	22.35M	19.99M	20.10M	19.59M
	Stockholders Equity
49.35M	41.52M	47.44M	50.05M	45.07M
Cash Flow		Free Cash Flow
-7.84M	-5.78M	-10.29M	-7.69M	-12.59M
	Operating Cash Flow
-2.80M	-504.00K	-3.84M	-1.62M	-126.00K
	Investing Cash Flow
-5.00M	-5.27M	-6.45M	-6.07M	-11.21M
	Financing Cash Flow
7.18M	1.99M	-1.23M	14.44M	-544.00K

Kromek Group plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:KMK, the sentiment is Negative. The current price of 5.3 is below the 20-day moving average (MA) of 5.60, below the 50-day MA of 6.06, and below the 200-day MA of 5.99, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 40.44 is Neutral, neither overbought nor oversold. The STOCH value of 21.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:KMK.

Kromek Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OMG	65 Neutral	£61.52M	84.83	3.66%	6.60%	-6.29%	-86.64%
Sector *	57 Neutral	$20.94B	10.43	-13.41%	2.52%	4.53%	-23.34%
KMK	48 Neutral	£34.32M	―	-13.12%	―	-9.28%	-19.48%

Kromek Group plc Corporate Events

Kromek Group Secures $25 Million Payment from Siemens Healthineers, Paving Way for Profitability

Kromek Group plc announced it has received a $25 million payment from Siemens Healthineers, marking the first milestone in their multi-year agreement. This payment is expected to enable Kromek to achieve profitability in the current financial year and support revenue growth over the next four years. The funds will also help reduce debt and strengthen the company’s balance sheet, enhancing operational capabilities and stakeholder confidence.

Kromek Group PLC Announces Change in Major Shareholdings

Kromek Group PLC announced a change in major shareholdings, with Herald Investment Management Limited reducing its voting rights from 6.90% to 4.54%. This shift in shareholding signals a potential change in investor sentiment, which could influence Kromek’s strategic decisions and stakeholder interests moving forward.

Kromek Group Announces Change in Shareholder Voting Rights

Kromek Group plc has announced a change in the voting rights of its shareholders, following an acquisition or disposal of voting rights and financial instruments by David and Monique Newlands. The total voting rights held by the Newlands have increased from 4.149% to 5.163%. This change in shareholder voting positions could influence corporate governance and decision-making within the company.

Kromek Group Secures Multi-Year Deal with Siemens Healthineers, Aims for Profitability

Kromek Group plc has announced interim results marked by significant multi-year agreements with Siemens Healthineers. These agreements involve the production and supply of CZT detectors for medical imaging applications, expected to substantially boost the company’s revenue and profitability from this financial year. The initial $25 million from Siemens will support operational milestones, reduce debt, and strengthen Kromek’s balance sheet, positioning the company for sustainable growth. Despite a decrease in revenue for the first half of 2025, Kromek’s strategic initiatives, including ongoing contracts in the CBRN detection segment and advancements in biological-threat detection, indicate a robust future outlook.

Kromek Group Secures $37.5 Million Deal with Siemens Healthineers

Kromek Group plc has entered into multi-year agreements with Siemens Healthineers for the licensing and production of CZT-based detectors, expected to generate $37.5 million over four years. The agreements include transferring production assets and supplying detector tiles, positioning Kromek for profitability in FY 2025, with significant revenue and profit growth, and enhanced capabilities in the advanced imaging market.