Kraken Robotics Systems Inc (PNG) AI Stock Analysis

• Market Cap: C$638.55M
• Dividend Yield: N/A
• Average Volume (3M): 833.67K
• Price to Earnings (P/E): 56.1
• Beta (1Y): 0.83
• Revenue Growth: 80.97%
• EPS Growth: 419.75%
• Country: CA
• Employees: 272
• Sector: Technology
• Sector Strength: 43
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.04
• Shares Outstanding: 262,778,350
• 10 Day Avg. Volume: 601,401
• 30 Day Avg. Volume: 833,675
• PEG Ratio: 0.13
• Price to Book (P/B): N/A
• Price to Sales (P/S): 7.51
• Price to Cash Flow (P/CF): -50.30
• 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: C$3.40
• Price Target Upside: 44.07% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Kraken Robotics Systems Inc scores well in financial performance with strong revenue growth and profitability. Technical analysis shows bullish momentum, but the high P/E ratio indicates potential overvaluation. Negative operational cash flow is a risk that could impact future stability.

Kraken Robotics Systems Inc Business Overview & Revenue Model

Company Description

Kraken Robotics Systems Inc (PNG) is a leading marine technology company specializing in the design and manufacture of advanced sonar and laser systems for subsea imaging and surveying. Operating within the sectors of defense, scientific research, and commercial maritime, Kraken Robotics provides innovative solutions that enhance the capabilities of underwater exploration and mapping. Their core products include high-resolution sonar systems, underwater robotics, and data analytics software, which are utilized for applications such as seabed surveying, pipeline inspection, and military reconnaissance.

How the Company Makes Money

Kraken Robotics Systems Inc generates revenue through the sale of its advanced sonar and laser imaging systems, underwater robotic units, and associated software solutions to a diverse range of clients, including government agencies, research institutions, and commercial enterprises in the maritime sector. The company also offers maintenance and support services for its products, which provide an additional stream of recurring revenue. Key partnerships with defense contractors and maritime companies contribute significantly to Kraken's earnings by expanding its market reach and enhancing product integration capabilities. Furthermore, the company may engage in research and development collaborations, which can lead to additional funding and commercialization opportunities.

Kraken Robotics Systems Inc Financial Statement Overview

Summary

Kraken Robotics Systems Inc demonstrates strong revenue growth with a 31.2% increase in the TTM, robust profit margins, and effective use of equity. However, negative cash flow from operations is a concern that needs addressing to sustain growth.

Income Statement

Kraken Robotics Systems Inc demonstrates strong revenue growth, with a significant increase in total revenue from $69.58M in 2023 to $91.19M in the TTM (Trailing-Twelve-Months), marking a 31.2% growth rate. The gross profit margin is robust at 42.64%, and the net profit margin improved to 9.87%, showcasing enhanced profitability. EBIT and EBITDA margins are healthy at 14.37% and 18.07% respectively, reflecting efficient operations.

Balance Sheet

The balance sheet shows a solid equity position with a stockholders' equity of $58.91M and a favorable equity ratio of 58.25%. The debt-to-equity ratio stands at 0.34, indicating a manageable level of debt. Return on equity (ROE) is strong at 15.27%, demonstrating effective use of equity to generate profits. However, the increase in total liabilities to $42.26M warrants monitoring.

Cash Flow

Kraken Robotics faces challenges in cash flow, with negative free cash flow of $-11.11M. The operating cash flow to net income ratio is negative, indicating cash flow issues relative to profitability. Despite a high financing cash flow of $24.55M, the company needs to improve its cash flow generation from operations.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
91.19M	69.58M	40.91M	25.63M	12.27M	15.15M
	Gross Profit
38.89M	33.96M	17.04M	11.32M	5.82M	6.70M
	EBIT
13.10M	6.62M	-1.53M	-2.02M	-4.77M	-3.21M
	EBITDA
16.48M	11.72M	825.00K	334.73K	-3.68M	-1.52M
	Net Income Common Stockholders
9.00M	5.55M	-4.24M	-3.54M	-5.53M	-3.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
289.10K	5.17M	8.27M	6.75M	12.92M	2.10M
	Total Assets
292.02K	76.42M	71.36M	65.47M	34.82M	18.09M
	Total Debt
0.00	16.20M	16.27M	15.26M	5.02M	1.93M
	Net Debt
-289.10K	11.03M	8.00M	8.51M	-7.91M	-166.19K
	Total Liabilities
38.55K	44.36M	47.71M	37.86M	18.81M	8.43M
	Stockholders Equity
253.47K	32.06M	23.66M	27.60M	16.01M	9.66M
Cash Flow		Free Cash Flow
-11.12M	870.00K	93.00K	-16.54M	612.26K	-6.57M
	Operating Cash Flow
-5.89M	8.43M	5.24M	-11.01M	2.79M	-4.93M
	Investing Cash Flow
-5.46M	-9.81M	-3.37M	-7.24M	-3.24M	-1.01M
	Financing Cash Flow
24.55M	-2.15M	-41.00K	11.92M	11.10M	3.11M

Kraken Robotics Systems Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PNG, the sentiment is Positive. The current price of 2.36 is below the 20-day moving average (MA) of 2.42, below the 50-day MA of 2.49, and above the 200-day MA of 1.98, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 45.30 is Neutral, neither overbought nor oversold. The STOCH value of 22.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PNG.

Kraken Robotics Systems Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
URB	76 Outperform	C$243.20M	2.38	24.06%	2.22%	387.51%	46.41%
MDA	75 Outperform	C$3.36B	40.19	7.09%	―	33.74%	61.09%
CAE	72 Outperform	$11.31B	―	-5.31%	―	1.44%	-183.14%
GSI	69 Neutral	C$45.92M	162.07	1.37%	―	7.57%	-95.03%
PNG	68 Neutral	C$638.55M	56.06	20.38%	―	80.97%	419.75%
ATS	60 Neutral	C$3.51B	39.91	5.30%	―	-7.46%	-49.87%
Sector *	57 Neutral	$20.89B	10.40	-13.99%	2.52%	4.47%	-23.34%

Kraken Robotics Systems Inc Corporate Events

Kraken Robotics Reports Strong Financial Growth

Kraken Robotics Inc. has reported a significant year-to-date revenue increase of 52% to $63 million, alongside a 64% rise in adjusted EBITDA to $14 million, showcasing robust financial growth. The company’s impressive performance is further highlighted by a 117% increase in net income, reflecting its strong market position and operational efficiency.

Kraken Robotics Unveils ALARS to Naval Clients

Kraken Robotics successfully showcased its new Autonomous Launch and Recovery System (ALARS) for the KATFISH sonar to over 40 naval clients, highlighting its advanced capabilities and real-time data streaming. This innovative system enhances naval operations by allowing autonomous launch and recovery in challenging sea conditions, offering high-resolution seafloor imagery to support modern naval warfare.