Kinaxis (TSX:KXS) turned out to be one of the best performing IPOs in the previous decade. However, it flew under the radar due to the performance of another behemoth in Canada’s tech sector – Shopify. The stock is hovering near 52-week highs to kick off the New Year.
The company won key clients in the final years of the 2010s. It has partnered with auto giants like Ford and Toyota Motors, as well as the British-Dutch transnational giant Unilever. Kinaxis is planning a further expansion into Asia as it announced another partnership with a Tokyo-based consulting firm in late December.
In the third quarter, Kinaxis reported revenue growth of 29% to $47.1 million. SaaS revenue posted growth of 28% to $31.2 million and adjusted EBITDA also climbed 29% to $12.1 million. Other huge partners won in the previous quarter included Honda and British American Tobacco.
Kinaxis’ supply chain software has emerged as a global leader, and demand for this technology is set to grow into this decade. A recent report from Allied Market Research forecasts that the global supply chain management software market will reach approximately $24 billion by 2025.
This would represent a CAGR of 9.7% from 2018 to 2025.
At the time of this writing Kinaxis stock had an RSI of 56, which puts it outside of technically overbought territory. Its P/E ratio and P/B value is high, which is typical for the tech sector. Value investors may want to wait for a pullback, but Kinaxis is a great long-term target for those seeking growth in the Canadian tech sector.
Tech Insider
