Q: Hi 5i Team - Could you provide an up-to-date assessment on Kneat including its fundamentals, insider ownership, and growth prospects. Thanks.
5i Research Answer:
Insiders own 27%, recent stock momentum has been positive, the stock is up 21% year-to-date and 42% on a one-year-basis, and the company is expected to improve profitability and become profitable in the next three years. Its balance sheet could be stronger, and it continues to generate negative free cash flow, but sales growth is impressive. If KSI can continue to grow its sales in the double digits and improve its margins, we could see its share price continuing to rise, however, we would be mindful of small cap risks and position sizing.