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  5. PNG: I have a half position in Kraken in a TFSA. [Kraken Robotics Inc.]
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Investment Q&A

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Q: I have a half position in Kraken in a TFSA. Their PE is high though I see high sales growth this year with several contracts signed this year. Do we have any idea of what the next couple of years may show? Have Kraken give a 3-5 year plan? Do you believe in their chance of continuing at a high rate in the near future? It's easier for a small company to grow fast and not so easy later. Is there so much potential in their sector of activity that they can continue to grow at a fast clip?
Thank you for your analyse.

Yves
Asked by Yves on May 28, 2025
5i Research Answer:

Sales are expected to rise to $246M in 2028 from $91M last year. While no 2028 EPS forecast is given, at that level of sales we would expect EPS of perhaps 20c, up from 9c in 2024. There are no guarantees of course, but recent contract announcements have accelerated, and its US acquisition expands its market. As the industry and customers accept the benefits of its technology, it 'should' be able to expand its sales and customer base sharply, as long as technology and customer service remains good. With such a company and business and sector, success does tend to breed more success. So far, it has done many things right and kept its balance sheet strong. It has been (so far) a long sales cycle but this may start to shorten up. Higher defense spending is certainly a tailwind for the company. In its corporate presentation, it outlines a $900M sales 'plan' with no set timeframe.