Kxs has been pretending to be a growth stock now for five years…..trading sideways with price move failures at or below $200.
I do not have the luxury of holding since lows so really been watching dead money in a long term portfolio.
What valuation metric are investors waiting for Kxs to grow into?
Analysts have indicated lower prices ahead and have been right on this name again.
What’s it going to take?
Or is this finally a sell despite positive comments about recent earnings?
Thanks
Dave
If we look at consensus numbers, EPS is expected to go from $0.84 last year to $3.59 this year and $4.16 in 2026 and $4.77 in 2027. Free cash flow was $101M in the last 12 months. Estimates have been rising (marginally) in the past month. The last quarter was indeed good with a 31% 'beat' over estimates. Still, we are growing impatient. Investors seem to expect an earnings acceleration or perhaps a takeover. It is not 'cheap' in the typical sense, but investors like its cash (too much) and its cash flow. We really do wish it used its cash for an acquisition or large buyback. Cash continues to grow and is up about $30M in the first half of this year. There are 8 BUYS and 4 HOLDS on the stock from Bay Street, with the average target price $224.30. Following the last quarter we are fine giving it some more time, but something has to break here at some point. It is becoming a little like ENGH--great prospects that never seem get to be fulfilled.