Having spent years analyzing shares and investing out there, I’ve realized that not all development tales want to start out with hype. A few of the finest ones start with numbers constantly shifting in the best path. That’s precisely what’s taking place with one TSX-listed synthetic intelligence (AI) inventory. It’s worthwhile, has robust recurring income, and it’s powering a few of the most complicated provide chains on the planet. But, if you take a look at its valuation, it nonetheless seems like an undervalued inventory hiding in plain sight.
What makes this much more thrilling is the way it’s utilizing AI to unravel real-world issues that corporations are determined to repair — not 10 years from now, however right this moment. On this article, I’ll break down why Kinaxis (TSX:KXS) is extra than simply one other tech inventory and why I’m betting huge on its AI chapter.
Why Kinaxis is my high AI decide proper now
In case you might be unfamiliar, Kinaxis is a software program agency that helps world companies handle their complicated provide chains by a single AI-powered platform known as Maestro. It operates out of Ottawa and is a part of the S&P/TSX Composite Index. After climbing by 19% during the last yr, KXS inventory at the moment trades at $199.23 per share with a market cap of $5.6 billion.
The latest robust momentum on this AI inventory is partly pushed by its constant concentrate on robust monetary execution and partly by its rising curiosity in enterprise-grade AI options. With Maestro’s generative and agentic AI options rolling out, Kinaxis is moving into a complete new part of product energy that the market is simply beginning to value in.
What the most recent numbers are telling us
Within the quarter resulted in March 2025, the corporate’s gross sales rose 11% YoY (year-over-year) to US$132.8 million, exceeding Avenue analysts’ expectations. That’s a transparent sign that extra companies are selecting its AI-based provide chain options.
On the profitability facet, Kinaxis posted a 19% YoY bounce in its gross revenue for the quarter to US$86.5 million, pushing its margin as much as 65% from 61% a yr in the past. In the meantime, the corporate’s working bills held regular, and that helped adjusted EBITDA (earnings earlier than curiosity, taxes, depreciation, and amortization) surge by a powerful 46% YoY to US$33.1 million, with margins increasing to 25%. Apparently, Kinaxis’ efforts to increase its buyer accounts and add new ones drove this development.
Why I believe the most effective is but to return
At its flagship Kinexions occasion in April, Kinaxis confirmed off the following technology of Maestro, together with Tariff Response, a brand new software to simulate and handle commerce disruptions. As provide chains proceed to face political and financial shocks globally, instruments like this turn out to be invaluable. The platform’s Agentic AI, described as digital coworkers to spice up productiveness, is about to go reside within the second half of this yr. And its Demand.AI answer continues to push forecasting accuracy increased by mixing real-time exterior indicators with inside knowledge.
Total, the corporate’s capacity to serve huge names like Pfizer, Colgate-Palmoliveand Basic Motors already exhibits the belief it instructions within the trade. And with extra enterprises shifting towards AI-driven decision-making, Kinaxis is in the best spot on the proper time — making it look low cost to purchase for the long run.