KWESST Micro Systems, Inc. (KWE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Why is KWESST Micro Systems, Inc. ?

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -40.05%, its profits have risen by 32.9%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -40.05% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is KWESST Micro Systems, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

KWESST Micro Systems, Inc.

-70.68%

-0.60

162.96%

S&P/TSX 60

29.6%

2.24

12.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

45.00%

EBIT Growth (5y)

-35.30%

EBIT to Interest (avg)

-10.31

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.63

Sales to Capital Employed (avg)

0.74

Tax Ratio

Dividend Payout Ratio

Pledged Shares

Institutional Holding

16.29%

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.16

EV to EBIT

-0.95

EV to EBITDA

-1.06

EV to Capital Employed

3.78

EV to Sales

1.30

PEG Ratio

Dividend Yield

ROCE (Latest)

-396.12%

ROE (Latest)

-172.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Bearish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

21What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD -8.02 MM

NET PROFIT(HY)

Higher at CAD -4.16 MM

ROCE(HY)

Highest at -148.19%

INVENTORY TURNOVER RATIO(HY)

Highest at 9.11 times

RAW MATERIAL COST(Y)

Fallen by -1,579.51% (YoY

NET SALES(Q)

Highest at CAD 2.12 MM

OPERATING PROFIT MARGIN(Q)

Highest at -82.01 %

EPS(Q)

Highest at CAD -1.01

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for KWESST Micro Systems, Inc.

Operating Cash Flow

Highest at CAD -8.02 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Net Sales

At CAD 2.12 MM has Grown at 58.11%

over average net sales of the previous four periods of CAD 1.34 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CAD MM)

Net Profit

Higher at CAD -4.16 MM

than preceding 12 month period ended Mar 2026

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (CAD MM)

Inventory Turnover Ratio

Highest at 9.11 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

Highest at CAD 2.12 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Operating Profit Margin

Highest at -82.01 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

EPS

Highest at CAD -1.01

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Raw Material Cost

Fallen by -1,579.51% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales