From Yahoo Finance: 2024-06-28 20:15:00

NVIDIA’s stock market rise of close to 877% in the last two years was triggered by the viral launch of ChatGPT and high demand for AI software. Now, there’s a cheaper alternative – Kinaxis Inc (TSX: KXS), a Canadian supply chain software company offering similar AI-driven solutions.

Kinaxis’ Rapid Response software suite compiles supply chain data, provides real-time insights using AI, offers scenario analysis, and features an easy-to-use UI. In the last quarter, KXS saw $119 million in revenue, $73 million in gross profit, $6.1 million in earnings, and $22.8 million in adjusted EBITDA.

Despite its growth and profitability, Kinaxis is trading at high multiples – 60 times earnings, 7 times sales, and 6.3 times book value. While expensive, it’s cheaper than NVIDIA. This makes Kinaxis a more viable investment option, especially with a low book value multiple in today’s tech market.



Read more at Yahoo Finance: Missed Out on NVIDIA? My Best Growth Stock Pick to Buy and Hold