KXSCF - Kinaxis: Share Price Pullback Creates A Good Buying Opportunity
Investment Thesis
Kinaxis (KXSCF) (TSX:KXS) delivered mixed Q4 2018 earnings. Despite double digit revenue increase, its EBITDA margin declined by several percentage points due to its investments. Kinaxis also expects its margin to remain compressed in the near term as it ramps up its investment in sales, marketing, R&D, and support teams. Despite this, we believe Kinaxis' investments should help improve its sales, especially in Europe and Asia. The company should continue to deliver strong growth in several of its new verticals such as consumer-packaged goods and automotive. Its shares are currently trading