KXSCF - Kinaxis: Strong Growth Outlook But Shares Richly Valued

Investment Thesis

Kinaxis (OTCPK:KXSCF) finished its 2019 with solid top and bottom line growth. The company is expected to increase its operating expenses in order to support its strong top line growth in 2020 and beyond. This will result in near-term margin compression but improve its long-term growth outlook. Kinaxis will benefit from the recent global supply chain disruption caused by the outbreak of coronavirus as its RapidResponse platform will help many companies evaluate where risks are located. Despite its strong growth outlook, its shares are currently trading at a rich valuation to