After surging over 300% in 2024, Palantir (NASDAQ: PLTR) stock is currently down 31% from all-time highs. Valued at a market cap of US$202 billion, the tech stock continues to trade at a premium, given it is forecast to report revenue of US$3.77 billion and adjusted earnings per share of US$0.56 in 2025. So, priced at 53.6 times forward sales and 154 times forward earnings, PLTR stock remains vulnerable if market sentiment turns bearish. In fact, during the bear market of 2022, the large-cap stock fell more than 80% from its 52-week high.
While Palantir remains expensive, you can own several other tech stocks at a much lower multiple amid the stock market sell-off in 2025. Kinaxis (TSX: KXS) is one such TSX tech stock you can buy instead of Palantir in March 2025. Let’s see why.
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Is the Canadian tech stock a good buy?
Valued at a market cap of $4.5 billion, Kinaxis provides supply chain software to enterprises. The company has increased its revenue from $91.3 million in 2015 to $483 million in 2024. Moreover, its free cash flow has increased from $25.4 million in 2016 to $94.7 million in 2024. The Ottawa-based company also reported record incremental annual recurring revenue (ARR) in the fourth quarter (Q4) of 2024.
“We’re thrilled to have won some large enterprise accounts in Q4,” said Bob Courteau, interim chief executive officer and chair. “We matched our record for new customers in the quarter and set a new record for the full year.”
For Q4, total revenue reached $123.9 million, up 11% year over year, while SaaS (software-as-a-service) revenue rose 17% to $81.9 million. It reported an adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $31.5 million, indicating a 25% margin compared to 18% in the comparable quarter. This profitability improvement reflects the company’s focus on operational efficiency over the past 12 months.
Despite these strong results, Kinaxis reported a quarterly loss of $16.3 million due to one-time charges, including a $17.5 million tax expense related to transferring regional market rights and costs associated with a legal settlement with a competitor.
What’s next for the TSX tech stock?
In 2025, Kinaxis forecasts total revenue between $535 million and $550 million, which suggests a 12% growth at the midpoint. Courteau emphasized that global trade uncertainties are driving demand for the company’s scenario planning capabilities. “The usage of our scenario tool has doubled, hitting unprecedented levels as customers respond to mounting pressures in global trade,” he noted.
Executives explained that Kinaxis maintains a strong competitive position with its Maestro platform, which enjoys a product advantage over competitors in supply chain orchestration.
Notably, the company’s artificial intelligence (AI) strategy continues to advance, with over 200 customers already using its GenAI-enabled chat capabilities. Moreover, new AI enhancements are planned for 2025 that will allow users to query their supply chain data directly.
Bay Street expects Kinaxis to increase sales to $622 million in 2026. Comparatively, adjusted earnings are forecast to expand from $2.36 per share in 2024 to $4.05 per share in 2026. The TSX stock is also forecast to end 2026 with a free cash flow of $145 million. So, priced at 31 times forward FCF, KXS stock trades at a discount of over 23% from current levels.
