KESTRA MEDICAL TECHNOLOGIES, LTD. (KMTS) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy
Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Jun 27, 2026
KESTRA MEDICAL TECHNOLOGIES, LTD. (KMTS)
A forensic read on KESTRA MEDICAL TECHNOLOGIES, LTD. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Distress
Financial health
-0.9
Altman Z-score
Watch
Earnings quality
5
Forensic signals
-68.8%
ROE
$1.5B
Market cap
KESTRA MEDICAL TECHNOLOGIES, LTD. earns a D (Weak — demands caution) forensic quality grade, and its Altman Z-score is -0.9, placing it in the Distress zone. 5 forensic signals were flagged in its latest SEC filings, led by accruals ratio.
What the filings flag
+126.1%Accruals ratio.Net operating assets grew +126.1% relative to their average in FY2025 — the accrual component of earnings. Accruals are building sharply — a large slice of profit sits in operating assets, not cash; Richardson/Sloan link high accruals to weaker future returns as they reverse. The cash-flow cross-check agrees: reported earnings ran behind operating cash by -663% of net operating assets.
49d DSOReceivables vs revenue.Days sales outstanding moved from 26 to 49 days FY2024→FY2025 (receivables +304% vs revenue +115%). Receivables are outrunning sales — a flag for aggressive revenue recognition or slipping collections.
-417%Return on invested capital.Return on invested capital is -417% and rising from -1421% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+23.6%/yrShare-count dilution.Diluted share count changed +24% over the last 1 years to FY2025 (+23.6%/yr). The count is GROWING — existing holders are being diluted. That's ~23.6% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2024 has been diluted ~24%.
41% of revStock-based comp load.Stock-based compensation ran 41% of revenue in FY2025 — about $0.99 per diluted share. Meaningful — reported free cash flow flatters the economics, since SBC is a real cost paid in shares.
Key fundamentals
Net Margin-190.3%
Debt / Equity0.20x
Free Cash Flow$-100.5M
Latest Revenue$59.8M
Return on Equity-55.4%
Revenue Growth YoY+115.1%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on KESTRA MEDICAL TECHNOLOGIES, LTD.:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about KMTS's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown