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Kraken Robotics (TSXV:PNG) After New Orders, Is The Bull Case Still Undervalued?

Simply Wall St · 1d ago

Why Kraken Robotics Stock Is Back in Focus After New Order Wins

Kraken Robotics (TSXV:PNG) has drawn fresh attention after announcing CAD 35 million in new product orders, bringing combined 2026 product orders for Kraken and Covelya to CAD 327 million across defense and offshore energy customers.

The latest contracts highlight demand for the company’s SeaPower subsea batteries, Synthetic Aperture Sonar systems and Covelya’s navigation technologies, as governments and energy companies commit to mine countermeasures, port security and carbon capture monitoring projects.

See our latest analysis for Kraken Robotics.

Even with the new CAD 35 million order announcement, Kraken Robotics’ recent share price performance has cooled, with the stock down over the past month and quarter, yet supported by a very large 3 year total shareholder return and strong 1 year total shareholder return.

If this kind of contract driven story has your attention, it can be worth seeing what other robotics focused companies are doing through the 34 robotics and automation stocks

Bulls point to Kraken Robotics’ large order book and strong multi year returns, while bears focus on the recent share price pullback and current losses. Which side does the current valuation actually lean toward?

Most Popular Narrative: 44.6% Undervalued

Based on the most followed narrative, Kraken Robotics is valued at CA$10.80 per share, compared with a last close of CA$5.98. This frames the current debate around its order momentum and future profitability.

Growing interest from new UUV OEMs and a large U.S. defense customer for SeaPower batteries, combined with the option to add shifts and potentially expand manufacturing presence in the U.S., can increase throughput, support backlog growth and affect earnings as fixed manufacturing costs are spread over higher production volumes.

Read the complete narrative.

Want to see what sits behind that confidence in Kraken Robotics? The narrative focuses on rapid revenue build, rising margins and a future earnings profile that would need to justify a premium multiple.

Result: Fair Value of CA$10.80 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, Kraken Robotics still faces key risks, including dependence on defense procurement cycles and the challenge of integrating recent and planned acquisitions into one cohesive business.

Find out about the key risks to this Kraken Robotics narrative.

Another View on Kraken Robotics Valuation

While our DCF model suggests Kraken Robotics is trading around 32.7% below an estimated fair value of CA$8.89 per share, that result depends heavily on long term cash flow forecasts and discount rate assumptions. If those inputs prove too optimistic, this perceived discount could narrow quickly.

Look into how the SWS DCF model arrives at its fair value.

PNG Discounted Cash Flow as at Jul 2026
PNG Discounted Cash Flow as at Jul 2026

Next Steps

Given the mix of optimism and concern around Kraken Robotics, it makes sense to move quickly, review the underlying data yourself, and then weigh the 2 key rewards and 1 important warning sign.

Looking For More Investment Ideas Beyond Kraken Robotics?

If Kraken Robotics has sharpened your interest, do not stop here. Broaden your watchlist with other focused ideas that could suit different goals and risk levels.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.