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Kornit Digital (KRNT)
NASDAQ:KRNT
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Kornit Digital
(NASDAQ:KRNT)
Rating:58Neutral
Price Target:
$23.00
▲( 4.17% Upside)
Positive Factors
Market potential
Interest continues to build in Kornit Digital's new Apollo model, which has the potential to unlock a serviceable addressable market 20 times larger than the current impression base.
Product demand
Demand remains healthy, driven by positive market response to the new Apollo high-volume production system and uptake of the All-Inclusive Click program.
Revenue model
Recurring or re-occurring revenue now makes up 80% of total revenue, which is largely unheard of for a printing company.
Negative Factors
Customer orders
A major customer has delayed further orders in the near term, and those machines are being reallocated to other customers.
Earnings performance
KRNT delivered an adj. EBITDA loss of $(3.9)MM, with adj. EBITDA margin of -8.4%, behind consensus -7.2%.
Tariffs
The latest tariff announcement by the U.S. administration was surprising in its reach, which included a 17% tariff on products exported from Israel.
Kornit Digital (KRNT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.04B
Dividend YieldN/A
Average Volume (3M)315.59K
Price to Earnings (P/E)―
Beta (1Y)2.45
Revenue Growth3.05%
EPS Growth84.62%
CountryUS
Employees715
SectorIndustrials
Sector Strength90
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.01
Shares Outstanding45,327,503
10 Day Avg. Volume482,274
30 Day Avg. Volume315,591
Financial Highlights & Ratios
PEG Ratio-0.89
Price to Book (P/B)1.25
Price to Sales (P/S)0.00
P/FCF Ratio25.94
Enterprise Value/Market Cap0.82
Enterprise Value/Revenue1.05
Enterprise Value/Gross Profit9.56
Enterprise Value/Ebitda-4.81
Forecast
1Y Price Target
$29.75Price Target Upside34.74% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Kornit Digital Business Overview & Revenue Model
Company DescriptionKornit Digital (KRNT) is a leading player in the digital textile printing industry, specializing in sustainable, on-demand solutions for the fashion, apparel, and home decor sectors. The company develops and manufactures innovative digital printing technologies, including direct-to-garment (DTG) and direct-to-fabric (DTF) printing systems, as well as proprietary inks and consumables. Kornit's offerings enable efficient, eco-friendly production processes that cater to the growing demand for customized and short-run print jobs.
How the Company Makes MoneyKornit Digital generates revenue primarily through the sale of its advanced digital printing systems, which include both DTG and DTF printers. In addition to the hardware sales, the company earns recurring revenue by supplying proprietary inks and consumables essential for operating its machines. Kornit also offers value-added services, including maintenance and support contracts, which contribute to its income. The company benefits from strategic partnerships with global brands and retailers looking to adopt sustainable and flexible production methods, further enhancing its market reach and revenue potential. Kornit's focus on technological innovation and environmental sustainability allows it to capture a growing share of the textile printing market as consumer demands shift towards eco-friendly and customized products.
Kornit Digital Financial Statement Overview
Summary
Kornit Digital faces operational challenges with declining revenues and profitability, yet it maintains a strong balance sheet with low leverage and improving cash flow, suggesting potential for recovery.Income Statement
Kornit Digital has faced declining revenues over recent years, with significant drops from $322 million in 2021 to $203.8 million in 2024. The gross profit margin has decreased from 47.2% in 2021 to 46% in 2024, indicating pressure on cost management. The company continues to incur net losses, with a net profit margin of -8.2% in 2024, although this is an improvement over the -29.3% margin in 2023. Operating losses have narrowed, as reflected in the improving EBIT margin from -39.8% in 2023 to -16.9% in 2024.45
Neutral
Balance Sheet
The balance sheet indicates strong equity with a debt-to-equity ratio of 0.03 in 2024, showing low leverage. Stockholders' equity remains robust, although it has decreased from $919.6 million in 2021 to $726.9 million in 2024. The equity ratio stands at 92.3% in 2024, highlighting a high reliance on equity versus debt financing. Return on Equity (ROE) remains negative due to continued net losses.65
Positive
Cash Flow
Kornit Digital shows positive cash flow trends, with free cash flow turning positive to $33.6 million in 2024 from a negative $41.6 million in 2023. The operating cash flow to net income ratio improved as operating cash flow reached $48.7 million in 2024. The company has managed to improve liquidity positions, evident from consistent cash and short-term investments levels.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 203.82M | 219.79M | 271.52M | 322.01M | 193.33M | Gross Profit |
| 91.76M | 66.96M | 96.50M | 151.91M | 87.80M | EBIT |
| -37.31M | -87.53M | -69.88M | 12.79M | -6.73M | EBITDA |
| -24.27M | -72.83M | -54.11M | 12.79M | -2.02M | Net Income Common Stockholders |
| -16.80M | -64.35M | -79.06M | 15.53M | -4.78M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 463.87M | 332.50M | 400.01M | 648.84M | 364.30M | Total Assets |
| 787.48M | 865.58M | 957.67M | 1.04B | 628.99M | Total Debt |
| 18.38M | 23.61M | 26.02M | 26.96M | 22.64M | Net Debt |
| -16.63M | -16.00M | -78.57M | -584.59M | -103.13M | Total Liabilities |
| 60.59M | 69.91M | 88.84M | 122.70M | 109.97M | Stockholders Equity |
| 726.90M | 795.67M | 868.82M | 919.55M | 519.02M |
| Cash Flow | Free Cash Flow | |||
| 33.59M | -41.69M | -117.70M | 37.03M | 18.80M | Operating Cash Flow |
| 48.73M | -34.68M | -99.35M | 52.46M | 32.41M | Investing Cash Flow |
| 31.49M | 26.21M | -407.27M | 88.93M | -114.63M | Financing Cash Flow |
| -84.81M | -56.52M | -332.00K | 344.38M | 167.04M |
Kornit Digital Technical Analysis
Neutral
22.08
Price Trends
19.69
Positive
23.82
Negative
24.51
Negative
Market Momentum
0.87
Negative
62.80
Neutral
85.65
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KRNT, the sentiment is Neutral. The current price of 22.08 is above the 20-day moving average (MA) of 20.00, above the 50-day MA of 19.69, and below the 200-day MA of 24.51, indicating a neutral trend. The MACD of 0.87 indicates Negative momentum. The RSI at 62.80 is Neutral, neither overbought nor oversold. The STOCH value of 85.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KRNT.
Kornit Digital Risk Analysis
Kornit Digital disclosed 44 risk factors in its most recent earnings report. Kornit Digital reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Our results of operations depend in part on achieving market acceptance for our new products. Q4, 2023
Kornit Digital Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.00B | 22.57 | 12.06% | 1.91% | 0.92% | 21.96% | |
71 Outperform | $343.71M | 19.80 | 21.33% | 3.99% | -6.47% | -9.76% | |
68 Neutral | $1.89B | 30.93 | 9.29% | 0.79% | 2.67% | -18.41% | |
65 Neutral | $1.43B | 21.44 | 11.04% | 1.49% | 1.35% | -40.63% | |
64 Neutral | $4.46B | 11.94 | 5.17% | 249.36% | 4.00% | -12.35% | |
63 Neutral | $280.61M | 7.39 | 12.58% | 2.54% | -0.59% | 190.35% | |
58 Neutral | $1.04B | ― | -1.15% | ― | 3.05% | 84.62% |
* Industrials Sector Average
Performance Comparison
KRNT
Kornit Digital
22.08
7.59
52.38%
GRC
Gorman-Rupp Company
37.33
4.85
14.93%
OFLX
Omega Flex
32.83
-30.02
-47.76%
PKOH
Park-Ohio Holdings
18.98
-6.60
-25.80%
SXI
Standex International
151.95
-14.62
-8.78%
TNC
Tennant Co
73.86
-27.06
-26.81%
Kornit Digital Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q1-2025)
| % Change Since: 14.70%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
Kornit Digital's earnings call presented a balanced outlook with several highlights, including growth in impressions and positive cash flow, offset by delays in system purchases and a decline in service revenue. The company's strategic positioning and expansion of recurring revenue streams are positive indicators, yet macroeconomic factors present ongoing challenges.Q1-2025 Updates
Positive Updates
Revenue and EBITDA Within Expectations
Kornit Digital reported Q1 2025 revenue of $46.5 million and adjusted EBITDA margin of minus 8.4%, both within the guidance range.
Positive Cash Flow
The company generated positive cash flow from operations, totaling $5.8 million in Q1 2025, up from $4 million in the same period last year.
Growth in Impressions
Kornit reached a record 222 million impressions on a trailing 12-month basis, up 10% compared to the prior period.
Expansion of AIC Program
Annual recurring revenue from All-Inclusive Click (AIC) contracts reached $14.5 million, indicating a growing base of recurring revenue.
Strategic Partnerships
New partnerships with MAS ACME and Gooten were announced, enhancing Kornit's global fulfillment network and on-demand production capabilities.
Negative Updates
System Purchase Delays
Planned system purchases were delayed in Q1 due to macroeconomic conditions, impacting immediate growth expectations.
Service Revenue Decline
Service revenue declined year-over-year due to fewer upgrades of the Atlas MAX, partially offset by upgrades to MAX Plus.
Company Guidance
In the first quarter of 2025, Kornit Digital reported revenue of $46.5 million and an adjusted EBITDA margin of -8.4%, both within their guidance range. The company also achieved positive cash flow from operations of $5.8 million. For the second quarter, Kornit expects revenues between $49 million and $55 million and an adjusted EBITDA margin from -4% to 4%. Additionally, Kornit disclosed a new metric, the Annual Recurring Revenue (ARR) from its All-Inclusive Click (AIC) model, which reached $14.5 million. The company also reported a record 222 million impressions on a trailing 12-month basis, marking a 10% increase year-over-year, driven by stronger system utilization and increased digital adoption. Kornit remains optimistic about its strategic initiatives, including the Apollo system's adoption, and anticipates stronger growth in the second half of 2025.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.