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Kornit Digital (KRNT)
NASDAQ:KRNT
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Kornit Digital
(NASDAQ:KRNT)
55Neutral
Positive Factors
Financial Performance
Kornit has started to piece together more consistent quarterly execution, with 4Q revenue, gross margin, and Adj. EBITDA all outperforming expectations.
Market Outlook
Recent interactions with various members of the Kornit team, many Kornit customers, and several competitors suggest a positive outlook.
Negative Factors
Regulatory Challenges
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. S&P 500 (SPY)
Market Cap
$850.80M
Dividend YieldN/A
Average Volume (3M)252.05K
Price to Earnings (P/E)―
Beta (1Y)2.36
Revenue Growth-3.71%
EPS Growth73.10%
CountryUS
Employees715
SectorIndustrials
Sector Strength80
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.18
Shares Outstanding45,327,503
10 Day Avg. Volume172,692
30 Day Avg. Volume252,052
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.23
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit11.17
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$29.60Price Target Upside54.33% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
Kornit Digital Business Overview & Revenue Model
Company DescriptionKornit Digital Ltd. develops, designs, and markets digital printing solutions for the fashion, apparel, and home decor segments of printed textile industry in the United States, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company's solutions include digital printing systems, ink and other consumables, associated software, and value-added services. Its products and services include direct-to-garment printing platform for smaller industrial operators to mass producers; NeoPigment ink and other consumables; QuickP designer software; and maintenance and support, consulting, and professional services. The company serves decorators, online businesses, brand owners, and contract printers. Kornit Digital Ltd. was incorporated in 2002 and is headquartered in Rosh HaAyin, Israel.
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 is facing operational challenges with declining revenues and profitability. The income statement shows a downward trend in revenue, but the balance sheet is strong with low leverage, and cash flow trends are positive, indicating 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.―
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
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.―
| 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 |
| 93.74M | 66.96M | 96.50M | 151.91M | 87.80M | EBIT |
| -34.47M | -87.53M | -69.88M | 12.79M | -6.73M | EBITDA |
| -1.92M | -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
19.18
Price Trends
19.90
Negative
24.80
Negative
24.24
Negative
Market Momentum
-0.24
Negative
50.66
Neutral
55.59
Neutral
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 19.18 is above the 20-day moving average (MA) of 18.63, below the 50-day MA of 19.90, and below the 200-day MA of 24.24, indicating a neutral trend. The MACD of -0.24 indicates Negative momentum. The RSI at 50.66 is Neutral, neither overbought nor oversold. The STOCH value of 55.59 is Neutral, 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 0 New Risks
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 | $964.48M | 21.69 | 12.06% | 1.99% | 0.92% | 21.96% | |
70 Outperform | $306.26M | 17.57 | 21.33% | 4.48% | -6.47% | -9.76% | |
68 Neutral | $1.90B | 31.27 | 9.29% | 0.81% | 2.67% | -18.41% | |
65 Neutral | $1.32B | 20.01 | 11.04% | 1.62% | 1.35% | -40.63% | |
64 Neutral | $4.24B | 11.64 | 5.23% | 249.83% | 4.07% | -10.54% | |
63 Neutral | $300.81M | 6.70 | 12.58% | 2.56% | -0.59% | 188.79% | |
55 Neutral | $850.80M | ― | -2.21% | ― | -3.71% | 73.10% |
* Industrials Sector Average
Performance Comparison
KRNT
Kornit Digital
19.18
3.80
24.71%
GRC
Gorman-Rupp Company
37.75
5.01
15.30%
OFLX
Omega Flex
30.83
-34.05
-52.48%
PKOH
Park-Ohio Holdings
19.72
-7.04
-26.31%
SXI
Standex International
153.49
-24.11
-13.58%
TNC
Tennant Co
72.68
-32.24
-30.73%
Kornit Digital Earnings Call Summary
Earnings Call Date:Feb 12, 2025
(Q4-2024)
| % Change Since: -34.20%|
Next Earnings Date:May 14, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Kornit Digital's successful return to profitability, strong cash flow, and the positive reception of the Apollo platform, alongside innovative product launches and market expansion. However, these were tempered by a decline in full-year revenue, macro-economic uncertainties, and a cautious Q1 2025 outlook.Q4-2024 Updates
Positive Updates
Return to Profitability
Kornit Digital successfully returned to positive EBITDA with an adjusted EBITDA margin of 13.8% in Q4 2024, marking a significant improvement from the same period last year.
Strong Cash Flow
The company reported $26.7 million in operating cash flow for Q4 2024, contributing to a total of $48.7 million for the full year, compared to negative $34.7 million in 2023.
Apollo Platform Success
15 Apollo systems were delivered in 2024, with performance exceeding expectations and strong customer satisfaction, leading to plans to deliver 30 systems in 2025.
Innovative Solutions and Market Expansion
Introduced new products like Apollo, Atlas MAX Plus, and Vivido Ink, and expanded into bulk apparel, footwear, and home decor markets.
Shareholder Value Initiatives
Executed $75 million of a $100 million share repurchase program, expected to complete by mid-2025.
Negative Updates
Revenue Decline for Full Year 2024
Full year 2024 revenues were $203.8 million, down from $219.8 million in 2023, mainly due to lower systems and services sales.
Macro-Economic Uncertainties
Potential tariffs on Mexico and inflationary pressures could impact nearshore manufacturing and consumer purchasing power.
Low Q1 2025 Guidance
Revenues for Q1 2025 expected to be between $45.5 million and $49.5 million with an adjusted EBITDA margin in the negative 4% to negative 9% range.
Company Guidance
During the Kornit Digital Q4 and full year 2024 earnings call, the company reported a Q4 revenue of $60.7 million and an adjusted EBITDA margin of 13.8%, both within their guidance ranges. The full year 2024 revenues were $203.8 million, a decrease from the $219.8 million in 2023, primarily due to lower system and service sales, partially offset by growth in consumables. The company achieved significant milestones, including positive EBITDA for the year and substantial operating cash flow of $26.7 million in Q4. Kornit introduced industry-defining solutions like Apollo, Atlas MAX Plus, and Vivido Ink roll-to-roll, which have been well-received in the market. The company executed $75 million of its $100 million share repurchase program in 2024, with plans to complete it by mid-2025. Looking forward to 2025, Kornit aims for profitable growth and plans to deliver 30 Apollo systems, emphasizing innovation, customer success, and disciplined financial management.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.