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Kornit Digital (KRNT)
NASDAQ:KRNT
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Kornit Digital
(NASDAQ:KRNT)
Rating:51Neutral
Price Target:
$20.00
▲(1.42%Upside)
Positive Factors
Demand
KRNT will see accelerating demand for the Apollo high-volume printing system, significantly expanding the company's footprint in bulk apparel printing.
Market Position
Kornit Digital Ltd. is seen as a leader in digital textile printing technology, which positions the company strongly in the growing market.
Revenue Growth
Recurring or re-occurring revenue now makes up 80% of total revenue, which is largely unheard of for a printing company.
Negative Factors
Competitive Pressures
Competitive pressures in the digital printing industry could pose challenges to maintaining market share.
Customer Orders
A major customer has delayed further orders in the near term, and those machines are being reallocated to other customers.
Supply Chain
Challenges in supply chain disruptions have impacted the company's ability to meet product demand effectively.
Kornit Digital (KRNT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$888.87M
Dividend YieldN/A
Average Volume (3M)288.64K
Price to Earnings (P/E)―
Beta (1Y)2.43
Revenue Growth3.05%
EPS Growth84.62%
CountryUS
Employees715
SectorIndustrials
Sector Strength86
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.01
Shares Outstanding45,327,503
10 Day Avg. Volume253,205
30 Day Avg. Volume288,639
Financial Highlights & Ratios
PEG Ratio-2.16
Price to Book (P/B)1.26
Price to Sales (P/S)0.00
P/FCF Ratio27.45
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue1.07
Enterprise Value/Gross Profit8.83
Enterprise Value/Ebitda-6.36
Forecast
1Y Price Target
$28.67Price Target Upside45.39% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
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 makes money primarily through the sale of its digital printing systems, including both hardware and the consumables required for operation, such as inks and other related materials. The company also generates revenue from service contracts and software solutions that complement their printing systems, providing customers with comprehensive support and enhanced functionality. Kornit's business model is further supported by strategic partnerships and collaborations with key players in the global textile and apparel market, which help expand its reach and drive sales. The company benefits from the growing demand for sustainable and customizable printing solutions, which aligns with broader industry trends towards reducing waste and enhancing production flexibility.
Kornit Digital Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q1-2025)
| % Change Since: 2.44%|
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.Kornit Digital Financial Statement Overview
Summary
Kornit Digital faces significant financial challenges, with declining revenues and persistent net losses affecting overall financial health. Despite a strong balance sheet with low leverage, operational inefficiencies and inconsistent cash flow generation pose ongoing risks.Income Statement
Kornit Digital's income statement shows a decline in revenue over the past few years, with a significant drop from $322 million in 2021 to $206.8 million in TTM 2025. The company has been operating at a net loss since 2020, with a negative EBIT and EBITDA indicating operational challenges. The gross profit margin improved slightly in the TTM period to 47.2% from 45% in 2024, but this is overshadowed by the negative net profit margin of -4.2% for TTM 2025. These factors suggest a struggling business environment and operational inefficiencies.45
Neutral
Balance Sheet
Kornit Digital's balance sheet indicates a strong equity position with a high equity ratio of 91.6% in TTM 2025. The company maintains a low debt-to-equity ratio of 0.025, suggesting low leverage risk. However, total assets have been declining, and the return on equity remains negative due to continued net losses. While the company has a solid cash position, the shrinking asset base and persistent losses pose concerns about long-term financial stability.60
Neutral
Cash Flow
The cash flow statement reveals that Kornit Digital has managed to improve its cash flow from operations, with a positive operating cash flow of $50.4 million in TTM 2025. However, the free cash flow has decreased compared to 2024, reflecting higher capital expenditures. The operating cash flow to net income ratio is favorable, indicating efficient cash conversion relative to reported losses. Despite this, the company's ability to generate free cash flow remains inconsistent, impacting its financial flexibility.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 206.82M | 203.82M | 219.79M | 271.52M | 322.01M | 193.33M |
| Gross Profit | 97.65M | 91.76M | 66.96M | 96.50M | 151.91M | 87.80M |
| EBITDA | -18.53M | -24.27M | -72.83M | -54.11M | 12.79M | -2.02M |
| Net Income | -8.66M | -16.80M | -64.35M | -79.06M | 15.53M | -4.78M |
Balance Sheet | ||||||
| Total Assets | 786.78M | 787.48M | 865.58M | 957.67M | 1.04B | 628.99M |
| Cash, Cash Equivalents and Short-Term Investments | 452.07M | 463.87M | 332.50M | 400.01M | 648.84M | 364.30M |
| Total Debt | 17.90M | 18.38M | 23.61M | 26.02M | 26.96M | 22.64M |
| Total Liabilities | 65.96M | 60.59M | 69.91M | 88.84M | 122.70M | 109.97M |
| Stockholders Equity | 720.82M | 726.90M | 795.67M | 868.82M | 919.55M | 519.02M |
Cash Flow | ||||||
| Free Cash Flow | 32.79M | 33.59M | -41.69M | -117.70M | 37.03M | 18.80M |
| Operating Cash Flow | 50.40M | 48.73M | -34.68M | -99.35M | 52.46M | 32.41M |
| Investing Cash Flow | 78.06M | 31.49M | 26.21M | -407.27M | 88.93M | -114.63M |
| Financing Cash Flow | -78.86M | -84.81M | -56.52M | -332.00K | 344.38M | 167.04M |
Kornit Digital Technical Analysis
Negative
19.72
Price Trends
20.47
Negative
21.27
Negative
24.86
Negative
Market Momentum
-0.44
Positive
45.35
Neutral
74.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KRNT, the sentiment is Negative. The current price of 19.72 is below the 20-day moving average (MA) of 20.45, below the 50-day MA of 20.47, and below the 200-day MA of 24.86, indicating a bearish trend. The MACD of -0.44 indicates Positive momentum. The RSI at 45.35 is Neutral, neither overbought nor oversold. The STOCH value of 74.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $362.39M | 20.87 | 21.33% | 3.79% | -6.47% | -9.76% | |
71 Outperform | $1.54B | 23.00 | 11.04% | 1.43% | 1.35% | -40.63% | |
69 Neutral | $993.93M | 22.35 | 12.06% | 1.96% | 0.92% | 21.96% | |
69 Neutral | $2.01B | 32.84 | 9.29% | 0.77% | 2.67% | -18.41% | |
62 Neutral | $267.09M | 7.03 | 12.58% | 2.66% | -0.59% | 190.35% | |
58 Neutral | $1.34B | 4.20 | -2.93% | 7.41% | 3.67% | -51.13% | |
51 Neutral | $888.87M | ― | -1.15% | ― | 3.05% | 84.62% |
* Industrials Sector Average
Performance Comparison
KRNT
Kornit Digital
19.72
4.88
32.88%
GRC
Gorman-Rupp Company
38.14
2.52
7.07%
OFLX
Omega Flex
35.90
-13.74
-27.68%
PKOH
Park-Ohio Holdings
18.77
-5.33
-22.12%
SXI
Standex International
166.21
12.31
8.00%
TNC
Tennant Co
82.31
-13.82
-14.38%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.