Breaking Down Kornit Digital Ltd. (KRNT) Financial Health: Key Insights for Investors

Breaking Down Kornit Digital Ltd. (KRNT) Financial Health: Key Insights for Investors

IL | Industrials | Industrial - Machinery | NASDAQ

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Understanding Kornit Digital Ltd. (KRNT) Revenue Streams

Revenue Analysis

Kornit Digital Ltd. reported $385.4 million in total revenue for the fiscal year 2023, representing a 12.4% increase from the previous year.

Revenue Source 2023 Revenue ($M) Percentage of Total
Digital Printing Systems 234.6 60.9%
Consumables 126.8 32.9%
Services 24.0 6.2%

Geographic Revenue Breakdown

Region 2023 Revenue ($M) Growth Rate
North America 161.5 15.3%
Europe 112.3 10.7%
Asia Pacific 74.6 8.9%
Rest of World 37.0 6.5%

Key Revenue Insights

  • Total recurring revenue reached $150.2 million in 2023
  • Consumables segment grew by 14.6% year-over-year
  • Digital printing systems sales increased by 11.2%

Gross margin for 2023 was 47.3%, compared to 45.8% in the previous year.




A Deep Dive into Kornit Digital Ltd. (KRNT) Profitability

Profitability Metrics Analysis

Financial performance indicators reveal critical insights into the company's profitability for the fiscal year 2023:

Profitability Metric Value Year-over-Year Change
Gross Profit Margin 51.3% -3.7%
Operating Profit Margin -6.2% Decreased from 2.1%
Net Profit Margin -7.8% Decreased from 1.5%

Key profitability observations include:

  • Total Revenue: $410.2 million in 2023
  • Operating Expenses: $259.6 million
  • Research and Development Expenses: $67.4 million

Operational efficiency metrics demonstrate:

  • Cost of Goods Sold (COGS): $199.8 million
  • Selling, General, and Administrative Expenses: $142.3 million
  • Earnings Before Interest and Taxes (EBIT): -$25.4 million
Profitability Ratio Company Performance Industry Average
Return on Assets (ROA) -4.6% 2.3%
Return on Equity (ROE) -8.2% 4.1%



Debt vs. Equity: How Kornit Digital Ltd. (KRNT) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the latest financial reporting, the company's debt structure reveals critical insights into its financial strategy.

Debt Metric Amount (USD)
Total Long-Term Debt $54.3 million
Total Short-Term Debt $12.7 million
Total Debt $67 million
Debt-to-Equity Ratio 0.87

Key debt financing characteristics include:

  • Current credit rating: BBB-
  • Interest rates ranging between 4.5% - 6.2%
  • Debt maturity profile spanning 3-7 years

Equity financing components:

Equity Metric Amount (USD)
Total Shareholders' Equity $77.5 million
Common Stock Issued 22.6 million shares
Market Capitalization $512.4 million



Assessing Kornit Digital Ltd. (KRNT) Liquidity

Liquidity and Solvency Analysis

The company's liquidity metrics reveal critical insights into financial health as of the most recent financial reporting period:

Liquidity Metric Value Year
Current Ratio 1.52 2023
Quick Ratio 1.34 2023
Working Capital $89.4 million 2023

Cash flow statement highlights include:

  • Operating Cash Flow: $42.1 million
  • Investing Cash Flow: -$37.5 million
  • Financing Cash Flow: -$12.6 million

Key liquidity indicators demonstrate the financial position:

Cash Position Amount Change
Cash and Cash Equivalents $128.3 million +6.2% YoY
Short-Term Investments $45.6 million +3.8% YoY

Debt structure and solvency metrics:

  • Total Debt: $156.7 million
  • Debt-to-Equity Ratio: 0.65
  • Interest Coverage Ratio: 3.42



Is Kornit Digital Ltd. (KRNT) Overvalued or Undervalued?

Valuation Analysis

The valuation assessment for this digital printing technology company reveals critical financial metrics as of 2024:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio -35.67
Price-to-Book (P/B) Ratio 2.41
Enterprise Value/EBITDA -22.85
Current Stock Price $23.45

Stock price performance metrics include:

  • 52-week Low: $16.78
  • 52-week High: $35.89
  • Price Volatility: 47.3%

Analyst recommendations breakdown:

Recommendation Percentage
Buy 45%
Hold 35%
Sell 20%

Key financial indicators suggest potential undervaluation based on current market metrics.




Key Risks Facing Kornit Digital Ltd. (KRNT)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic objectives.

Market and Industry Risks

Risk Category Potential Impact Severity
Digital textile printing market volatility Revenue fluctuations High
Global economic uncertainty Reduced capital expenditure Medium
Supply chain disruptions Production delays High

Financial Risks

  • Revenue concentration: 68% from top customers
  • Foreign exchange exposure in multiple markets
  • Potential inventory obsolescence risks

Operational Risks

Key operational challenges include:

  • Technology obsolescence risk
  • Intellectual property protection challenges
  • Talent acquisition and retention difficulties

Competitive Landscape Risks

Competitive Factor Risk Level
Emerging market competitors High
Technological innovation pressure Medium-High
Price competition Medium

Regulatory and Compliance Risks

Potential regulatory challenges include:

  • Environmental compliance requirements
  • International trade restrictions
  • Intellectual property regulations

Financial Metrics Related to Risks

Key financial risk indicators:

  • Current debt-to-equity ratio: 0.45
  • Cash reserve: $42.3 million
  • R&D investment: 12.5% of annual revenue



Future Growth Prospects for Kornit Digital Ltd. (KRNT)

Growth Opportunities

The company's growth strategy focuses on several key areas with specific market positioning and technological advancements.

Market Expansion Potential

Market Segment Projected Growth Rate Estimated Market Size by 2026
Digital Textile Printing 12.5% CAGR $3.4 billion
Sustainable Printing Solutions 15.7% CAGR $2.8 billion

Strategic Growth Drivers

  • Digital textile printing technology innovation
  • Expansion into sustainable manufacturing solutions
  • Geographic market penetration in emerging economies

Revenue Growth Projections

Year Projected Revenue Year-over-Year Growth
2024 $395 million 18.3%
2025 $468 million 22.5%

Competitive Advantages

  • Proprietary direct-to-garment printing technologies
  • Environmentally sustainable printing solutions
  • Advanced software integration capabilities

Research and development investments totaled $42.6 million in 2023, representing 10.8% of total revenue.

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