KRNT

Kornit Digital

Fundamental data last updated:April 13, 2026

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company profile

SECTOR

Industrials

industry

Specialty Industrial Machinery

Exchange

Nasdaq

County of HQ

Israel

Next Earnings Date

05/13/26

Business Summary

Kornit Digital designs and sells industrial digital printing systems primarily for textile and garment production, generating revenue from equipment sales, consumables such as inks, and ongoing service. The core moat lies in its vertically integrated ecosystem—hardware, proprietary ink formulations, and software working together to create switching costs for customers. By enabling on-demand, short-run production, the company aligns with structural shifts away from mass inventory toward agile supply chains. Cash generation ultimately depends on driving installed base expansion and recurring consumables pull-through, which can significantly improve margins once utilization rates normalize.

 


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VALUATION

P/E

-

Market Cap ($M USD)

$735

Forward P/E

43.8

PEG

-

PRICE TO SALES

3.5

PRICE TO BOOK

1

EV / EBITDA

-13.1

5-Year Average P/E

Free Cash Flow Yield

DCF Value

Graham Number

Price to FCF

EV to FCF

Earnings Yield

FCF Yield

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

-

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

-$0.30

Next Year EPS Growth Estimate

$0.36

Next Year Revenue Growth Estimate

7.00%

Return on Equity (ROE)

-1.90%

FREE CASH FLOW

Operating Margin

-16.60%

Debt-to-Equity

0

Piotroski F-Score

5

Altman Z-Score

8.4

Return on Invested Capital (ROIC)

-4.20%

Current Ratio

14.2

Quick Ratio

Net Debt to EBITDA

Interest Coverage

Gross Profit margin

FCF PER SHARE

REVENUE PER SHARE

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Gainseekers Quantitative Analysis

Summary

KRNT is a classic high-risk turnaround masked by balance sheet strength. The company is unprofitable with EPS at -13.1 and a negative operating margin of -1.90%, yet it trades at a Forward P/E of 43.8, which is an aggressive multiple for a business with negative ROIC of -4.20%. The market is clearly pricing in a sharp earnings recovery toward the EPS Next Year estimate of -$0.30, but that optimism looks stretched given the lack of current profitability. That said, the Altman Z-Score of 8.4 and a massive 14.2 current ratio signal virtually no bankruptcy risk, meaning this is a liquidity-rich turnaround rather than a distressed value trap. This is not statistically cheap—it is a balance-sheet-secured speculation on operational recovery.

AI Exposure / Tech Reliance

As a Specialty Industrial Machinery company, Kornit operates in a capital equipment niche that increasingly intersects with automation and digital production workflows. Industrial printing and textile digitization benefit directly from AI-driven design, workflow optimization, and on-demand manufacturing trends. The company’s relevance depends on its ability to embed smart, data-driven production efficiencies into its machinery ecosystem.

The Bull Case

A value or GARP investor could justify a position purely on financial survivability and optionality. The Altman Z-Score of 8.4 combined with a 14.2 current ratio means the company has substantial liquidity cushion to execute a turnaround without dilution or solvency stress. Despite negative ROIC of -4.20% and operating margin of -1.90%, Return on Equity sits at 7.00%, suggesting that capital structure dynamics and asset efficiency may be stabilizing. A Piotroski F-Score of 5 signals neutrality—not strong, but not deteriorating—consistent with a mid-cycle reset rather than structural collapse. At 1x Price/Book and 3.5x Price/Sales, investors are paying a modest asset multiple for a company that only needs to normalize margins to justify upside, particularly if EPS improves materially from -13.1 toward -$0.30 next year.

The Bear Case

The bear case is straightforward: this is an unprofitable industrial trading at 43.8x forward earnings with no PEG ratio provided to justify the premium. Operating margin is negative, ROIC is negative, and EPS remains deeply negative at -13.1, indicating capital is currently being destroyed, not compounded. The Debt/Equity ratio of -16.60% suggests an unusual capital structure dynamic that may reflect balance sheet distortions rather than clean leverage efficiency. Sales Growth Next Year listed as $0.36 offers little clarity on top-line acceleration, and without visible margin expansion, the valuation relies almost entirely on hope. With a Market Cap of $735M, this is a small-cap turnaround story where execution risk is the central variable.

Market Sentiment & Smart Money

Short Interest %

2.40%

Analyst Consensus

2

Average Analyst Price Target

$21.70

Institutional Ownership %

98.40%

1-Year Beta

1.43

Insider Buying % (6 Mo)

0.00%%

Distance to 52-Week High

67.60%

Distance to 52-Week Low

133.10%

EARNINGS SURPRISE %

50-DAY SMA

200-DAY SMA

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.