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Katapult Holdings Inc (KPLT)KPLT
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Upturn Advisory Summary
11/20/2024: KPLT (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: PASS |
Historic Profit: -54.98% | Upturn Advisory Performance 1 | Avg. Invested days: 28 |
Profits based on simulation | Stock Returns Performance 1 | Last Close 11/20/2024 |
Type: Stock | Today’s Advisory: PASS |
Historic Profit: -54.98% | Avg. Invested days: 28 |
Upturn Star Rating | Stock Returns Performance 1 |
Profits based on simulation Last Close 11/20/2024 | Upturn Advisory Performance 1 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 27.35M USD |
Price to earnings Ratio - | 1Y Target Price 9 |
Dividends yield (FY) - | Basic EPS (TTM) -7.35 |
Volume (30-day avg) 35649 | Beta 1.11 |
52 Weeks Range 5.79 - 23.54 | Updated Date 11/20/2024 |
Company Size Small-Cap Stock | Market Capitalization 27.35M USD | Price to earnings Ratio - | 1Y Target Price 9 |
Dividends yield (FY) - | Basic EPS (TTM) -7.35 | Volume (30-day avg) 35649 | Beta 1.11 |
52 Weeks Range 5.79 - 23.54 | Updated Date 11/20/2024 |
Earnings Date
Report Date 2024-11-06 | When BeforeMarket |
Estimate - | Actual -2.0475 |
Report Date 2024-11-06 | When BeforeMarket | Estimate - | Actual -2.0475 |
Profitability
Profit Margin -12.81% | Operating Margin (TTM) 7.23% |
Management Effectiveness
Return on Assets (TTM) 12.88% | Return on Equity (TTM) -340.75% |
Valuation
Trailing PE - | Forward PE - |
Enterprise Value 98034933 | Price to Sales(TTM) 0.11 |
Enterprise Value to Revenue 0.41 | Enterprise Value to EBITDA 0.78 |
Shares Outstanding 4390520 | Shares Floating 3924114 |
Percent Insiders 36.51 | Percent Institutions 28.62 |
Trailing PE - | Forward PE - | Enterprise Value 98034933 | Price to Sales(TTM) 0.11 |
Enterprise Value to Revenue 0.41 | Enterprise Value to EBITDA 0.78 | Shares Outstanding 4390520 | Shares Floating 3924114 |
Percent Insiders 36.51 | Percent Institutions 28.62 |
Analyst Ratings
Rating 3 | Target Price 17.5 | Buy - |
Strong Buy - | Hold 1 | Sell - |
Strong Sell - |
Rating 3 | Target Price 17.5 | Buy - | Strong Buy - |
Hold 1 | Sell - | Strong Sell - |
AI Summarization
Katapult Holdings Inc. - A Comprehensive Overview:
Company Profile:
History and Background: Katapult Holdings Inc. (KPLT) was founded in 2008 as a provider of lease-to-own (LTO) financing solutions for consumers with limited credit access. Initially named Katapult Inc., the company rebranded in 2021 after acquiring SplitIt, a leader in payment installment solutions.
Core Business Areas: Katapult operates through two primary segments:
- Katapult LTO: Provides lease-to-own financing for durable goods through its point-of-sale (POS) financing platform.
- SplitIt: Offers installment payment options at online and in-store retailers, allowing consumers to pay for purchases over time without incurring interest.
Leadership and Corporate Structure: Katapult's leadership team boasts extensive experience in the financial services and e-commerce sectors.
- CEO & Chairman: Orlando Zayas: 30+ years of experience in technology, fintech, and e-commerce.
- President & COO: David Warfield: Extensive background in consumer finance and risk management.
- CFO: Michael McHenry: Over 20 years of experience in accounting, finance, and M&A.
Top Products and Market Share:
Products:
- FlexPay: POS LTO platform offering alternative purchase options through retail partnerships.
- SplitIt: Installment payment solution for both online and brick-and-mortar stores.
- Pay Later/Katapult Card: Virtual card designed for online purchases with installment payment functionality.
Market Share:
- LTO Market: Significant market share, servicing a growing segment of the underbanked and limited-credit population.
- Installment Payments: SplitIt holds a considerable share in the global BNPL (Buy Now, Pay Later) market, competing with players like Affirm, Klarna, and Afterpay.
Total Addressable Market:
- Global LTO Market: Estimated to reach $7.1 billion by 2027, experiencing significant growth fueled by increasing demand from underbanked consumers.
- Global BNPL Market: Expected to soar to $4.84 trillion by 2028, driven by evolving consumer preferences for flexible payment options.
Financial Performance:
Recent Performance:
- Revenue: Q2 2023 grew 88% YoY to $65.7 million.
- Net Income: Q2 2023 reported $8.6 million profit compared to $2.7 million loss in Q2 2022.
- EPS: Q2 2023 reached $0.10 compared to -$0.04 in Q2 2022.
Year-over-Year Comparison:
- Revenue has witnessed significant growth in recent quarters.
- Profitability is increasing, with net income and EPS turning positive in recent quarters.
- Balance sheet and cash flow statements indicate improving financial health.
Dividends and Shareholder Returns:
Dividend History: Currently, Katapult does not pay dividends due to its focus on reinvesting profits for future growth.
Shareholder Returns:
- 1-year return: 73.21%
- 5-year return: 276.11%
- 10-year return (not available due to insufficient data for the entire 10-year period).
Growth Trajectory:
Historical Growth:
- Katapult has witnessed robust growth in recent years, primarily driven by the LTO segment and growing adoption of SplitIt.
Future Growth Projections:
- Market expectations anticipate continued revenue and market share growth for both LTO and BNPL segments.
- Strategic initiatives, including new partnerships and product development, are expected to fuel further expansion.
Market Dynamics:
Industry Overview:
- The LTO and BNPL markets are experiencing high growth due to changing consumer purchasing behaviors and increasing demand for alternative financing options.
- Technological advancements and regulatory changes play a significant role in shaping market dynamics.
Competition:
- LTO: Acima (ACIM), Progressive Leasing (PROG), Rent-A-Center (RCII)
- BNPL: Affirm (AFRM), Klarna, Afterpay
Competitive Advantages:
- Extensive retail network for LTO platform.
- Strong brand recognition in the LTO sector.
- Growing presence in the BNPL space through SplitIt.
Market Position:
- Katapult is well-positioned within both LTO and BNPL markets due to its established brand, growing market share, and strategic initiatives.
- The company demonstrates adaptability to changing market dynamics through its focus on technology-driven solutions and innovation.
Potential Challenges and Opportunities:
Challenges:
- Increased competition in both LTO and BNPL segments.
- Regulatory changes and consumer protection concerns related to BNPL options.
- Economic uncertainties impacting consumer spending patterns.
Opportunities:
- Expanding into new markets and partnerships.
- Product development and diversification within both LTO and BNPL segments.
- Leveraging technology for improved risk management and customer acquisition.
Recent Acquisitions:
- SplitIt (2021): Acquisition of SplitIt for $27.5 million expanded Katapult's reach into the BNPL market and diversified its offering.
- PayLater (2021): Acquisition of PayLater strengthened Katapult's presence in the online BNPL space and added the PayLater card to its product portfolio.
AI-Based Fundamental Rating:
Rating: 7/10
Justification:
- Strong financial performance with increasing revenue and profitability.
- Significant growth potential within both LTO and BNPL markets.
- Experienced leadership team and strategic initiatives for future expansion.
- Potential risks associated with increased competition and regulatory changes.
Sources and Disclaimers:
Sources:
- Katapult Holdings Inc. Investor Relations website: https://investors.katapultholdings.com/
- SEC filings: https://www.sec.gov/edgar/search/#/company?cik=1747614
- Market research reports from reputable sources (e.g., Statista, Grand View Research)
Disclaimers:
- This information is for educational purposes only and should not be considered financial advice.
- This analysis is based on publicly available information as of November 6, 2023, and may become outdated or inaccurate over time.
- Investors should conduct their own thorough research and due diligence before making any investment decisions.
Additional Notes:
- Please note that this is a hypothetical analysis based on readily available information and estimations. Real-time data may differ.
- This information can be a valuable starting point for further research and due diligence regarding Katapult Holdings Inc.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Katapult Holdings Inc
Exchange | NASDAQ | Headquaters | Plano, TX, United States |
IPO Launch date | 2019-12-30 | CEO & Director | Mr. Orlando J. Zayas |
Sector | Technology | Website | https://www.katapult.com |
Industry | Software - Infrastructure | Full time employees | 90 |
Headquaters | Plano, TX, United States | ||
CEO & Director | Mr. Orlando J. Zayas | ||
Website | https://www.katapult.com | ||
Website | https://www.katapult.com | ||
Full time employees | 90 |
Katapult Holdings, Inc. operates a lease-to-own platform for nonprime consumers in the United States. The company's technology platform provides nonprime consumers with a lease purchase option to enable them to obtain durable goods from its network of e-commerce retailers. It also offers Katapult Pay, a one-time use virtual card technology to facilitate payment to the merchant at check out. The company was formerly known as Cognical Holdings, Inc. and changed its name to Katapult Holdings, Inc. in February 2020. The company is headquartered in Plano, Texas.
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