A profitable manufacturer and distributor of premium stone countertop products serving residential and commercial markets with a focus on sustainable sourcing and digital supply chain optimization.
Investors should consider Kingstone attractive due to its recent transition to consistent profitability, strong free cash flow generation relative to capex, and a durable competitive position in the premium countertop segment with loyal dealer relationships.
Concerns include the company's historically high debt levels with long-term debt of $4.3M and current portion of $6.8M, sensitivity to housing market cycles that drive demand for home renovations, and limited diversification beyond the stone countertop industry.
Kingstone Companies Inc. manufactures and distributes stone countertop products, serving residential and commercial markets across North America. The company has successfully transitioned to profitability in recent years, driven by improved operational efficiency and strong same-store sales growth. Its business model focuses on high-margin retail distribution of engineered stone surfaces for kitchens, bathrooms, and other interior applications.
The company reported a robust return to profitability with net income reaching $18.4M in 2024 after recovering from losses in prior years, supported by operating cash flow of $57.9M which significantly exceeded capital expenditures of $2.3M. This strong cash generation allows for strategic reinvestment and debt management while maintaining a healthy balance sheet with total assets of $374.9M.
The global stone countertop industry is characterized by cyclical demand tied to residential construction and remodeling activity, with trends moving towards sustainability, customization, and digital integration in supply chains.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $130.2M | $144.2M | $155.1M |
| Cost of Revenue | $0 | $0 | $0 |
| Gross Profit | $130.2M | $144.2M | $155.1M |
| Operating Expenses | $158.1M | $151.6M | $131.9M |
| Operating Income | $-27.9M | $-7.4M | $23.3M |
| Stock-Based Comp | $1.4M | $832.6K | $1.4M |
| D&A | $3.3M | $3.0M | $2.4M |
| Depreciation | $3.3M | $3.0M | $2.4M |
| Amortization | $0 | $0 | $0 |
| Other OpEx | $157.9M | $151.4M | — |
| Non-Operating Income | $0 | $0 | $0 |
| Interest Expense | $2.0M | $4.0M | — |
| Pre-Tax Income | $-27.9M | $-7.4M | $23.3M |
| Income Tax | $-5.4M | $-1.2M | $4.9M |
| Continuing Ops | $-22.5M | $-6.2M | $18.4M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $-22.5M | $-6.2M | $18.4M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $-22.5M | $-6.2M | $18.4M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Cash & Equivalents | $12.0M | $9.0M | — |
| PP&E (Net) | $10.5M | $9.4M | $9.3M |
| Operating Leases | $225.3K | $47.7K | $0 |
| Total Assets | $320.3M | $317.6M | $374.9M |
| Current Debt | — | — | $6.8M |
| Current Leases | $225.3K | $47.7K | $0 |
| Long-Term Debt | — | $25.2M | $4.3M |
| Total Liabilities | $284.2M | $283.1M | $308.2M |
| Shareholders' Equity | $36.2M | $34.5M | $66.7M |
| Retained Earnings | $-16.9M | $-23.1M | $-4.8M |
| AOCI | $-16.0M | $-12.3M | $-12.2M |
| Treasury Stock | $5.6M | $5.6M | $5.6M |
| Total L&E | $320.3M | $317.6M | $374.9M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $-22.5M | $-6.2M | $18.4M |
| Non-Cash Adjustments | $-81.8M | $-127.2M | $-8.6M |
| Working Capital Changes | $103.4M | $122.0M | $48.2M |
| Cash from Operations | $-915.5K | $-11.3M | $57.9M |
| Capital Expenditures | $4.6M | $1.8M | $2.3M |
| Cash from Investing | $-5.9M | $9.5M | $-35.3M |
| Share Buybacks | $0 | — | — |
| Dividends Paid | $1.3M | $0 | — |
| Cash from Financing | $-5.5M | $-1.1M | $-3.0M |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $-12.3M | $-3.0M | $19.7M |
| Beginning Cash | $24.3M | $12.0M | $9.0M |
| Ending Cash | $12.0M | $9.0M | $28.7M |
The company's revenue is primarily derived from the sale of stone countertop slabs to retail dealers who install them for customers, supported by its own manufacturing facilities that produce both natural and engineered stone products.
Significant exposure to commodity price volatility affecting raw material costs, potential economic downturns reducing discretionary spending on home improvement projects, and increasing competition from lower-cost alternatives like quartz composites and recycled materials.
Kingstone benefits from a vertically integrated manufacturing model that provides cost control and supply chain stability, strong brand recognition in the premium countertop category, and an extensive network of dealer partners across key markets.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.