KADANT INC (KAI) Fundamental Analysis & Valuation
NYSE:KAI • US48282T1043
Current stock price
309.55 USD
-6.72 (-2.12%)
At close:
309.55 USD
0 (0%)
After Hours:
This KAI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. KAI Profitability Analysis
1.1 Basic Checks
- In the past year KAI was profitable.
- KAI had a positive operating cash flow in the past year.
- Each year in the past 5 years KAI has been profitable.
- KAI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- KAI has a Return On Assets of 5.96%. This is in the better half of the industry: KAI outperforms 65.65% of its industry peers.
- KAI's Return On Equity of 10.41% is fine compared to the rest of the industry. KAI outperforms 60.31% of its industry peers.
- The Return On Invested Capital of KAI (8.01%) is better than 60.31% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for KAI is in line with the industry average of 10.06%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.96% | ||
| ROE | 10.41% | ||
| ROIC | 8.01% |
ROA(3y)7.88%
ROA(5y)8.31%
ROE(3y)12.86%
ROE(5y)14.39%
ROIC(3y)10.34%
ROIC(5y)10.52%
1.3 Margins
- KAI has a better Profit Margin (9.69%) than 72.52% of its industry peers.
- KAI's Profit Margin has improved in the last couple of years.
- The Operating Margin of KAI (15.49%) is better than 73.28% of its industry peers.
- In the last couple of years the Operating Margin of KAI has grown nicely.
- KAI has a better Gross Margin (45.21%) than 85.50% of its industry peers.
- KAI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.49% | ||
| PM (TTM) | 9.69% | ||
| GM | 45.21% |
OM growth 3Y-2.9%
OM growth 5Y3.06%
PM growth 3Y-10.16%
PM growth 5Y2.2%
GM growth 3Y1.63%
GM growth 5Y0.7%
2. KAI Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so KAI is still creating some value.
- The number of shares outstanding for KAI has been increased compared to 1 year ago.
- The number of shares outstanding for KAI has been increased compared to 5 years ago.
- KAI has a worse debt/assets ratio than last year.
2.2 Solvency
- KAI has an Altman-Z score of 4.98. This indicates that KAI is financially healthy and has little risk of bankruptcy at the moment.
- KAI has a better Altman-Z score (4.98) than 74.81% of its industry peers.
- KAI has a debt to FCF ratio of 2.43. This is a good value and a sign of high solvency as KAI would need 2.43 years to pay back of all of its debts.
- KAI's Debt to FCF ratio of 2.43 is fine compared to the rest of the industry. KAI outperforms 74.81% of its industry peers.
- A Debt/Equity ratio of 0.38 indicates that KAI is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.38, KAI is in the better half of the industry, outperforming 60.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 2.43 | ||
| Altman-Z | 4.98 |
ROIC/WACC0.78
WACC10.31%
2.3 Liquidity
- KAI has a Current Ratio of 2.38. This indicates that KAI is financially healthy and has no problem in meeting its short term obligations.
- KAI has a Current ratio of 2.38. This is in the better half of the industry: KAI outperforms 60.31% of its industry peers.
- KAI has a Quick Ratio of 1.47. This is a normal value and indicates that KAI is financially healthy and should not expect problems in meeting its short term obligations.
- With a decent Quick ratio value of 1.47, KAI is doing good in the industry, outperforming 60.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.38 | ||
| Quick Ratio | 1.47 |
3. KAI Growth Analysis
3.1 Past
- KAI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.82%.
- KAI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.14% yearly.
- KAI shows a decrease in Revenue. In the last year, the revenue decreased by -0.11%.
- Measured over the past years, KAI shows a quite strong growth in Revenue. The Revenue has been growing by 10.63% on average per year.
EPS 1Y (TTM)-9.82%
EPS 3Y0.14%
EPS 5Y13.14%
EPS Q2Q%0.89%
Revenue 1Y (TTM)-0.11%
Revenue growth 3Y5.16%
Revenue growth 5Y10.63%
Sales Q2Q%10.92%
3.2 Future
- KAI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.94% yearly.
- Based on estimates for the next years, KAI will show a quite strong growth in Revenue. The Revenue will grow by 9.06% on average per year.
EPS Next Y24.81%
EPS Next 2Y20.94%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year13.42%
Revenue Next 2Y9.06%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. KAI Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 33.39, KAI can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of KAI is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 26.91. KAI is valued slightly more expensive when compared to this.
- The Price/Forward Earnings ratio is 26.76, which means the current valuation is very expensive for KAI.
- KAI's Price/Forward Earnings is on the same level as the industry average.
- When comparing the Price/Forward Earnings ratio of KAI to the average of the S&P500 Index (21.99), we can say KAI is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.39 | ||
| Fwd PE | 26.76 |
4.2 Price Multiples
- KAI's Enterprise Value to EBITDA is on the same level as the industry average.
- KAI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. KAI is cheaper than 67.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.7 | ||
| EV/EBITDA | 18.61 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- KAI has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as KAI's earnings are expected to grow with 20.94% in the coming years.
PEG (NY)1.35
PEG (5Y)2.54
EPS Next 2Y20.94%
EPS Next 3YN/A
5. KAI Dividend Analysis
5.1 Amount
- With a yearly dividend of 0.44%, KAI is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.13, KAI has a dividend in line with its industry peers.
- With a Dividend Yield of 0.44, KAI pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
5.2 History
- On average, the dividend of KAI grows each year by 8.77%, which is quite nice.
- KAI has paid a dividend for at least 10 years, which is a reliable track record.
- The dividend of KAI decreased in the last 3 years.
Dividend Growth(5Y)8.77%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- 15.47% of the earnings are spent on dividend by KAI. This is a low number and sustainable payout ratio.
- The dividend of KAI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP15.47%
EPS Next 2Y20.94%
EPS Next 3YN/A
KAI Fundamentals: All Metrics, Ratios and Statistics
309.55
-6.72 (-2.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-18 2026-02-18/amc
Earnings (Next)05-05 2026-05-05
Inst Owners114.45%
Inst Owner Change1.23%
Ins Owners0.84%
Ins Owner Change-13.82%
Market Cap3.66B
Revenue(TTM)1.05B
Net Income(TTM)101.97M
Analysts80
Price Target348.33 (12.53%)
Short Float %12.61%
Short Ratio8.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
Yearly Dividend1.25
Dividend Growth(5Y)8.77%
DP15.47%
Div Incr Years2
Div Non Decr Years2
Ex-Date04-15 2026-04-15 (0.36)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.05%
Min EPS beat(2)2.53%
Max EPS beat(2)17.56%
EPS beat(4)4
Avg EPS beat(4)8.92%
Min EPS beat(4)2.53%
Max EPS beat(4)17.56%
EPS beat(8)8
Avg EPS beat(8)12.29%
EPS beat(12)12
Avg EPS beat(12)12.17%
EPS beat(16)16
Avg EPS beat(16)11.68%
Revenue beat(2)2
Avg Revenue beat(2)3.2%
Min Revenue beat(2)3.14%
Max Revenue beat(2)3.26%
Revenue beat(4)3
Avg Revenue beat(4)1.56%
Min Revenue beat(4)-1.08%
Max Revenue beat(4)3.26%
Revenue beat(8)6
Avg Revenue beat(8)1.21%
Revenue beat(12)10
Avg Revenue beat(12)2.01%
Revenue beat(16)13
Avg Revenue beat(16)2.13%
PT rev (1m)0%
PT rev (3m)1.19%
EPS NQ rev (1m)-5.54%
EPS NQ rev (3m)-5.3%
EPS NY rev (1m)5.26%
EPS NY rev (3m)11.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.51%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.39 | ||
| Fwd PE | 26.76 | ||
| P/S | 3.47 | ||
| P/FCF | 23.7 | ||
| P/OCF | 21.34 | ||
| P/B | 3.73 | ||
| P/tB | 49.53 | ||
| EV/EBITDA | 18.61 |
EPS(TTM)9.27
EY2.99%
EPS(NY)11.57
Fwd EY3.74%
FCF(TTM)13.06
FCFY4.22%
OCF(TTM)14.51
OCFY4.69%
SpS89.1
BVpS82.96
TBVpS6.25
PEG (NY)1.35
PEG (5Y)2.54
Graham Number131.546 (-57.5%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.96% | ||
| ROE | 10.41% | ||
| ROCE | 10.99% | ||
| ROIC | 8.01% | ||
| ROICexc | 8.73% | ||
| ROICexgc | 26.09% | ||
| OM | 15.49% | ||
| PM (TTM) | 9.69% | ||
| GM | 45.21% | ||
| FCFM | 14.66% |
ROA(3y)7.88%
ROA(5y)8.31%
ROE(3y)12.86%
ROE(5y)14.39%
ROIC(3y)10.34%
ROIC(5y)10.52%
ROICexc(3y)11.4%
ROICexc(5y)11.58%
ROICexgc(3y)33.19%
ROICexgc(5y)35.26%
ROCE(3y)14.19%
ROCE(5y)14.44%
ROICexgc growth 3Y-11.25%
ROICexgc growth 5Y-1.93%
ROICexc growth 3Y-12.38%
ROICexc growth 5Y0.58%
OM growth 3Y-2.9%
OM growth 5Y3.06%
PM growth 3Y-10.16%
PM growth 5Y2.2%
GM growth 3Y1.63%
GM growth 5Y0.7%
F-Score5
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 2.43 | ||
| Debt/EBITDA | 1.73 | ||
| Cap/Depr | 33.28% | ||
| Cap/Sales | 1.62% | ||
| Interest Coverage | 10.92 | ||
| Cash Conversion | 79.97% | ||
| Profit Quality | 151.3% | ||
| Current Ratio | 2.38 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 4.98 |
F-Score5
WACC10.31%
ROIC/WACC0.78
Cap/Depr(3y)57.1%
Cap/Depr(5y)57.88%
Cap/Sales(3y)2.31%
Cap/Sales(5y)2.34%
Profit Quality(3y)128.93%
Profit Quality(5y)125.29%
High Growth Momentum
Growth
EPS 1Y (TTM)-9.82%
EPS 3Y0.14%
EPS 5Y13.14%
EPS Q2Q%0.89%
EPS Next Y24.81%
EPS Next 2Y20.94%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.11%
Revenue growth 3Y5.16%
Revenue growth 5Y10.63%
Sales Q2Q%10.92%
Revenue Next Year13.42%
Revenue Next 2Y9.06%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-6.73%
EBIT growth 3Y2.12%
EBIT growth 5Y14.02%
EBIT Next Year54.54%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y14.91%
FCF growth 3Y27.52%
FCF growth 5Y12.58%
OCF growth 1Y10.35%
OCF growth 3Y18.64%
OCF growth 5Y13.02%
KADANT INC / KAI Fundamental Analysis FAQ
Can you provide the ChartMill fundamental rating for KADANT INC?
ChartMill assigns a fundamental rating of 6 / 10 to KAI.
Can you provide the valuation status for KADANT INC?
ChartMill assigns a valuation rating of 4 / 10 to KADANT INC (KAI). This can be considered as Fairly Valued.
How profitable is KADANT INC (KAI) stock?
KADANT INC (KAI) has a profitability rating of 7 / 10.
What is the expected EPS growth for KADANT INC (KAI) stock?
The Earnings per Share (EPS) of KADANT INC (KAI) is expected to grow by 24.81% in the next year.
Can you provide the dividend sustainability for KAI stock?
The dividend rating of KADANT INC (KAI) is 5 / 10 and the dividend payout ratio is 15.47%.