KADANT INC (KAI) Fundamental Analysis & Valuation

NYSE:KAI • US48282T1043

Current stock price

292.35 USD
+7.46 (+2.62%)
At close:
292.35 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.

7

1. KAI Profitability Analysis

1.1 Basic Checks

  • In the past year KAI was profitable.
  • In the past year KAI had a positive cash flow from operations.
  • In the past 5 years KAI has always been profitable.
  • In the past 5 years KAI always reported a positive cash flow from operatings.
KAI Yearly Net Income VS EBIT VS OCF VS FCFKAI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M

1.2 Ratios

  • The Return On Assets of KAI (5.96%) is better than 64.12% of its industry peers.
  • KAI has a Return On Equity of 10.41%. This is comparable to the rest of the industry: KAI outperforms 58.02% of its industry peers.
  • KAI's Return On Invested Capital of 8.01% is in line compared to the rest of the industry. KAI outperforms 59.54% of its industry peers.
  • KAI had an Average Return On Invested Capital over the past 3 years of 10.34%. This is in line with the industry average of 10.17%.
Industry RankSector 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%
KAI Yearly ROA, ROE, ROICKAI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • The Profit Margin of KAI (9.69%) is better than 70.23% of its industry peers.
  • KAI's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 15.49%, KAI is in the better half of the industry, outperforming 73.28% of the companies in the same industry.
  • In the last couple of years the Operating Margin of KAI has grown nicely.
  • With an excellent Gross Margin value of 45.21%, KAI belongs to the best of the industry, outperforming 85.50% of the companies in the same industry.
  • KAI's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
KAI Yearly Profit, Operating, Gross MarginsKAI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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6

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.
  • KAI has more shares outstanding than it did 5 years ago.
  • KAI has a worse debt/assets ratio than last year.
KAI Yearly Shares OutstandingKAI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2M 4M 6M 8M 10M
KAI Yearly Total Debt VS Total AssetsKAI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

2.2 Solvency

  • KAI has an Altman-Z score of 4.67. This indicates that KAI is financially healthy and has little risk of bankruptcy at the moment.
  • KAI has a better Altman-Z score (4.67) than 73.28% of its industry peers.
  • The Debt to FCF ratio of KAI is 2.43, which is a good value as it means it would take KAI, 2.43 years of fcf income to pay off 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.
  • KAI has a Debt to Equity ratio of 0.38. This is in the better half of the industry: KAI outperforms 60.31% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.38
Debt/FCF 2.43
Altman-Z 4.67
ROIC/WACC0.81
WACC9.89%
KAI Yearly LT Debt VS Equity VS FCFKAI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M

2.3 Liquidity

  • A Current Ratio of 2.38 indicates that KAI has no problem at all paying its short term obligations.
  • KAI has a Current ratio (2.38) which is in line with 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.
  • Looking at the Quick ratio, with a value of 1.47, KAI is in the better half of the industry, outperforming 62.60% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.38
Quick Ratio 1.47
KAI Yearly Current Assets VS Current LiabilitesKAI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

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%.
  • Measured over the past years, KAI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.14% on average per year.
  • The Revenue has decreased by -0.11% in the past year.
  • The Revenue has been growing by 10.63% on average over the past years. This is quite good.
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

  • The Earnings Per Share is expected to grow by 20.94% on average over the next years. This is a very strong growth
  • KAI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.06% yearly.
EPS Next Y18.57%
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

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
KAI Yearly Revenue VS EstimatesKAI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M 800M 1B
KAI Yearly EPS VS EstimatesKAI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6 8 10

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4

4. KAI Valuation Analysis

4.1 Price/Earnings Ratio

  • KAI is valuated quite expensively with a Price/Earnings ratio of 31.54.
  • KAI's Price/Earnings is on the same level as the industry average.
  • When comparing the Price/Earnings ratio of KAI to the average of the S&P500 Index (25.35), we can say KAI is valued slightly more expensively.
  • The Price/Forward Earnings ratio is 26.60, which means the current valuation is very expensive for KAI.
  • KAI's Price/Forward Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.61, KAI is valued at the same level.
Industry RankSector Rank
PE 31.54
Fwd PE 26.6
KAI Price Earnings VS Forward Price EarningsKAI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as KAI.
  • Based on the Price/Free Cash Flow ratio, KAI is valued a bit cheaper than 64.89% of the companies in the same industry.
Industry RankSector Rank
P/FCF 22.34
EV/EBITDA 16.85
KAI Per share dataKAI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

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)1.7
PEG (5Y)2.4
EPS Next 2Y20.94%
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. KAI Dividend Analysis

5.1 Amount

  • KAI has a yearly dividend return of 0.48%, which is pretty low.
  • Compared to an average industry Dividend Yield of 1.20, KAI has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.89, KAI's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.48%

5.2 History

  • On average, the dividend of KAI grows each year by 8.77%, which is quite nice.
  • KAI has been paying a dividend for at least 10 years, so it has a reliable track record.
  • KAI has decreased its dividend in the last 3 years.
Dividend Growth(5Y)8.77%
Div Incr Years2
Div Non Decr Years2
KAI Yearly Dividends per shareKAI Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

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 Yearly Income VS Free CF VS DividendKAI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
KAI Dividend Payout.KAI Dividend Payout, showing the Payout Ratio.KAI Dividend Payout.PayoutRetained Earnings

More info and screens

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KAI Fundamentals: All Metrics, Ratios and Statistics

KADANT INC

NYSE:KAI (3/31/2026, 6:40:00 PM)

After market: 292.35 0 (0%)

292.35

+7.46 (+2.62%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-18
Earnings (Next)04-27
Inst Owners114.56%
Inst Owner Change5.29%
Ins Owners0.97%
Ins Owner Change-14.11%
Market Cap3.45B
Revenue(TTM)1.05B
Net Income(TTM)101.97M
Analysts80
Price Target348.33 (19.15%)
Short Float %13.82%
Short Ratio10.32
Dividend
Industry RankSector Rank
Dividend Yield 0.48%
Yearly Dividend1.25
Dividend Growth(5Y)8.77%
DP15.47%
Div Incr Years2
Div Non Decr Years2
Ex-Date01-08
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)-1.01%
EPS NQ rev (3m)0.26%
EPS NY rev (1m)5.99%
EPS NY rev (3m)5.99%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)1.51%
Revenue NY rev (1m)1.79%
Revenue NY rev (3m)2.58%
Valuation
Industry RankSector Rank
PE 31.54
Fwd PE 26.6
P/S 3.28
P/FCF 22.34
P/OCF 20.12
P/B 3.52
P/tB 46.7
EV/EBITDA 16.85
EPS(TTM)9.27
EY3.17%
EPS(NY)10.99
Fwd EY3.76%
FCF(TTM)13.09
FCFY4.48%
OCF(TTM)14.53
OCFY4.97%
SpS89.25
BVpS83.11
TBVpS6.26
PEG (NY)1.7
PEG (5Y)2.4
Graham Number131.66
Profitability
Industry RankSector 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 RankSector 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 4.67
F-Score5
WACC9.89%
ROIC/WACC0.81
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 Y18.57%
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 Year55.42%
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 3 / 10 to KADANT INC (KAI). This can be considered as Overvalued.


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 18.57% 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%.