KADANT INC (KAI) Stock Fundamental Analysis
NYSE:KAI • US48282T1043
339.17 USD
-6.37 (-1.84%)
At close: Feb 27, 2026
339.17 USD
0 (0%)
After Hours: 2/27/2026, 8:14:36 PM
Taking everything into account, KAI scores 6 out of 10 in our fundamental rating. KAI was compared to 130 industry peers in the Machinery industry. Both the health and profitability get an excellent rating, making KAI a very profitable company, without any liquidiy or solvency issues. While showing a medium growth rate, KAI is valued expensive at the moment. These ratings would make KAI suitable for quality investing!
1. Profitability
1.1 Basic Checks
- In the past year KAI was profitable.
- KAI had a positive operating cash flow in the past year.
- In the past 5 years KAI has always been profitable.
- Of the past 5 years KAI 4 years had a positive operating cash flow.
1.2 Ratios
- KAI has a Return On Assets of 6.66%. This is in the better half of the industry: KAI outperforms 70.00% of its industry peers.
- Looking at the Return On Equity, with a value of 10.74%, KAI is in the better half of the industry, outperforming 64.62% of the companies in the same industry.
- With a decent Return On Invested Capital value of 8.80%, KAI is doing good in the industry, outperforming 64.62% of the companies in the same industry.
- KAI had an Average Return On Invested Capital over the past 3 years of 9.99%. This is in line with the industry average of 10.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.66% | ||
| ROE | 10.74% | ||
| ROIC | 8.8% |
ROA(3y)7.88%
ROA(5y)8.31%
ROE(3y)12.82%
ROE(5y)14.37%
ROIC(3y)9.99%
ROIC(5y)10.31%
1.3 Margins
- With a decent Profit Margin value of 9.96%, KAI is doing good in the industry, outperforming 71.54% of the companies in the same industry.
- In the last couple of years the Profit Margin of KAI has grown nicely.
- KAI's Operating Margin of 15.56% is fine compared to the rest of the industry. KAI outperforms 72.31% of its industry peers.
- In the last couple of years the Operating Margin of KAI has grown nicely.
- KAI has a better Gross Margin (45.10%) than 86.15% of its industry peers.
- In the last couple of years the Gross Margin of KAI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.56% | ||
| PM (TTM) | 9.96% | ||
| GM | 45.1% |
OM growth 3Y-3.79%
OM growth 5Y2.5%
PM growth 3Y-10.16%
PM growth 5Y2.2%
GM growth 3Y1.63%
GM growth 5Y0.7%
2. Health
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.
- Compared to 1 year ago, KAI has more shares outstanding
- The number of shares outstanding for KAI has been increased compared to 5 years ago.
- Compared to 1 year ago, KAI has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 6.21 indicates that KAI is not in any danger for bankruptcy at the moment.
- The Altman-Z score of KAI (6.21) is better than 83.08% of its industry peers.
- KAI has a debt to FCF ratio of 1.77. This is a very positive value and a sign of high solvency as it would only need 1.77 years to pay back of all of its debts.
- KAI's Debt to FCF ratio of 1.77 is amongst the best of the industry. KAI outperforms 81.54% of its industry peers.
- A Debt/Equity ratio of 0.27 indicates that KAI is not too dependend on debt financing.
- KAI has a Debt to Equity ratio of 0.27. This is in the better half of the industry: KAI outperforms 64.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.77 | ||
| Altman-Z | 6.21 |
ROIC/WACC0.96
WACC9.14%
2.3 Liquidity
- KAI has a Current Ratio of 2.45. This indicates that KAI is financially healthy and has no problem in meeting its short term obligations.
- KAI has a better Current ratio (2.45) than 61.54% of its industry peers.
- KAI has a Quick Ratio of 1.60. 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 1.60, KAI is in the better half of the industry, outperforming 66.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.45 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
- The earnings per share for KAI have decreased by -9.82% in the last year.
- The Earnings Per Share has been growing by 13.14% on average over the past years. This is quite good.
- Looking at the last year, KAI shows a decrease in Revenue. The Revenue has decreased by -0.11% in the last 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 10.12% on average over the next years. This is quite good.
- KAI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.27% yearly.
EPS Next Y11.86%
EPS Next 2Y10.12%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.42%
Revenue Next 2Y9.27%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 36.59, KAI can be considered very expensive at the moment.
- KAI's Price/Earnings ratio is a bit more expensive when compared to the industry. KAI is more expensive than 60.77% of the companies in the same industry.
- KAI is valuated rather expensively when we compare the Price/Earnings ratio to 27.07, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 32.71 indicates a quite expensive valuation of KAI.
- 64.62% of the companies in the same industry are cheaper than KAI, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 28.05. KAI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.59 | ||
| Fwd PE | 32.71 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KAI is on the same level as its industry peers.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of KAI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.39 | ||
| EV/EBITDA | 19.76 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- KAI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.08
PEG (5Y)2.78
EPS Next 2Y10.12%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a yearly dividend of 0.39%, KAI is not a good candidate for dividend investing.
- KAI's Dividend Yield is comparable with the industry average which is at 1.13.
- With a Dividend Yield of 0.39, KAI pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.39% |
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.
- KAI has decreased its dividend in the last 3 years.
Dividend Growth(5Y)8.77%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- KAI pays out 15.23% of its income as dividend. This is a sustainable payout ratio.
- The dividend of KAI is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP15.23%
EPS Next 2Y10.12%
EPS Next 3YN/A
339.17
-6.37 (-1.84%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-18 2026-02-18/amc
Earnings (Next)04-27 2026-04-27
Inst Owners116.58%
Inst Owner Change5.31%
Ins Owners0.96%
Ins Owner Change0.21%
Market Cap4.00B
Revenue(TTM)1.05B
Net Income(TTM)101.98M
Analysts80
Price Target348.33 (2.7%)
Short Float %11.76%
Short Ratio9.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.39% |
Yearly Dividend1.25
Dividend Growth(5Y)8.77%
DP15.23%
Div Incr Years2
Div Non Decr Years2
Ex-Date01-08 2026-01-08 (0.34)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.69%
Min EPS beat(2)9.83%
Max EPS beat(2)17.56%
EPS beat(4)4
Avg EPS beat(4)10.07%
Min EPS beat(4)5.77%
Max EPS beat(4)17.56%
EPS beat(8)8
Avg EPS beat(8)12.86%
EPS beat(12)12
Avg EPS beat(12)13.11%
EPS beat(16)16
Avg EPS beat(16)12.41%
Revenue beat(2)2
Avg Revenue beat(2)2.03%
Min Revenue beat(2)0.92%
Max Revenue beat(2)3.14%
Revenue beat(4)2
Avg Revenue beat(4)0.51%
Min Revenue beat(4)-1.08%
Max Revenue beat(4)3.14%
Revenue beat(8)6
Avg Revenue beat(8)1.26%
Revenue beat(12)10
Avg Revenue beat(12)2.14%
Revenue beat(16)13
Avg Revenue beat(16)1.96%
PT rev (1m)1.19%
PT rev (3m)1.19%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)0.23%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.77%
Revenue NY rev (3m)2.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.59 | ||
| Fwd PE | 32.71 | ||
| P/S | 3.9 | ||
| P/FCF | 27.39 | ||
| P/OCF | 24.59 | ||
| P/B | 4.21 | ||
| P/tB | 21.95 | ||
| EV/EBITDA | 19.76 |
EPS(TTM)9.27
EY2.73%
EPS(NY)10.37
Fwd EY3.06%
FCF(TTM)12.38
FCFY3.65%
OCF(TTM)13.79
OCFY4.07%
SpS86.93
BVpS80.63
TBVpS15.45
PEG (NY)3.08
PEG (5Y)2.78
Graham Number129.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.66% | ||
| ROE | 10.74% | ||
| ROCE | 12.07% | ||
| ROIC | 8.8% | ||
| ROICexc | 9.73% | ||
| ROICexgc | 27.32% | ||
| OM | 15.56% | ||
| PM (TTM) | 9.96% | ||
| GM | 45.1% | ||
| FCFM | 14.25% |
ROA(3y)7.88%
ROA(5y)8.31%
ROE(3y)12.82%
ROE(5y)14.37%
ROIC(3y)9.99%
ROIC(5y)10.31%
ROICexc(3y)10.99%
ROICexc(5y)11.34%
ROICexgc(3y)30.61%
ROICexgc(5y)33.71%
ROCE(3y)13.71%
ROCE(5y)14.15%
ROICexgc growth 3Y-21.09%
ROICexgc growth 5Y-8.6%
ROICexc growth 3Y-16.61%
ROICexc growth 5Y-2.36%
OM growth 3Y-3.79%
OM growth 5Y2.5%
PM growth 3Y-10.16%
PM growth 5Y2.2%
GM growth 3Y1.63%
GM growth 5Y0.7%
F-Score6
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.77 | ||
| Debt/EBITDA | 1.22 | ||
| Cap/Depr | 33.44% | ||
| Cap/Sales | 1.62% | ||
| Interest Coverage | 10.99 | ||
| Cash Conversion | 77.78% | ||
| Profit Quality | 143.06% | ||
| Current Ratio | 2.45 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z | 6.21 |
F-Score6
WACC9.14%
ROIC/WACC0.96
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-9.82%
EPS 3Y0.14%
EPS 5Y13.14%
EPS Q2Q%0.89%
EPS Next Y11.86%
EPS Next 2Y10.12%
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 Year11.42%
Revenue Next 2Y9.27%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-10%
EBIT growth 3Y1.18%
EBIT growth 5Y13.39%
EBIT Next Year53.9%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y6.15%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-0.1%
OCF growth 3YN/A
OCF growth 5YN/A
KADANT INC / KAI FAQ
Can you provide the ChartMill fundamental rating for KADANT INC?
ChartMill assigns a fundamental rating of 6 / 10 to KAI.
What is the valuation status for KAI stock?
ChartMill assigns a valuation rating of 2 / 10 to KADANT INC (KAI). This can be considered as Overvalued.
Can you provide the profitability details for KADANT INC?
KADANT INC (KAI) has a profitability rating of 7 / 10.
What is the valuation of KADANT INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for KADANT INC (KAI) is 36.59 and the Price/Book (PB) ratio is 4.21.
Is the dividend of KADANT INC sustainable?
The dividend rating of KADANT INC (KAI) is 4 / 10 and the dividend payout ratio is 15.23%.