KADANT INC (KAI) Stock Fundamental Analysis
USA - NYSE:KAI - US48282T1043 - Common Stock
254.91 USD
-7.27 (-2.77%)
254.91 USD
0 (0%)
Taking everything into account, KAI scores 5 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. KAI has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year KAI was profitable.
In the past year KAI had a positive cash flow from operations.
Each year in the past 5 years KAI has been profitable.
In the past 5 years KAI always reported a positive cash flow from operatings.
1.2 Ratios
KAI's Return On Assets of 7.13% is fine compared to the rest of the industry. KAI outperforms 72.31% of its industry peers.
KAI has a Return On Equity of 11.43%. This is in the better half of the industry: KAI outperforms 67.69% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.36%, KAI is in the better half of the industry, outperforming 68.46% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for KAI is in line with the industry average of 10.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.13% | ||
| ROE | 11.43% | ||
| ROIC | 9.36% |
ROA(3y)9.4%
ROA(5y)8.31%
ROE(3y)15.56%
ROE(5y)14.54%
ROIC(3y)11.74%
ROIC(5y)10.56%
1.3 Margins
With a decent Profit Margin value of 10.33%, KAI is doing good in the industry, outperforming 73.85% of the companies in the same industry.
In the last couple of years the Profit Margin of KAI has grown nicely.
Looking at the Operating Margin, with a value of 15.97%, KAI is in the better half of the industry, outperforming 74.62% of the companies in the same industry.
In the last couple of years the Operating Margin of KAI has grown nicely.
KAI has a Gross Margin of 44.98%. This is amongst the best in the industry. KAI outperforms 84.62% 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 | 15.97% | ||
| PM (TTM) | 10.33% | ||
| GM | 44.98% |
OM growth 3Y2.61%
OM growth 5Y5.09%
PM growth 3Y-0.26%
PM growth 5Y7.46%
GM growth 3Y1.05%
GM growth 5Y1.2%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KAI is 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.
The debt/assets ratio for KAI is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.35 indicates that KAI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.35, KAI belongs to the top of the industry, outperforming 82.31% of the companies in the same industry.
The Debt to FCF ratio of KAI is 1.66, which is an excellent value as it means it would take KAI, only 1.66 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.66, KAI belongs to the best of the industry, outperforming 82.31% of the companies in the same industry.
A Debt/Equity ratio of 0.27 indicates that KAI is not too dependend on debt financing.
KAI's Debt to Equity ratio of 0.27 is fine compared to the rest of the industry. KAI outperforms 68.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.66 | ||
| Altman-Z | 5.35 |
ROIC/WACC0.97
WACC9.63%
2.3 Liquidity
A Current Ratio of 2.38 indicates that KAI has no problem at all paying its short term obligations.
With a Current ratio value of 2.38, KAI perfoms like the industry average, outperforming 59.23% of the companies in the same industry.
A Quick Ratio of 1.53 indicates that KAI should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.53, KAI is doing good in the industry, outperforming 63.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.38 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
The earnings per share for KAI have decreased strongly by -10.71% in the last year.
Measured over the past years, KAI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.78% on average per year.
Looking at the last year, KAI shows a decrease in Revenue. The Revenue has decreased by -0.96% in the last year.
The Revenue has been growing by 8.37% on average over the past years. This is quite good.
EPS 1Y (TTM)-10.71%
EPS 3Y10.02%
EPS 5Y13.78%
EPS Q2Q%-8.8%
Revenue 1Y (TTM)-0.96%
Revenue growth 3Y10.22%
Revenue growth 5Y8.37%
Sales Q2Q%-0.02%
3.2 Future
The Earnings Per Share is expected to grow by 3.02% on average over the next years.
The Revenue is expected to grow by 4.76% on average over the next years.
EPS Next Y-9.68%
EPS Next 2Y0.79%
EPS Next 3Y3.02%
EPS Next 5YN/A
Revenue Next Year-1.32%
Revenue Next 2Y3.69%
Revenue Next 3Y4.76%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
KAI is valuated quite expensively with a Price/Earnings ratio of 27.56.
Compared to the rest of the industry, the Price/Earnings ratio of KAI is on the same level as its industry peers.
When comparing the Price/Earnings ratio of KAI to the average of the S&P500 Index (25.89), we can say KAI is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 24.41, the valuation of KAI can be described as rather expensive.
KAI's Price/Forward Earnings ratio is in line with the industry average.
KAI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.56 | ||
| Fwd PE | 24.41 |
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.
67.69% of the companies in the same industry are more expensive than KAI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20 | ||
| EV/EBITDA | 14.77 |
4.3 Compensation for Growth
The decent profitability rating of KAI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2
EPS Next 2Y0.79%
EPS Next 3Y3.02%
5. Dividend
5.1 Amount
With a yearly dividend of 0.52%, KAI is not a good candidate for dividend investing.
The stock price of KAI dropped by -24.94% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
KAI's Dividend Yield is comparable with the industry average which is at 1.87.
Compared to an average S&P500 Dividend Yield of 2.44, KAI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
5.2 History
The dividend of KAI is nicely growing with an annual growth rate of 8.77%!
KAI has been paying a dividend for at least 10 years, so it has 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
14.44% 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 the earnings are growing slower. This means the dividend growth is not sustainable.
DP14.44%
EPS Next 2Y0.79%
EPS Next 3Y3.02%
254.91
-7.27 (-2.77%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners120.23%
Inst Owner Change-2.75%
Ins Owners0.98%
Ins Owner Change-0.83%
Market Cap3.00B
Revenue(TTM)1.02B
Net Income(TTM)105.84M
Analysts80
Price Target346.8 (36.05%)
Short Float %11.73%
Short Ratio11.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
Yearly Dividend1.25
Dividend Growth(5Y)8.77%
DP14.44%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.8%
Min EPS beat(2)5.77%
Max EPS beat(2)9.83%
EPS beat(4)4
Avg EPS beat(4)9.62%
Min EPS beat(4)5.77%
Max EPS beat(4)15.76%
EPS beat(8)8
Avg EPS beat(8)12.52%
EPS beat(12)12
Avg EPS beat(12)12.56%
EPS beat(16)16
Avg EPS beat(16)12.35%
Revenue beat(2)1
Avg Revenue beat(2)-0.08%
Min Revenue beat(2)-1.08%
Max Revenue beat(2)0.92%
Revenue beat(4)2
Avg Revenue beat(4)-0.04%
Min Revenue beat(4)-1.08%
Max Revenue beat(4)0.93%
Revenue beat(8)6
Avg Revenue beat(8)1.28%
Revenue beat(12)10
Avg Revenue beat(12)2.03%
Revenue beat(16)12
Avg Revenue beat(16)1.71%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.36%
EPS NY rev (1m)1.11%
EPS NY rev (3m)-1.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.91%
Revenue NY rev (1m)0.96%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.56 | ||
| Fwd PE | 24.41 | ||
| P/S | 2.93 | ||
| P/FCF | 20 | ||
| P/OCF | 17.91 | ||
| P/B | 3.24 | ||
| P/tB | 19.35 | ||
| EV/EBITDA | 14.77 |
EPS(TTM)9.25
EY3.63%
EPS(NY)10.44
Fwd EY4.1%
FCF(TTM)12.74
FCFY5%
OCF(TTM)14.23
OCFY5.58%
SpS86.94
BVpS78.61
TBVpS13.18
PEG (NY)N/A
PEG (5Y)2
Graham Number127.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.13% | ||
| ROE | 11.43% | ||
| ROCE | 12.73% | ||
| ROIC | 9.36% | ||
| ROICexc | 10.12% | ||
| ROICexgc | 28.85% | ||
| OM | 15.97% | ||
| PM (TTM) | 10.33% | ||
| GM | 44.98% | ||
| FCFM | 14.66% |
ROA(3y)9.4%
ROA(5y)8.31%
ROE(3y)15.56%
ROE(5y)14.54%
ROIC(3y)11.74%
ROIC(5y)10.56%
ROICexc(3y)12.92%
ROICexc(5y)11.63%
ROICexgc(3y)37.25%
ROICexgc(5y)36.1%
ROCE(3y)15.98%
ROCE(5y)14.37%
ROICexgc growth 3Y-5.61%
ROICexgc growth 5Y1.55%
ROICexc growth 3Y1.24%
ROICexc growth 5Y4.03%
OM growth 3Y2.61%
OM growth 5Y5.09%
PM growth 3Y-0.26%
PM growth 5Y7.46%
GM growth 3Y1.05%
GM growth 5Y1.2%
F-Score6
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.66 | ||
| Debt/EBITDA | 1.15 | ||
| Cap/Depr | 35.17% | ||
| Cap/Sales | 1.72% | ||
| Interest Coverage | 9.63 | ||
| Cash Conversion | 78.53% | ||
| Profit Quality | 141.84% | ||
| Current Ratio | 2.38 | ||
| Quick Ratio | 1.53 | ||
| Altman-Z | 5.35 |
F-Score6
WACC9.63%
ROIC/WACC0.97
Cap/Depr(3y)72.94%
Cap/Depr(5y)56.08%
Cap/Sales(3y)2.81%
Cap/Sales(5y)2.25%
Profit Quality(3y)99.01%
Profit Quality(5y)125.93%
High Growth Momentum
Growth
EPS 1Y (TTM)-10.71%
EPS 3Y10.02%
EPS 5Y13.78%
EPS Q2Q%-8.8%
EPS Next Y-9.68%
EPS Next 2Y0.79%
EPS Next 3Y3.02%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.96%
Revenue growth 3Y10.22%
Revenue growth 5Y8.37%
Sales Q2Q%-0.02%
Revenue Next Year-1.32%
Revenue Next 2Y3.69%
Revenue Next 3Y4.76%
Revenue Next 5YN/A
EBIT growth 1Y-4.9%
EBIT growth 3Y13.1%
EBIT growth 5Y13.89%
EBIT Next Year14.01%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y71.18%
FCF growth 3Y-3.54%
FCF growth 5Y8.97%
OCF growth 1Y40.56%
OCF growth 3Y-1.49%
OCF growth 5Y9.77%
KADANT INC / KAI FAQ
Can you provide the ChartMill fundamental rating for KADANT INC?
ChartMill assigns a fundamental rating of 5 / 10 to KAI.
What is the valuation status of KADANT INC (KAI) stock?
ChartMill assigns a valuation rating of 3 / 10 to KADANT INC (KAI). This can be considered as Overvalued.
What is the profitability of KAI stock?
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 27.56 and the Price/Book (PB) ratio is 3.24.
What is the expected EPS growth for KADANT INC (KAI) stock?
The Earnings per Share (EPS) of KADANT INC (KAI) is expected to decline by -9.68% in the next year.