KADANT INC (KAI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KAI - US48282T1043 - Common Stock
285.02 USD
-10.4 (-3.52%)
285.02 USD
0 (0%)
Overall KAI gets a fundamental rating of 5 out of 10. We evaluated KAI against 132 industry peers in the Machinery industry. KAI scores excellent points on both the profitability and health parts. This is a solid base for a good stock. KAI is valued expensive and it does not seem to be growing.
1. Profitability
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
The Return On Assets of KAI (7.13%) is better than 71.21% of its industry peers.
The Return On Equity of KAI (11.43%) is better than 67.42% of its industry peers.
The Return On Invested Capital of KAI (9.36%) is better than 68.18% 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 10.27%.
| 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
KAI has a Profit Margin of 10.33%. This is in the better half of the industry: KAI outperforms 73.48% of its industry peers.
KAI's Profit Margin has improved in the last couple of years.
KAI's Operating Margin of 15.97% is fine compared to the rest of the industry. KAI outperforms 75.76% of its industry peers.
KAI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 44.98%, KAI belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
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
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.
The debt/assets ratio for KAI is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.86 indicates that KAI is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.86, KAI belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
KAI has a debt to FCF ratio of 1.66. This is a very positive value and a sign of high solvency as it would only need 1.66 years to pay back of all of its debts.
KAI has a Debt to FCF ratio of 1.66. This is amongst the best in the industry. KAI outperforms 81.06% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that KAI is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.27, KAI is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.66 | ||
| Altman-Z | 5.86 |
ROIC/WACC0.98
WACC9.55%
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 better Current ratio (2.38) than 60.61% of its industry peers.
KAI has a Quick Ratio of 1.53. This is a normal value and indicates that KAI is financially healthy and should not expect problems in meeting its short term obligations.
KAI's Quick ratio of 1.53 is fine compared to the rest of the industry. KAI outperforms 65.91% of its industry peers.
| 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.
KAI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.78% yearly.
Looking at the last year, KAI shows a decrease in Revenue. The Revenue has decreased by -0.96% in the last year.
KAI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.37% yearly.
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-9.75%
EPS Next 2Y0.44%
EPS Next 3Y3.02%
EPS Next 5YN/A
Revenue Next Year-1.13%
Revenue Next 2Y4.55%
Revenue Next 3Y4.76%
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 decreasing.
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
A Price/Earnings ratio of 30.81 indicates a quite expensive valuation of KAI.
Based on the Price/Earnings ratio, KAI is valued a bit more expensive than 61.36% of the companies in the same industry.
When comparing the Price/Earnings ratio of KAI to the average of the S&P500 Index (26.51), we can say KAI is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 27.49, the valuation of KAI can be described as expensive.
62.88% of the companies in the same industry are cheaper than KAI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, KAI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.81 | ||
| Fwd PE | 27.49 |
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.
KAI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.37 | ||
| EV/EBITDA | 17.01 |
4.3 Compensation for Growth
KAI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.24
EPS Next 2Y0.44%
EPS Next 3Y3.02%
5. Dividend
5.1 Amount
KAI has a yearly dividend return of 0.46%, which is pretty low.
KAI's Dividend Yield is comparable with the industry average which is at 0.98.
With a Dividend Yield of 0.46, KAI pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
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
5.3 Sustainability
KAI pays out 14.44% of its income as dividend. This is a sustainable payout ratio.
KAI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP14.44%
EPS Next 2Y0.44%
EPS Next 3Y3.02%
285.02
-10.4 (-3.52%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners116.58%
Inst Owner Change-2.79%
Ins Owners0.96%
Ins Owner Change-0.4%
Market Cap3.36B
Revenue(TTM)1.02B
Net Income(TTM)105.84M
Analysts80
Price Target344.25 (20.78%)
Short Float %11.69%
Short Ratio9.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
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)-0.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.06%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)1.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)1.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.81 | ||
| Fwd PE | 27.49 | ||
| P/S | 3.28 | ||
| P/FCF | 22.37 | ||
| P/OCF | 20.02 | ||
| P/B | 3.63 | ||
| P/tB | 21.63 | ||
| EV/EBITDA | 17.01 |
EPS(TTM)9.25
EY3.25%
EPS(NY)10.37
Fwd EY3.64%
FCF(TTM)12.74
FCFY4.47%
OCF(TTM)14.23
OCFY4.99%
SpS86.94
BVpS78.61
TBVpS13.18
PEG (NY)N/A
PEG (5Y)2.24
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 | 5.86 |
F-Score6
WACC9.55%
ROIC/WACC0.98
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-9.75%
EPS Next 2Y0.44%
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-1.13%
Revenue Next 2Y4.55%
Revenue Next 3Y4.76%
Revenue Next 5YN/A
EBIT growth 1Y-4.9%
EBIT growth 3Y13.1%
EBIT growth 5Y13.89%
EBIT Next Year14.56%
EBIT Next 3Y11.19%
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 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 30.81 and the Price/Book (PB) ratio is 3.63.
Is the dividend of KADANT INC sustainable?
The dividend rating of KADANT INC (KAI) is 4 / 10 and the dividend payout ratio is 14.44%.