KADANT INC (KAI) Stock Fundamental Analysis
NYSE:KAI - New York Stock Exchange, Inc. - US48282T1043 - Common Stock - Currency: USD
KAI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 129 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 valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, KAI could be worth investigating further for quality investing!.
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.
In the past 5 years KAI has always 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 7.72%. This is in the better half of the industry: KAI outperforms 71.43% of its industry peers.
KAI has a better Return On Equity (13.50%) than 65.87% of its industry peers.
With a decent Return On Invested Capital value of 10.13%, KAI is doing good in the industry, outperforming 69.84% 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 11.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.72% | ||
| ROE | 13.5% | ||
| ROIC | 10.13% |
ROA(3y)9.27%
ROA(5y)7.86%
ROE(3y)16.13%
ROE(5y)14.35%
ROIC(3y)11.53%
ROIC(5y)10.18%
1.3 Margins
KAI has a Profit Margin of 11.12%. This is in the better half of the industry: KAI outperforms 76.19% of its industry peers.
In the last couple of years the Profit Margin of KAI has grown nicely.
With an excellent Operating Margin value of 17.12%, KAI belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
In the last couple of years the Operating Margin of KAI has grown nicely.
KAI has a better Gross Margin (44.13%) than 82.54% 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 | 17.12% | ||
| PM (TTM) | 11.12% | ||
| GM | 44.13% |
OM growth 3Y9.59%
OM growth 5Y3.94%
PM growth 3Y11.72%
PM growth 5Y4.93%
GM growth 3Y-0.15%
GM growth 5Y-0.2%
2. Health
2.1 Basic Checks
KAI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
KAI has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, KAI has more shares outstanding
Compared to 1 year ago, KAI has an improved debt to assets ratio.
2.2 Solvency
KAI has an Altman-Z score of 6.16. This indicates that KAI is financially healthy and has little risk of bankruptcy at the moment.
KAI's Altman-Z score of 6.16 is amongst the best of the industry. KAI outperforms 82.54% of its industry peers.
KAI has a debt to FCF ratio of 2.38. This is a good value and a sign of high solvency as KAI would need 2.38 years to pay back of all of its debts.
KAI has a better Debt to FCF ratio (2.38) than 76.98% of its industry peers.
A Debt/Equity ratio of 0.38 indicates that KAI is not too dependend on debt financing.
The Debt to Equity ratio of KAI (0.38) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 2.38 | ||
| Altman-Z | 6.16 |
ROIC/WACC1.03
WACC9.86%
2.3 Liquidity
KAI has a Current Ratio of 2.29. This indicates that KAI is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of KAI (2.29) is comparable to the rest of the industry.
A Quick Ratio of 1.46 indicates that KAI should not have too much problems paying its short term obligations.
KAI has a better Quick ratio (1.46) than 62.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.29 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
KAI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.65%.
Measured over the past years, KAI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.18% on average per year.
Looking at the last year, KAI shows a quite strong growth in Revenue. The Revenue has grown by 8.71% in the last year.
KAI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.61% yearly.
EPS 1Y (TTM)4.65%
EPS 3Y25.57%
EPS 5Y13.18%
EPS Q2Q%7.98%
Revenue 1Y (TTM)8.71%
Revenue growth 3Y14.68%
Revenue growth 5Y8.61%
Sales Q2Q%11.23%
3.2 Future
The Earnings Per Share is expected to grow by 8.05% on average over the next years. This is quite good.
KAI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.95% yearly.
EPS Next Y3.07%
EPS Next 2Y3.87%
EPS Next 3Y8.05%
EPS Next 5YN/A
Revenue Next Year11.14%
Revenue Next 2Y7.29%
Revenue Next 3Y6.95%
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 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 35.55, KAI can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of KAI indicates a slightly more expensive valuation: KAI is more expensive than 65.87% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.47, KAI is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 34.49, the valuation of KAI can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KAI indicates a slightly more expensive valuation: KAI is more expensive than 64.29% of the companies listed in the same industry.
KAI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 92.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.55 | ||
| Fwd PE | 34.49 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KAI indicates a slightly more expensive valuation: KAI is more expensive than 61.90% of the companies listed in the same industry.
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 | 31.49 | ||
| EV/EBITDA | 20.54 |
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)11.6
PEG (5Y)2.7
EPS Next 2Y3.87%
EPS Next 3Y8.05%
5. Dividend
5.1 Amount
With a yearly dividend of 0.34%, KAI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.61, KAI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, KAI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.34% |
5.2 History
On average, the dividend of KAI grows each year by 11.23%, 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 recently.
Dividend Growth(5Y)11.23%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
KAI pays out 12.47% 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.
DP12.47%
EPS Next 2Y3.87%
EPS Next 3Y8.05%
KADANT INC
NYSE:KAI (2/5/2025, 9:35:33 AM)
368.34
+0.56 (+0.15%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners111.49%
Inst Owner Change5.09%
Ins Owners0.96%
Ins Owner Change-8.45%
Market Cap4.33B
Analysts80
Price Target362.1 (-1.69%)
Short Float %9.77%
Short Ratio10.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.34% |
Yearly Dividend1.13
Dividend Growth(5Y)11.23%
DP12.47%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.06%
Min EPS beat(2)14.36%
Max EPS beat(2)15.76%
EPS beat(4)4
Avg EPS beat(4)15.65%
Min EPS beat(4)7.13%
Max EPS beat(4)25.34%
EPS beat(8)8
Avg EPS beat(8)14.63%
EPS beat(12)12
Avg EPS beat(12)13.19%
EPS beat(16)16
Avg EPS beat(16)14.19%
Revenue beat(2)2
Avg Revenue beat(2)2.1%
Min Revenue beat(2)0.93%
Max Revenue beat(2)3.28%
Revenue beat(4)4
Avg Revenue beat(4)2.01%
Min Revenue beat(4)0.16%
Max Revenue beat(4)3.67%
Revenue beat(8)8
Avg Revenue beat(8)2.95%
Revenue beat(12)11
Avg Revenue beat(12)2.45%
Revenue beat(16)14
Avg Revenue beat(16)2.47%
PT rev (1m)0%
PT rev (3m)7.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20.33%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)1.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.57%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.55 | ||
| Fwd PE | 34.49 | ||
| P/S | 4.19 | ||
| P/FCF | 31.49 | ||
| P/OCF | 26.61 | ||
| P/B | 5.08 | ||
| P/tB | 65.16 | ||
| EV/EBITDA | 20.54 |
EPS(TTM)10.36
EY2.81%
EPS(NY)10.68
Fwd EY2.9%
FCF(TTM)11.7
FCFY3.18%
OCF(TTM)13.84
OCFY3.76%
SpS88
BVpS72.49
TBVpS5.65
PEG (NY)11.6
PEG (5Y)2.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.72% | ||
| ROE | 13.5% | ||
| ROCE | 13.78% | ||
| ROIC | 10.13% | ||
| ROICexc | 10.89% | ||
| ROICexgc | 31.79% | ||
| OM | 17.12% | ||
| PM (TTM) | 11.12% | ||
| GM | 44.13% | ||
| FCFM | 13.29% |
ROA(3y)9.27%
ROA(5y)7.86%
ROE(3y)16.13%
ROE(5y)14.35%
ROIC(3y)11.53%
ROIC(5y)10.18%
ROICexc(3y)12.78%
ROICexc(5y)11.22%
ROICexgc(3y)39.35%
ROICexgc(5y)35.6%
ROCE(3y)15.69%
ROCE(5y)13.85%
ROICexcg growth 3Y11.94%
ROICexcg growth 5Y1.62%
ROICexc growth 3Y19.08%
ROICexc growth 5Y3.39%
OM growth 3Y9.59%
OM growth 5Y3.94%
PM growth 3Y11.72%
PM growth 5Y4.93%
GM growth 3Y-0.15%
GM growth 5Y-0.2%
F-Score5
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 2.38 | ||
| Debt/EBITDA | 1.46 | ||
| Cap/Depr | 56.08% | ||
| Cap/Sales | 2.44% | ||
| Interest Coverage | 10.53 | ||
| Cash Conversion | 73.29% | ||
| Profit Quality | 119.55% | ||
| Current Ratio | 2.29 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z | 6.16 |
F-Score5
WACC9.86%
ROIC/WACC1.03
Cap/Depr(3y)71.26%
Cap/Depr(5y)53.78%
Cap/Sales(3y)2.69%
Cap/Sales(5y)2.14%
Profit Quality(3y)118.27%
Profit Quality(5y)135.42%
High Growth Momentum
Growth
EPS 1Y (TTM)4.65%
EPS 3Y25.57%
EPS 5Y13.18%
EPS Q2Q%7.98%
EPS Next Y3.07%
EPS Next 2Y3.87%
EPS Next 3Y8.05%
EPS Next 5YN/A
Revenue 1Y (TTM)8.71%
Revenue growth 3Y14.68%
Revenue growth 5Y8.61%
Sales Q2Q%11.23%
Revenue Next Year11.14%
Revenue Next 2Y7.29%
Revenue Next 3Y6.95%
Revenue Next 5YN/A
EBIT growth 1Y5.04%
EBIT growth 3Y25.67%
EBIT growth 5Y12.89%
EBIT Next Year40.09%
EBIT Next 3Y17.71%
EBIT Next 5YN/A
FCF growth 1Y28.21%
FCF growth 3Y16.16%
FCF growth 5Y23.57%
OCF growth 1Y26.55%
OCF growth 3Y21.24%
OCF growth 5Y21.32%