KADANT INC (KAI) Stock Fundamental Analysis
NYSE:KAI - New York Stock Exchange, Inc. - US48282T1043 - Common Stock - Currency: USD
KAI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. While KAI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, KAI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year KAI was profitable.
KAI had a positive operating cash flow in the past year.
KAI had positive earnings in each of the past 5 years.
KAI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KAI's Return On Assets of 7.80% is fine compared to the rest of the industry. KAI outperforms 70.31% of its industry peers.
KAI has a Return On Equity of 13.17%. This is in the better half of the industry: KAI outperforms 62.50% of its industry peers.
The Return On Invested Capital of KAI (10.37%) is better than 69.53% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KAI is in line with the industry average of 10.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.8% | ||
| ROE | 13.17% | ||
| ROIC | 10.37% |
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 better Profit Margin (10.59%) than 71.88% of its industry peers.
KAI's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 16.59%, KAI is doing good in the industry, outperforming 78.13% of the companies in the same industry.
In the last couple of years the Operating Margin of KAI has grown nicely.
KAI's Gross Margin of 44.25% is amongst the best of the industry. KAI outperforms 82.03% of its industry peers.
KAI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.59% | ||
| PM (TTM) | 10.59% | ||
| GM | 44.25% |
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.
KAI has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, KAI has more shares outstanding
The debt/assets ratio for KAI is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.76 indicates that KAI is not in any danger for bankruptcy at the moment.
KAI has a better Altman-Z score (5.76) than 85.16% of its industry peers.
KAI has a debt to FCF ratio of 2.15. This is a good value and a sign of high solvency as KAI would need 2.15 years to pay back of all of its debts.
KAI's Debt to FCF ratio of 2.15 is fine compared to the rest of the industry. KAI outperforms 77.34% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that KAI is not too dependend on debt financing.
KAI has a Debt to Equity ratio of 0.34. This is comparable to the rest of the industry: KAI outperforms 59.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.15 | ||
| Altman-Z | 5.76 |
ROIC/WACC1.03
WACC10.11%
2.3 Liquidity
A Current Ratio of 2.31 indicates that KAI has no problem at all paying its short term obligations.
The Current ratio of KAI (2.31) is comparable to the rest of the industry.
KAI has a Quick Ratio of 1.55. This is a normal value and indicates that KAI is financially healthy and should not expect problems in meeting its short term obligations.
KAI has a Quick ratio of 1.55. This is in the better half of the industry: KAI outperforms 63.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.31 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.84% over the past 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 quite strong growth in Revenue. The Revenue has grown by 9.98% 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)3.84%
EPS 3Y10.02%
EPS 5Y13.78%
EPS Q2Q%-3.43%
Revenue 1Y (TTM)9.98%
Revenue growth 3Y10.22%
Revenue growth 5Y8.37%
Sales Q2Q%8.11%
3.2 Future
The Earnings Per Share is expected to grow by 4.70% on average over the next years.
The Revenue is expected to grow by 2.19% on average over the next years.
EPS Next Y-2.35%
EPS Next 2Y4.7%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.09%
Revenue Next 2Y2.19%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 29.89, which means the current valuation is very expensive for KAI.
KAI's Price/Earnings ratio is a bit more expensive when compared to the industry. KAI is more expensive than 67.97% of the companies in the same industry.
KAI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.33, which is the current average of the S&P500 Index.
KAI is valuated quite expensively with a Price/Forward Earnings ratio of 30.61.
63.28% of the companies in the same industry are cheaper than KAI, based on the Price/Forward Earnings ratio.
KAI's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.89 | ||
| Fwd PE | 30.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KAI is valued a bit more expensive than 60.94% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as KAI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.96 | ||
| EV/EBITDA | 16.32 |
4.3 Compensation for Growth
The decent profitability rating of KAI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.17
EPS Next 2Y4.7%
EPS Next 3YN/A
5. Dividend
5.1 Amount
KAI has a yearly dividend return of 0.45%, which is pretty low.
The stock price of KAI dropped by -22.04% 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 2.12.
With a Dividend Yield of 0.45, KAI pays less dividend than the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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.
KAI has decreased its dividend recently.
Dividend Growth(5Y)8.77%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
13.15% of the earnings are spent on dividend by KAI. This is a low number and sustainable payout ratio.
KAI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP13.15%
EPS Next 2Y4.7%
EPS Next 3YN/A
NYSE:KAI (4/23/2025, 9:40:45 AM)
307.27
+12.69 (+4.31%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners113.29%
Inst Owner Change1.45%
Ins Owners0.95%
Ins Owner Change1.28%
Market Cap3.62B
Analysts80
Price Target362.1 (17.84%)
Short Float %13.37%
Short Ratio8.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
Yearly Dividend1.25
Dividend Growth(5Y)8.77%
DP13.15%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.45%
Min EPS beat(2)7.13%
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)13.8%
EPS beat(12)12
Avg EPS beat(12)12.6%
EPS beat(16)16
Avg EPS beat(16)13.62%
Revenue beat(2)1
Avg Revenue beat(2)0%
Min Revenue beat(2)-0.92%
Max Revenue beat(2)0.93%
Revenue beat(4)3
Avg Revenue beat(4)0.86%
Min Revenue beat(4)-0.92%
Max Revenue beat(4)3.28%
Revenue beat(8)7
Avg Revenue beat(8)2.24%
Revenue beat(12)10
Avg Revenue beat(12)2.32%
Revenue beat(16)13
Avg Revenue beat(16)2.3%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.99%
EPS NY rev (1m)-2.31%
EPS NY rev (3m)-6.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.56%
Revenue NY rev (1m)-1.39%
Revenue NY rev (3m)-3.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.89 | ||
| Fwd PE | 30.61 | ||
| P/S | 3.44 | ||
| P/FCF | 26.96 | ||
| P/OCF | 23.31 | ||
| P/B | 4.27 | ||
| P/tB | 40.92 | ||
| EV/EBITDA | 16.32 |
EPS(TTM)10.28
EY3.35%
EPS(NY)10.04
Fwd EY3.27%
FCF(TTM)11.4
FCFY3.71%
OCF(TTM)13.18
OCFY4.29%
SpS89.42
BVpS71.91
TBVpS7.51
PEG (NY)N/A
PEG (5Y)2.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.8% | ||
| ROE | 13.17% | ||
| ROCE | 14.11% | ||
| ROIC | 10.37% | ||
| ROICexc | 11.24% | ||
| ROICexgc | 33.44% | ||
| OM | 16.59% | ||
| PM (TTM) | 10.59% | ||
| GM | 44.25% | ||
| FCFM | 12.75% |
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%
ROICexcg growth 3Y-5.61%
ROICexcg 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-Score5
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.15 | ||
| Debt/EBITDA | 1.27 | ||
| Cap/Depr | 42.36% | ||
| Cap/Sales | 1.99% | ||
| Interest Coverage | 8.87 | ||
| Cash Conversion | 69.2% | ||
| Profit Quality | 120.31% | ||
| Current Ratio | 2.31 | ||
| Quick Ratio | 1.55 | ||
| Altman-Z | 5.76 |
F-Score5
WACC10.11%
ROIC/WACC1.03
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)3.84%
EPS 3Y10.02%
EPS 5Y13.78%
EPS Q2Q%-3.43%
EPS Next Y-2.35%
EPS Next 2Y4.7%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)9.98%
Revenue growth 3Y10.22%
Revenue growth 5Y8.37%
Sales Q2Q%8.11%
Revenue Next Year-0.09%
Revenue Next 2Y2.19%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y4.07%
EBIT growth 3Y13.1%
EBIT growth 5Y13.89%
EBIT Next Year23.87%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y0.42%
FCF growth 3Y-3.54%
FCF growth 5Y8.97%
OCF growth 1Y-6.21%
OCF growth 3Y-1.49%
OCF growth 5Y9.77%