KADANT INC (KAI)
US48282T1043 - Common Stock
KAI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 131 industry peers in the Machinery industry. While KAI has a great profitability rating, there are some minor concerns on its financial health. KAI is valied quite expensively at the moment, while it does show a decent growth rate.
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.
Each year in the past 5 years KAI had a positive operating cash flow.
1.2 Ratios
KAI's Return On Assets of 7.85% is fine compared to the rest of the industry. KAI outperforms 73.23% of its industry peers.
With a decent Return On Equity value of 14.15%, KAI is doing good in the industry, outperforming 68.50% of the companies in the same industry.
With a decent Return On Invested Capital value of 10.08%, KAI is doing good in the industry, outperforming 69.29% 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 11.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.85% | ||
| ROE | 14.15% | ||
| ROIC | 10.08% |
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
The Profit Margin of KAI (11.35%) is better than 77.95% of its industry peers.
KAI's Profit Margin has improved in the last couple of years.
KAI has a better Operating Margin (17.09%) than 81.89% of its industry peers.
In the last couple of years the Operating Margin of KAI has grown nicely.
KAI has a Gross Margin of 43.76%. This is amongst the best in the industry. KAI outperforms 82.68% 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 | 17.09% | ||
| PM (TTM) | 11.35% | ||
| GM | 43.76% |
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
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 remains at a similar level compared to 1 year ago.
Compared to 5 years ago, KAI has more shares outstanding
The debt/assets ratio for KAI has been reduced compared to a year ago.
2.2 Solvency
KAI has an Altman-Z score of 6.34. This indicates that KAI is financially healthy and has little risk of bankruptcy at the moment.
KAI has a Altman-Z score of 6.34. This is amongst the best in the industry. KAI outperforms 82.68% of its industry peers.
The Debt to FCF ratio of KAI is 2.71, which is a good value as it means it would take KAI, 2.71 years of fcf income to pay off all of its debts.
KAI's Debt to FCF ratio of 2.71 is fine compared to the rest of the industry. KAI outperforms 74.02% of its industry peers.
KAI has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
KAI's Debt to Equity ratio of 0.42 is in line compared to the rest of the industry. KAI outperforms 53.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.71 | ||
| Altman-Z | 6.34 |
ROIC/WACC1.1
WACC9.13%
2.3 Liquidity
A Current Ratio of 2.25 indicates that KAI has no problem at all paying its short term obligations.
With a Current ratio value of 2.25, KAI perfoms like the industry average, outperforming 55.12% of the companies in the same industry.
KAI has a Quick Ratio of 1.40. 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 1.40. This is comparable to the rest of the industry: KAI outperforms 59.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.65% over the past year.
KAI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.18% yearly.
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
Based on estimates for the next years, KAI will show a small growth in Earnings Per Share. The EPS will grow by 6.47% on average per year.
KAI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.64% yearly.
EPS Next Y3.1%
EPS Next 2Y3.88%
EPS Next 3Y6.47%
EPS Next 5YN/A
Revenue Next Year11.25%
Revenue Next 2Y7.29%
Revenue Next 3Y6.64%
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
With a Price/Earnings ratio of 39.42, KAI can be considered very expensive at the moment.
69.29% of the companies in the same industry are cheaper than KAI, based on the Price/Earnings ratio.
KAI's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.96.
A Price/Forward Earnings ratio of 38.23 indicates a quite expensive valuation of KAI.
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 66.14% of the companies listed in the same industry.
KAI's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.42 | ||
| Fwd PE | 38.23 |
4.2 Price Multiples
KAI's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. KAI is more expensive than 65.35% of the companies in the same industry.
KAI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.71 | ||
| EV/EBITDA | 23 |
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)12.71
PEG (5Y)2.99
EPS Next 2Y3.88%
EPS Next 3Y6.47%
5. Dividend
5.1 Amount
With a yearly dividend of 0.33%, KAI is not a good candidate for dividend investing.
KAI's Dividend Yield is comparable with the industry average which is at 1.54.
With a Dividend Yield of 0.33, KAI pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
5.2 History
The dividend of KAI is nicely growing with an annual growth rate of 11.23%!
KAI has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)11.23%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
12.23% 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.
DP12.23%
EPS Next 2Y3.88%
EPS Next 3Y6.47%
KADANT INC
NYSE:KAI (11/21/2024, 8:04:00 PM)
After market: 408.42 0 (0%)408.42
+15.73 (+4.01%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.80B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.42 | ||
| Fwd PE | 38.23 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)12.71
PEG (5Y)2.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.85% | ||
| ROE | 14.15% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.09% | ||
| PM (TTM) | 11.35% | ||
| GM | 43.76% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)4.65%
EPS 3Y25.57%
EPS 5Y
EPS Q2Q%
EPS Next Y3.1%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.71%
Revenue growth 3Y14.68%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y