KADANT INC (KAI) Stock Fundamental Analysis
USA - NYSE:KAI - US48282T1043 - Common Stock
292.88 USD
-0.67 (-0.23%)
292.88 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to KAI. KAI was compared to 130 industry peers in the Machinery industry. KAI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
In the past year KAI had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 7.13%, KAI is in the better half of the industry, outperforming 70.77% of the companies in the same industry.
KAI's Return On Equity of 11.43% is fine compared to the rest of the industry. KAI outperforms 63.85% of its industry peers.
KAI has a better Return On Invested Capital (9.36%) than 66.92% 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 10.00%.
| 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 73.08% of its industry peers.
In the last couple of years the Profit Margin of KAI has grown nicely.
KAI has a Operating Margin of 15.97%. This is in the better half of the industry: KAI outperforms 76.15% of its industry peers.
KAI's Operating Margin has improved in the last couple of years.
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.
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
KAI has an Altman-Z score of 5.83. This indicates that KAI is financially healthy and has little risk of bankruptcy at the moment.
KAI has a Altman-Z score of 5.83. This is amongst the best in the industry. KAI outperforms 83.08% of its industry peers.
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.
KAI has a better Debt to FCF ratio (1.66) than 80.77% of its industry peers.
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 66.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.66 | ||
| Altman-Z | 5.83 |
ROIC/WACC0.99
WACC9.48%
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 Current ratio (2.38) which is in line with 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.
With a decent Quick ratio value of 1.53, KAI is doing good in the industry, outperforming 66.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.38 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
KAI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.40%.
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 small growth in Revenue. The Revenue has grown by 1.74% 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)-6.4%
EPS 3Y10.02%
EPS 5Y13.78%
EPS Q2Q%-17.79%
Revenue 1Y (TTM)1.74%
Revenue growth 3Y10.22%
Revenue growth 5Y8.37%
Sales Q2Q%-7.1%
3.2 Future
KAI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.99% yearly.
Based on estimates for the next years, KAI will show a small growth in Revenue. The Revenue will grow by 1.35% on average per year.
EPS Next Y-10.67%
EPS Next 2Y0.99%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.26%
Revenue Next 2Y1.35%
Revenue Next 3YN/A
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.
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 30.83, which means the current valuation is very expensive for KAI.
KAI's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.83, KAI is valued at the same level.
The Price/Forward Earnings ratio is 27.94, which means the current valuation is very expensive for 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 63.08% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of KAI to the average of the S&P500 Index (22.82), we can say KAI is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.83 | ||
| Fwd PE | 27.94 |
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.
Based on the Price/Free Cash Flow ratio, KAI is valued a bit cheaper than 63.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.98 | ||
| EV/EBITDA | 16.87 |
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 2Y0.99%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.46%, KAI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.80, KAI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, KAI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
5.2 History
The dividend of KAI is nicely growing with an annual growth rate of 8.77%!
KAI has paid a dividend for at least 10 years, which is 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.
KAI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP14.44%
EPS Next 2Y0.99%
EPS Next 3YN/A
292.88
-0.67 (-0.23%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners120.23%
Inst Owner Change-0.01%
Ins Owners0.98%
Ins Owner Change-0.22%
Market Cap3.45B
Revenue(TTM)1.02B
Net Income(TTM)105.84M
Analysts80
Price Target346.8 (18.41%)
Short Float %12.63%
Short Ratio13.19
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)3.82%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)-20.27%
EPS NY rev (1m)-2.7%
EPS NY rev (3m)-2.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.83 | ||
| Fwd PE | 27.94 | ||
| P/S | 3.37 | ||
| P/FCF | 22.98 | ||
| P/OCF | 20.58 | ||
| P/B | 3.73 | ||
| P/tB | 22.23 | ||
| EV/EBITDA | 16.87 |
EPS(TTM)9.5
EY3.24%
EPS(NY)10.48
Fwd EY3.58%
FCF(TTM)12.74
FCFY4.35%
OCF(TTM)14.23
OCFY4.86%
SpS86.94
BVpS78.61
TBVpS13.18
PEG (NY)N/A
PEG (5Y)2.24
Graham Number129.63
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 | 5.83 |
F-Score6
WACC9.48%
ROIC/WACC0.99
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)-6.4%
EPS 3Y10.02%
EPS 5Y13.78%
EPS Q2Q%-17.79%
EPS Next Y-10.67%
EPS Next 2Y0.99%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.74%
Revenue growth 3Y10.22%
Revenue growth 5Y8.37%
Sales Q2Q%-7.1%
Revenue Next Year-2.26%
Revenue Next 2Y1.35%
Revenue Next 3YN/A
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 6 / 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 30.83 and the Price/Book (PB) ratio is 3.73.
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 -10.67% in the next year.