KADANT INC (KAI) Stock Fundamental Analysis
NYSE:KAI - New York Stock Exchange, Inc. - US48282T1043 - Common Stock - Currency: USD
Overall KAI gets a fundamental rating of 5 out of 10. We evaluated KAI against 128 industry peers in the Machinery industry. KAI has an excellent profitability rating, but there are some minor concerns on its financial health. KAI is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
KAI had positive earnings in the past year.
KAI had a positive operating cash flow in the past year.
KAI had positive earnings in each of the past 5 years.
Each year in the past 5 years KAI had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 7.73%, KAI is doing good in the industry, outperforming 69.53% of the companies in the same industry.
Looking at the Return On Equity, with a value of 12.67%, KAI is in the better half of the industry, outperforming 63.28% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.11%, KAI is in the better half of the industry, outperforming 69.53% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for KAI is in line with the industry average of 10.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.73% | ||
| ROE | 12.67% | ||
| ROIC | 10.11% |
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
With a decent Profit Margin value of 10.63%, KAI is doing good in the industry, outperforming 72.66% of the companies in the same industry.
In the last couple of years the Profit Margin of KAI has grown nicely.
Looking at the Operating Margin, with a value of 16.54%, KAI is in the better half of the industry, outperforming 77.34% of the companies in the same industry.
KAI's Operating Margin has improved in the last couple of years.
KAI has a better Gross Margin (44.61%) than 83.59% 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 | 16.54% | ||
| PM (TTM) | 10.63% | ||
| GM | 44.61% |
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.
Compared to 5 years ago, KAI has more shares outstanding
KAI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.49 indicates that KAI is not in any danger for bankruptcy at the moment.
The Altman-Z score of KAI (6.49) is better than 83.59% of its industry peers.
KAI has a debt to FCF ratio of 2.03. This is a good value and a sign of high solvency as KAI would need 2.03 years to pay back of all of its debts.
KAI has a better Debt to FCF ratio (2.03) than 76.56% of its industry peers.
KAI has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
KAI has a better Debt to Equity ratio (0.31) than 61.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2.03 | ||
| Altman-Z | 6.49 |
ROIC/WACC1.01
WACC9.99%
2.3 Liquidity
A Current Ratio of 2.47 indicates that KAI has no problem at all paying its short term obligations.
KAI's Current ratio of 2.47 is fine compared to the rest of the industry. KAI outperforms 65.63% of its industry peers.
A Quick Ratio of 1.62 indicates that KAI should not have too much problems paying its short term obligations.
KAI has a Quick ratio of 1.62. This is in the better half of the industry: KAI outperforms 67.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
KAI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.21%.
The Earnings Per Share has been growing by 13.78% on average over the past years. This is quite good.
The Revenue has been growing slightly by 6.82% in the past year.
Measured over the past years, KAI shows a quite strong growth in Revenue. The Revenue has been growing by 8.37% on average per year.
EPS 1Y (TTM)1.21%
EPS 3Y10.02%
EPS 5Y13.78%
EPS Q2Q%-11.76%
Revenue 1Y (TTM)6.82%
Revenue growth 3Y10.22%
Revenue growth 5Y8.37%
Sales Q2Q%-3.92%
3.2 Future
The Earnings Per Share is expected to grow by 1.30% on average over the next years.
Based on estimates for the next years, KAI will show a small growth in Revenue. The Revenue will grow by 1.12% on average per year.
EPS Next Y-8.38%
EPS Next 2Y1.3%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.16%
Revenue Next 2Y1.12%
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
With a Price/Earnings ratio of 33.24, KAI can be considered very expensive at the moment.
64.06% of the companies in the same industry are cheaper than KAI, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.30. KAI is valued slightly more expensive when compared to this.
KAI is valuated quite expensively with a Price/Forward Earnings ratio of 31.51.
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 66.41% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, KAI is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.24 | ||
| Fwd PE | 31.51 |
4.2 Price Multiples
60.94% of the companies in the same industry are cheaper than KAI, based on the Enterprise Value to EBITDA ratio.
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 | 28.64 | ||
| EV/EBITDA | 18.77 |
4.3 Compensation for Growth
The decent profitability rating of KAI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.41
EPS Next 2Y1.3%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.41%, KAI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.81, KAI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, KAI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
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
KAI pays out 13.55% 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.
DP13.55%
EPS Next 2Y1.3%
EPS Next 3YN/A
332.37
-6.7 (-1.98%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners122.44%
Inst Owner Change0%
Ins Owners1%
Ins Owner Change1.84%
Market Cap3.92B
Analysts80
Price Target334.05 (0.51%)
Short Float %15.15%
Short Ratio12.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
Yearly Dividend1.25
Dividend Growth(5Y)8.77%
DP13.55%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.45%
Min EPS beat(2)5.77%
Max EPS beat(2)7.13%
EPS beat(4)4
Avg EPS beat(4)10.76%
Min EPS beat(4)5.77%
Max EPS beat(4)15.76%
EPS beat(8)8
Avg EPS beat(8)13.48%
EPS beat(12)12
Avg EPS beat(12)12.44%
EPS beat(16)16
Avg EPS beat(16)13.75%
Revenue beat(2)0
Avg Revenue beat(2)-1%
Min Revenue beat(2)-1.08%
Max Revenue beat(2)-0.92%
Revenue beat(4)2
Avg Revenue beat(4)0.55%
Min Revenue beat(4)-1.08%
Max Revenue beat(4)3.28%
Revenue beat(8)6
Avg Revenue beat(8)1.78%
Revenue beat(12)9
Avg Revenue beat(12)1.88%
Revenue beat(16)12
Avg Revenue beat(16)2.2%
PT rev (1m)0%
PT rev (3m)-7.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20.18%
EPS NY rev (1m)-2.15%
EPS NY rev (3m)-6.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.89%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.24 | ||
| Fwd PE | 31.51 | ||
| P/S | 3.75 | ||
| P/FCF | 28.64 | ||
| P/OCF | 25.22 | ||
| P/B | 4.47 | ||
| P/tB | 33.56 | ||
| EV/EBITDA | 18.77 |
EPS(TTM)10
EY3.01%
EPS(NY)10.55
Fwd EY3.17%
FCF(TTM)11.6
FCFY3.49%
OCF(TTM)13.18
OCFY3.97%
SpS88.59
BVpS74.36
TBVpS9.9
PEG (NY)N/A
PEG (5Y)2.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.73% | ||
| ROE | 12.67% | ||
| ROCE | 13.76% | ||
| ROIC | 10.11% | ||
| ROICexc | 10.93% | ||
| ROICexgc | 31.59% | ||
| OM | 16.54% | ||
| PM (TTM) | 10.63% | ||
| GM | 44.61% | ||
| FCFM | 13.1% |
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-Score7
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2.03 | ||
| Debt/EBITDA | 1.23 | ||
| Cap/Depr | 37.24% | ||
| Cap/Sales | 1.78% | ||
| Interest Coverage | 9.15 | ||
| Cash Conversion | 69.78% | ||
| Profit Quality | 123.18% | ||
| Current Ratio | 2.47 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z | 6.49 |
F-Score7
WACC9.99%
ROIC/WACC1.01
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)1.21%
EPS 3Y10.02%
EPS 5Y13.78%
EPS Q2Q%-11.76%
EPS Next Y-8.38%
EPS Next 2Y1.3%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.82%
Revenue growth 3Y10.22%
Revenue growth 5Y8.37%
Sales Q2Q%-3.92%
Revenue Next Year-2.16%
Revenue Next 2Y1.12%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y4.07%
EBIT growth 3Y13.1%
EBIT growth 5Y13.89%
EBIT Next Year14.21%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y59.14%
FCF growth 3Y-3.54%
FCF growth 5Y8.97%
OCF growth 1Y34.2%
OCF growth 3Y-1.49%
OCF growth 5Y9.77%