KADANT INC (KAI) Stock Fundamental Analysis
USA - NYSE:KAI - US48282T1043 - Common Stock
310.413 USD
+1.37 (+0.44%)
KAI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. Both the health and profitability get an excellent rating, making KAI a very profitable company, without any liquidiy or solvency issues. 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.
KAI had positive earnings in each of the past 5 years.
In the past 5 years KAI always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 7.13%, 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 11.43%, KAI is in the better half of the industry, outperforming 63.28% of the companies in the same industry.
KAI has a better Return On Invested Capital (9.36%) than 64.84% 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 10.02%.
| 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
The Profit Margin of KAI (10.33%) is better than 72.66% of its industry peers.
KAI's Profit Margin has improved in the last couple of years.
The Operating Margin of KAI (15.97%) is better than 76.56% of its industry peers.
In the last couple of years the Operating Margin of KAI has grown nicely.
KAI has a Gross Margin of 44.98%. This is amongst the best in the industry. KAI outperforms 85.16% 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.
Compared to 1 year ago, KAI has more shares outstanding
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
KAI has an Altman-Z score of 6.04. This indicates that KAI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of KAI (6.04) is better than 85.94% 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.
Looking at the Debt to FCF ratio, with a value of 1.66, KAI is in the better half of the industry, outperforming 79.69% of the companies in the same industry.
KAI has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
KAI has a better Debt to Equity ratio (0.27) than 67.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.66 | ||
| Altman-Z | 6.04 |
ROIC/WACC0.93
WACC10.01%
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's Current ratio of 2.38 is fine compared to the rest of the industry. KAI outperforms 60.94% of 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.
The Quick ratio of KAI (1.53) is better than 67.97% of its industry peers.
| 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.
KAI shows a small growth in Revenue. In the last year, the Revenue has grown by 1.74%.
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)-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
The Earnings Per Share is expected to grow by 2.05% on average over the next years.
KAI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.35% yearly.
EPS Next Y-8.19%
EPS Next 2Y2.05%
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
A Price/Earnings ratio of 32.68 indicates a quite expensive valuation of KAI.
KAI's Price/Earnings ratio is a bit more expensive when compared to the industry. KAI is more expensive than 64.06% of the companies in the same industry.
KAI's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.20.
KAI is valuated quite expensively with a Price/Forward Earnings ratio of 28.99.
KAI's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. KAI is more expensive than 65.63% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, KAI is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.68 | ||
| Fwd PE | 28.99 |
4.2 Price Multiples
KAI's Enterprise Value to EBITDA is on the same level as the industry average.
KAI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.36 | ||
| EV/EBITDA | 17.76 |
4.3 Compensation for Growth
The decent profitability rating of KAI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.37
EPS Next 2Y2.05%
EPS Next 3YN/A
5. Dividend
5.1 Amount
KAI has a yearly dividend return of 0.42%, which is pretty low.
Compared to an average industry Dividend Yield of 1.74, KAI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, KAI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
5.2 History
On average, the dividend of KAI grows each year by 8.77%, 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 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 2Y2.05%
EPS Next 3YN/A
NYSE:KAI (9/17/2025, 11:06:45 AM)
310.413
+1.37 (+0.44%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners122.54%
Inst Owner Change-4.62%
Ins Owners0.99%
Ins Owner Change-0.56%
Market Cap3.66B
Analysts80
Price Target346.8 (11.72%)
Short Float %13.04%
Short Ratio14.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
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)-13.41%
EPS NQ rev (3m)-20.31%
EPS NY rev (1m)0.21%
EPS NY rev (3m)-1.94%
Revenue NQ rev (1m)-1.91%
Revenue NQ rev (3m)-4.26%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.68 | ||
| Fwd PE | 28.99 | ||
| P/S | 3.57 | ||
| P/FCF | 24.36 | ||
| P/OCF | 21.81 | ||
| P/B | 3.95 | ||
| P/tB | 23.56 | ||
| EV/EBITDA | 17.76 |
EPS(TTM)9.5
EY3.06%
EPS(NY)10.71
Fwd EY3.45%
FCF(TTM)12.74
FCFY4.11%
OCF(TTM)14.23
OCFY4.59%
SpS86.94
BVpS78.61
TBVpS13.18
PEG (NY)N/A
PEG (5Y)2.37
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%
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-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 | 6.04 |
F-Score6
WACC10.01%
ROIC/WACC0.93
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-8.19%
EPS Next 2Y2.05%
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%