KADANT INC (KAI) Stock Fundamental Analysis
USA - NYSE:KAI - US48282T1043 - Common Stock
269.06 USD
+0.89 (+0.33%)
272 USD
+2.94 (+1.09%)
We assign a fundamental rating of 5 out of 10 to KAI. KAI was compared to 130 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 valued expensive and it does not seem to be growing.
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.
In the past 5 years KAI has always been profitable.
In the past 5 years KAI always reported a positive cash flow from operatings.
1.2 Ratios
KAI has a better Return On Assets (7.13%) than 70.00% of its industry peers.
KAI's Return On Equity of 11.43% is fine compared to the rest of the industry. KAI outperforms 64.62% of its industry peers.
The Return On Invested Capital of KAI (9.36%) is better than 66.15% of its industry peers.
KAI had an Average Return On Invested Capital over the past 3 years of 11.74%. This is in line with the industry average of 10.25%.
| 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.
KAI's Profit Margin has improved in the last couple of years.
KAI has a Operating Margin of 15.97%. This is in the better half of the industry: KAI outperforms 74.62% of its industry peers.
In the last couple of years the Operating Margin of KAI has grown nicely.
KAI's Gross Margin of 44.98% is amongst the best of the industry. KAI outperforms 84.62% of its industry peers.
KAI's Gross Margin has been stable in the last couple of years.
| 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
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.
KAI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, KAI has a worse debt to assets ratio.
2.2 Solvency
KAI has an Altman-Z score of 5.53. This indicates that KAI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of KAI (5.53) is better than 81.54% of its industry peers.
KAI has a debt to FCF ratio of 1.66. This is a very positive value and a sign of high solvency as it would only need 1.66 years to pay back of all of its debts.
KAI's Debt to FCF ratio of 1.66 is amongst the best of the industry. KAI outperforms 81.54% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that KAI is not too dependend on debt financing.
KAI has a Debt to Equity ratio of 0.27. This is in the better half of the industry: KAI outperforms 66.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.66 | ||
| Altman-Z | 5.53 |
ROIC/WACC0.97
WACC9.64%
2.3 Liquidity
A Current Ratio of 2.38 indicates that KAI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.38, KAI is in line with its industry, outperforming 59.23% of the companies in the same industry.
A Quick Ratio of 1.53 indicates that KAI should not have too much problems paying its short term obligations.
KAI has a better Quick ratio (1.53) than 64.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.38 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
KAI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.71%.
The Earnings Per Share has been growing by 13.78% on average over the past years. This is quite good.
The Revenue has decreased by -0.96% in the past year.
The Revenue has been growing by 8.37% on average over the past years. This is quite good.
EPS 1Y (TTM)-10.71%
EPS 3Y10.02%
EPS 5Y13.78%
EPS Q2Q%-8.8%
Revenue 1Y (TTM)-0.96%
Revenue growth 3Y10.22%
Revenue growth 5Y8.37%
Sales Q2Q%-0.02%
3.2 Future
The Earnings Per Share is expected to grow by 3.02% 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 4.76% on average per year.
EPS Next Y-9.68%
EPS Next 2Y0.79%
EPS Next 3Y3.02%
EPS Next 5YN/A
Revenue Next Year-1.32%
Revenue Next 2Y3.69%
Revenue Next 3Y4.76%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 29.09 indicates a quite expensive valuation of KAI.
KAI's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.06. KAI is around the same levels.
A Price/Forward Earnings ratio of 25.76 indicates a quite expensive valuation of KAI.
Based on the Price/Forward Earnings ratio, KAI is valued a bit more expensive than the industry average as 60.77% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of KAI to the average of the S&P500 Index (32.73), we can say KAI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.09 | ||
| Fwd PE | 25.76 |
4.2 Price Multiples
KAI's Enterprise Value to EBITDA ratio is in line with the industry average.
KAI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. KAI is cheaper than 65.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.11 | ||
| EV/EBITDA | 15.55 |
4.3 Compensation for Growth
The decent profitability rating of KAI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.11
EPS Next 2Y0.79%
EPS Next 3Y3.02%
5. Dividend
5.1 Amount
With a yearly dividend of 0.51%, KAI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.85, KAI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, KAI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
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 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.
The dividend of KAI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP14.44%
EPS Next 2Y0.79%
EPS Next 3Y3.02%
269.06
+0.89 (+0.33%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners120.23%
Inst Owner Change-1.21%
Ins Owners0.98%
Ins Owner Change-0.22%
Market Cap3.17B
Revenue(TTM)1.02B
Net Income(TTM)105.84M
Analysts80
Price Target346.8 (28.89%)
Short Float %11.73%
Short Ratio11.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
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)0%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)-14.74%
EPS NY rev (1m)1.11%
EPS NY rev (3m)-1.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.03%
Revenue NY rev (1m)0.96%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.09 | ||
| Fwd PE | 25.76 | ||
| P/S | 3.09 | ||
| P/FCF | 21.11 | ||
| P/OCF | 18.9 | ||
| P/B | 3.42 | ||
| P/tB | 20.42 | ||
| EV/EBITDA | 15.55 |
EPS(TTM)9.25
EY3.44%
EPS(NY)10.44
Fwd EY3.88%
FCF(TTM)12.74
FCFY4.74%
OCF(TTM)14.23
OCFY5.29%
SpS86.94
BVpS78.61
TBVpS13.18
PEG (NY)N/A
PEG (5Y)2.11
Graham Number127.91
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 | 5.53 |
F-Score6
WACC9.64%
ROIC/WACC0.97
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)-10.71%
EPS 3Y10.02%
EPS 5Y13.78%
EPS Q2Q%-8.8%
EPS Next Y-9.68%
EPS Next 2Y0.79%
EPS Next 3Y3.02%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.96%
Revenue growth 3Y10.22%
Revenue growth 5Y8.37%
Sales Q2Q%-0.02%
Revenue Next Year-1.32%
Revenue Next 2Y3.69%
Revenue Next 3Y4.76%
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 5 / 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 29.09 and the Price/Book (PB) ratio is 3.42.
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 -9.68% in the next year.