KADANT INC (KAI)
US48282T1043 - Common Stock
Taking everything into account, KAI scores 6 out of 10 in our fundamental rating. KAI was compared to 132 industry peers in the Machinery industry. KAI gets an excellent profitability rating and is at the same time showing great financial health properties. KAI is valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, KAI could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year KAI was profitable.
KAI had a positive operating cash flow in the past year.
In the past 5 years KAI has always 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 7.72% is fine compared to the rest of the industry. KAI outperforms 73.08% of its industry peers.
Looking at the Return On Equity, with a value of 13.50%, KAI is in the better half of the industry, outperforming 67.69% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.13%, KAI is in the better half of the industry, outperforming 70.77% of the companies in the same industry.
KAI had an Average Return On Invested Capital over the past 3 years of 11.53%. This is in line with the industry average of 10.90%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.72% | ||
| ROE | 13.5% | ||
| ROIC | 10.13% |
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 (11.12%) is better than 77.69% of its industry peers.
In the last couple of years the Profit Margin of KAI has grown nicely.
KAI's Operating Margin of 17.12% is amongst the best of the industry. KAI outperforms 81.54% of its industry peers.
KAI's Operating Margin has improved in the last couple of years.
KAI's Gross Margin of 44.13% is amongst the best of the industry. KAI outperforms 83.08% 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 | 17.12% | ||
| PM (TTM) | 11.12% | ||
| GM | 44.13% |
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
KAI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, KAI has about the same amount of shares outstanding.
The number of shares outstanding for KAI has been increased compared to 5 years ago.
KAI has a better debt/assets ratio than last year.
2.2 Solvency
KAI has an Altman-Z score of 5.93. This indicates that KAI is financially healthy and has little risk of bankruptcy at the moment.
KAI has a Altman-Z score of 5.93. This is amongst the best in the industry. KAI outperforms 81.54% of its industry peers.
KAI has a debt to FCF ratio of 2.38. This is a good value and a sign of high solvency as KAI would need 2.38 years to pay back of all of its debts.
KAI's Debt to FCF ratio of 2.38 is fine compared to the rest of the industry. KAI outperforms 77.69% of its industry peers.
A Debt/Equity ratio of 0.38 indicates that KAI is not too dependend on debt financing.
KAI has a Debt to Equity ratio of 0.38. This is comparable to the rest of the industry: KAI outperforms 54.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 2.38 | ||
| Altman-Z | 5.93 |
ROIC/WACC1.12
WACC9.03%
2.3 Liquidity
A Current Ratio of 2.29 indicates that KAI has no problem at all paying its short term obligations.
KAI has a Current ratio of 2.29. This is comparable to the rest of the industry: KAI outperforms 56.92% of its industry peers.
A Quick Ratio of 1.46 indicates that KAI should not have too much problems paying its short term obligations.
KAI's Quick ratio of 1.46 is fine compared to the rest of the industry. KAI outperforms 63.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.29 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
KAI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.65%.
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.
The Revenue has been growing by 8.61% on average over the past years. This is quite good.
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.
Based on estimates for the next years, KAI will show a small growth in Revenue. The Revenue will grow by 6.95% on average per year.
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 3Y6.95%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 33.50 indicates a quite expensive valuation of KAI.
Based on the Price/Earnings ratio, KAI is valued a bit more expensive than 66.15% 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 27.73.
KAI is valuated quite expensively with a Price/Forward Earnings ratio of 32.49.
Based on the Price/Forward Earnings ratio, KAI is valued a bit more expensive than the industry average as 65.38% of the companies are valued more cheaply.
KAI's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.5 | ||
| Fwd PE | 32.49 |
4.2 Price Multiples
61.54% of the companies in the same industry are cheaper than KAI, based on the Enterprise Value to EBITDA ratio.
KAI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.67 | ||
| EV/EBITDA | 19.45 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates KAI does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of KAI may justify a higher PE ratio.
PEG (NY)10.8
PEG (5Y)2.54
EPS Next 2Y3.88%
EPS Next 3Y6.47%
5. Dividend
5.1 Amount
KAI has a yearly dividend return of 0.36%, which is pretty low.
KAI's Dividend Yield is comparable with the industry average which is at 1.69.
With a Dividend Yield of 0.36, KAI pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.36% |
5.2 History
The dividend of KAI is nicely growing with an annual growth rate of 11.23%!
KAI has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of KAI decreased recently.
Dividend Growth(5Y)11.23%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
12.47% 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.
DP12.47%
EPS Next 2Y3.88%
EPS Next 3Y6.47%
KADANT INC
NYSE:KAI (12/20/2024, 8:21:02 PM)
After market: 347.067 0 (0%)347.07
-4.92 (-1.4%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners111.49%
Inst Owner Change1.06%
Ins Owners0.96%
Ins Owner Change-8.74%
Market Cap4.08B
Analysts80
Price Target336.6 (-3.02%)
Short Float %11.86%
Short Ratio17.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.36% |
Dividend Growth(5Y)11.23%
DP12.47%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.06%
Min EPS beat(2)14.36%
Max EPS beat(2)15.76%
EPS beat(4)4
Avg EPS beat(4)15.65%
Min EPS beat(4)7.13%
Max EPS beat(4)25.34%
EPS beat(8)8
Avg EPS beat(8)14.63%
EPS beat(12)12
Avg EPS beat(12)13.19%
EPS beat(16)16
Avg EPS beat(16)14.19%
Revenue beat(2)2
Avg Revenue beat(2)2.1%
Min Revenue beat(2)0.93%
Max Revenue beat(2)3.28%
Revenue beat(4)4
Avg Revenue beat(4)2.01%
Min Revenue beat(4)0.16%
Max Revenue beat(4)3.67%
Revenue beat(8)8
Avg Revenue beat(8)2.95%
Revenue beat(12)11
Avg Revenue beat(12)2.45%
Revenue beat(16)14
Avg Revenue beat(16)2.47%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20.33%
EPS NY rev (1m)0%
EPS NY rev (3m)1.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.5 | ||
| Fwd PE | 32.49 | ||
| P/S | 3.94 | ||
| P/FCF | 29.67 | ||
| P/OCF | 25.08 | ||
| P/B | 4.79 | ||
| P/tB | 61.4 | ||
| EV/EBITDA | 19.45 |
EPS(TTM)10.36
EY2.98%
EPS(NY)10.68
Fwd EY3.08%
FCF(TTM)11.7
FCFY3.37%
OCF(TTM)13.84
OCFY3.99%
SpS88
BVpS72.49
TBVpS5.65
PEG (NY)10.8
PEG (5Y)2.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.72% | ||
| ROE | 13.5% | ||
| ROCE | 13.78% | ||
| ROIC | 10.13% | ||
| ROICexc | 10.89% | ||
| ROICexgc | 31.79% | ||
| OM | 17.12% | ||
| PM (TTM) | 11.12% | ||
| GM | 44.13% | ||
| FCFM | 13.29% |
ROA(3y)9.27%
ROA(5y)7.86%
ROE(3y)16.13%
ROE(5y)14.35%
ROIC(3y)11.53%
ROIC(5y)10.18%
ROICexc(3y)12.78%
ROICexc(5y)11.22%
ROICexgc(3y)39.35%
ROICexgc(5y)35.6%
ROCE(3y)15.69%
ROCE(5y)13.85%
ROICexcg growth 3Y11.94%
ROICexcg growth 5Y1.62%
ROICexc growth 3Y19.08%
ROICexc growth 5Y3.39%
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%
F-Score5
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 2.38 | ||
| Debt/EBITDA | 1.46 | ||
| Cap/Depr | 56.08% | ||
| Cap/Sales | 2.44% | ||
| Interest Coverage | 10.53 | ||
| Cash Conversion | 73.29% | ||
| Profit Quality | 119.55% | ||
| Current Ratio | 2.29 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z | 5.93 |
F-Score5
WACC9.03%
ROIC/WACC1.12
Cap/Depr(3y)71.26%
Cap/Depr(5y)53.78%
Cap/Sales(3y)2.69%
Cap/Sales(5y)2.14%
Profit Quality(3y)118.27%
Profit Quality(5y)135.42%
High Growth Momentum
Growth
EPS 1Y (TTM)4.65%
EPS 3Y25.57%
EPS 5Y13.18%
EPS Q2Q%7.98%
EPS Next Y3.1%
EPS Next 2Y3.88%
EPS Next 3Y6.47%
EPS Next 5YN/A
Revenue 1Y (TTM)8.71%
Revenue growth 3Y14.68%
Revenue growth 5Y8.61%
Sales Q2Q%11.23%
Revenue Next Year11.25%
Revenue Next 2Y7.29%
Revenue Next 3Y6.95%
Revenue Next 5YN/A
EBIT growth 1Y5.04%
EBIT growth 3Y25.67%
EBIT growth 5Y12.89%
EBIT Next Year40.14%
EBIT Next 3Y17.89%
EBIT Next 5YN/A
FCF growth 1Y28.21%
FCF growth 3Y16.16%
FCF growth 5Y23.57%
OCF growth 1Y26.55%
OCF growth 3Y21.24%
OCF growth 5Y21.32%