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Exploring NYSE:KAI's quality characteristics.

By Mill Chart

Last update: Sep 1, 2023

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if KADANT INC (NYSE:KAI) is suited for quality investing. Investors should of couse do their own research, but we spotted KADANT INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Why NYSE:KAI may be interesting for quality investors.

  • KADANT INC has achieved substantial revenue growth over the past 5 years, with a 11.93% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
  • KADANT INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 37.37% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
  • The Debt/Free Cash Flow Ratio of KADANT INC stands at 1.79, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
  • KADANT INC exhibits impressive Profit Quality (5-year) with a 128.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • With a robust 5-year EBIT growth of 17.9%, KADANT INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • KADANT INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Fundamental analysis of NYSE:KAI

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

Overall KAI gets a fundamental rating of 6 out of 10. We evaluated KAI against 133 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. While showing a medium growth rate, KAI is valued expensive at the moment.

Our latest full fundamental report of KAI contains the most current fundamental analsysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.