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Reasonable growth and debt and a high ROIC for KADANT INC (NYSE:KAI).

By Mill Chart

Last update: Nov 28, 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 course 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.

What matters for quality investors.

  • KADANT INC has demonstrated significant revenue growth over the past 5 years, with a 11.93% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • With a notable ROIC excluding cash and goodwill at 39.49%, KADANT INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • With a favorable Debt/Free Cash Flow Ratio of 1.2, KADANT INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • 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.
  • KADANT INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 17.9%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • KADANT INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Fundamental analysis of NYSE:KAI

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to KAI. KAI was compared to 132 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 quite expensive at the moment. It does show a decent growth rate.

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

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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KADANT INC

NYSE:KAI (2/22/2024, 7:04:00 PM)

After market: 323.26 0 (0%)

323.26

+8.26 (+2.62%)

KAI News

News Image8 days ago - Kadant IncKadant Reports Fourth Quarter and Fiscal Year 2023 Results

Record Revenue and Cash Flow in FY 2023...

News Image10 days ago - Kadant IncKadant Named to Newsweek’s List of America’s Most Responsible Companies 2024

WESTFORD, Mass., Feb. 12, 2024 (GLOBE NEWSWIRE) -- Kadant Inc. (NYSE: KAI) announced today that it was named one of

News Image13 days ago - Kadant IncKadant to Hold Earnings Conference Call on Thursday, February 15, 2024

WESTFORD, Mass., Feb. 09, 2024 (GLOBE NEWSWIRE) -- Kadant Inc. (NYSE: KAI) announced it will release its 2023 fourth quarter and full-year results after...

News Imagea month ago - Seeking AlphaKadant acquires KWS Manufacturing Company for $84M (NYSE:KAI)

Kadant completes acquisition of KWS Manufacturing, a leading conveying equipment manufacturer, for $84M in cash.

News Imagea month ago - Kadant IncKadant Acquires KWS Manufacturing Company

WESTFORD, Mass., Jan. 24, 2024 (GLOBE NEWSWIRE) -- Kadant Inc. (NYSE: KAI) today announced it has completed the acquisition of KWS Manufacturing Company,...

News Image2 months ago - Kadant IncKadant Completes Acquisition of Key Knife, Inc.

WESTFORD, Mass., Jan. 02, 2024 (GLOBE NEWSWIRE) -- Kadant Inc. (NYSE: KAI) has completed its previously announced acquisition of Key Knife, Inc. and...

News Image2 months ago - Seeking AlphaKadant to acquire Key Knife for ~$156M (NYSE:KAI)

Kadant announces $156M cash acquisition of Key Knife, a US-based company, to expand its Industrial Processing segment.

News Image2 months ago - Kadant IncKadant to Acquire Key Knife, Inc.

WESTFORD, Mass., Dec. 28, 2023 (GLOBE NEWSWIRE) -- Kadant Inc. (NYSE: KAI) has entered into a definitive agreement to acquire Key Knife, Inc. and certain...

News Image3 months ago - Kadant IncKadant Declares Cash Dividend

WESTFORD, Mass., Nov. 16, 2023 (GLOBE NEWSWIRE) -- Kadant Inc. (NYSE: KAI) announced today that its Board of Directors has approved a quarterly cash...

News Image4 months ago - Kadant IncKadant Reports Third Quarter 2023 Results

Raises Revenue and Earnings Guidance...

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