KADANT INC (KAI)
US48282T1043 - Common Stock
KAI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 valied quite expensively at the moment, while it does show a decent growth rate. This makes KAI very considerable 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.
In the past 5 years KAI always reported a positive cash flow from operatings.
1.2 Ratios
KAI has a better Return On Assets (9.87%) than 80.62% of its industry peers.
Looking at the Return On Equity, with a value of 15.01%, KAI is in the better half of the industry, outperforming 68.99% of the companies in the same industry.
KAI has a Return On Invested Capital of 12.84%. This is in the better half of the industry: KAI outperforms 79.07% 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 10.76%.
The 3 year average ROIC (11.53%) for KAI is below the current ROIC(12.84%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.87% | ||
| ROE | 15.01% | ||
| ROIC | 12.84% |
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
KAI has a better Profit Margin (12.12%) than 80.62% of its industry peers.
In the last couple of years the Profit Margin of KAI has grown nicely.
KAI has a better Operating Margin (17.53%) than 83.72% of its industry peers.
KAI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 43.46%, KAI belongs to the top of the industry, outperforming 87.60% of the companies in the same industry.
KAI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.53% | ||
| PM (TTM) | 12.12% | ||
| GM | 43.46% |
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.
KAI has about the same amout of shares outstanding than it did 1 year ago.
KAI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for KAI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.46 indicates that KAI is not in any danger for bankruptcy at the moment.
KAI has a better Altman-Z score (7.46) than 87.60% of its industry peers.
The Debt to FCF ratio of KAI is 0.83, which is an excellent value as it means it would take KAI, only 0.83 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of KAI (0.83) is better than 89.15% of its industry peers.
KAI has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.14, KAI is doing good in the industry, outperforming 76.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.83 | ||
| Altman-Z | 7.46 |
ROIC/WACC1.4
WACC9.17%
2.3 Liquidity
KAI has a Current Ratio of 2.05. This indicates that KAI is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.05, KAI is in line with its industry, outperforming 47.29% of the companies in the same industry.
KAI has a Quick Ratio of 1.34. This is a normal value and indicates that KAI is financially healthy and should not expect problems in meeting its short term obligations.
KAI has a Quick ratio (1.34) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.05 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
KAI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.26%.
The Earnings Per Share has been growing by 13.18% on average over the past years. This is quite good.
The Revenue has been growing slightly by 5.87% in the past year.
Measured over the past years, KAI shows a quite strong growth in Revenue. The Revenue has been growing by 8.61% on average per year.
EPS 1Y (TTM)7.26%
EPS 3Y25.57%
EPS 5Y13.18%
EPS growth Q2Q0%
Revenue 1Y (TTM)5.87%
Revenue growth 3Y14.68%
Revenue growth 5Y8.61%
Revenue growth Q2Q2.83%
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 5.77% on average per year.
The Revenue is expected to grow by 8.94% on average over the next years. This is quite good.
EPS Next Y0.08%
EPS Next 2Y5.77%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.19%
Revenue Next 2Y8.94%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
KAI is valuated quite expensively with a Price/Earnings ratio of 27.66.
61.24% of the companies in the same industry are cheaper than KAI, based on the Price/Earnings ratio.
KAI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 24.67, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 27.63, which means the current valuation is very expensive for KAI.
Based on the Price/Forward Earnings ratio, KAI is valued a bit more expensive than the industry average as 62.02% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 21.02. KAI is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.66 | ||
| Fwd PE | 27.63 |
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 | 24.04 | ||
| EV/EBITDA | 16.77 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
KAI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)338.01
PEG (5Y)2.1
EPS Next 2Y5.77%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.46%, KAI is not a good candidate for dividend investing.
KAI's Dividend Yield is comparable with the industry average which is at 1.72.
Compared to an average S&P500 Dividend Yield of 2.40, KAI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
5.2 History
The dividend of KAI is nicely growing with an annual growth rate of 11.23%!
KAI has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)11.23%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
11.39% 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.
DP11.39%
EPS Next 2Y5.77%
EPS Next 3YN/A
KADANT INC
NYSE:KAI (4/30/2024, 7:07:49 PM)
After market: 271.2 -2.59 (-0.95%)273.79
-13.37 (-4.66%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.21B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.66 | ||
| Fwd PE | 27.63 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)338.01
PEG (5Y)2.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.87% | ||
| ROE | 15.01% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.53% | ||
| PM (TTM) | 12.12% | ||
| GM | 43.46% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.05 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)7.26%
EPS 3Y25.57%
EPS 5Y
EPS growth Q2Q
EPS Next Y0.08%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.87%
Revenue growth 3Y14.68%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y