KADANT INC (KAI) Stock Fundamental Analysis
USA - NYSE:KAI - US48282T1043 - Common Stock
302 USD
+5 (+1.68%)
302 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to KAI. KAI was compared to 130 industry peers in the Machinery industry. KAI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. KAI is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
KAI had positive earnings in the past year.
KAI had a positive operating cash flow in the past year.
Each year in the past 5 years KAI has been profitable.
KAI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of KAI (7.13%) is better than 70.77% of its industry peers.
KAI has a Return On Equity of 11.43%. This is in the better half of the industry: KAI outperforms 63.85% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.36%, KAI is in the better half of the industry, outperforming 66.15% of the companies in the same industry.
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 10.01%.
| 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 76.15% of its industry peers.
KAI's Operating Margin has improved in the last couple of years.
The Gross Margin of KAI (44.98%) is better than 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KAI is creating some value.
KAI has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, KAI has more shares outstanding
KAI has a worse debt/assets ratio than last year.
2.2 Solvency
KAI has an Altman-Z score of 5.95. This indicates that KAI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.95, KAI belongs to the top of the industry, outperforming 85.38% of the companies in the same industry.
The Debt to FCF ratio of KAI is 1.66, which is an excellent value as it means it would take KAI, only 1.66 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of KAI (1.66) is better than 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 better Debt to Equity ratio (0.27) than 66.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.66 | ||
| Altman-Z | 5.95 |
ROIC/WACC0.98
WACC9.52%
2.3 Liquidity
KAI has a Current Ratio of 2.38. This indicates that KAI is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of KAI (2.38) is comparable to the rest of the industry.
KAI has a Quick Ratio of 1.53. 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 of 1.53. This is in the better half of the industry: KAI outperforms 66.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.38 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
KAI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.40%.
KAI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.78% yearly.
KAI shows a small growth in Revenue. In the last year, the Revenue has grown by 1.74%.
Measured over the past years, KAI shows a quite strong growth in Revenue. The Revenue has been growing by 8.37% on average per year.
EPS 1Y (TTM)-6.4%
EPS 3Y10.02%
EPS 5Y13.78%
EPS Q2Q%-17.79%
Revenue 1Y (TTM)1.74%
Revenue growth 3Y10.22%
Revenue growth 5Y8.37%
Sales Q2Q%-7.1%
3.2 Future
The Earnings Per Share is expected to grow by 0.99% 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 1.35% on average per year.
EPS Next Y-10.67%
EPS Next 2Y0.99%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.26%
Revenue Next 2Y1.35%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 31.79, KAI can be considered very expensive at the moment.
Based on the Price/Earnings ratio, KAI is valued a bit more expensive than 60.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.42. KAI is around the same levels.
A Price/Forward Earnings ratio of 28.81 indicates a quite expensive valuation of KAI.
Based on the Price/Forward Earnings ratio, KAI is valued a bit more expensive than 64.62% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of KAI to the average of the S&P500 Index (22.94), we can say KAI is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.79 | ||
| Fwd PE | 28.81 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as KAI.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KAI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.7 | ||
| EV/EBITDA | 17.37 |
4.3 Compensation for Growth
KAI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.31
EPS Next 2Y0.99%
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 1.80.
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 | 0.46% |
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 2Y0.99%
EPS Next 3YN/A
302
+5 (+1.68%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners120.23%
Inst Owner Change-0.01%
Ins Owners0.98%
Ins Owner Change-0.22%
Market Cap3.56B
Analysts80
Price Target346.8 (14.83%)
Short Float %12.63%
Short Ratio13.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
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)3.82%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)-20.27%
EPS NY rev (1m)-2.7%
EPS NY rev (3m)-2.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.79 | ||
| Fwd PE | 28.81 | ||
| P/S | 3.47 | ||
| P/FCF | 23.7 | ||
| P/OCF | 21.22 | ||
| P/B | 3.84 | ||
| P/tB | 22.92 | ||
| EV/EBITDA | 17.37 |
EPS(TTM)9.5
EY3.15%
EPS(NY)10.48
Fwd EY3.47%
FCF(TTM)12.74
FCFY4.22%
OCF(TTM)14.23
OCFY4.71%
SpS86.94
BVpS78.61
TBVpS13.18
PEG (NY)N/A
PEG (5Y)2.31
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%
ROICexcg growth 3Y-5.61%
ROICexcg 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 | 5.95 |
F-Score6
WACC9.52%
ROIC/WACC0.98
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)-6.4%
EPS 3Y10.02%
EPS 5Y13.78%
EPS Q2Q%-17.79%
EPS Next Y-10.67%
EPS Next 2Y0.99%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.74%
Revenue growth 3Y10.22%
Revenue growth 5Y8.37%
Sales Q2Q%-7.1%
Revenue Next Year-2.26%
Revenue Next 2Y1.35%
Revenue Next 3YN/A
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%