KADANT INC (KAI) Fundamental Analysis & Valuation

NYSE:KAI • US48282T1043

Current stock price

286.6 USD
-4.01 (-1.38%)
At close:
286.6 USD
0 (0%)
After Hours:

This KAI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. KAI Profitability Analysis

1.1 Basic Checks

  • KAI had positive earnings in the past year.
  • In the past year KAI had a positive cash flow from operations.
  • KAI had positive earnings in each of the past 5 years.
  • Each year in the past 5 years KAI had a positive operating cash flow.
KAI Yearly Net Income VS EBIT VS OCF VS FCFKAI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M

1.2 Ratios

  • The Return On Assets of KAI (5.96%) is better than 64.12% of its industry peers.
  • Looking at the Return On Equity, with a value of 10.41%, KAI is in line with its industry, outperforming 58.02% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 8.01%, KAI is in line with its industry, outperforming 59.54% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for KAI is in line with the industry average of 10.17%.
Industry RankSector Rank
ROA 5.96%
ROE 10.41%
ROIC 8.01%
ROA(3y)7.88%
ROA(5y)8.31%
ROE(3y)12.86%
ROE(5y)14.39%
ROIC(3y)10.34%
ROIC(5y)10.52%
KAI Yearly ROA, ROE, ROICKAI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • KAI's Profit Margin of 9.69% is fine compared to the rest of the industry. KAI outperforms 70.23% of its industry peers.
  • In the last couple of years the Profit Margin of KAI has grown nicely.
  • With a decent Operating Margin value of 15.49%, KAI is doing good in the industry, outperforming 73.28% of the companies in the same industry.
  • In the last couple of years the Operating Margin of KAI has grown nicely.
  • With an excellent Gross Margin value of 45.21%, KAI belongs to the best of the industry, outperforming 85.50% of the companies in the same industry.
  • In the last couple of years the Gross Margin of KAI has remained more or less at the same level.
Industry RankSector Rank
OM 15.49%
PM (TTM) 9.69%
GM 45.21%
OM growth 3Y-2.9%
OM growth 5Y3.06%
PM growth 3Y-10.16%
PM growth 5Y2.2%
GM growth 3Y1.63%
GM growth 5Y0.7%
KAI Yearly Profit, Operating, Gross MarginsKAI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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6

2. KAI Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KAI is creating some value.
  • The number of shares outstanding for KAI has been increased compared to 1 year ago.
  • KAI has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, KAI has a worse debt to assets ratio.
KAI Yearly Shares OutstandingKAI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2M 4M 6M 8M 10M
KAI Yearly Total Debt VS Total AssetsKAI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

2.2 Solvency

  • An Altman-Z score of 4.69 indicates that KAI is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 4.69, KAI is in the better half of the industry, outperforming 71.76% of the companies in the same industry.
  • The Debt to FCF ratio of KAI is 2.43, which is a good value as it means it would take KAI, 2.43 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of KAI (2.43) is better than 74.81% of its industry peers.
  • A Debt/Equity ratio of 0.38 indicates that KAI is not too dependend on debt financing.
  • With a decent Debt to Equity ratio value of 0.38, KAI is doing good in the industry, outperforming 60.31% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.38
Debt/FCF 2.43
Altman-Z 4.69
ROIC/WACC0.8
WACC10%
KAI Yearly LT Debt VS Equity VS FCFKAI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M

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.
  • KAI's Current ratio of 2.38 is fine compared to the rest of the industry. KAI outperforms 60.31% of its industry peers.
  • KAI has a Quick Ratio of 1.47. This is a normal value and indicates that KAI is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 1.47, KAI is in the better half of the industry, outperforming 61.83% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.38
Quick Ratio 1.47
KAI Yearly Current Assets VS Current LiabilitesKAI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. KAI Growth Analysis

3.1 Past

  • The earnings per share for KAI have decreased by -9.82% in the last year.
  • The Earnings Per Share has been growing by 13.14% on average over the past years. This is quite good.
  • Looking at the last year, KAI shows a decrease in Revenue. The Revenue has decreased by -0.11% in the last year.
  • The Revenue has been growing by 10.63% on average over the past years. This is quite good.
EPS 1Y (TTM)-9.82%
EPS 3Y0.14%
EPS 5Y13.14%
EPS Q2Q%0.89%
Revenue 1Y (TTM)-0.11%
Revenue growth 3Y5.16%
Revenue growth 5Y10.63%
Sales Q2Q%10.92%

3.2 Future

  • KAI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.94% yearly.
  • The Revenue is expected to grow by 9.06% on average over the next years. This is quite good.
EPS Next Y18.57%
EPS Next 2Y20.94%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year13.42%
Revenue Next 2Y9.06%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
KAI Yearly Revenue VS EstimatesKAI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M 800M 1B
KAI Yearly EPS VS EstimatesKAI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6 8 10

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4

4. KAI Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 30.92, which means the current valuation is very expensive for KAI.
  • KAI's Price/Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 25.60, KAI is valued a bit more expensive.
  • KAI is valuated quite expensively with a Price/Forward Earnings ratio of 26.08.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of KAI is on the same level as its industry peers.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.84, KAI is valued at the same level.
Industry RankSector Rank
PE 30.92
Fwd PE 26.08
KAI Price Earnings VS Forward Price EarningsKAI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • KAI's Enterprise Value to EBITDA is on the same level as the industry average.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of KAI indicates a somewhat cheap valuation: KAI is cheaper than 67.18% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 21.9
EV/EBITDA 16.95
KAI Per share dataKAI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • KAI has a very decent profitability rating, which may justify a higher PE ratio.
  • KAI's earnings are expected to grow with 20.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.66
PEG (5Y)2.35
EPS Next 2Y20.94%
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. KAI Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.48%, KAI is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 1.20, KAI has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.88, KAI's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.48%

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.
  • The dividend of KAI decreased in the last 3 years.
Dividend Growth(5Y)8.77%
Div Incr Years2
Div Non Decr Years2
KAI Yearly Dividends per shareKAI Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

5.3 Sustainability

  • KAI pays out 15.47% of its income as dividend. This is a sustainable payout ratio.
  • The dividend of KAI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP15.47%
EPS Next 2Y20.94%
EPS Next 3YN/A
KAI Yearly Income VS Free CF VS DividendKAI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
KAI Dividend Payout.KAI Dividend Payout, showing the Payout Ratio.KAI Dividend Payout.PayoutRetained Earnings

More info and screens

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KAI Fundamentals: All Metrics, Ratios and Statistics

KADANT INC

NYSE:KAI (4/2/2026, 8:04:00 PM)

After market: 286.6 0 (0%)

286.6

-4.01 (-1.38%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-18
Earnings (Next)04-27
Inst Owners114.56%
Inst Owner Change5.29%
Ins Owners0.97%
Ins Owner Change-14.11%
Market Cap3.38B
Revenue(TTM)1.05B
Net Income(TTM)101.97M
Analysts80
Price Target348.33 (21.54%)
Short Float %13.82%
Short Ratio10.32
Dividend
Industry RankSector Rank
Dividend Yield 0.48%
Yearly Dividend1.25
Dividend Growth(5Y)8.77%
DP15.47%
Div Incr Years2
Div Non Decr Years2
Ex-Date01-08
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.05%
Min EPS beat(2)2.53%
Max EPS beat(2)17.56%
EPS beat(4)4
Avg EPS beat(4)8.92%
Min EPS beat(4)2.53%
Max EPS beat(4)17.56%
EPS beat(8)8
Avg EPS beat(8)12.29%
EPS beat(12)12
Avg EPS beat(12)12.17%
EPS beat(16)16
Avg EPS beat(16)11.68%
Revenue beat(2)2
Avg Revenue beat(2)3.2%
Min Revenue beat(2)3.14%
Max Revenue beat(2)3.26%
Revenue beat(4)3
Avg Revenue beat(4)1.56%
Min Revenue beat(4)-1.08%
Max Revenue beat(4)3.26%
Revenue beat(8)6
Avg Revenue beat(8)1.21%
Revenue beat(12)10
Avg Revenue beat(12)2.01%
Revenue beat(16)13
Avg Revenue beat(16)2.13%
PT rev (1m)0%
PT rev (3m)1.19%
EPS NQ rev (1m)-1.01%
EPS NQ rev (3m)0.26%
EPS NY rev (1m)5.99%
EPS NY rev (3m)5.99%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)1.51%
Revenue NY rev (1m)1.79%
Revenue NY rev (3m)2.58%
Valuation
Industry RankSector Rank
PE 30.92
Fwd PE 26.08
P/S 3.21
P/FCF 21.9
P/OCF 19.72
P/B 3.45
P/tB 45.78
EV/EBITDA 16.95
EPS(TTM)9.27
EY3.23%
EPS(NY)10.99
Fwd EY3.84%
FCF(TTM)13.09
FCFY4.57%
OCF(TTM)14.53
OCFY5.07%
SpS89.25
BVpS83.11
TBVpS6.26
PEG (NY)1.66
PEG (5Y)2.35
Graham Number131.66
Profitability
Industry RankSector Rank
ROA 5.96%
ROE 10.41%
ROCE 10.99%
ROIC 8.01%
ROICexc 8.73%
ROICexgc 26.09%
OM 15.49%
PM (TTM) 9.69%
GM 45.21%
FCFM 14.66%
ROA(3y)7.88%
ROA(5y)8.31%
ROE(3y)12.86%
ROE(5y)14.39%
ROIC(3y)10.34%
ROIC(5y)10.52%
ROICexc(3y)11.4%
ROICexc(5y)11.58%
ROICexgc(3y)33.19%
ROICexgc(5y)35.26%
ROCE(3y)14.19%
ROCE(5y)14.44%
ROICexgc growth 3Y-11.25%
ROICexgc growth 5Y-1.93%
ROICexc growth 3Y-12.38%
ROICexc growth 5Y0.58%
OM growth 3Y-2.9%
OM growth 5Y3.06%
PM growth 3Y-10.16%
PM growth 5Y2.2%
GM growth 3Y1.63%
GM growth 5Y0.7%
F-Score5
Asset Turnover0.61
Health
Industry RankSector Rank
Debt/Equity 0.38
Debt/FCF 2.43
Debt/EBITDA 1.73
Cap/Depr 33.28%
Cap/Sales 1.62%
Interest Coverage 10.92
Cash Conversion 79.97%
Profit Quality 151.3%
Current Ratio 2.38
Quick Ratio 1.47
Altman-Z 4.69
F-Score5
WACC10%
ROIC/WACC0.8
Cap/Depr(3y)57.1%
Cap/Depr(5y)57.88%
Cap/Sales(3y)2.31%
Cap/Sales(5y)2.34%
Profit Quality(3y)128.93%
Profit Quality(5y)125.29%
High Growth Momentum
Growth
EPS 1Y (TTM)-9.82%
EPS 3Y0.14%
EPS 5Y13.14%
EPS Q2Q%0.89%
EPS Next Y18.57%
EPS Next 2Y20.94%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.11%
Revenue growth 3Y5.16%
Revenue growth 5Y10.63%
Sales Q2Q%10.92%
Revenue Next Year13.42%
Revenue Next 2Y9.06%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-6.73%
EBIT growth 3Y2.12%
EBIT growth 5Y14.02%
EBIT Next Year55.42%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y14.91%
FCF growth 3Y27.52%
FCF growth 5Y12.58%
OCF growth 1Y10.35%
OCF growth 3Y18.64%
OCF growth 5Y13.02%

KADANT INC / KAI Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for KADANT INC?

ChartMill assigns a fundamental rating of 6 / 10 to KAI.


Can you provide the valuation status for KADANT INC?

ChartMill assigns a valuation rating of 4 / 10 to KADANT INC (KAI). This can be considered as Fairly Valued.


How profitable is KADANT INC (KAI) stock?

KADANT INC (KAI) has a profitability rating of 7 / 10.


What is the expected EPS growth for KADANT INC (KAI) stock?

The Earnings per Share (EPS) of KADANT INC (KAI) is expected to grow by 18.57% in the next year.


Can you provide the dividend sustainability for KAI stock?

The dividend rating of KADANT INC (KAI) is 5 / 10 and the dividend payout ratio is 15.47%.