KADANT INC (KAI) Stock Fundamental Analysis
USA - NYSE:KAI - US48282T1043 - Common Stock
305.45 USD
-3.35 (-1.08%)
305.45 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to KAI. KAI was compared to 128 industry peers in the Machinery industry. KAI scores excellent points on both the profitability and health parts. This is a solid base for a good stock. While showing a medium growth rate, KAI is valued expensive at the moment.
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.
KAI had positive earnings in each of the past 5 years.
In the past 5 years KAI always reported a positive cash flow from operatings.
1.2 Ratios
KAI has a Return On Assets of 7.13%. This is in the better half of the industry: KAI outperforms 69.53% of its industry peers.
KAI has a better Return On Equity (11.43%) than 63.28% 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 64.84% 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 10.02%.
| 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 72.66% of its industry peers.
KAI's Profit Margin has improved in the last couple of years.
KAI has a better Operating Margin (15.97%) than 76.56% 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 85.16% of its industry peers.
In the last couple of years the Gross Margin of KAI has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so KAI is still creating some value.
Compared to 1 year ago, KAI has more shares outstanding
The number of shares outstanding for KAI has been increased compared to 5 years ago.
Compared to 1 year ago, KAI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.03 indicates that KAI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.03, KAI belongs to the top of the industry, outperforming 85.94% of the companies in the same industry.
KAI has a debt to FCF ratio of 1.66. This is a very positive value and a sign of high solvency as it would only need 1.66 years to pay back of all of its debts.
KAI has a Debt to FCF ratio of 1.66. This is in the better half of the industry: KAI outperforms 79.69% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that KAI is not too dependend on debt financing.
KAI has a Debt to Equity ratio of 0.27. This is in the better half of the industry: KAI outperforms 67.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.66 | ||
| Altman-Z | 6.03 |
ROIC/WACC0.93
WACC10.09%
2.3 Liquidity
A Current Ratio of 2.38 indicates that KAI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.38, KAI is in the better half of the industry, outperforming 60.94% of the companies in the same industry.
A Quick Ratio of 1.53 indicates that KAI should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.53, KAI is doing good in the industry, outperforming 67.97% of the companies in the same industry.
| 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%.
The Earnings Per Share has been growing by 13.78% on average over the past years. This is quite good.
KAI shows a small growth in Revenue. In the last year, the Revenue has grown by 1.74%.
KAI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.37% yearly.
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
KAI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.05% yearly.
KAI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.35% yearly.
EPS Next Y-8.19%
EPS Next 2Y2.05%
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 32.15, the valuation of KAI can be described as expensive.
KAI's Price/Earnings ratio is a bit more expensive when compared to the industry. KAI is more expensive than 64.06% of the companies in the same industry.
KAI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.38.
Based on the Price/Forward Earnings ratio of 28.53, the valuation of KAI can be described as expensive.
KAI's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. KAI is more expensive than 64.84% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.86. KAI is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.15 | ||
| Fwd PE | 28.53 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KAI is on the same level as its industry peers.
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 | 23.97 | ||
| EV/EBITDA | 17.75 |
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)2.33
EPS Next 2Y2.05%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.42%, KAI is not a good candidate for dividend investing.
KAI's Dividend Yield is comparable with the industry average which is at 1.74.
With a Dividend Yield of 0.42, KAI pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
5.2 History
On average, the dividend of KAI grows each year by 8.77%, which is quite nice.
KAI has paid a dividend for at least 10 years, which is 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
5.3 Sustainability
KAI pays out 14.44% of its income as dividend. This is a 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 2Y2.05%
EPS Next 3YN/A
305.45
-3.35 (-1.08%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners122.54%
Inst Owner Change-4.62%
Ins Owners0.99%
Ins Owner Change-0.56%
Market Cap3.60B
Analysts80
Price Target346.8 (13.54%)
Short Float %13.04%
Short Ratio14.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
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)-13.41%
EPS NQ rev (3m)-20.31%
EPS NY rev (1m)0.21%
EPS NY rev (3m)-1.94%
Revenue NQ rev (1m)-1.91%
Revenue NQ rev (3m)-4.26%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.15 | ||
| Fwd PE | 28.53 | ||
| P/S | 3.51 | ||
| P/FCF | 23.97 | ||
| P/OCF | 21.46 | ||
| P/B | 3.89 | ||
| P/tB | 23.18 | ||
| EV/EBITDA | 17.75 |
EPS(TTM)9.5
EY3.11%
EPS(NY)10.71
Fwd EY3.5%
FCF(TTM)12.74
FCFY4.17%
OCF(TTM)14.23
OCFY4.66%
SpS86.94
BVpS78.61
TBVpS13.18
PEG (NY)N/A
PEG (5Y)2.33
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 | 6.03 |
F-Score6
WACC10.09%
ROIC/WACC0.93
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-8.19%
EPS Next 2Y2.05%
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%