KADANT INC (KAI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KAI - US48282T1043 - Common Stock
281.6 USD
+0.63 (+0.22%)
281.6 USD
0 (0%)
Overall KAI gets a fundamental rating of 5 out of 10. We evaluated KAI against 130 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. KAI does not seem to be growing, but still is valued expensively.
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.
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 70.77% of its industry peers.
KAI has a better Return On Equity (11.43%) than 67.69% of its industry peers.
The Return On Invested Capital of KAI (9.36%) is better than 67.69% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KAI is in line with the industry average of 10.46%.
| 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's Profit Margin of 10.33% is fine compared to the rest of the industry. KAI outperforms 73.08% of its industry peers.
In the last couple of years the Profit Margin of KAI has grown nicely.
KAI's Operating Margin of 15.97% is fine compared to the rest of the industry. KAI outperforms 74.62% of its industry peers.
In the last couple of years the Operating Margin of KAI has grown nicely.
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
KAI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for KAI has been increased compared to 1 year ago.
The number of shares outstanding for KAI has been increased compared to 5 years ago.
KAI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.68 indicates that KAI is not in any danger for bankruptcy at the moment.
KAI has a Altman-Z score of 5.68. This is amongst the best in the industry. KAI outperforms 83.08% of its industry peers.
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.
KAI has a better Debt to FCF ratio (1.66) than 81.54% of its industry peers.
KAI has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.27, KAI is in the better half of the industry, outperforming 67.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.66 | ||
| Altman-Z | 5.68 |
ROIC/WACC0.97
WACC9.69%
2.3 Liquidity
A Current Ratio of 2.38 indicates that KAI has no problem at all paying its short term obligations.
KAI has a Current ratio (2.38) which is in line with its industry peers.
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.
The Quick ratio of KAI (1.53) is better than 65.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.38 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
KAI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.71%.
Measured over the past years, KAI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.78% on average per year.
Looking at the last year, KAI shows a decrease in Revenue. The Revenue has decreased by -0.96% in the last year.
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)-10.71%
EPS 3Y10.02%
EPS 5Y13.78%
EPS Q2Q%-8.8%
Revenue 1Y (TTM)-0.96%
Revenue growth 3Y10.22%
Revenue growth 5Y8.37%
Sales Q2Q%-0.02%
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 3.02% on average per year.
KAI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.76% yearly.
EPS Next Y-9.75%
EPS Next 2Y0.44%
EPS Next 3Y3.02%
EPS Next 5YN/A
Revenue Next Year-1.13%
Revenue Next 2Y4.55%
Revenue Next 3Y4.76%
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.
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
The Price/Earnings ratio is 30.44, which means the current valuation is very expensive for KAI.
KAI's Price/Earnings is on the same level as the industry average.
KAI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.28, which is the current average of the S&P500 Index.
KAI is valuated quite expensively with a Price/Forward Earnings ratio of 27.16.
Based on the Price/Forward Earnings ratio, KAI is valued a bit more expensive than the industry average as 62.31% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.52, KAI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.44 | ||
| Fwd PE | 27.16 |
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.
KAI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. KAI is cheaper than 62.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.1 | ||
| EV/EBITDA | 16.21 |
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)2.21
EPS Next 2Y0.44%
EPS Next 3Y3.02%
5. Dividend
5.1 Amount
KAI has a yearly dividend return of 0.47%, which is pretty low.
KAI's Dividend Yield is comparable with the industry average which is at 1.84.
With a Dividend Yield of 0.47, KAI pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
5.2 History
The dividend of KAI is nicely growing with an annual growth rate of 8.77%!
KAI has paid a dividend for at least 10 years, which is 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 2Y0.44%
EPS Next 3Y3.02%
281.6
+0.63 (+0.22%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners116.58%
Inst Owner Change-2.79%
Ins Owners0.96%
Ins Owner Change-0.92%
Market Cap3.32B
Revenue(TTM)1.02B
Net Income(TTM)105.84M
Analysts80
Price Target344.25 (22.25%)
Short Float %12.18%
Short Ratio9.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
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)-0.74%
PT rev (3m)-0.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.06%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-1.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.44 | ||
| Fwd PE | 27.16 | ||
| P/S | 3.24 | ||
| P/FCF | 22.1 | ||
| P/OCF | 19.78 | ||
| P/B | 3.58 | ||
| P/tB | 21.37 | ||
| EV/EBITDA | 16.21 |
EPS(TTM)9.25
EY3.28%
EPS(NY)10.37
Fwd EY3.68%
FCF(TTM)12.74
FCFY4.53%
OCF(TTM)14.23
OCFY5.05%
SpS86.94
BVpS78.61
TBVpS13.18
PEG (NY)N/A
PEG (5Y)2.21
Graham Number127.91
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%
ROICexgc growth 3Y-5.61%
ROICexgc 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 | 5.68 |
F-Score6
WACC9.69%
ROIC/WACC0.97
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)-10.71%
EPS 3Y10.02%
EPS 5Y13.78%
EPS Q2Q%-8.8%
EPS Next Y-9.75%
EPS Next 2Y0.44%
EPS Next 3Y3.02%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.96%
Revenue growth 3Y10.22%
Revenue growth 5Y8.37%
Sales Q2Q%-0.02%
Revenue Next Year-1.13%
Revenue Next 2Y4.55%
Revenue Next 3Y4.76%
Revenue Next 5YN/A
EBIT growth 1Y-4.9%
EBIT growth 3Y13.1%
EBIT growth 5Y13.89%
EBIT Next Year14.56%
EBIT Next 3Y11.19%
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%
KADANT INC / KAI FAQ
Can you provide the ChartMill fundamental rating for KADANT INC?
ChartMill assigns a fundamental rating of 5 / 10 to KAI.
What is the valuation status of KADANT INC (KAI) stock?
ChartMill assigns a valuation rating of 3 / 10 to KADANT INC (KAI). This can be considered as Overvalued.
What is the profitability of KAI stock?
KADANT INC (KAI) has a profitability rating of 7 / 10.
What is the valuation of KADANT INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for KADANT INC (KAI) is 30.44 and the Price/Book (PB) ratio is 3.58.
What is the expected EPS growth for KADANT INC (KAI) stock?
The Earnings per Share (EPS) of KADANT INC (KAI) is expected to decline by -9.75% in the next year.