KADANT INC (KAI) Stock Fundamental Analysis
NYSE:KAI - New York Stock Exchange, Inc. - US48282T1043 - Common Stock - Currency: USD
KAI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. KAI has an excellent profitability rating, but there are some minor concerns on its financial health. 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.
Each year in the past 5 years KAI has been profitable.
Each year in the past 5 years KAI had a positive operating cash flow.
1.2 Ratios
KAI has a Return On Assets of 7.80%. This is in the better half of the industry: KAI outperforms 70.31% of its industry peers.
KAI has a Return On Equity of 13.17%. This is in the better half of the industry: KAI outperforms 62.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.37%, KAI is in the better half of the industry, outperforming 70.31% 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 10.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.8% | ||
| ROE | 13.17% | ||
| ROIC | 10.37% |
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 10.59%. This is in the better half of the industry: KAI outperforms 71.88% 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 16.59%, KAI is doing good in the industry, outperforming 78.13% 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 44.25%, KAI belongs to the best of the industry, outperforming 82.03% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.59% | ||
| PM (TTM) | 10.59% | ||
| GM | 44.25% |
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.
KAI has more shares outstanding than it did 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
KAI has an Altman-Z score of 5.96. 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 5.96, KAI belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.
KAI has a debt to FCF ratio of 2.15. This is a good value and a sign of high solvency as KAI would need 2.15 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.15, KAI is doing good in the industry, outperforming 77.34% of the companies in the same industry.
KAI has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
KAI's Debt to Equity ratio of 0.34 is in line compared to the rest of the industry. KAI outperforms 59.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.15 | ||
| Altman-Z | 5.96 |
ROIC/WACC1.03
WACC10.06%
2.3 Liquidity
A Current Ratio of 2.31 indicates that KAI has no problem at all paying its short term obligations.
KAI has a Current ratio (2.31) which is comparable to the rest of the industry.
A Quick Ratio of 1.55 indicates that KAI should not have too much problems paying its short term obligations.
KAI's Quick ratio of 1.55 is fine compared to the rest of the industry. KAI outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.31 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.84% over the past year.
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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.98%.
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)3.84%
EPS 3Y10.02%
EPS 5Y13.78%
EPS Q2Q%-3.43%
Revenue 1Y (TTM)9.98%
Revenue growth 3Y10.22%
Revenue growth 5Y8.37%
Sales Q2Q%8.11%
3.2 Future
KAI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.70% yearly.
The Revenue is expected to grow by 2.19% on average over the next years.
EPS Next Y-2.35%
EPS Next 2Y4.7%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.09%
Revenue Next 2Y2.19%
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.
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 30.27, KAI can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of KAI indicates a slightly more expensive valuation: KAI is more expensive than 68.75% of the companies listed in the same industry.
KAI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.79, which is the current average of the S&P500 Index.
KAI is valuated quite expensively with a Price/Forward Earnings ratio of 30.99.
KAI's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. KAI is more expensive than 63.28% of the companies in the same industry.
KAI's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.27 | ||
| Fwd PE | 30.99 |
4.2 Price Multiples
60.94% of the companies in the same industry are cheaper than KAI, based on the Enterprise Value to EBITDA ratio.
KAI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.3 | ||
| EV/EBITDA | 17.19 |
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)2.2
EPS Next 2Y4.7%
EPS Next 3YN/A
5. Dividend
5.1 Amount
KAI has a yearly dividend return of 0.43%, which is pretty low.
KAI's Dividend Yield is comparable with the industry average which is at 2.04.
Compared to an average S&P500 Dividend Yield of 2.47, KAI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
5.2 History
On average, the dividend of KAI grows each year by 8.77%, which is quite nice.
KAI has been paying a dividend for at least 10 years, so it has a reliable track record.
KAI has decreased its dividend recently.
Dividend Growth(5Y)8.77%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
KAI pays out 13.15% 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.
DP13.15%
EPS Next 2Y4.7%
EPS Next 3YN/A
311.14
-4.57 (-1.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners113.29%
Inst Owner Change1.45%
Ins Owners0.95%
Ins Owner Change1.28%
Market Cap3.67B
Analysts80
Price Target362.1 (16.38%)
Short Float %13.48%
Short Ratio7.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
Yearly Dividend1.25
Dividend Growth(5Y)8.77%
DP13.15%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.45%
Min EPS beat(2)7.13%
Max EPS beat(2)15.76%
EPS beat(4)4
Avg EPS beat(4)15.65%
Min EPS beat(4)7.13%
Max EPS beat(4)25.34%
EPS beat(8)8
Avg EPS beat(8)13.8%
EPS beat(12)12
Avg EPS beat(12)12.6%
EPS beat(16)16
Avg EPS beat(16)13.62%
Revenue beat(2)1
Avg Revenue beat(2)0%
Min Revenue beat(2)-0.92%
Max Revenue beat(2)0.93%
Revenue beat(4)3
Avg Revenue beat(4)0.86%
Min Revenue beat(4)-0.92%
Max Revenue beat(4)3.28%
Revenue beat(8)7
Avg Revenue beat(8)2.24%
Revenue beat(12)10
Avg Revenue beat(12)2.32%
Revenue beat(16)13
Avg Revenue beat(16)2.3%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.99%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.56%
Revenue NY rev (1m)-1.39%
Revenue NY rev (3m)-3.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.27 | ||
| Fwd PE | 30.99 | ||
| P/S | 3.48 | ||
| P/FCF | 27.3 | ||
| P/OCF | 23.61 | ||
| P/B | 4.33 | ||
| P/tB | 41.43 | ||
| EV/EBITDA | 17.19 |
EPS(TTM)10.28
EY3.3%
EPS(NY)10.04
Fwd EY3.23%
FCF(TTM)11.4
FCFY3.66%
OCF(TTM)13.18
OCFY4.24%
SpS89.42
BVpS71.91
TBVpS7.51
PEG (NY)N/A
PEG (5Y)2.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.8% | ||
| ROE | 13.17% | ||
| ROCE | 14.11% | ||
| ROIC | 10.37% | ||
| ROICexc | 11.24% | ||
| ROICexgc | 33.44% | ||
| OM | 16.59% | ||
| PM (TTM) | 10.59% | ||
| GM | 44.25% | ||
| FCFM | 12.75% |
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-Score5
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.15 | ||
| Debt/EBITDA | 1.27 | ||
| Cap/Depr | 42.36% | ||
| Cap/Sales | 1.99% | ||
| Interest Coverage | 8.87 | ||
| Cash Conversion | 69.2% | ||
| Profit Quality | 120.31% | ||
| Current Ratio | 2.31 | ||
| Quick Ratio | 1.55 | ||
| Altman-Z | 5.96 |
F-Score5
WACC10.06%
ROIC/WACC1.03
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)3.84%
EPS 3Y10.02%
EPS 5Y13.78%
EPS Q2Q%-3.43%
EPS Next Y-2.35%
EPS Next 2Y4.7%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)9.98%
Revenue growth 3Y10.22%
Revenue growth 5Y8.37%
Sales Q2Q%8.11%
Revenue Next Year-0.09%
Revenue Next 2Y2.19%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y4.07%
EBIT growth 3Y13.1%
EBIT growth 5Y13.89%
EBIT Next Year23.87%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y0.42%
FCF growth 3Y-3.54%
FCF growth 5Y8.97%
OCF growth 1Y-6.21%
OCF growth 3Y-1.49%
OCF growth 5Y9.77%