KADANT INC (KAI) Stock Fundamental Analysis
USA - NYSE:KAI - US48282T1043 - Common Stock
262.18 USD
-3.18 (-1.2%)
262.18 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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. KAI does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year KAI was profitable.
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
With a decent Return On Assets value of 7.13%, KAI is doing good in the industry, outperforming 70.77% of the companies in the same industry.
KAI has a better Return On Equity (11.43%) than 66.15% of its industry peers.
With a decent Return On Invested Capital value of 9.36%, KAI is doing good in the industry, outperforming 67.69% 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 10.28%.
| 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
With a decent Profit Margin value of 10.33%, KAI is doing good in the industry, outperforming 73.08% of the companies in the same industry.
In the last couple of years the Profit Margin of KAI has grown nicely.
KAI has a Operating Margin of 15.97%. This is in the better half of the industry: KAI outperforms 75.38% of its industry peers.
In the last couple of years the Operating Margin of KAI has grown nicely.
KAI's Gross Margin of 44.98% is amongst the best of the industry. KAI outperforms 84.62% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KAI is creating some value.
Compared to 1 year ago, KAI has more shares outstanding
KAI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for KAI is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.48 indicates that KAI is not in any danger for bankruptcy at the moment.
The Altman-Z score of KAI (5.48) is better than 82.31% of its industry peers.
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 better Debt to FCF ratio (1.66) than 82.31% 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.
KAI has a better Debt to Equity ratio (0.27) than 68.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.66 | ||
| Altman-Z | 5.48 |
ROIC/WACC0.98
WACC9.59%
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 of 2.38. This is in the better half of the industry: KAI outperforms 60.77% of 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.
KAI has a Quick ratio of 1.53. This is in the better half of the industry: KAI outperforms 63.85% 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%.
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 decrease in Revenue. In the last year, the revenue decreased by -0.96%.
The Revenue has been growing by 8.37% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 3.02% on average over the next years.
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-9.68%
EPS Next 2Y0.79%
EPS Next 3Y3.02%
EPS Next 5YN/A
Revenue Next Year-1.32%
Revenue Next 2Y3.69%
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.
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
With a Price/Earnings ratio of 28.34, KAI can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of KAI is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 25.91. KAI is around the same levels.
A Price/Forward Earnings ratio of 25.11 indicates a quite expensive valuation of KAI.
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 34.57, KAI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.34 | ||
| Fwd PE | 25.11 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as KAI.
Based on the Price/Free Cash Flow ratio, KAI is valued a bit cheaper than the industry average as 66.92% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.57 | ||
| EV/EBITDA | 15.35 |
4.3 Compensation for Growth
The decent profitability rating of KAI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.06
EPS Next 2Y0.79%
EPS Next 3Y3.02%
5. Dividend
5.1 Amount
With a yearly dividend of 0.51%, KAI is not a good candidate for dividend investing.
In the last 3 months the price of KAI has falen by -22.80%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
KAI's Dividend Yield is comparable with the industry average which is at 1.86.
With a Dividend Yield of 0.51, KAI pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
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 2Y0.79%
EPS Next 3Y3.02%
262.18
-3.18 (-1.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners120.23%
Inst Owner Change-1.21%
Ins Owners0.98%
Ins Owner Change-0.22%
Market Cap3.09B
Revenue(TTM)1.02B
Net Income(TTM)105.84M
Analysts80
Price Target346.8 (32.28%)
Short Float %11.73%
Short Ratio11.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
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)0%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)-14.74%
EPS NY rev (1m)1.11%
EPS NY rev (3m)-1.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.03%
Revenue NY rev (1m)0.96%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.34 | ||
| Fwd PE | 25.11 | ||
| P/S | 3.02 | ||
| P/FCF | 20.57 | ||
| P/OCF | 18.42 | ||
| P/B | 3.34 | ||
| P/tB | 19.9 | ||
| EV/EBITDA | 15.35 |
EPS(TTM)9.25
EY3.53%
EPS(NY)10.44
Fwd EY3.98%
FCF(TTM)12.74
FCFY4.86%
OCF(TTM)14.23
OCFY5.43%
SpS86.94
BVpS78.61
TBVpS13.18
PEG (NY)N/A
PEG (5Y)2.06
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 | 5.48 |
F-Score6
WACC9.59%
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)-10.71%
EPS 3Y10.02%
EPS 5Y13.78%
EPS Q2Q%-8.8%
EPS Next Y-9.68%
EPS Next 2Y0.79%
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-1.32%
Revenue Next 2Y3.69%
Revenue Next 3Y4.76%
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%
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 28.34 and the Price/Book (PB) ratio is 3.34.
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 -9.68% in the next year.