KADANT INC (KAI) Stock Fundamental Analysis
USA - NYSE:KAI - US48282T1043 - Common Stock
250.74 USD
+0.28 (+0.11%)
250.74 USD
0 (0%)
KAI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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 has a expensive valuation and it also scores bad on growth.
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.
In the past 5 years KAI has always been profitable.
In the past 5 years KAI always reported a positive cash flow from operatings.
1.2 Ratios
KAI's Return On Assets of 7.13% is fine compared to the rest of the industry. KAI outperforms 72.31% of its industry peers.
KAI has a Return On Equity of 11.43%. This is in the better half of the industry: KAI outperforms 67.69% of its industry peers.
The Return On Invested Capital of KAI (9.36%) is better than 68.46% of its industry peers.
KAI had an Average Return On Invested Capital over the past 3 years of 11.74%. This is in line with the industry average of 10.24%.
| 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 better Profit Margin (10.33%) than 73.85% of its industry peers.
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 74.62% of its industry peers.
In the last couple of years the Operating Margin of KAI has grown nicely.
KAI has a better Gross Margin (44.98%) than 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so KAI is still 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
An Altman-Z score of 5.30 indicates that KAI is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.30, KAI belongs to the best of the industry, outperforming 82.31% 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 amongst the best in the industry. KAI outperforms 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 Debt to Equity ratio of 0.27. This is in the better half of the industry: KAI outperforms 68.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.66 | ||
| Altman-Z | 5.3 |
ROIC/WACC0.97
WACC9.63%
2.3 Liquidity
A Current Ratio of 2.38 indicates that KAI has no problem at all paying its short term obligations.
KAI's Current ratio of 2.38 is in line compared to the rest of the industry. KAI outperforms 58.46% of its industry peers.
A Quick Ratio of 1.53 indicates that KAI should not have too much problems paying its short term obligations.
The Quick ratio of KAI (1.53) is better than 63.08% 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.
The Revenue has decreased by -0.96% in the past year.
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)-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.
The Revenue is expected to grow by 4.76% on average over the next years.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 27.11, which means the current valuation is very expensive for KAI.
The rest of the industry has a similar Price/Earnings ratio as KAI.
KAI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.07.
A Price/Forward Earnings ratio of 24.01 indicates a rather 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.
When comparing the Price/Forward Earnings ratio of KAI to the average of the S&P500 Index (34.08), we can say KAI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.11 | ||
| Fwd PE | 24.01 |
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 67.69% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.68 | ||
| EV/EBITDA | 14.54 |
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)1.97
EPS Next 2Y0.79%
EPS Next 3Y3.02%
5. Dividend
5.1 Amount
With a yearly dividend of 0.52%, KAI is not a good candidate for dividend investing.
The stock price of KAI dropped by -26.45% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 1.87, KAI has a dividend in line with its industry peers.
With a Dividend Yield of 0.52, KAI pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
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
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%
250.74
+0.28 (+0.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners120.23%
Inst Owner Change-2.75%
Ins Owners0.98%
Ins Owner Change-0.83%
Market Cap2.95B
Revenue(TTM)1.02B
Net Income(TTM)105.84M
Analysts80
Price Target346.8 (38.31%)
Short Float %11.93%
Short Ratio9.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
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%
EPS NQ rev (3m)-13.36%
EPS NY rev (1m)1.11%
EPS NY rev (3m)-1.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.91%
Revenue NY rev (1m)0.96%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.11 | ||
| Fwd PE | 24.01 | ||
| P/S | 2.88 | ||
| P/FCF | 19.68 | ||
| P/OCF | 17.61 | ||
| P/B | 3.19 | ||
| P/tB | 19.03 | ||
| EV/EBITDA | 14.54 |
EPS(TTM)9.25
EY3.69%
EPS(NY)10.44
Fwd EY4.16%
FCF(TTM)12.74
FCFY5.08%
OCF(TTM)14.23
OCFY5.68%
SpS86.94
BVpS78.61
TBVpS13.18
PEG (NY)N/A
PEG (5Y)1.97
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 | 5.3 |
F-Score6
WACC9.63%
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-9.68%
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 27.11 and the Price/Book (PB) ratio is 3.19.
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.