KADANT INC (KAI) Stock Fundamental Analysis
NYSE:KAI - US48282T1043 - Common Stock
323.28 USD
-6.91 (-2.09%)
323.28 USD
0 (0%)
KAI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 127 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 is valied quite expensively at the moment, while it does show a decent growth rate.
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.
KAI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 7.13%, KAI is doing good in the industry, outperforming 67.72% of the companies in the same industry.
KAI has a better Return On Equity (11.43%) than 61.42% 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 64.57% of the companies in the same industry.
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 10.48%.
| 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 70.87% of the companies in the same industry.
In the last couple of years the Profit Margin of KAI has grown nicely.
With a decent Operating Margin value of 15.97%, KAI is doing good in the industry, outperforming 75.59% of the companies in the same industry.
In the last couple of years the Operating Margin of KAI has grown nicely.
Looking at the Gross Margin, with a value of 44.98%, KAI belongs to the top of the industry, outperforming 85.04% 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 | 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.
Compared to 1 year ago, KAI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.31 indicates that KAI is not in any danger for bankruptcy at the moment.
The Altman-Z score of KAI (6.31) is better than 85.04% 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.
The Debt to FCF ratio of KAI (1.66) is better than 77.95% 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 66.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.66 | ||
| Altman-Z | 6.31 |
ROIC/WACC0.94
WACC9.94%
2.3 Liquidity
KAI has a Current Ratio of 2.38. This indicates that KAI is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.38, KAI is doing good in the industry, outperforming 60.63% of the companies in the same industry.
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.
With a decent Quick ratio value of 1.53, KAI is doing good in the industry, outperforming 67.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.38 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
The earnings per share for KAI have decreased by -6.40% in the last 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.
The Revenue has been growing slightly by 1.74% in the past year.
The Revenue has been growing by 8.37% on average over the past years. This is quite good.
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
Based on estimates for the next years, KAI will show a small growth in Earnings Per Share. The EPS will grow by 2.05% on average per year.
KAI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.68% yearly.
EPS Next Y-8.19%
EPS Next 2Y2.05%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.69%
Revenue Next 2Y1.68%
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 34.03, KAI can be considered very expensive at the moment.
KAI's Price/Earnings ratio is a bit more expensive when compared to the industry. KAI is more expensive than 66.14% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.08, KAI is valued a bit more expensive.
With a Price/Forward Earnings ratio of 30.20, KAI can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, KAI is valued a bit more expensive than the industry average as 66.93% of the companies are valued more cheaply.
KAI is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.03 | ||
| Fwd PE | 30.2 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as KAI.
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 | 25.37 | ||
| EV/EBITDA | 18.93 |
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)2.47
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 1.87.
With a Dividend Yield of 0.42, KAI pays less dividend than the S&P500 average, which is at 2.34.
| 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.
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.
KAI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP14.44%
EPS Next 2Y2.05%
EPS Next 3YN/A
323.28
-6.91 (-2.09%)
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 Change1.6%
Market Cap3.81B
Analysts80
Price Target346.8 (7.28%)
Short Float %13.6%
Short Ratio13.84
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)3.82%
PT rev (3m)3.82%
EPS NQ rev (1m)-7.98%
EPS NQ rev (3m)-13.28%
EPS NY rev (1m)0.21%
EPS NY rev (3m)-1.94%
Revenue NQ rev (1m)-2.4%
Revenue NQ rev (3m)-4.85%
Revenue NY rev (1m)0.48%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.03 | ||
| Fwd PE | 30.2 | ||
| P/S | 3.72 | ||
| P/FCF | 25.37 | ||
| P/OCF | 22.71 | ||
| P/B | 4.11 | ||
| P/tB | 24.53 | ||
| EV/EBITDA | 18.93 |
EPS(TTM)9.5
EY2.94%
EPS(NY)10.71
Fwd EY3.31%
FCF(TTM)12.74
FCFY3.94%
OCF(TTM)14.23
OCFY4.4%
SpS86.94
BVpS78.61
TBVpS13.18
PEG (NY)N/A
PEG (5Y)2.47
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 | 6.31 |
F-Score6
WACC9.94%
ROIC/WACC0.94
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-1.69%
Revenue Next 2Y1.68%
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%