KADANT INC (KAI) Stock Fundamental Analysis
NYSE:KAI - New York Stock Exchange, Inc. - US48282T1043 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to KAI. KAI was compared to 128 industry peers in the Machinery industry. While KAI has a great profitability rating, 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.
In the past year KAI had a positive cash flow from operations.
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 better Return On Assets (7.73%) than 68.75% of its industry peers.
The Return On Equity of KAI (12.67%) is better than 63.28% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.11%, KAI is in the better half of the industry, outperforming 70.31% 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 10.80%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.73% | ||
| ROE | 12.67% | ||
| ROIC | 10.11% |
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 10.63%. 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.
KAI has a better Operating Margin (16.54%) than 77.34% of its industry peers.
In the last couple of years the Operating Margin of KAI has grown nicely.
KAI has a Gross Margin of 44.61%. This is amongst the best in the industry. KAI outperforms 83.59% of its industry peers.
KAI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.54% | ||
| PM (TTM) | 10.63% | ||
| GM | 44.61% |
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.
The debt/assets ratio for KAI is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.31 indicates that KAI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.31, KAI belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.
The Debt to FCF ratio of KAI is 2.03, which is a good value as it means it would take KAI, 2.03 years of fcf income to pay off all of its debts.
KAI has a better Debt to FCF ratio (2.03) than 75.78% of its industry peers.
KAI has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
KAI's Debt to Equity ratio of 0.31 is fine compared to the rest of the industry. KAI outperforms 60.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2.03 | ||
| Altman-Z | 6.31 |
ROIC/WACC1.06
WACC9.56%
2.3 Liquidity
KAI has a Current Ratio of 2.47. This indicates that KAI is financially healthy and has no problem in meeting its short term obligations.
KAI has a Current ratio of 2.47. This is in the better half of the industry: KAI outperforms 64.06% of its industry peers.
KAI has a Quick Ratio of 1.62. 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 better Quick ratio (1.62) than 67.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
KAI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.40%.
The Earnings Per Share has been growing by 13.78% on average over the past years. This is quite good.
KAI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.99%.
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)-6.4%
EPS 3Y10.02%
EPS 5Y13.78%
EPS Q2Q%-17.79%
Revenue 1Y (TTM)9.99%
Revenue growth 3Y10.22%
Revenue growth 5Y8.37%
Sales Q2Q%-7.1%
3.2 Future
KAI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.30% yearly.
KAI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.12% yearly.
EPS Next Y-8.38%
EPS Next 2Y1.3%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.16%
Revenue Next 2Y1.12%
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.
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
The Price/Earnings ratio is 34.25, which means the current valuation is very expensive for KAI.
Based on the Price/Earnings ratio, KAI is valued a bit more expensive than the industry average as 64.06% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 27.03, KAI is valued a bit more expensive.
With a Price/Forward Earnings ratio of 30.85, KAI can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KAI indicates a slightly more expensive valuation: KAI is more expensive than 65.63% of the companies listed in the same industry.
KAI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 36.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.25 | ||
| Fwd PE | 30.85 |
4.2 Price Multiples
KAI's Enterprise Value to EBITDA ratio is in line with the industry average.
KAI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.04 | ||
| EV/EBITDA | 18.05 |
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)2.48
EPS Next 2Y1.3%
EPS Next 3YN/A
5. Dividend
5.1 Amount
KAI has a yearly dividend return of 0.42%, which is pretty low.
Compared to an average industry Dividend Yield of 1.92, KAI has a dividend in line with its industry peers.
With a Dividend Yield of 0.42, KAI pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
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
13.55% 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.
DP13.55%
EPS Next 2Y1.3%
EPS Next 3YN/A
325.38
+1.96 (+0.61%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners122.44%
Inst Owner Change-1.13%
Ins Owners1%
Ins Owner Change1.84%
Market Cap3.83B
Analysts80
Price Target346.8 (6.58%)
Short Float %13.63%
Short Ratio13.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
Yearly Dividend1.25
Dividend Growth(5Y)8.77%
DP13.55%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.45%
Min EPS beat(2)5.77%
Max EPS beat(2)7.13%
EPS beat(4)4
Avg EPS beat(4)10.76%
Min EPS beat(4)5.77%
Max EPS beat(4)15.76%
EPS beat(8)8
Avg EPS beat(8)13.48%
EPS beat(12)12
Avg EPS beat(12)12.44%
EPS beat(16)16
Avg EPS beat(16)13.75%
Revenue beat(2)0
Avg Revenue beat(2)-1%
Min Revenue beat(2)-1.08%
Max Revenue beat(2)-0.92%
Revenue beat(4)2
Avg Revenue beat(4)0.55%
Min Revenue beat(4)-1.08%
Max Revenue beat(4)3.28%
Revenue beat(8)6
Avg Revenue beat(8)1.78%
Revenue beat(12)9
Avg Revenue beat(12)1.88%
Revenue beat(16)12
Avg Revenue beat(16)2.2%
PT rev (1m)0%
PT rev (3m)-7.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20.18%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.89%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.25 | ||
| Fwd PE | 30.85 | ||
| P/S | 3.67 | ||
| P/FCF | 28.04 | ||
| P/OCF | 24.69 | ||
| P/B | 4.38 | ||
| P/tB | 32.85 | ||
| EV/EBITDA | 18.05 |
EPS(TTM)9.5
EY2.92%
EPS(NY)10.55
Fwd EY3.24%
FCF(TTM)11.6
FCFY3.57%
OCF(TTM)13.18
OCFY4.05%
SpS88.59
BVpS74.36
TBVpS9.9
PEG (NY)N/A
PEG (5Y)2.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.73% | ||
| ROE | 12.67% | ||
| ROCE | 13.76% | ||
| ROIC | 10.11% | ||
| ROICexc | 10.93% | ||
| ROICexgc | 31.59% | ||
| OM | 16.54% | ||
| PM (TTM) | 10.63% | ||
| GM | 44.61% | ||
| FCFM | 13.1% |
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-Score7
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2.03 | ||
| Debt/EBITDA | 1.23 | ||
| Cap/Depr | 37.24% | ||
| Cap/Sales | 1.78% | ||
| Interest Coverage | 9.15 | ||
| Cash Conversion | 69.78% | ||
| Profit Quality | 123.18% | ||
| Current Ratio | 2.47 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z | 6.31 |
F-Score7
WACC9.56%
ROIC/WACC1.06
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-8.38%
EPS Next 2Y1.3%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)9.99%
Revenue growth 3Y10.22%
Revenue growth 5Y8.37%
Sales Q2Q%-7.1%
Revenue Next Year-2.16%
Revenue Next 2Y1.12%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y4.07%
EBIT growth 3Y13.1%
EBIT growth 5Y13.89%
EBIT Next Year14.01%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y59.14%
FCF growth 3Y-3.54%
FCF growth 5Y8.97%
OCF growth 1Y34.2%
OCF growth 3Y-1.49%
OCF growth 5Y9.77%