KADANT INC (KAI) Stock Fundamental Analysis
NYSE:KAI • US48282T1043
345.54 USD
+6.43 (+1.9%)
At close: Feb 26, 2026
345.54 USD
0 (0%)
After Hours: 2/26/2026, 8:04:00 PM
KAI gets a fundamental rating of 6 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 is quite expensive at the moment. It does show a decent growth rate. With these ratings, KAI could be worth investigating further for quality investing!.
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 4 of the past 5 years.
1.2 Ratios
- KAI's Return On Assets of 6.66% is fine compared to the rest of the industry. KAI outperforms 71.54% of its industry peers.
- KAI has a better Return On Equity (10.74%) than 64.62% of its industry peers.
- The Return On Invested Capital of KAI (8.80%) is better than 63.85% of its industry peers.
- KAI had an Average Return On Invested Capital over the past 3 years of 9.99%. This is in line with the industry average of 10.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.66% | ||
| ROE | 10.74% | ||
| ROIC | 8.8% |
ROA(3y)7.88%
ROA(5y)8.31%
ROE(3y)12.82%
ROE(5y)14.37%
ROIC(3y)9.99%
ROIC(5y)10.31%
1.3 Margins
- With a decent Profit Margin value of 9.96%, KAI is doing good in the industry, outperforming 71.54% of the companies in the same industry.
- KAI's Profit Margin has improved in the last couple of years.
- KAI's Operating Margin of 15.56% is fine compared to the rest of the industry. KAI outperforms 71.54% of its industry peers.
- KAI's Operating Margin has improved in the last couple of years.
- With an excellent Gross Margin value of 45.10%, KAI belongs to the best of the industry, outperforming 86.15% of the companies in the same industry.
- KAI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.56% | ||
| PM (TTM) | 9.96% | ||
| GM | 45.1% |
OM growth 3Y-3.79%
OM growth 5Y2.5%
PM growth 3Y-10.16%
PM growth 5Y2.2%
GM growth 3Y1.63%
GM growth 5Y0.7%
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.
- 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 6.21 indicates that KAI is not in any danger for bankruptcy at the moment.
- The Altman-Z score of KAI (6.21) is better than 83.08% of its industry peers.
- KAI has a debt to FCF ratio of 1.77. This is a very positive value and a sign of high solvency as it would only need 1.77 years to pay back of all of its debts.
- KAI has a Debt to FCF ratio of 1.77. This is amongst the best in the industry. KAI outperforms 81.54% 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.
- With a decent Debt to Equity ratio value of 0.27, KAI is doing good in the industry, outperforming 66.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.77 | ||
| Altman-Z | 6.21 |
ROIC/WACC0.95
WACC9.29%
2.3 Liquidity
- KAI has a Current Ratio of 2.45. This indicates that KAI is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of KAI (2.45) is better than 62.31% of its industry peers.
- A Quick Ratio of 1.60 indicates that KAI should not have too much problems paying its short term obligations.
- With a decent Quick ratio value of 1.60, KAI is doing good in the industry, outperforming 66.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.45 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
- KAI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.82%.
- The Earnings Per Share has been growing by 13.14% on average over the past years. This is quite good.
- The Revenue has decreased by -0.11% in the past year.
- The Revenue has been growing by 10.63% on average over the past years. This is quite good.
EPS 1Y (TTM)-9.82%
EPS 3Y0.14%
EPS 5Y13.14%
EPS Q2Q%0.89%
Revenue 1Y (TTM)-0.11%
Revenue growth 3Y5.16%
Revenue growth 5Y10.63%
Sales Q2Q%10.92%
3.2 Future
- KAI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.12% yearly.
- Based on estimates for the next years, KAI will show a quite strong growth in Revenue. The Revenue will grow by 9.27% on average per year.
EPS Next Y11.86%
EPS Next 2Y10.12%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.42%
Revenue Next 2Y9.27%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 37.28, the valuation of KAI can be described as expensive.
- Based on the Price/Earnings ratio, KAI is valued a bit more expensive than the industry average as 61.54% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, KAI is valued a bit more expensive.
- KAI is valuated quite expensively with a Price/Forward Earnings ratio of 33.32.
- Based on the Price/Forward Earnings ratio, KAI is valued a bit more expensive than the industry average as 63.08% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.13, KAI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.28 | ||
| Fwd PE | 33.32 |
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 | 27.9 | ||
| EV/EBITDA | 19.75 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates KAI does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of KAI may justify a higher PE ratio.
PEG (NY)3.14
PEG (5Y)2.84
EPS Next 2Y10.12%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- KAI has a yearly dividend return of 0.40%, which is pretty low.
- KAI's Dividend Yield is comparable with the industry average which is at 1.19.
- Compared to an average S&P500 Dividend Yield of 1.80, KAI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
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 in the last 3 years.
Dividend Growth(5Y)8.77%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- KAI pays out 15.23% of its income as dividend. This is a sustainable payout ratio.
- The dividend of KAI is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP15.23%
EPS Next 2Y10.12%
EPS Next 3YN/A
345.54
+6.43 (+1.9%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-18 2026-02-18/amc
Earnings (Next)04-27 2026-04-27
Inst Owners116.58%
Inst Owner Change5.3%
Ins Owners0.96%
Ins Owner Change0.07%
Market Cap4.07B
Revenue(TTM)1.05B
Net Income(TTM)101.98M
Analysts80
Price Target348.33 (0.81%)
Short Float %11.76%
Short Ratio9.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
Yearly Dividend1.25
Dividend Growth(5Y)8.77%
DP15.23%
Div Incr Years2
Div Non Decr Years2
Ex-Date01-08 2026-01-08 (0.34)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.69%
Min EPS beat(2)9.83%
Max EPS beat(2)17.56%
EPS beat(4)4
Avg EPS beat(4)10.07%
Min EPS beat(4)5.77%
Max EPS beat(4)17.56%
EPS beat(8)8
Avg EPS beat(8)12.86%
EPS beat(12)12
Avg EPS beat(12)13.11%
EPS beat(16)16
Avg EPS beat(16)12.41%
Revenue beat(2)2
Avg Revenue beat(2)2.03%
Min Revenue beat(2)0.92%
Max Revenue beat(2)3.14%
Revenue beat(4)2
Avg Revenue beat(4)0.51%
Min Revenue beat(4)-1.08%
Max Revenue beat(4)3.14%
Revenue beat(8)6
Avg Revenue beat(8)1.26%
Revenue beat(12)10
Avg Revenue beat(12)2.14%
Revenue beat(16)13
Avg Revenue beat(16)1.96%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.28 | ||
| Fwd PE | 33.32 | ||
| P/S | 3.97 | ||
| P/FCF | 27.9 | ||
| P/OCF | 25.06 | ||
| P/B | 4.29 | ||
| P/tB | 22.37 | ||
| EV/EBITDA | 19.75 |
EPS(TTM)9.27
EY2.68%
EPS(NY)10.37
Fwd EY3%
FCF(TTM)12.38
FCFY3.58%
OCF(TTM)13.79
OCFY3.99%
SpS86.93
BVpS80.63
TBVpS15.45
PEG (NY)3.14
PEG (5Y)2.84
Graham Number129.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.66% | ||
| ROE | 10.74% | ||
| ROCE | 12.07% | ||
| ROIC | 8.8% | ||
| ROICexc | 9.73% | ||
| ROICexgc | 27.32% | ||
| OM | 15.56% | ||
| PM (TTM) | 9.96% | ||
| GM | 45.1% | ||
| FCFM | 14.25% |
ROA(3y)7.88%
ROA(5y)8.31%
ROE(3y)12.82%
ROE(5y)14.37%
ROIC(3y)9.99%
ROIC(5y)10.31%
ROICexc(3y)10.99%
ROICexc(5y)11.34%
ROICexgc(3y)30.61%
ROICexgc(5y)33.71%
ROCE(3y)13.71%
ROCE(5y)14.15%
ROICexgc growth 3Y-21.09%
ROICexgc growth 5Y-8.6%
ROICexc growth 3Y-16.61%
ROICexc growth 5Y-2.36%
OM growth 3Y-3.79%
OM growth 5Y2.5%
PM growth 3Y-10.16%
PM growth 5Y2.2%
GM growth 3Y1.63%
GM growth 5Y0.7%
F-Score6
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.77 | ||
| Debt/EBITDA | 1.22 | ||
| Cap/Depr | 33.44% | ||
| Cap/Sales | 1.62% | ||
| Interest Coverage | 10.99 | ||
| Cash Conversion | 77.78% | ||
| Profit Quality | 143.06% | ||
| Current Ratio | 2.45 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z | 6.21 |
F-Score6
WACC9.29%
ROIC/WACC0.95
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-9.82%
EPS 3Y0.14%
EPS 5Y13.14%
EPS Q2Q%0.89%
EPS Next Y11.86%
EPS Next 2Y10.12%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.11%
Revenue growth 3Y5.16%
Revenue growth 5Y10.63%
Sales Q2Q%10.92%
Revenue Next Year11.42%
Revenue Next 2Y9.27%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-10%
EBIT growth 3Y1.18%
EBIT growth 5Y13.39%
EBIT Next Year53.9%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y6.15%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-0.1%
OCF growth 3YN/A
OCF growth 5YN/A
KADANT INC / KAI FAQ
Can you provide the ChartMill fundamental rating for KADANT INC?
ChartMill assigns a fundamental rating of 6 / 10 to KAI.
What is the valuation status for KAI stock?
ChartMill assigns a valuation rating of 2 / 10 to KADANT INC (KAI). This can be considered as Overvalued.
Can you provide the profitability details for KADANT INC?
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 37.28 and the Price/Book (PB) ratio is 4.29.
Is the dividend of KADANT INC sustainable?
The dividend rating of KADANT INC (KAI) is 4 / 10 and the dividend payout ratio is 15.23%.