KADANT INC (KAI) Stock Fundamental Analysis
NYSE:KAI - New York Stock Exchange, Inc. - US48282T1043 - Common Stock - Currency: USD
Overall KAI gets a fundamental rating of 5 out of 10. We evaluated KAI against 128 industry peers in the Machinery industry. While KAI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. KAI is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year KAI was profitable.
KAI had a positive operating cash flow in the past year.
In the past 5 years KAI has always been profitable.
Each year in the past 5 years KAI had a positive operating cash flow.
1.2 Ratios
KAI has a Return On Assets of 7.73%. This is in the better half of the industry: KAI outperforms 71.88% of its industry peers.
Looking at the Return On Equity, with a value of 12.67%, KAI is in the better half of the industry, outperforming 64.84% of the companies in the same industry.
With a decent Return On Invested Capital value of 10.11%, KAI is doing good in the industry, outperforming 71.09% 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 10.30%.
| 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
The Profit Margin of KAI (10.63%) is better than 71.88% of its industry peers.
KAI's Profit Margin has improved in the last couple of years.
KAI has a Operating Margin of 16.54%. This is in the better half of the industry: KAI outperforms 77.34% of its industry peers.
In the last couple of years the Operating Margin of KAI has grown nicely.
Looking at the Gross Margin, with a value of 44.61%, KAI belongs to the top of the industry, outperforming 84.38% 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 | 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.
Compared to 1 year ago, KAI has more shares outstanding
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 6.21 indicates that KAI is not in any danger for bankruptcy at the moment.
KAI's Altman-Z score of 6.21 is amongst the best of the industry. KAI outperforms 83.59% of its industry peers.
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.
With a decent Debt to FCF ratio value of 2.03, KAI is doing good in the industry, outperforming 76.56% of the companies in the same industry.
KAI has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.31, KAI is doing good in the industry, outperforming 61.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2.03 | ||
| Altman-Z | 6.21 |
ROIC/WACC1.01
WACC9.99%
2.3 Liquidity
A Current Ratio of 2.47 indicates that KAI has no problem at all paying its short term obligations.
KAI has a Current ratio of 2.47. This is in the better half of the industry: KAI outperforms 67.19% 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.
Looking at the Quick ratio, with a value of 1.62, KAI is in the better half of the industry, outperforming 67.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.21% over the past 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.
Looking at the last year, KAI shows a small growth in Revenue. The Revenue has grown by 6.82% in the last year.
The Revenue has been growing by 8.37% on average over the past years. This is quite good.
EPS 1Y (TTM)1.21%
EPS 3Y10.02%
EPS 5Y13.78%
EPS Q2Q%-11.76%
Revenue 1Y (TTM)6.82%
Revenue growth 3Y10.22%
Revenue growth 5Y8.37%
Sales Q2Q%-3.92%
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 2.21% on average per year.
The Revenue is expected to grow by 1.40% on average over the next years.
EPS Next Y-6.37%
EPS Next 2Y2.21%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.51%
Revenue Next 2Y1.4%
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
With a Price/Earnings ratio of 31.39, KAI can be considered very expensive at the moment.
64.06% of the companies in the same industry are cheaper than KAI, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.25, KAI is valued at the same level.
The Price/Forward Earnings ratio is 29.23, which means the current valuation is very expensive for KAI.
Based on the Price/Forward Earnings ratio, KAI is valued a bit more expensive than 66.41% of the companies in the same industry.
KAI's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.39 | ||
| Fwd PE | 29.23 |
4.2 Price Multiples
KAI's Enterprise Value to EBITDA ratio is in line with the industry average.
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 | 27.05 | ||
| EV/EBITDA | 17.62 |
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)2.28
EPS Next 2Y2.21%
EPS Next 3YN/A
5. Dividend
5.1 Amount
KAI has a yearly dividend return of 0.43%, which is pretty low.
Compared to an average industry Dividend Yield of 1.90, KAI has a dividend in line with its industry peers.
With a Dividend Yield of 0.43, KAI pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
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 recently.
Dividend Growth(5Y)8.77%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
KAI pays out 13.55% 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.
DP13.55%
EPS Next 2Y2.21%
EPS Next 3YN/A
313.91
-3.41 (-1.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners113.29%
Inst Owner Change5.67%
Ins Owners0.95%
Ins Owner Change2.15%
Market Cap3.70B
Analysts80
Price Target334.05 (6.42%)
Short Float %15.08%
Short Ratio11.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
Yearly Dividend1.25
Dividend Growth(5Y)8.77%
DP13.55%
Div Incr Years1
Div Non Decr Years1
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)-7.75%
PT rev (3m)-7.75%
EPS NQ rev (1m)-12.61%
EPS NQ rev (3m)-19.96%
EPS NY rev (1m)-4.12%
EPS NY rev (3m)-6.33%
Revenue NQ rev (1m)-3.44%
Revenue NQ rev (3m)-8.55%
Revenue NY rev (1m)-1.41%
Revenue NY rev (3m)-3.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.39 | ||
| Fwd PE | 29.23 | ||
| P/S | 3.54 | ||
| P/FCF | 27.05 | ||
| P/OCF | 23.82 | ||
| P/B | 4.22 | ||
| P/tB | 31.7 | ||
| EV/EBITDA | 17.62 |
EPS(TTM)10
EY3.19%
EPS(NY)10.74
Fwd EY3.42%
FCF(TTM)11.6
FCFY3.7%
OCF(TTM)13.18
OCFY4.2%
SpS88.59
BVpS74.36
TBVpS9.9
PEG (NY)N/A
PEG (5Y)2.28
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 | 6.21 |
F-Score7
WACC9.99%
ROIC/WACC1.01
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)1.21%
EPS 3Y10.02%
EPS 5Y13.78%
EPS Q2Q%-11.76%
EPS Next Y-6.37%
EPS Next 2Y2.21%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.82%
Revenue growth 3Y10.22%
Revenue growth 5Y8.37%
Sales Q2Q%-3.92%
Revenue Next Year-1.51%
Revenue Next 2Y1.4%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y4.07%
EBIT growth 3Y13.1%
EBIT growth 5Y13.89%
EBIT Next Year14.21%
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%