company background image
KAI

KadantNYSE:KAI Stock Report

Market Cap

US$2.4b

7D

0.8%

1Y

72.5%

Updated

16 Oct, 2021

Data

Company Financials +
KAI fundamental analysis
Snowflake Score
Valuation0/6
Future Growth4/6
Past Performance5/6
Financial Health4/6
Dividends0/6

KAI Overview

Kadant Inc. supplies critical components and engineered systems worldwide.

Kadant Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Kadant
Historical stock prices
Current Share PriceUS$206.07
52 Week HighUS$109.15
52 Week LowUS$225.64
Beta1.32
1 Month Change-4.10%
3 Month Change18.96%
1 Year Change72.53%
3 Year Change110.36%
5 Year Change291.40%
Change since IPO975.15%

Recent News & Updates

Sep 15
If You Like EPS Growth Then Check Out Kadant (NYSE:KAI) Before It's Too Late

If You Like EPS Growth Then Check Out Kadant (NYSE:KAI) Before It's Too Late

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Aug 22
Are Kadant Inc. (NYSE:KAI) Investors Paying Above The Intrinsic Value?

Are Kadant Inc. (NYSE:KAI) Investors Paying Above The Intrinsic Value?

Does the August share price for Kadant Inc. ( NYSE:KAI ) reflect what it's really worth? Today, we will estimate the...

Shareholder Returns

KAIUS MachineryUS Market
7D0.8%1.3%2.0%
1Y72.5%24.8%27.6%

Return vs Industry: KAI exceeded the US Machinery industry which returned 24.7% over the past year.

Return vs Market: KAI exceeded the US Market which returned 27.6% over the past year.

Price Volatility

Is KAI's price volatile compared to industry and market?
KAI volatility
KAI Beta1.32
Industry Beta1.26
Market Beta1

Stable Share Price: KAI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: KAI's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19912,600Jeffrey Powellhttps://www.kadant.com

Kadant Inc. supplies critical components and engineered systems worldwide. It operates through three segments: Flow Control, Industrial Processing, and Material Handling. The Flow Control segment develops, manufactures, and markets fluid-handling systems and equipment, such as rotary joints, syphons, turbulator bars, expansion joints, and engineered steam and condensate systems; and doctoring, cleaning, and filtration systems and related consumables, consisting of doctor systems and holders, profiling systems, doctor blades, shower and fabric-conditioning systems, formation systems, and water-filtration systems.

Kadant Fundamentals Summary

How do Kadant's earnings and revenue compare to its market cap?
KAI fundamental statistics
Market CapUS$2.39b
Earnings (TTM)US$70.48m
Revenue (TTM)US$691.32m

33.9x

P/E Ratio

3.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KAI income statement (TTM)
RevenueUS$691.32m
Cost of RevenueUS$387.75m
Gross ProfitUS$303.57m
ExpensesUS$233.09m
EarningsUS$70.48m

Last Reported Earnings

Jul 03, 2021

Next Earnings Date

n/a

Earnings per share (EPS)6.09
Gross Margin43.91%
Net Profit Margin10.20%
Debt/Equity Ratio51.4%

How did KAI perform over the long term?

See historical performance and comparison

Dividends

0.5%

Current Dividend Yield

16%

Payout Ratio

Valuation

Is Kadant undervalued compared to its fair value and its price relative to the market?

33.86x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KAI ($206.07) is trading above our estimate of fair value ($165.89)

Significantly Below Fair Value: KAI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: KAI is poor value based on its PE Ratio (33.9x) compared to the US Machinery industry average (29.3x).

PE vs Market: KAI is poor value based on its PE Ratio (33.9x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: KAI is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: KAI is overvalued based on its PB Ratio (4.5x) compared to the US Machinery industry average (2.8x).


Future Growth

How is Kadant forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

24.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KAI's forecast earnings growth (24.7% per year) is above the savings rate (2%).

Earnings vs Market: KAI's earnings (24.7% per year) are forecast to grow faster than the US market (15.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: KAI's revenue (13.6% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: KAI's revenue (13.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if KAI's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Kadant performed over the past 5 years?

14.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KAI has high quality earnings.

Growing Profit Margin: KAI's current net profit margins (10.2%) are higher than last year (7.3%).


Past Earnings Growth Analysis

Earnings Trend: KAI's earnings have grown by 14.1% per year over the past 5 years.

Accelerating Growth: KAI's earnings growth over the past year (44.1%) exceeds its 5-year average (14.1% per year).

Earnings vs Industry: KAI earnings growth over the past year (44.1%) exceeded the Machinery industry 21.7%.


Return on Equity

High ROE: KAI's Return on Equity (13.4%) is considered low.


Financial Health

How is Kadant's financial position?


Financial Position Analysis

Short Term Liabilities: KAI's short term assets ($405.5M) exceed its short term liabilities ($161.2M).

Long Term Liabilities: KAI's short term assets ($405.5M) exceed its long term liabilities ($337.2M).


Debt to Equity History and Analysis

Debt Level: KAI's debt to equity ratio (51.4%) is considered high.

Reducing Debt: KAI's debt to equity ratio has increased from 22.9% to 51.4% over the past 5 years.

Debt Coverage: KAI's debt is well covered by operating cash flow (46.9%).

Interest Coverage: KAI's interest payments on its debt are well covered by EBIT (20.8x coverage).


Balance Sheet


Dividend

What is Kadant current dividend yield, its reliability and sustainability?

0.49%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KAI's dividend (0.49%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.29%).

High Dividend: KAI's dividend (0.49%) is low compared to the top 25% of dividend payers in the US market (3.49%).


Stability and Growth of Payments

Stable Dividend: KAI is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: KAI is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: KAI is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of KAI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.4yrs

Average management tenure


CEO

Jeffrey Powell (62 yo)

2.25yrs

Tenure

US$3,697,247

Compensation

Mr. Jeffrey L. Powell serves as President at Kadant Inc. since April 1, 2019 and also its Chief Executive Officer & Director since July 1, 2019. Mr. Powell had been an Executive Vice President of Kadant In...


CEO Compensation Analysis

Compensation vs Market: Jeffrey's total compensation ($USD3.70M) is about average for companies of similar size in the US market ($USD3.56M).

Compensation vs Earnings: Jeffrey's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: KAI's management team is considered experienced (4.4 years average tenure).


Board Members

Experienced Board: KAI's board of directors are considered experienced (6.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Kadant Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Kadant Inc.
  • Ticker: KAI
  • Exchange: NYSE
  • Founded: 1991
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$2.386b
  • Shares outstanding: 11.58m
  • Website: https://www.kadant.com

Number of Employees


Location

  • Kadant Inc.
  • One Technology Park Drive
  • Westford
  • Massachusetts
  • 1886
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/16 22:18
End of Day Share Price2021/10/15 00:00
Earnings2021/07/03
Annual Earnings2021/01/02


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.