(KAI) Kadant - Overview
Sector: Industrials | Industry: Specialty Industrial Machinery | Exchange: NYSE (USA) | Market Cap: 3.772m USD | Total Return: -0.7% in 12m
Avg Turnover: 58.1M
EPS Trend: -37.3%
Qual. Beats: 1
Rev. Trend: 91.2%
Qual. Beats: 4
Warnings
Choppy
Tailwinds
Pead
Kadant Inc. (KAI) is a global supplier of high-value engineered systems and technologies serving process industries. The company operates through three primary segments: Flow Control, which manages fluid-handling and surface-cleaning systems; Industrial Processing, focused on wood processing and pulp recycling equipment; and Material Handling, which provides bulk conveying and baling solutions. Its business model relies heavily on the aftermarket, where the sale of consumable parts and repair services provides a recurring revenue stream that often offsets the cyclicality of capital equipment sales.
The industrial machinery sector is currently characterized by a shift toward automation and resource efficiency, as manufacturers seek to reduce water and energy consumption in heavy processing environments. Kadant’s portfolio aligns with these trends by offering specialized components like doctor blades and water-filtration systems that optimize production uptime. Investors looking for deeper fundamental analysis may find the data tools at ValueRay useful for further due diligence. Originally incorporated as Thermo Fibertek, the firm rebranded in 2001 and maintains its corporate headquarters in Westford, Massachusetts.
- Cyclical demand in global paper and containerboard packaging markets drives revenue
- Industrial capital expenditure cycles dictate order intake for processing and handling segments
- Fluctuations in global steel and energy costs impact manufacturing operating margins
- Strategic acquisitions of niche industrial technology firms accelerate long-term earnings growth
- Expansion of sustainable recycling infrastructure increases demand for material handling systems
| Net Income: 103.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.10 > 0.02 and ΔFCF/TA 0.14 > 1.0 |
| NWC/Revenue: 41.25% < 20% (prev 25.50%; Δ 15.76% < -1%) |
| CFO/TA 0.11 > 3% & CFO 170.4m > Net Income 103.4m |
| Net Debt (247.9m) to EBITDA (230.8m): 1.07 < 3 |
| Current Ratio: 9.14 > 1.5 & < 3 |
| Outstanding Shares: last quarter (11.8m) vs 12m ago 0.22% < -2% |
| Gross Margin: 44.96% > 18% (prev 0.45%; Δ 4.45k% > 0.5%) |
| Asset Turnover: 72.29% > 50% (prev 72.70%; Δ -0.41% > 0%) |
| Interest Coverage Ratio: 5.17 > 6 (EBITDA TTM 230.8m / Interest Expense TTM 34.2m) |
| A: 0.28 (Total Current Assets 507.0m - Total Current Liabilities 55.5m) / Total Assets 1.59b |
| B: 0.61 (Retained Earnings 966.9m / Total Assets 1.59b) |
| C: 0.12 (EBIT TTM 176.9m / Avg Total Assets 1.51b) |
| D: 1.36 (Book Value of Equity 966.9m / Total Liabilities 708.5m) |
| Altman-Z'' = 6.06 = AAA |
| DSRI: 1.04 (Receivables 172.4m/158.1m, Revenue 1.09b/1.04b) |
| GMI: 0.99 (GM 44.96% / 44.61%) |
| AQI: 0.98 (AQ_t 0.56 / AQ_t-1 0.57) |
| SGI: 1.05 (Revenue 1.09b / 1.04b) |
| TATA: -0.04 (NI 103.4m - CFO 170.4m) / TA 1.59b) |
| Beneish M = -3.02 (Cap -4..+1) = AA |
As of May 25, 2026, the stock is trading at USD 306.90 with a total of 91,700 shares traded.
Over the past week, the price has changed by +0.51%,
over one month by +2.13%,
over three months by -4.75% and
over the past year by -0.71%.
Kadant has received a consensus analysts rating of 3.75. Therefore, it is recommended to hold KAI.
- StrongBuy: 1
- Buy: 1
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 342 | 11.4% |
P/E Forward = 26.178
P/S = 3.4461
P/B = 3.64
P/EG = 3.2291
Revenue TTM = 1.09b USD
EBIT TTM = 176.9m USD
EBITDA TTM = 230.8m USD
Long Term Debt = 360.2m USD (from longTermDebt, last quarter)
Short Term Debt = 3.16m USD (from shortLongTermDebt, last quarter)
Debt = 367.7m USD (from shortLongTermDebtTotal, last quarter) + Leases 4.39m
Net Debt = 247.9m USD (calculated: Debt 367.7m - CCE 119.8m)
Enterprise Value = 4.02b USD (3.77b + Debt 367.7m - CCE 119.8m)
Interest Coverage Ratio = 5.17 (Ebit TTM 176.9m / Interest Expense TTM 34.2m)
EV/FCF = 26.11x (Enterprise Value 4.02b / FCF TTM 153.9m)
FCF Yield = 3.83% (FCF TTM 153.9m / Enterprise Value 4.02b)
FCF Margin = 14.06% (FCF TTM 153.9m / Revenue TTM 1.09b)
Net Margin = 9.45% (Net Income TTM 103.4m / Revenue TTM 1.09b)
Gross Margin = 44.96% ((Revenue TTM 1.09b - Cost of Revenue TTM 602.4m) / Revenue TTM)
Gross Margin QoQ = 45.01% (prev 43.92%)
Tobins Q-Ratio = 2.52 (Enterprise Value 4.02b / Total Assets 1.59b)
Interest Expense / Debt = 9.31% (Interest Expense 34.2m / Debt 367.7m)
Taxrate = 28.20% (10.1m / 36.0m)
NOPAT = 127.0m (EBIT 176.9m * (1 - 28.20%))
Current Ratio = 9.14 (Total Current Assets 507.0m / Total Current Liabilities 55.5m)
Debt / Equity = 0.42 (Debt 367.7m / totalStockholderEquity, last quarter 884.1m)
Debt / EBITDA = 1.07 (Net Debt 247.9m / EBITDA 230.8m)
Debt / FCF = 1.61 (Net Debt 247.9m / FCF TTM 153.9m)
Total Stockholder Equity = 937.7m (last 4 quarters mean from totalStockholderEquity)
RoA = 6.83% (Net Income 103.4m / Total Assets 1.59b)
RoE = 11.03% (Net Income TTM 103.4m / Total Stockholder Equity 937.7m)
RoCE = 13.63% (EBIT 176.9m / Capital Employed (Equity 937.7m + L.T.Debt 360.2m))
RoIC = 8.94% (NOPAT 127.0m / Invested Capital 1.42b)
WACC = 11.40% (E(3.77b)/V(4.14b) * Re(11.86%) + D(367.7m)/V(4.14b) * Rd(9.31%) * (1-Tc(0.28)))
Discount Rate = 11.86% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 73.33 | Cagr: 0.16%
[DCF] Terminal Value 68.28% ; FCFF base≈147.0m ; Y1≈165.2m ; Y5≈230.6m
[DCF] Fair Price = 171.0 (EV 2.27b - Net Debt 247.9m = Equity 2.02b / Shares 11.8m; r=11.40% [WACC]; 5y FCF grow 12.61% → 2.50% )
EPS Correlation: -37.34 | EPS CAGR: -1.64% | SUE: 4.0 | # QB: 1
Revenue Correlation: 91.16 | Revenue CAGR: 5.04% | SUE: 1.31 | # QB: 4
EPS current Quarter (2026-06-30): EPS=2.77 | Chg30d=-9.98% | Revisions=-33% | Analysts=3
EPS next Quarter (2026-09-30): EPS=3.37 | Chg30d=-2.60% | Revisions=+0% | Analysts=3
EPS current Year (2026-12-31): EPS=11.95 | Chg30d=+0.64% | Revisions=-33% | GrowthEPS=+29.1% | GrowthRev=+13.5%
EPS next Year (2027-12-31): EPS=13.54 | Chg30d=-0.15% | Revisions=-14% | GrowthEPS=+13.3% | GrowthRev=+5.1%
[Analyst] Revisions Ratio: -33%