KAI Stock Analysis: Kadant | NYSE
Specialty Industrial Machinery | NYSE, USA | Market Cap: 3.656m USD | 12M Return: -7.6% | US48282T1043 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 37.0M
EPS Trend: -5.0%
Qual. Beats: 2
Rev. Trend: 90.1%
Qual. Beats: 5
Warnings
Tailwinds
Seasonality 11.6 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Kadant Inc. (NYSE: KAI) is a global supplier of industrial technologies and engineered systems, operating through three business segments: Flow Control, Industrial Processing, and Material Handling. The Flow Control segment provides fluid-handling systems, doctor blades, and water-filtration systems, while Industrial Processing offers equipment such as debarkers, chippers, and pulping systems, and Material Handling supplies vibratory, conveying, and baling equipment. The product portfolio indicates that a significant portion of the business serves the pulp, paper, and recycling industries, which are core end markets within the industrial machinery sector.
The company sells through a mix of direct sales, independent sales agents, and distributors, reflecting a diversified go-to-market approach typical of the Industrial Machinery & Supplies & Components sub-industry. Originally incorporated in 1991 as Thermo Fibertek, Inc., the company adopted its current name in July 2001 and is headquartered in Westford, Massachusetts.
- Pulp and paper industry capex cycle drives segment revenue
- Recyclable material demand boosts Material Handling segment growth
- Margin expansion from acquisitions and engineered product mix
| Net Income: 109.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA -1.64 > 1.0 |
| NWC/Revenue: 30.96% < 20% (prev 26.84%; Δ 4.11% < -1%) |
| CFO/TA 0.10 > 3% & CFO 183.4m > Net Income 109.7m |
| Net Debt (380.5m) to EBITDA (249.9m): 1.52 < 3 |
| Current Ratio: 2.59 > 1.5 & < 3 |
| Outstanding Shares: last quarter (11.8m) vs 12m ago 0.30% < -2% |
| Gross Margin: 44.44% > 18% (prev 44.98%; Δ -0.54% > 0.5%) |
| Asset Turnover: 68.30% > 50% (prev 68.99%; Δ -0.69% > 0%) |
| Interest Coverage Ratio: 4.82 > 6 (EBIT TTM 174.6m / Interest Expense TTM 36.2m) |
| A: 0.19 (Total Current Assets 580.8m - Total Current Liabilities 224.2m) / Total Assets 1.89b |
| B: 0.53 (Retained Earnings 995.1m / Total Assets 1.89b) |
| C: 0.10 (EBIT TTM 174.6m / Avg Total Assets 1.69b) |
| D: 1.20 (Book Value of Equity 1.02b / Total Liabilities 855.5m) |
| Altman-Z'' = 4.91 = AAA |
| DSRI: 0.92 (Receivables 168.7m/163.7m, Revenue 1.15b/1.02b) |
| GMI: 1.01 (GM 44.98% / 44.44%) |
| AQI: 1.02 (AQ_t 0.57 / AQ_t-1 0.56) |
| SGI: 1.13 (Revenue 1.15b / 1.02b) |
| TATA: -0.04 (NI 109.7m - CFO 183.4m) / TA 1.89b) |
| Beneish M = -2.99 (Cap -4..+1) = A |
As of August 24, 2026, the stock is trading at USD 313.41 with a total of 123,826 shares traded. Over the past week, the price has changed by -6.23%, over one month by +1.86%, over three months by -4.79% and over the past year by -7.59%.
Current recommended Stop Loss: 291.10 (which is 7.1% or 1.6 ATR below the current price).
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 | 361.7 | 15.4% |
P/E Trailing = 33.2946
P/E Forward = 28.5714
P/S = 3.1735
P/B = 3.8063
P/EG = 3.2291
Revenue TTM = 1.15b USD
EBIT TTM = 174.6m USD
EBITDA TTM = 249.9m USD
Long Term Debt = 374.5m USD (from longTermDebt, last fiscal year)
Short Term Debt = 3.18m USD (from shortTermDebt, last quarter)
Debt = 515.0m USD (from shortLongTermDebtTotal, last quarter) + Leases 4.39m
Net Debt = 380.5m USD (calculated: Debt 515.0m - CCE 134.5m)
Enterprise Value = 4.04b USD (3.66b + Debt 515.0m - CCE 134.5m)
Interest Coverage Ratio = 4.82 (Ebit TTM 174.6m / Interest Expense TTM 36.2m)
EV/FCF = 25.23x (Enterprise Value 4.04b / FCF TTM 160.0m)
FCF Yield = 3.96% (FCF TTM 160.0m / Enterprise Value 4.04b)
FCF Margin = 13.89% (FCF TTM 160.0m / Revenue TTM 1.15b)
Net Margin = 9.52% (Net Income TTM 109.7m / Revenue TTM 1.15b)
Gross Margin = 44.44% ((Revenue TTM 1.15b - Cost of Revenue TTM 640.1m) / Revenue TTM)
Gross Margin QoQ = 43.79% (prev 45.01%)
Tobins Q-Ratio = 2.14 (Enterprise Value 4.04b / Total Assets 1.89b)
Interest Expense / Debt = 7.03% (Interest Expense 36.2m / Debt 515.0m)
Taxrate = 29.06% (45.6m / 156.9m)
NOPAT = 123.9m (EBIT 174.6m * (1 - 29.06%))
Current Ratio = 2.59 (Total Current Assets 580.8m / Total Current Liabilities 224.2m)
Debt / Equity = 0.50 (Debt 515.0m / totalStockholderEquity, last quarter 1.02b)
Debt / EBITDA = 1.52 (Net Debt 380.5m / EBITDA 249.9m)
Debt / FCF = 2.38 (Net Debt 380.5m / FCF TTM 160.0m)
Total Stockholder Equity = 987.1m (last 4 quarters mean from totalStockholderEquity)
RoA = 6.50% (Net Income 109.7m / Total Assets 1.89b)
RoE = 11.12% (Net Income TTM 109.7m / Total Stockholder Equity 987.1m)
RoCE = 12.83% (EBIT 174.6m / Capital Employed (Equity 987.1m + L.T.Debt 374.5m))
RoIC = 7.69% (NOPAT 123.9m / Invested Capital 1.61b)
WACC = 11.31% (E(3.66b)/V(4.17b) * Re(12.20%) + D(515.0m)/V(4.17b) * Rd(7.03%) * (1-Tc(0.29)))
Discount Rate = 12.20% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 90.21 | Cagr: 0.28%
[DCF] Terminal Value 66.85% ; FCFF base≈156.0m ; Y1≈165.2m ; Y5≈194.6m
[DCF] Fair Price = 135.7 (EV 1.98b - Net Debt 380.5m = Equity 1.60b / Shares 11.8m; r=11.31% [WACC]; 5y FCF grow 6.57% → 2.50% )
EPS Correlation: -4.97 | EPS CAGR: -0.28% | SUE: 2.60 | # QB: 2
Revenue Correlation: 90.05 | Revenue CAGR: 5.58% | SUE: 2.83 | # QB: 5
EPS current Quarter (2026-09-30): EPS=2.93 | Chg30d=-9.64% | Revisions=-29% | Analysts=4
EPS current Year (2026-12-31): EPS=12.04 | Chg30d=+6.24% | Revisions=+29% | GrowthEPS=+30.0% | GrowthRev=+13.9%
EPS next Year (2027-12-31): EPS=13.51 | Chg30d=+3.25% | Revisions=+0% | GrowthEPS=+12.2% | GrowthRev=+5.8%
[Analyst] Revisions Ratio: +0% (up=6, down=6)