Kadant Inc

Industrials
Industrial Machinery/Components
www.kadant.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $4.79B
PE 42
Debt $329.70M
Cash $89.73M
EV $5.03B
FCF $137.42M

Earnings

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Sales & Net Margins

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Earnings	$114.96M
EBIT	$173.34M
ROE	13%
ROA	12%
FCF	$137.42M
Equity	$862.79M
Growth Stability	98%
PE	41.67
PEG	1.72
PB	5.55
P/FCF	34.86
P/S	4.63
Price/Cash	0.02
Debt/Equity	0.38
Debt/FCF	2.4
Net Margins	11%
Gross Margins	44%
Op. Margins	17%
Earnings CAGR	19%
Sales Growth YoY	11%
Sales Growth QoQ	-1%
Sales CAGR	12%
FCF CAGR	17%
Equity CAGR	14%
Earnings Stability	0.89
Earnings Growth YoY	2%
Earnings Growth QoQ	1%
Earnings CAGR 5Y	24%

Sales CAGR 5Y	11%
FCF CAGR 5Y	7%
Equity CAGR 5Y	16%
Earnings CAGR 3Y	9%
Sales CAGR 3Y	9%
FCF CAGR 3Y	-1%
Equity CAGR 3Y	17%
Market Cap	$4.79B
Revenue	$1.03B
Dividend Yield	0%
Payout Ratio	12%
Assets	$1.49B
Total Debt	$329.70M
Cash	$89.73M
Shares Outstanding	11.74M
EV	5.03B
Earnings Score	95%
Moat Score	92%
Safety Score	93%
Final Score	93%
Working Capital	264.32M
Current Ratio	2.29
Gross Profit	$456.27M
Shares Growth 3y	0%
Equity Growth QoQ	5%
Equity Growth YoY	18%

Assets & ROA

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Stockholders Equity & ROE

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Kadant Inc. supplies process and engineering equipment for papermaking, recycling, lumber manufacturing, and related industries. The company's three reportable segments are: Flow Control segment which consists of the fluid-handling and doctoring, cleaning, & filtration product lines; Industrial Processing segment which consists of the wood processing and stock-preparation product lines; and Material handling systems, which provides conveyor-belt equipment for industries such as mining, food processing, and packaging. The company has a global presence with sizable revenue from the U.S., Europe, Asia, and Canada.

SEC Filings

Direct access to Kadant Inc (KAI) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 28
- 10-Q Jun 29
- 10-Q Mar 30
2023
- 10-K Dec 30
- 10-Q Sep 30
- 10-Q Jul 01
- 10-Q Apr 01
2022
- 10-K Dec 31
- 10-Q Oct 01
- 10-Q Jul 02
- 10-Q Apr 02
- 10-K Jan 01

Sector Comparison

How does Kadant Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Kadant Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 19%

Stability 89%

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Kadant Inc Discounted Cash Flow

Fully customizable DCF calculator online for Kadant Inc.

Years

Calculation mode

= $4.5B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$137M	$161M	$188M	$220M	$257M	$301M	$352M	$411M	$481M	$562M	$658M	$6.6B
DCF		$146M	$155M	$165M	$176M	$187M	$198M	$211M	$224M	$239M	$254M	$2.5B
Value	$4.5B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	01/2015	01/2016	12/2016	12/2017	12/2018	12/2019	01/2021	12/2021	12/2022	12/2023	TTM
Net Margins	7%	9%	8%	6%	10%	7%	9%	11%	13%	12%	11%
ROA	-	12%	10%	8%	12%	9%	9%	10%	15%	14%	12%
ROE	-	13%	11%	9%	16%	12%	11%	15%	18%	15%	13%

Good Net Margins (11.01%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	01/2015	01/2016	12/2016	12/2017	12/2018	12/2019	01/2021	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	1.13	1.47	5.06	3.82	3.47	2.75	1.84	2.75	0.85	2.4
Debt over Equity	0.1	0.14	0.23	0.73	0.47	0.71	0.47	0.49	0.31	0.15	0.38
Growth Stability	-	-	-	98%	100%	100%	100%	100%	100%	100%	98%

Neutral Debt/FCF ratio (2.4)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.38)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (98%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	01/2015	01/2016	12/2016	12/2017	12/2018	12/2019	01/2021	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-3%	6%	24%	23%	11%	-10%	24%	15%	6%	11%
Earnings YoY growth	-	20%	-7%	-3%	94%	-14%	6%	52%	44%	-4%	24%
Equity YoY growth	-	1%	6%	17%	13%	14%	16%	14%	16%	18%	16%
FCF YoY growth	-	-23%	39%	6%	-3%	88%	-2%	75%	-50%	80%	7%