Kadant Inc

Industrials
Industrial Machinery/Components
www.kadant.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $3.40B
PE 31
Debt $291.90M
Cash $95.95M
EV $3.60B
FCF $134.26M

Earnings

loading chart...

Sales & Net Margins

loading chart...

Earnings	$111.60M
EBIT	$171.25M
ROE	13%
ROA	12%
FCF	$134.26M
Equity	$858.13M
Growth Stability	100%
PE	30.51
PEG	1.37
PB	3.97
P/FCF	25.36
P/S	3.23
Price/Cash	0.03
Debt/Equity	0.34
Debt/FCF	2.17
Net Margins	11%
Gross Margins	44%
Op. Margins	16%
Earnings CAGR	20%
Sales Growth YoY	8%
Sales Growth QoQ	-5%
Sales CAGR	11%
FCF CAGR	17%
Equity CAGR	14%
Earnings Stability	0.89
Earnings Growth YoY	-12%
Earnings Growth QoQ	-24%
Earnings CAGR 5Y	22%

Sales CAGR 5Y	12%
FCF CAGR 5Y	7%
Equity CAGR 5Y	16%
Earnings CAGR 3Y	8%
Sales CAGR 3Y	8%
FCF CAGR 3Y	7%
Equity CAGR 3Y	16%
Market Cap	$3.40B
Revenue	$1.05B
Dividend Yield	0%
Payout Ratio	13%
Assets	$1.43B
Total Debt	$291.90M
Cash	$95.95M
Shares Outstanding	11.73M
EV	3.6B
Earnings Score	95%
Moat Score	92%
Safety Score	93%
Final Score	93%
Working Capital	250.76M
Current Ratio	2.31
Gross Profit	$466.15M
Shares Growth 3y	0%
Equity Growth QoQ	-1%
Equity Growth YoY	11%

Assets & ROA

loading chart...

Stockholders Equity & ROE

loading chart...

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-K Dec 28
- 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?

Loading chart...

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 20%

Stability 89%

loading chart...

Kadant Inc Discounted Cash Flow

Fully customizable DCF calculator online for Kadant Inc.

Years

Calculation mode

= $4.3B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$134M	$157M	$183M	$213M	$248M	$289M	$338M	$394M	$459M	$535M	$624M	$6.2B
DCF		$142M	$151M	$160M	$170M	$180M	$191M	$202M	$214M	$227M	$241M	$2.4B
Value	$4.3B

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	01/2016	12/2016	12/2017	12/2018	12/2019	01/2021	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	9%	8%	6%	10%	7%	9%	11%	13%	12%	11%	11%
ROA	-	10%	8%	12%	9%	9%	10%	15%	14%	12%	12%
ROE	-	11%	9%	16%	12%	11%	15%	18%	15%	13%	13%

Good Net Margins (10.59%)

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	01/2016	12/2016	12/2017	12/2018	12/2019	01/2021	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	1.47	5.06	3.82	3.47	2.75	1.84	2.75	0.85	2.17	2.17
Debt over Equity	0.14	0.23	0.73	0.47	0.71	0.47	0.49	0.31	0.15	0.34	0.34
Growth Stability	-	-	-	100%	100%	100%	100%	100%	100%	100%	100%

Neutral Debt/FCF ratio (2.17)

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 (0.34)

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

Good Graham’s Stability (100%)

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	01/2016	12/2016	12/2017	12/2018	12/2019	01/2021	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	6%	24%	23%	11%	-10%	24%	15%	6%	10%	12%
Earnings YoY growth	-	-7%	-3%	94%	-14%	6%	52%	44%	-4%	-4%	22%
Equity YoY growth	-	6%	17%	13%	14%	16%	14%	16%	18%	11%	16%
FCF YoY growth	-	39%	6%	-3%	88%	-2%	75%	-50%	80%	0%	7%