Kadant Inc. (KAI) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

John Bean Technologies Corp.

Symbotic, Inc.

Badger Meter, Inc.

Gates Industrial Corp. Plc

Crane NXT Co.

ESAB Corp.

Kadant Inc.

Franklin Electric Co., Inc.

Kulicke & Soffa Industries, Inc.

Enovis Corp.

AAON, Inc.

Why is Kadant Inc. ?

High Management Efficiency with a high ROCE of 17.06%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.92 times

Poor long term growth as Net Sales has grown by an annual rate of 8.92% over the last 5 years

Flat results in Jun 25

ROCE(HY) Lowest at 12.21%

With ROCE of 15.93%, it has a very expensive valuation with a 4.79 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -22.63%, its profits have fallen by -7.4%

Below par performance in long term as well as near term

Along with generating -22.63% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kadant Inc. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Kadant Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kadant Inc.

-6.29%

0.14

39.38%

S&P 500

16.12%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.63%

EBIT Growth (5y)

13.56%

EBIT to Interest (avg)

18.51

Debt to EBITDA (avg)

0.92

Net Debt to Equity (avg)

0.21

Sales to Capital Employed (avg)

0.92

Tax Ratio

26.55%

Dividend Payout Ratio

15.72%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

17.06%

ROE (avg)

15.31%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.52

EV to EBIT

30.13

EV to EBITDA

22.86

EV to Capital Employed

3.55

EV to Sales

4.61

PEG Ratio

Dividend Yield

9.15%

ROCE (Latest)

11.80%

ROE (Latest)

10.73%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 6.45

DIVIDEND PAYOUT RATIO(Y)

Highest at 16.71%

RAW MATERIAL COST(Y)

Fallen by -1.35% (YoY

CASH AND EQV(HY)

Highest at USD 249.59 MM

NET SALES(Q)

Highest at USD 286.2 MM

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 110.57 MM

ROCE(HY)

Lowest at 11.09%

INTEREST(Q)

Highest at USD 5.32 MM

EPS(Q)

Lowest at USD 2.04

Here's what is working for Kadant Inc.

Dividend per share

Highest at USD 6.45 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 286.2 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Cash and Eqv

Highest at USD 249.59 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend Payout Ratio

Highest at 16.71%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -1.35% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 14.74 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Kadant Inc.

Operating Cash Flow

Lowest at USD 110.57 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Interest

At USD 5.32 MM has Grown at 72.29%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest

Highest at USD 5.32 MM

in the last five periods and Increased by 72.29% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

EPS

Lowest at USD 2.04

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)