KAI

Kadant Inc.

Fundamental data last updated:October 20, 2026

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company profile

SECTOR

Industrials

industry

Industrial - Machinery

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Kadant Inc. supplies technologies and engineered systems worldwide. It operates through three segments: Flow Control, Industrial Processing, and Material Handling. The Flow Control segment develops, manufactures, and markets fluid-handling systems and equipment, such as rotary joints, syphons, turbulator bars, expansion joints, and engineered steam and condensate systems; and doctoring, cleaning, and filtration systems and related consumables, consisting of doctor systems and holders, doctor blades, shower and fabric-conditioning systems, formation systems, and water-filtration systems. The Industrial Processing segment develops, manufactures, and markets ring and rotary debarkers, stranders, chippers, logging machinery, industrial automation and control systems, recycling and approach flow systems, and virgin pulping process equipment for use in the packaging, tissue, wood products, and alternative fuel industries. The Material Handling segment offers conveying and vibratory equipment, and balers and related equipment; and manufactures and sells biodegradable absorbent granules for carriers in as carriers in agricultural, home lawn and garden, professional lawn, turf, and ornamental applications, as well as for oil and grease absorption. The company was formerly known as Thermo Fibertek Inc. and changed its name to Kadant Inc. in July 2001. Kadant Inc. was incorporated in 1991 and is headquartered in Westford, Massachusetts.

 


VALUATION

P/E

36.81

Market Cap ($M USD)

$3.81B

Forward P/E

23.79

PEG

0.43

PRICE TO SALES

3.48

PRICE TO BOOK

4.31

EV / EBITDA

17.57

5-Year Average P/E

Free Cash Flow Yield

4.04%

DCF Value

$179.33

Graham Number

$121.61

Price to FCF

24.76

EV to FCF

26.34

Earnings Yield

2.72%

FCF Yield

4.04%

DIVIDEND

Yield

0.43%

Annual Payout

$1.38

Payout Ratio

16.45%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$8.77

Next Year EPS Growth Estimate

$13.57

Next Year Revenue Growth Estimate

$1.26B

Return on Equity (ROE)

11.03%

FREE CASH FLOW

Operating Margin

14.78%

Debt-to-Equity

0.38

Piotroski F-Score

5

Altman Z-Score

4.72

Return on Invested Capital (ROIC)

10.53%

Current Ratio

9.14

Quick Ratio

5.27

Net Debt to EBITDA

1.06

Interest Coverage

9.97

Gross Profit margin

44.96%

FCF PER SHARE

$13.05

REVENUE PER SHARE

$92.81

Gainseekers Quantitative Analysis

Summary

The market seems to have priced KAI Kadant Inc. with a hefty premium, as indicated by its Price/Earnings ratio of 38.64, which towers over its DCF value. This suggests a disconnect between current market sentiment and intrinsic value, especially when the Graham Number sits at 121.61. However, the Forward P/E of 24.97 and a robust Altman Z-score of 4.78 imply financial stability and potential growth. The earnings yield of 2.59% is modest, hinting at limited immediate returns, yet the company’s safety net appears strong.

AI Exposure / Tech Reliance

Operating in the Industrials sector, KAI Kadant Inc. is well-positioned to integrate AI and modern technology into its machinery solutions. This adaptability is crucial for maintaining competitive advantage in an industry increasingly driven by automation and efficiency. As technology reshapes industrial processes, KAI's ability to innovate will determine its resilience.

The Bull Case

For the discerning GARP investor, KAI Kadant Inc. presents a compelling case. With a Return on Invested Capital of 10.53%, the company demonstrates efficient capital allocation, translating into tangible returns. The Free Cash Flow Yield, although modest at 3.86%, combined with a Piotroski F-Score of 5, suggests operational efficiency and financial health. Its operating margin of 14.78% underscores strong pricing power, making it an attractive proposition for those seeking growth at a reasonable price.

The Bear Case

Despite its strengths, KAI Kadant Inc. faces significant valuation challenges. The Price/Book ratio of 4.52 and Price/Sales of 3.65 indicate a potentially overvalued stock, especially when trading near its 52-week high. The Free Cash Flow Yield is underwhelming, and the stock's price has extended beyond its DCF value, raising concerns about future returns. Investors should be wary of these inflated multiples, which could signal a correction if growth expectations falter.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$303.00

Institutional Ownership %

1-Year Beta

1.19

Insider Buying % (6 Mo)

Distance to 52-Week High

14.62%

Distance to 52-Week Low

24.14%

EARNINGS SURPRISE %

34.60%

50-DAY SMA

$312.97

200-DAY SMA

$308.48

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.