Kadant (KAI) AI Stock Analysis

• Market Cap: $3.21B
• Dividend Yield: 0.5%
• Average Volume (3M): 150.99K
• Price to Earnings (P/E): 31.5
• Beta (1Y): 1.38
• Revenue Growth: -0.96%
• EPS Growth: -11.55%
• Country: US
• Employees: 3,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 2.59
• Shares Outstanding: 11,777,467
• 10 Day Avg. Volume: 185,725
• 30 Day Avg. Volume: 150,988
• PEG Ratio: -8.93
• Price to Book (P/B): 4.86
• Price to Sales (P/S): 3.91
• P/FCF Ratio: 30.67
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 4.85
• Enterprise Value/Gross Profit: 10.65
• Enterprise Value/Ebitda: 22.91
• 1Y Price Target: $360.00
• Price Target Upside: 33.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 9.19
• Revenue Forecast (FY): $1.04B

• Rating: 66 Neutral
• Price Target: $309.00 ▲(14.84% Upside)

Kadant's overall stock score reflects solid financial health and strong cash flow management, which are offset by a bearish technical outlook and high valuation. The earnings call provided a mixed outlook with strong aftermarket performance but challenges in other segments. The stock's current valuation and technical indicators suggest caution, despite the company's operational strengths.

Positive Factors

Aftermarket Parts Revenue Growth

The growth in aftermarket parts revenue indicates strong recurring revenue potential and customer reliance on Kadant's ongoing support and services, enhancing long-term financial stability.

Material Handling Segment Growth

The robust growth in the Material Handling segment demonstrates Kadant's ability to capitalize on market demand, supporting future revenue potential and market position.

Strong Cash Flow

Strong cash flow generation enhances Kadant's financial flexibility, enabling investment in growth opportunities and providing a buffer against economic uncertainties.

Negative Factors

Decline in Industrial Processing Segment Revenue

The decline in the Industrial Processing segment reflects challenges in maintaining sales momentum, potentially impacting overall revenue growth and market competitiveness.

Challenges with Capital Project Orders

Weakness in capital project orders suggests a slowdown in new business opportunities, which could hinder future revenue growth and operational expansion.

Increased SG&A Expenses

Rising SG&A expenses may pressure profit margins, reducing operational efficiency and potentially impacting the company's ability to invest in growth initiatives.

Kadant Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Kadant generates revenue through multiple key streams, including the sale of engineered systems and products, aftermarket parts, and services. The company earns a significant portion of its revenue from the sale of equipment used in paper and packaging production, which includes advanced technologies for drying, filtration, and fluid handling. Aftermarket services, including parts replacement, maintenance, and technical support, contribute to recurring revenue, as customers require ongoing support for their systems. Additionally, Kadant has established partnerships with various industrial players, enhancing its market reach and enabling the company to leverage collaborative opportunities for innovation and efficiency improvements, further driving its earnings potential.

Kadant Financial Statement Overview

Summary

Kadant demonstrates solid financial health with strong profitability margins and efficient cash flow management. While revenue growth has faced challenges, the company maintains operational efficiency and a stable balance sheet. The manageable debt levels and strong cash flow generation position Kadant well for future growth opportunities, despite the recent decline in revenue.

Income Statement

Kadant's income statement shows a strong gross profit margin of approximately 45% in TTM, indicating efficient cost management. However, the net profit margin has slightly decreased to 10.3% in TTM from 10.6% in the previous year. The revenue growth rate is negative at -1.87% in TTM, reflecting a decline in sales compared to the previous period. Despite this, the company maintains healthy EBIT and EBITDA margins, suggesting operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.30 in TTM, showing a manageable level of debt. Return on equity is solid at 12.5%, indicating effective use of equity to generate profits. The equity ratio stands at approximately 59.9%, suggesting a strong equity base relative to total assets. However, the slight decrease in stockholders' equity over the periods indicates potential challenges in equity growth.

Cash Flow

Kadant's cash flow statement is robust, with a free cash flow growth rate of 9.82% in TTM, highlighting improved cash generation. The operating cash flow to net income ratio is strong at 3.19, indicating efficient conversion of income into cash. The free cash flow to net income ratio is also healthy at 0.90, demonstrating effective cash management. These metrics suggest strong liquidity and cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2019	Dec 2018
Income Statement
Total Revenue	766.09M	1.05B	957.67M	904.74M	704.64M	633.79M
Gross Profit	348.81M	466.15M	416.31M	389.56M	293.76M	278.28M
EBITDA	162.12M	222.69M	200.71M	187.77M	123.17M	117.71M
Net Income	81.81M	111.60M	116.07M	120.93M	52.07M	60.41M
Balance Sheet
Total Assets	1.36B	1.43B	1.18B	1.15B	939.39M	725.75M
Cash, Cash Equivalents and Short-Term Investments	97.19M	94.66M	103.83M	76.37M	68.27M	46.12M
Total Debt	248.92M	322.84M	135.61M	204.98M	301.02M	175.82M
Total Liabilities	547.22M	572.22M	399.43M	494.31M	512.31M	351.18M
Stockholders Equity	926.02M	847.13M	773.70M	653.85M	427.08M	374.57M
Cash Flow
Free Cash Flow	103.81M	134.26M	133.69M	74.43M	87.46M	46.43M
Operating Cash Flow	115.80M	155.26M	165.54M	102.63M	97.41M	62.98M
Investing Cash Flow	-21.29M	-319.14M	-30.79M	-29.52M	-187.36M	-16.36M
Financing Cash Flow	-87.54M	159.91M	-111.11M	-80.57M	112.45M	-74.16M

Kadant Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 269.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KAI, the sentiment is Negative. The current price of 269.06 is below the 20-day moving average (MA) of 288.43, below the 50-day MA of 299.70, and below the 200-day MA of 325.32, indicating a bearish trend. The MACD of -8.15 indicates Positive momentum. The RSI at 33.37 is Neutral, neither overbought nor oversold. The STOCH value of 9.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KAI.

Kadant Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
THR	76 Outperform	$937.72M	17.96	11.74%	―	3.08%	35.81%
MWA	75 Outperform	$4.03B	27.26	21.40%	1.03%	8.75%	64.82%
CSW	73 Outperform	$4.04B	28.41	13.29%	0.32%	14.87%	15.63%
FELE	71 Outperform	$4.26B	31.26	10.89%	1.12%	5.06%	-22.73%
CXT	70 Outperform	$3.69B	24.04	13.54%	1.05%	9.30%	-12.55%
KAI	66 Neutral	$3.21B	31.53	11.32%	0.50%	-0.96%	-11.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Kadant Corporate Events

Kadant’s Earnings Call: Mixed Results Amid Challenges

Kadant’s recent earnings call painted a mixed picture of the company’s financial health and future prospects. While the company celebrated strong performance in the aftermarket parts segment and robust cash flow generation, it also acknowledged challenges such as revenue declines in key segments, increased expenses, and ongoing uncertainty in capital project orders. Despite these hurdles, Kadant expressed optimism about future capital demand and market improvements, although the overall outlook remains tempered by existing challenges.

Kadant Inc. Reports Stable Revenue Amid Income Decline

Kadant Inc. is a global supplier of technologies and engineered systems focused on enhancing efficiency and productivity in process industries, with a significant presence in sustainable industrial processing. The company is headquartered in Westford, Massachusetts, and operates in 22 countries worldwide.

Kadant Reports Q3 2025 Financial Results

Kadant Inc. reported its financial results for the third quarter of 2025, showing stable revenue of $272 million but a decline in net income by 12% to $28 million. Despite challenges such as reduced demand for capital equipment and global trade uncertainties, the company achieved a solid gross margin of 45.2%, driven by strong performance in its aftermarket parts business. The company anticipates improved demand for its products in the fourth quarter, with revised revenue expectations for 2025 between $1.036 to $1.046 billion.

The most recent analyst rating on (KAI) stock is a Hold with a $319.00 price target. To see the full list of analyst forecasts on Kadant stock, see the KAI Stock Forecast page.

Kadant Announces Acquisition of Clyde Industries

On October 9, 2025, Kadant Inc. will host a webcast and conference call to discuss its acquisition of Clyde Industries Holdings, Inc., a leading manufacturer of boiler efficiency and cleaning system technologies. The acquisition, valued at $175 million, aims to strengthen Kadant’s long-term growth strategy by integrating Clyde Industries into its Industrial Processing segment, leveraging Clyde’s market-leading position in the Pulp & Paper industry and its solid financial metrics. This move is expected to enhance Kadant’s market expansion and align with its sustainable industrial processing initiatives.

The most recent analyst rating on (KAI) stock is a Hold with a $300.00 price target. To see the full list of analyst forecasts on Kadant stock, see the KAI Stock Forecast page.

Kadant Completes Acquisition of Clyde Industries

On October 7, 2025, Kadant Inc. completed the acquisition of Clyde Industries Holdings, Inc. for $175 million in cash. Clyde Industries, known for its engineered boiler efficiency solutions in the pulp and paper industry, will be integrated into Kadant’s Industrial Processing segment. This acquisition supports Kadant’s strategic goals of expanding its industrial processing offerings and complements its existing product portfolio, enhancing its market position.

The most recent analyst rating on (KAI) stock is a Buy with a $380.00 price target. To see the full list of analyst forecasts on Kadant stock, see the KAI Stock Forecast page.

Kadant Expands Credit Facility with Eighth Amendment

On September 26, 2025, Kadant Inc. entered into an Eighth Amendment to its Amended and Restated Credit Agreement with several banks and financial institutions, including Citizens Bank, N.A. This amendment increases the revolving loan commitments from $400 million to $750 million, extends the maturity date of the credit facility to September 26, 2030, and makes several other adjustments, such as adding Australian Dollars as a foreign currency and increasing various sublimits. These changes are expected to enhance Kadant’s financial flexibility and support its operational and strategic initiatives.

The most recent analyst rating on (KAI) stock is a Buy with a $380.00 price target. To see the full list of analyst forecasts on Kadant stock, see the KAI Stock Forecast page.

Kadant Inc. Reports Mixed Q2 2025 Results

Kadant Inc. is a global supplier of technologies and engineered systems that enhance efficiency and optimize productivity in process industries, with a presence in 20 countries worldwide.

Kadant’s Earnings Call: Mixed Results Amid Strong Aftermarket Performance

Kadant’s recent earnings call painted a mixed picture of the company’s financial health and future prospects. The sentiment was generally positive, with notable achievements in aftermarket revenue and gross margins, as well as an increase in bookings and successful acquisitions. However, challenges such as a decrease in overall revenue and earnings, coupled with uncertainties in trade policies, were also highlighted.