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Kadant Inc.

Rank #270ValueWatchlistCompare with other stocks

KAI · NYSE · Industrials

Kadant Inc. (KAI) — Rank #270 by gross profitability (GP/assets 0.25) · ROE 10.0% · Piotroski F-Score 5 / 9.

As-of 2026-10-30 · CIK 0000886346 · all metrics point-in-time as of the filing date.

About

Kadant Inc. supplies technologies and engineered systems worldwide.

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The company operates through three segments: Flow Control, Industrial Processing, and Material Handling. The Flow Control segment develops, manufactures, and markets fluid-handling systems, equipment, and integrated technologies, such as rotary joints, syphons, Turbulator bars, expansion joints, and engineered steam and condensate systems, as well as doctor systems and holders, doctor blades, cleaning showers and fabric-conditioning systems, forming systems and wear surfaces, and water-filtration systems. The Industrial Processing segment provides ring and rotary debarkers, stranders, chippers, engineered knife systems, and industrial automation and control products. This segment also offers recycling and approach flow systems, virgin pulping process equipment, boiler cleaning technologies, and single and double-screw presses. The Material Handling segment provides vibratory and conveying equipment; individual components and equipment for baling recyclable and waste materials; and fiber-based products. It sells its products and services through direct sales, independent sales agents, and distributors. 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.

Industry
Specialty Industrial Machinery
Sector
Industrials
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
January 2
Website
kadant.com

Company Snapshot

P/E and dividend yield are the primary valuation lenses for mature businesses.

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

4,000

Industry

Specialty Industrial Machinery

Exchange

NYSE

8/12

Flags passed

KAI fails 4 critical flags

Passes 8 of 12 quality flags

  • FAIL
    Revenue declining YoY

    Revenue contracted year over year

  • FAIL
    Operating margin declining

    Operating margin lower than prior year

  • FAIL
    Balance sheet deteriorating

    Net cash collapsed with receivables or inventory outpacing revenue

  • FAIL
    Valuation convergence

    EPS declining, shares diluting, and revenue growth decelerating simultaneously

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin

Strengths Sequential beat (rev + EPS)

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

Quality Profile

Profitability

1/1 pass
GP / assets
0.25
Return on equity
10.0%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.83
Current ratio
2.59×
Net cash
-$241.36M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
1.1%

Growth

1/2 pass
Revenue growth
-0.1%
Piotroski F-Score
5 / 9
Share dilution
0.2%

Dividend yield and payout ratio are the primary reads at this stage (trailing P/E — see valuation above).

Profitability

Does it make money well?

Warning: Operating margin declining, Revenue declining YoY · GP/assets 52nd percentile of 26 SIC 35 peers

Gross profitability (GP / assets)

0.25

Primary signal (Novy-Marx).

52nd pctl of 26 SIC 35 peers

Return on equity

10.0%

Gross margin

45.2%

60th pctl of 26 SIC 35 peers

Revenue growth (YoY)

-0.1%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242026
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

5.2%

Revenue CAGR (5Y)

10.6%

Earnings CAGR (3Y)

-5.5%

FCF CAGR (3Y)

27.5%

Cash Flow Health

Is the cash real?

No warning flags · FCF 51% above net income

Free cash flow

$154.28M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

51.3%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.1%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

Warning: Balance sheet deteriorating · net debt $241.36M, F-Score 5/9

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.83

48th pctl of 26 SIC 35 peers (best = lowest)

Current ratio

2.59×

80th pctl of 26 SIC 35 peers

Quick ratio

1.35×

Net cash

-$241.36M

Cash & equivalents minus total debt.

Piotroski F-Score

5 / 9

Fundamental-strength score (0-9).

Valuation

Is the price reasonable?

Warning: Valuation convergence

Dividend safety

Composite score

4.2 / 5

Strong
Payout ratio
15.5%5/5 Strong
FCF coverage
9.78×5/5 Strong
Dividend growth streak
10 yr5/5 Strong
Balance-sheet health
D/E 0.83 · IC N/A2/5 Fair

Capital allocation quality

Composite score

3.0 / 5

Good
Share count trend
0.2%2/5 Fair
Buyback timing
N/AN/A
Dividend growth consistency
10 yr5/5 Strong
Net debt trajectory
-3.6%2/5 Fair

Lifecycle Phase History

20212026
Value
Op. Leverage
Capital Return

Price History

KAI+25.4% · +4.6% CAGRSPY+82.9% · +12.8% CAGR

View full financial statements →

Source filings on SEC EDGAR: 10-K annual reports · 10-Q quarterly reports