Kadant Inc.
Rank #277ValueKAI · NYSE · Industrials
Kadant Inc. (KAI) — Rank #277 by gross profitability (GP/assets 0.25) · ROE 10.0% · Piotroski F-Score 5 / 9.
As-of 2026-09-15 · CIK 0000886346 · all metrics point-in-time as of the filing date.
About
Kadant Inc. supplies technologies and engineered systems worldwide.
Show moreShow less
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
Price History
Company Snapshot
P/E and dividend yield are the primary valuation lenses for mature businesses.
Market Cap
$3.09B
P/E (annual)
30.2
P/S (annual)
2.9
P/B
3.0
P/OCF (annual)
18.0
Shareholder Yield
0.3%
Employees
4,000
Industry
Specialty Industrial Machinery
Exchange
NYSE
Signal Flags
Quality Profile
Profitability
1/1 passSafety
1/1 passCash Flow
3/3 passGrowth
1/2 passTerry Smith quality gate
Passes 1/5 Terry Smith thresholds1 of 5 threshold not computable from filed data.
What Growth Is Priced In
Implied revenue growth (10Y)
7.7%
The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).
Dilution drag: 0.2% — per-share value needs a total required return of 7.9% once share-count change is priced in.
vs. own 6-year median revenue growth: 7.9%
within its own historyCost-of-equity sensitivity (implied growth at different discount rates)
r = 8%
3.4%
r = 10% (base)
7.7%
r = 12%
11.4%
Net debt / market cap: 7.8%
Valuation History
Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.
P / E
Price / diluted EPS
P / S
Price / revenue per share
P / B
Price / book value per share
P / GP
Price / gross profit per share
P / FCF
Price / free cash flow per share
Earnings bubble check
Current margins may be above sustainable levels — a P/E based on peak earnings can overstate cheapness.
Dividend yield and payout ratio are the primary reads at this stage (trailing P/E — see valuation above).
Profitability
Gross profitability (GP / assets)
0.25
Primary signal (Novy-Marx).
54th pctl of 36 SIC 35 peers
Return on equity
10.0%
Gross margin
45.2%
69th pctl of 36 SIC 35 peers
Revenue growth (YoY)
-0.1%
Gross margin improving
Margin trend vs prior year.
Operating Leverage
| 2022 | 2023 | 2024 | 2026 | |
|---|---|---|---|---|
| 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%
Anti-fragile safety
Balance-sheet safety
Composite anti-fragile check.
Debt / equity
0.83
49th pctl of 36 SIC 35 peers (best = lowest)
Current ratio
2.59×
77th pctl of 36 SIC 35 peers
Quick ratio
1.35×
Net cash
-$241.36M
Cash & equivalents minus total debt.
Cash-flow health
Free cash flow
$154.28M
Operating cash flow minus capex.
Positive free cash flow
FCF / net income
0.51
Cash-backing of earnings.
FCF/NI divergence
Unfavorable divergence (yellow flag).
Accruals healthy
Cash-backed earnings.
SBC / revenue
1.1%
Stock-based comp intensity.
Dividend safety
Composite score
4.2 / 5
Piotroski F-Score
F-Score
5 / 9
Fundamental-strength score (0-9).