Kadant Inc. (KAI) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-42.4%

$164.24

vs $284.92 price

Levered DCF

$144.17

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

4.23

Safe zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	33.07×	36.89×	28.26×	17.11×	31.75×	29.31×	22.75×	14.95×
P/B	3.44×	4.86×	4.24×	3.17×	4.73×	3.27×	2.78×	2.41×
P/S	3.2×	3.91×	3.42×	2.29×	3.39×	2.55×	1.68×	1.42×
EV / EBITDA	17.22×	19.52×	16.49×	10.69×	18.98×	16.16×	12.67×	8.77×
Gross margin	45.2%	44.3%	43.5%	43.1%	42.9%	43.7%	41.7%	43.9%
Operating margin	14.9%	16.3%	17.3%	18.9%	14.8%	12.8%	12.5%	14.0%
Net margin	9.7%	10.6%	12.1%	13.4%	10.7%	8.7%	7.4%	9.5%
Current ratio	2.14×	2.31×	2.05×	1.95×	1.73×	2.15×	2.04×	6.74×
Debt / equity	0.38×	0.38×	0.18×	0.34×	0.52×	0.53×	0.77×	0.47×
Interest coverage	10.1×	8.55×	19.74×	26.44×	24.21×	10.93×	6.89×	12.6×
Dividend yield	0.5%	0.4%	0.4%	0.6%	0.4%	0.7%	0.9%	1.1%
Payout ratio	15.5%	13.1%	11.4%	9.9%	13.6%	19.8%	19.6%	16.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	10.4%	13.2%	15.0%	18.5%	14.9%	11.1%	12.2%	16.1%
Return on invested capital	7.7%	10.1%	12.6%	13.3%	9.6%	7.7%	8.4%	9.8%
Return on assets	6.0%	7.8%	9.9%	10.5%	7.4%	6.0%	5.5%	8.3%
Free cash flow yield	4.6%	3.3%	4.1%	3.6%	5.6%	5.3%	7.4%	5.1%
Earnings yield	3.0%	2.7%	3.5%	5.8%	3.1%	3.4%	4.4%	6.7%
Enterprise value	$3.6B	$4.3B	$3.3B	$2.2B	$2.9B	$1.8B	$1.4B	$1B
Net debt / EBITDA	1.2×	1.02×	0.15×	0.69×	1.32×	1.73×	2.29×	1.1×
Cash conversion cycle (days)	154	115	129	133	119	133	107	114