Kadant Inc
Find Ratings ReportsKADANT INC's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the subsector, the net income growth has not. KADANT INC has average liquidity. Currently, the Quick Ratio is 1.16 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has increased by 18.33% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 238.68 | 232.1 |
EBITDA ($mil) | 48.5 | 49.51 |
EBIT ($mil) | 40.12 | 40.96 |
Net Income ($mil) | 27.4 | 26.08 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 106.45 | 79.73 |
Total Assets ($mil) | 1175.67 | 1149.88 |
Total Debt ($mil) | 135.61 | 223.44 |
Equity ($mil) | 773.7 | 653.85 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 46.24 | 46.75 |
EBITDA Margin | 20.31 | 21.33 |
Operating Margin | 16.81 | 17.65 |
Sales Turnover | 0.81 | 0.79 |
Return on Assets | 9.87 | 10.51 |
Return on Equity | 15.0 | 18.49 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 2.05 | 1.95 |
Debt/Capital | 0.15 | 0.25 |
Interest Expense | 1.68 | 2.16 |
Interest Coverage | 23.94 | 18.99 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 11.71 | 11.67 |
Div / share | 0.29 | 0.26 |
EPS | 2.33 | 2.23 |
Book value / share | 66.08 | 56.01 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 92067.0 | 81264.0 |
BUY. The current P/E ratio indicates a discount compared to an average of 34.89 for the Machinery Manufacturing subsector and a premium compared to the S&P 500 average of 27.95. To use another comparison, its price-to-book ratio of 4.79 indicates valuation on par with the S&P 500 average of 4.68 and a significant discount versus the subsector average of 15.81. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. Upon assessment of these and other key valuation criteria, KADANT INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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KAI 32.00 | Peers 34.89 | KAI 22.41 | Peers 35.56 | |||||||||||||||||||||
Average. An average P/E ratio can signify an subsector neutral price for a stock and an average growth expectation. KAI is trading at a valuation on par with its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. KAI is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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KAI 29.12 | Peers 25.65 | KAI NM | Peers 5.15 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. KAI is trading at a significant premium to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. KAI's negative PEG ratio makes this valuation measure meaningless. |
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Price/Book |
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Earnings Growth |
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KAI 4.79 | Peers 15.81 | KAI -4.35 | Peers 20.44 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. KAI is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, KAI is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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KAI 3.87 | Peers 8.34 | KAI 5.85 | Peers 14.92 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. KAI is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. KAI significantly trails its peers on the basis of sales growth. |
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