Kadant (KAI) Fundamental Analysis: Revenue, Earnings & Valuation

0.10 / 10

Underperform

Kadant International's fundamental analysis reveals a company with sub-par profitability, as indicated by low Profit-MV and Net income-Revenue scores, and a negative Asset-MV reading. However, strengths in Return on Equity (8.675%) and the shareholders' equity to total liabilities ratio (1.6643) provide some cushion. The Cost of Sales ratio is high at 54.3064%, pointing to margin pressure. Historical back-tests show that most factors correlate with negative short-term returns, underscoring the need for caution when evaluating investment merit.

Analysis Checks(5/10)

Net assets per share (growth rate compared to beginning of year %)

Value11.82

Score2/3

Weight-57.39%

1M Return2.57%

Annualized return on equity (%)

Value11.57

Score3/3

Weight-97.03%

1M Return4.26%

Shareholders’ equity attributable to parent company / Total liabilities (%)

Value1.66

Score3/3

Weight-113.23%

1M Return4.42%

Profit-MV

Value0.08

Score0/3

Weight121.68%

1M Return-10.46%

Net income-Revenue

Value-0.30

Score0/3

Weight82.11%

1M Return-5.72%

Interest coverage ratio (EBIT / Interest expense) (%)

Value13.18

Score0/3

Weight39.07%

1M Return-2.21%

Cost of sales ratio (%)

Value54.31

Score2/3

Weight-35.66%

1M Return1.68%

Asset-MV

Value-0.50

Score0/3

Weight112.11%

1M Return-8.36%

ROE (%)

Value8.68

Score3/3

Weight-97.03%

1M Return4.26%

Cash-MV

Value-0.69

Score0/3

Weight145.39%

1M Return-11.26%

Is KAI fundamentally strong?

KAI scores 0.10/10 on fundamentals and holds a Premium valuation at present. Backed by its 8.57% ROE, 10.09% net margin, 38.18 P/E ratio, 4.20 P/B ratio, and -11.53% earnings growth, these metrics solidify its Underperform investment rating.