Kadant Inc Common Stock (KAI)

FairStock Score: 42/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Kadant is a specialized industrial machinery supplier with three segments: Flow Control, Industrial Processing, and Material Handling. It sells engineered systems worldwide. The data do not prove a wide competitive moat; the modest ROCE of 6.79% suggests returns are not exceptional. The filed numbers show fiscal Q2 2026 (quarter ended 2026-07-04) revenue of $312.9M, net income of $32.5M, and diluted EPS of $2.75. That is better than fiscal Q2 2025 (quarter ended 2025-06-28), when revenue was $255.3M, net income was $26.2M, and diluted EPS was $2.22. But the annual picture is uneven: FY2025 (period ended 2026-01-03) revenue was $1.1B, net income $102.0M, and diluted EPS $8.65, down from FY2024 (period ended 2024-12-28) net income $111.6M and diluted EPS $9.48. The most recent annual profit growth was negative, even as revenue grew. From a Graham/Buffett lens, the balance sheet is reasonable: D/E 0.49, Altman Z-score 3.38, Piotroski 6/9, and trailing FCF yield 5.2%. But returns are only modest: ROE 11.29%, ROCE 6.79%. At the 2026-10-13 close of $261.54, FairStock's calculations show P/E 28.15, P/B 3.02, EV/EBITDA 14.91, and a Graham Number of $134.56, implying a -94.37% margin of safety. FairStock Score 42/100. The Lynch category is STALWART, based on 5-year profit growth of 13.1% and revenue growth of 10.6%, but that long-term record is not reflected in the latest profit trend. I want a margin of safety and high return on capital; here the price already assumes continued steady growth. The business may be solid, but the valuation leaves little room for error.

In plain English: Kadant makes specialized industrial machines and parts used to control fluids and process materials. The business is profitable and sales are growing, but profits have recently been flat to slightly lower, and the latest quarter was stronger than a year earlier. At the recent price of $261.54, the stock looks expensive compared with its profits and net assets as calculated by the provided data.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-07-04) · fiscal Q1 2026 10-Q (period ended 2026-04-04) · fiscal Q3 2025 10-Q (period ended 2025-09-27) · fiscal Q2 2025 10-Q (period ended 2025-06-28) · FY2025 10-K (period ended 2026-01-03) · FY2024 10-K (period ended 2024-12-28) · FY2023 10-K (period ended 2023-12-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer