Kadant Inc. is a global supplier of high-value, critical components and engineered systems used in process industries worldwide. The Company's products, technologies, and services play an integral role in enhancing process efficiency, optimizing energy utilization, and maximizing productivity in resource-intensive industries. The company was founded in 1991 and is based in Westford, Massachusetts.
KAI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Kadant Inc. To summarize, we found that Kadant Inc ranked in the 43th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Kadant Inc, consider:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 85. Notably, its equity weight is greater than 65.77% of US equities in the Industrials sector yielding a positive free cash flow.
Kadant Inc's effective tax rate, as measured by taxes paid relative to net income, is at 19 -- greater than 78.52% of US stocks with positive free cash flow.
Kadant Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 8.56. This coverage rate is greater than that of 74.06% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as KAI, try HAYN, CSX, ETN, PKOH, and TTEK.
Kadant Inc (KAI) Q2 2020 Earnings Conference Call July 29, 2020 11:00 AM ET Company Participants Michael McKenney – Executive Vice President and Chief Financial Officer Jeff Powell – President and Chief Executive Officer Conference Call Participants John Franzreb – Sidoti Incorporated Chris Howe – Barrington Research Kurt Yinger –...
With me on the call today is Jeff Powell, our President and Chief Executive Officer. Various remarks that we may make today about Kadant's future plans and expectations, financial and operating results and prospects are forward-looking statements for purposes of the Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995. In addition, any forward-looking statements we make during this webcast represent our views and estimates only as of today.
Kadant (KAI): Q2 Non-GAAP EPS of $1.06 beats by $0.32; GAAP EPS of $1.00 beats by $0.26.Revenue of $152.86M (-13.7% Y/Y) beats by $2.85M.Bookings decreased 24% to $133M; Adjusted EBITDA decreased 19% to $27M.Press Release...