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 64th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 190.5% on a DCF basis. The most interesting components of our discounted cash flow analysis for Kadant Inc ended up being:
The compound growth rate in the free cash flow of Kadant Inc over the past 5.56 years is 0.2%; that's better than 68.14% of cash flow producing equities in the Industrials sector, where it is classified.
Kadant Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 23.64% of tickers in our DCF set.
Kadant Inc's effective tax rate, as measured by taxes paid relative to net income, is at 17 -- greater than 67.47% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ODFL, TIKK, KSU, FELE, and AIT can be thought of as valuation peers to KAI, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.