Kadant Inc (KAI) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Kadant Inc stock $181, price $293, that is 38.1% below the price, quality 59 out of 100. Rating: strongly overvalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 6, 2026.
How to read this chart
60‑month range $154.79 – $419.11 · fair‑value band $112.70 – $226.66 · the $292.74 price screens above the $181.33 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. As of Nov 6, 2026.
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Kadant Inc. supplies technologies and engineered systems worldwide. The company operates through three segments: Flow Control, Industrial Processing, and Material Handling.
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The Flow Control segment develops, manufactures, and markets fluid-handling systems, equipment, and integrated technologies, such as rotary joints, syphons, Turbulator bars, expansion joints, and engineered steam and condensate systems, as well as doctor systems and holders, doctor blades, cleaning showers and fabric-conditioning systems, forming systems and wear surfaces, and water-filtration systems.
The Industrial Processing segment provides ring and rotary debarkers, stranders, chippers, engineered knife systems, and industrial automation and control products.
This segment also offers recycling and approach flow systems, virgin pulping process equipment, boiler cleaning technologies, and single and double-screw presses.
The Material Handling segment provides vibratory and conveying equipment; individual components and equipment for baling recyclable and waste materials; and fiber-based products. It sells its products and services through direct sales, independent sales agents, and distributors.
The company was formerly known as Thermo Fibertek, Inc. and changed its name to Kadant Inc. in July 2001. Kadant Inc. was incorporated in 1991 and is headquartered in Westford, Massachusetts.
Stock analysis
Kadant Inc (KAI) currently trades at $292.74, while our model-based Fair Value estimate is $181.33, 38% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of $180.61 per share, and 0 of the 26 models we run sit above the $292.74 price.
Bear case: the Dividend Discount group reads lowest at $19.53, and 26 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: $112.70 (bear) to $226.66 (bull), the price of $292.74 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 59/100 (solid quality), in the Industrials sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Kadant Inc reported revenue of $1.1B in FY2025 versus $787M in FY2021, a compound +7.5%/yr. Reported net income was $102M in FY2025, compounding +5.0%/yr from FY2021.
Key figures
Market cap $3.5B Mid · P/E ratio 30.4 · P/S ratio 2.90 · EPS (TTM) $9.62 · Dividend yield 0.5% · Net margin 9.8% · Return on equity 11.7% · Return on assets (EBIT) 12.1% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 55 out of 100 (low confidence).
What moves the price
The share trades about 15% below its 52-week high and 19% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −46% fair-value upside, at −38%, KAI screens cheaper than that median.
Fair Value models
Bear$112.70Fair Value $181.33Bull$226.66
Price $292.74 · Downside -38.1%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($7.03 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, 2 officers or directors sold shares worth $860,883 and none bought.
SaleStacy D. KrauseSVP, GC and Secretary1,227 shares at $334.17$410,027May 27, 2026
SaleThomas Andrew BlanchardVice President1,400 shares at $322.04$450,856May 18, 2026
SaleErin L RussellDirector1,435 shares at $282.36$405,187Nov 25, 2025
SaleRebecca Martinez O'MaraDirector699 shares at $266.91$186,569Nov 11, 2025
Plus 11 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.76/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
−0.1%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+5.2%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+10.6%
Start year 2020 (pandemic). Over 10 years: +10.4% a year
Revenue growth 33 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+6.7%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+3.7%
Earnings growth per share plus dividend.
Earnings per share, growth per year+3.2%
Dividend (yield on the price)0.5%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.12.6% vs 11.6%, steady
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.13% → 15%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+14.3%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+6.8%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +11.7% a year for the price and +4.3% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (97 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
AI conclusion: Moderate moat potential backed by acquisition-driven growth in sustainable processing systems is offset by average returns and limited evidence of exceptional performance versus peers.
Main risk: Execution risks from integrating acquisitions in a cyclical machinery business would hit revenue stability and margins.
Kadant is preparing a smooth internal CEO transition, with Michael Colwell moving from leading the Industrial Processing segment to the top role in January 2027 while the current chief becomes executive chairman. Recent quarters have featured revenue growth from acquisitions and capital equipment demand in sustainable processing systems. Our models currently see it as overvalued. Will the new leadership sustain the integration benefits or face fresh execution risks in a cyclical machinery business?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Specialty Industrial Machinery · 813 stocks
Beats the industry median on 7/15 measures
A mixed picture versus its industry peers.
Valuation
Quality Score59 · Above median
Fair Value upside−38.1% · Below median
Profitability
Return on equity (12 months)11.7% · Above median
Return on assets6.0% · Above median
Net margin (12 months)9.8% · Above median
Operating margin (12 months)17.5% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)15.3% · Above median
Dividend yield (12 months)0.5% · Bottom 25%
Balance sheet
Debt / equity0.38× · Highest 25%
Valuation Multiplesvs Specialty Industrial Machinery median · lower = cheaper
P/E (12 months)30.4× · Pricier than median
P/B3.49× · Pricier than median
P/S (12 months)2.90× · Pricier than median
Price / free cash flow (fiscal year)22.4× · Cheaper than median
EV/EBITDA14.5× · Pricier than median
PEG2.64× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 0
FUTURE (revenue growth)77· sector 30
PAST (return on equity)47· sector 28
HEALTH (low debt)81· sector 96
DIVIDEND (yield)10· sector 29
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Kadant Inc Fair Value". https://www.fairvalue-calculator.com/stock/KAI
Frequently asked questions
Is Kadant Inc (KAI) overvalued or undervalued?
As of Nov 6, 2026, our model estimates a fair value of $181.33 versus a price of $292.74, about 38% lower (overvalued).
What is the fair value of KAI?
Our model-based fair value for Kadant Inc is $181.33 (as of Nov 6, 2026), built from audited fundamentals. The current price: $292.74.
What is the quality score of KAI?
Kadant Inc has a Quality Score of 59/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Kadant Inc (KAI)?
Our model-based price target is the fair value of $181.33 (as of Nov 6, 2026) from 26 valuation models. Cautious scenario $112.70, optimistic scenario $226.66. It is a calculation from audited fundamentals, not an analyst target.
What is the Kadant Inc stock forecast for 2026?
Our models put fair value at $181.33, about 38% lower versus a price of $292.74 (overvalued). Cautious scenario $112.70, optimistic scenario $226.66. The calculation is refreshed regularly with new filings.
What is the revenue of Kadant Inc (KAI)?
Kadant Inc reported trailing-twelve-month revenue of about $1.2B (latest available figure, as of Nov 6, 2026).
Does Kadant Inc pay a dividend?
Kadant Inc currently shows a dividend yield of 0.49% relative to its recent price (as of Nov 6, 2026).
How much is the dividend of Kadant Inc (KAI) and when is the ex-dividend date?
Kadant Inc pays a dividend of $1.42 per share a year, a dividend yield of 0.5%. The last ex-dividend date was Oct 15, 2026. A dividend has been paid every year since at least 2013. The payout ratio is 14.8% of earnings. Free cash flow covers the dividend 9.20 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into Kadant Inc (KAI)?
For today's price to be fair in a discounted-cash-flow model, Kadant Inc would have to grow free cash flow by +14.3 % per year for five years (discount rate 10.2 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +10.6 % per year. As of Nov 6, 2026.
What discount rate (WACC) does the fair value of KAI use?
Our models discount Kadant Inc at 10.2 %: a base by market capitalisation (mid), damped by beta 1.20, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Kadant Inc that is +14.3 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (10.2 %) and the same formula as our fair value.
How much growth has Kadant Inc (KAI) delivered so far?
Over the past 5 years revenue at Kadant Inc grew +10.6 % a year. The price currently implies free-cash-flow growth of +14.3 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Kadant Inc (KAI) growing?
The median revenue growth in the sector is +7.8 % a year. That is the yardstick for the growth priced into Kadant Inc (+14.3 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Kadant Inc (KAI)?
The free-cash-flow yield on the price is 4.46 %: that much free cash flow Kadant Inc produces per unit of market value. When it exceeds the discount rate of our models (10.2 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Kadant Inc (KAI)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Kadant Inc it is $181.33 per share (as of Nov 6, 2026), against a price of $292.74. It is the blended result of 26 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is Kadant Inc stock overvalued or undervalued in 2026?
As of Nov 6, 2026, KAI trades above its calculated fair value: price $292.74, fair value $181.33, a gap of about −38% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of KAI?
No. The price is what the market pays today ($292.74); the fair value is what the company's own numbers justify ($181.33). For Kadant Inc the two are $111.41 per share apart. That gap is exactly why we show both numbers side by side.
How much is Kadant Inc worth?
The market values Kadant Inc at about $3.5B (market capitalisation, as of Nov 6, 2026). Per share that is $292.74; our models calculate a fair value of $181.33 per share.
What do the bullish and bearish scenarios say about KAI?
Our models span a range for Kadant Inc: cautious scenario $112.70, base $181.33, optimistic $226.66 per share (as of Nov 6, 2026, price $292.74). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of KAI?
Kadant Inc trades at a price-to-earnings ratio of 30.4 (as of Nov 6, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $181.33 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, 5 of the years ex one-offs: 28.9. Other multiples: PEG 2.6, P/B 3.5, P/S 2.9, EV/EBITDA 14.5.
What is the PEG ratio of KAI?
The PEG ratio of Kadant Inc is 2.64 (P/E divided by earnings growth, as of Nov 6, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Kadant Inc (KAI)?
Balance-sheet figures for Kadant Inc (as of Nov 6, 2026): return on equity 11.7%, debt of 0.38 per unit of equity. They feed the Quality Score of 59/100, which measures business quality independently of the share price.
How far is KAI from its 52-week high?
Kadant Inc trades at $292.74, about 15% below its 52-week high of $346.04 and 19% above the low of $246.29 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $181.33 is for.
Which stocks are comparable to Kadant Inc?
From the same area (Industrials) we also value SIE, GE Vernova Inc, Eaton Corporation, Parker-Hannifin Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Kadant Inc stock attractive at the current price?
The data as of Nov 6, 2026: price $292.74, calculated fair value $181.33 (−38%), Quality Score 59/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of KAI calculated?
We run Kadant Inc through 26 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $181.33 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. Kadant Inc itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Kadant Inc (KAI)?
The closing price on Nov 6, 2026 was $292.74. Our model-based fair value is $181.33, about 38% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Kadant Inc right now?
The price sits above even our optimistic bull case ($226.66). The favourable scenario is already priced in. Solid but not exceptional quality (59/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range ($112.70 to $226.66) leaves room in how you read the outcome.
Where does the earnings growth of Kadant Inc (KAI) come from?
Earnings per share at Kadant Inc grew +14.1 % a year from 2014 to 2025. Broken into its drivers: revenue per share +10.3 %, EBIT margin +3.9 %, tax rate +0.3 %, residual (interest, one-offs) −0.7 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Kadant Inc
How large is the market capitalisation of Kadant Inc (KAI)?
The market capitalisation of Kadant Inc is $3.5B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Kadant Inc (KAI)?
The price-to-sales ratio of Kadant Inc is 2.90 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Kadant Inc (KAI)?
Earnings per share at Kadant Inc are $9.62 (price ÷ EPS = P/E 30.4). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Kadant Inc (KAI)?
The dividend yield of Kadant Inc is 0.5% (payout 14.8%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Kadant Inc (KAI)?
The net margin of Kadant Inc is 9.8% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Kadant Inc (KAI)?
The return on equity (ROE) of Kadant Inc is 11.7% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Kadant Inc (KAI)?
On an EBIT basis the return on assets of Kadant Inc is 12.1% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Kadant Inc (KAI)?
The operating margin of Kadant Inc is 17.5% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Kadant Inc (KAI)?
Revenue at Kadant Inc is growing +15.3% versus a year earlier (3y avg +5.2%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Kadant Inc (KAI)?
Earnings per share at Kadant Inc are growing +26.0% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Kadant Inc (KAI) carry?
The net debt of Kadant Inc is $252M (fiscal year 2025, ≈ 1.6 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 6, 2026