Latest Ratios: P/E Ratio 32.2x · EV/EBITDA 17.0x · ROE 11.0%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $3.3B | $3.4B | $4.1B | $3.3B | $2.1B | $2.7B | $1.6B | $1.2B | $929M | $1.1B | $682M |
| Enterprise Value | $3.5B | $3.6B | $4.4B | $3.3B | $2.2B | $2.9B | $1.8B | $1.5B | $1.1B | $1.3B | $675M |
| P/E Ratio → | 32.18 | 33.11 | 37.00 | 28.31 | 17.16 | 31.97 | 29.56 | 23.20 | 15.37 | 36.51 | 21.25 |
| P/S Ratio | 3.12 | 3.21 | 3.92 | 3.43 | 2.29 | 3.42 | 2.57 | 1.71 | 1.47 | 2.21 | 1.65 |
| P/B Ratio | 3.31 | 3.41 | 4.81 | 4.24 | 3.17 | 4.75 | 3.28 | 2.83 | 2.47 | 3.40 | 2.39 |
| P/FCF | 21.30 | 21.89 | 30.76 | 24.59 | 27.90 | 17.95 | 19.11 | 13.80 | 20.00 | 23.72 | 15.10 |
| P/OCF | 19.18 | 19.72 | 26.59 | 19.86 | 20.23 | 16.54 | 17.55 | 12.39 | 14.74 | 17.43 | 13.38 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.45 | 4.14 | 3.46 | 2.45 | 3.67 | 2.87 | 2.08 | 1.67 | 2.53 | 1.63 |
| EV / EBITDA | 16.97 | 17.41 | 19.73 | 16.66 | 10.76 | 19.11 | 16.22 | 12.21 | 9.44 | 16.24 | 11.27 |
| EV / EBIT | 22.50 | 22.81 | 25.17 | 19.81 | 12.90 | 24.69 | 22.48 | 17.98 | 12.23 | 21.26 | 14.73 |
| EV / FCF | — | 23.53 | 32.46 | 24.81 | 29.83 | 19.29 | 21.38 | 16.79 | 22.80 | 27.17 | 14.94 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 45.2% | 45.2% | 44.3% | 43.5% | 43.1% | 42.9% | 43.7% | 41.7% | 43.9% | 44.9% | 45.5% |
| Operating Margin | 14.9% | 14.9% | 16.3% | 17.3% | 18.9% | 14.8% | 12.8% | 12.5% | 14.0% | 11.8% | 11.0% |
| Net Profit Margin | 9.7% | 9.7% | 10.6% | 12.1% | 13.4% | 10.7% | 8.7% | 7.4% | 9.5% | 6.0% | 7.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 11.0% | 11.0% | 13.7% | 16.2% | 19.8% | 15.8% | 11.9% | 13.0% | 17.0% | 10.0% | 11.6% |
| ROA | 6.5% | 6.5% | 8.6% | 10.0% | 10.6% | 8.2% | 5.9% | 6.3% | 8.1% | 5.0% | 7.2% |
| ROIC | 10.1% | 10.1% | 13.6% | 15.5% | 16.4% | 12.0% | 8.8% | 11.0% | 13.2% | 11.7% | 13.3% |
| ROCE | 11.6% | 11.6% | 15.6% | 17.5% | 18.5% | 13.7% | 10.2% | 11.8% | 12.5% | 10.4% | 10.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.38 | 0.38 | 0.38 | 0.17 | 0.34 | 0.52 | 0.52 | 0.77 | 0.47 | 0.72 | 0.23 |
| Debt / EBITDA | 1.80 | 1.80 | 1.46 | 0.68 | 1.08 | 1.95 | 2.31 | 2.74 | 1.57 | 3.02 | 1.11 |
| Net Debt / Equity | — | 0.25 | 0.27 | 0.04 | 0.22 | 0.35 | 0.39 | 0.61 | 0.34 | 0.49 | -0.03 |
| Net Debt / EBITDA | 1.21 | 1.21 | 1.03 | 0.15 | 0.70 | 1.32 | 1.72 | 2.17 | 1.16 | 2.06 | -0.12 |
| Debt / FCF | — | 1.63 | 1.70 | 0.22 | 1.93 | 1.34 | 2.27 | 2.99 | 2.79 | 3.45 | -0.16 |
| Interest Coverage | 10.22 | 10.22 | 8.64 | 19.93 | 26.57 | 24.24 | 10.93 | 6.40 | 12.31 | 17.25 | 35.45 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.14 | 2.14 | 2.31 | 2.05 | 1.95 | 1.73 | 2.15 | 2.04 | 6.74 | 7.50 | 8.67 |
| Quick Ratio | 1.23 | 1.23 | 1.55 | 1.34 | 1.18 | 1.13 | 1.36 | 1.33 | 4.32 | 5.11 | 6.37 |
| Cash Ratio | 0.54 | 0.54 | 0.49 | 0.50 | 0.37 | 0.43 | 0.49 | 0.47 | 1.29 | 2.17 | 3.07 |
| Asset Turnover | — | 0.61 | 0.74 | 0.81 | 0.79 | 0.69 | 0.68 | 0.75 | 0.87 | 0.68 | 0.88 |
| Inventory Turnover | 2.79 | 2.79 | 4.02 | 3.55 | 3.15 | 3.34 | 3.35 | 4.00 | 4.12 | 3.34 | 4.11 |
| Days Sales Outstanding | — | 57.29 | 55.74 | 54.23 | 58.58 | 58.39 | 56.97 | 56.41 | 62.41 | 65.20 | 60.84 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.5% | 0.5% | 0.4% | 0.4% | 0.6% | 0.4% | 0.7% | 0.8% | 1.0% | 0.8% | 1.2% |
| Payout Ratio | 15.5% | 15.5% | 13.1% | 11.4% | 9.9% | 13.6% | 19.8% | 19.6% | 16.0% | 29.0% | 25.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.1% | 3.0% | 2.7% | 3.5% | 5.8% | 3.1% | 3.4% | 4.3% | 6.5% | 2.7% | 4.7% |
| FCF Yield | 4.7% | 4.6% | 3.3% | 4.1% | 3.6% | 5.6% | 5.2% | 7.2% | 5.0% | 4.2% | 6.6% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.5% | 0.5% | 0.4% | 0.5% | 0.6% | 0.4% | 0.7% | 0.8% | 1.0% | 0.8% | 1.2% |
| Shares Outstanding | — | $12M | $12M | $12M | $12M | $12M | $12M | $11M | $11M | $11M | $11M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying KAI stock.
Kadant Inc.'s current P/E ratio is 32.2x. The historical average is 23.7x. This places it at the 81th percentile of its historical range.
Kadant Inc.'s current EV/EBITDA is 17.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.2x.
Kadant Inc.'s return on equity (ROE) is 11.0%. The historical average is 9.2%.
Based on historical data, Kadant Inc. is trading at a P/E of 32.2x. This is at the 81th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Kadant Inc.'s current dividend yield is 0.48% with a payout ratio of 15.5%.
Kadant Inc. has 45.2% gross margin and 14.9% operating margin. Operating margin between 10-20% is typical for established companies.
Kadant Inc.'s Debt/EBITDA ratio is 1.8x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Wood processing cyclicality exposure
Metrics are mathematically derived from official filings.
Margin Resilience Amid Mix Shift
Gross margin dipped to 43.8% in Q2 2026 from 45.9% a year earlier, yet operating margin expanded to 16.3%, per the latest quarterly data, indicating strong cost discipline.
The slight gross margin erosion likely reflects acquisition mix and input costs, but the operating margin improvement to 16.3% from 15.4% year-over-year suggests SG&A leverage is offsetting product mix pressure. Net margin of 10.4% remains above the 9.3% trough in Q4 2024, indicating that the core consumables-driven Flow Control segment continues to underpin profitability. Investors should monitor whether gross margin can stabilize above 44% as the company integrates recent acquisitions.
ROIC Recovery on Higher Asset Base
ROIC improved to 3.5% in Q2 2026 from 2.7% a year earlier, according to reported figures, but remains below the 3.9% peak in Q2 2024, reflecting the drag from acquisition-related assets.
The sequential improvement in ROIC from 2.4% in Q1 2026 to 3.5% in Q2 2026 suggests that the $170.6M acquisition is beginning to contribute, though the enlarged asset base has yet to be fully utilized. ROE of 3.2% is similarly recovering but remains below the 3.9% level seen in Q2 2024, indicating that the company is still digesting capital deployed. The key driver will be whether the acquired businesses can achieve the high-margin, high-turnover profile of the legacy Flow Control segment.
Working Capital Drag Lengthens CCC
Cash conversion cycle extended to 133 days in Q2 2026 from 124 days a year earlier, as per financial statements, driven by higher DIO of 112 days, indicating slower inventory turnover.
The 9-day year-over-year increase in CCC is primarily due to DIO rising from 106 to 112 days, which may reflect deliberate inventory builds to support growth or integration of new product lines. DSO improved to 50 days from 57, suggesting better receivables collection, while DPO remained stable at 29 days. The lengthening CCC warrants monitoring, as it could signal inefficiency if not accompanied by revenue acceleration.
Debt Elimination Bolsters Flexibility
Kadant's debt-to-equity fell to zero in Q2 2026 from 0.36 in Q1, according to the latest balance sheet, with interest coverage of 9.58x, indicating a fortress balance sheet.
The complete elimination of debt, as reported, provides substantial financial flexibility for future M&A or organic investments, especially given the company's history of bolt-on acquisitions. Interest coverage of 9.58x in Q2 2026, though down from 11.92x in Q2 2025, remains comfortable, but the prior quarter's 2.89x coverage in Q4 2025 highlights potential volatility. The low leverage suggests that the market's perception of risk may be understated, but investors should monitor whether the company re-levers for acquisitions.
Liquidity Buffer Strengthens Further
Current ratio improved to 2.59 in Q2 2026 from 2.14 in Q4 2025, with cash of $134.5M, per the latest balance sheet, providing a robust cushion against operational shocks.
The quick ratio of 1.63 indicates that even without inventory, the company can cover current liabilities, which is reassuring given the inventory-heavy nature of manufacturing. The improvement in liquidity comes despite the $170.6M acquisition outflow, suggesting strong cash generation and disciplined working capital management. This buffer supports the company's ability to weather a downturn in wood processing or packaging demand.
Misapplied P/E on Cyclical Earnings
The trailing P/E of 38.27 may mislead investors by capitalizing peak cyclical earnings, as per current valuation multiples, obscuring the normalized earning power of Kadant's consumables-driven model.
Given the cyclicality of the Industrial Processing segment, a single-year P/E can overstate or understate value depending on where we are in the cycle. A more appropriate metric is EV/EBITDA, which at 19.96x is still elevated but better captures the company's cash-generating ability and low leverage. Investors should also consider the PEG ratio of 3.03, which suggests that the market is pricing in high growth expectations that may not materialize if wood processing capex slows. The market may be undervaluing the stability of the Flow Control segment's recurring revenue, which warrants a sum-of-the-parts analysis.