Latest Ratios: P/E Ratio 35.0x · EV/EBITDA 18.4x · 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 | $3.6B | $3.4B | $4.1B | $3.3B | $2.1B | $2.7B | $1.6B | $1.2B | $929M | $1.1B | $682M |
| Enterprise Value | $3.8B | $3.6B | $4.4B | $3.3B | $2.2B | $2.9B | $1.8B | $1.5B | $1.1B | $1.3B | $675M |
| P/E Ratio → | 35.03 | 33.11 | 37.00 | 28.31 | 17.16 | 31.97 | 29.56 | 23.20 | 15.37 | 36.51 | 21.25 |
| P/S Ratio | 3.40 | 3.21 | 3.92 | 3.43 | 2.29 | 3.42 | 2.57 | 1.71 | 1.47 | 2.21 | 1.65 |
| P/B Ratio | 3.61 | 3.41 | 4.81 | 4.24 | 3.17 | 4.75 | 3.28 | 2.83 | 2.47 | 3.40 | 2.39 |
| P/FCF | 23.19 | 21.89 | 30.76 | 24.59 | 27.90 | 17.95 | 19.11 | 13.80 | 20.00 | 23.72 | 15.10 |
| P/OCF | 20.88 | 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 | 18.37 | 17.41 | 19.73 | 16.66 | 10.76 | 19.11 | 16.22 | 12.21 | 9.44 | 16.24 | 11.27 |
| EV / EBIT | 24.35 | 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 | 0.4% | 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 | 2.9% | 3.0% | 2.7% | 3.5% | 5.8% | 3.1% | 3.4% | 4.3% | 6.5% | 2.7% | 4.7% |
| FCF Yield | 4.3% | 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 | 0.4% | 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 |
Cyclical industrial backlog volatility
Based on current market data, Kadant trades at a 37.52x TTM P/E, which appears to price in significant long-term growth expectations that may be disconnected from the recent stagnation in organic revenue growth observed in the company's latest quarterly filings.
The current valuation multiple suggests investors are paying a premium for the company's recurring revenue model and high-margin consumable business. However, given the recent flat revenue trend, this valuation warrants caution as it implies a high growth rate that may not be supported by the current industrial cycle.
As reported in recent financial statements, Kadant's ROIC has trended downward to 2.4% in 2026Q1, suggesting that the company's aggressive inorganic growth strategy is currently diluting the returns generated on its invested capital base compared to historical performance.
The decline in ROIC indicates that the capital deployed for recent acquisitions has yet to generate sufficient incremental earnings to offset the expansion of the asset base. Investors should monitor whether management can improve the integration of these assets to restore historical return levels.
According to quarterly data, the cash conversion cycle has extended to 147 days as of 2026Q1, reflecting a significant increase in inventory days that suggests potential inefficiencies in managing stock levels relative to the current pace of industrial demand.
The rising DIO indicates that capital is increasingly tied up in inventory, which may be a response to supply chain volatility or a buildup of components for pending projects. This trend warrants investigation as it directly impacts the company's ability to generate free cash flow.
Based on reported figures, Kadant maintains a conservative debt-to-equity ratio of 0.36, which provides a significant buffer against industrial cyclicality and offers management substantial dry powder for future strategic acquisitions despite the recent increase in total debt levels.
The low leverage profile is a key defensive characteristic that distinguishes Kadant from more capital-intensive industrial peers. This financial flexibility appears to be a core component of the company's long-term strategy to navigate volatile end-markets while maintaining dividend stability.
The P/E ratio is frequently misapplied to Kadant because it fails to account for the significant non-cash amortization of intangible assets resulting from the company's active M&A strategy, which artificially suppresses reported earnings and inflates the perceived valuation multiple.
Investors should instead focus on EV/EBITDA or P/FCF to better understand the underlying cash-generating capability of the business. Relying solely on P/E may lead to an inaccurate assessment of the company's true earnings power and its relative valuation against peers.
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 35.0x. The historical average is 23.7x. This places it at the 85th percentile of its historical range.
Kadant Inc.'s current EV/EBITDA is 18.4x. 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 35.0x. This is at the 85th 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 0.44% 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.