KADANT INC (KAI) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does KADANT INC Do?
Kadant Inc. supplies technologies and engineered systems worldwide. It operates through three segments: Flow Control, Industrial Processing, and Material Handling. The Flow Control segment develops, manufactures, and markets fluid-handling systems and equipment, such as rotary joints, syphons, turbulator bars, expansion joints, and engineered steam and condensate systems; and doctoring, cleaning, and filtration systems and related consumables, consisting of doctor systems and holders, doctor blades, shower and fabric-conditioning systems, formation systems, and water-filtration systems. The Industrial Processing segment develops, manufactures, and markets ring and rotary debarkers, stranders, chippers, logging machinery, industrial automation and control systems, recycling and approach flow systems, and virgin pulping process equipment for use in the packaging, tissue, wood products, and alternative fuel industries. The Material Handling segment offers conveying and vibratory equipment, and balers and related equipment; and manufactures and sells biodegradable absorbent granules for carriers in as carriers in agricultural, home lawn and garden, professional lawn, turf, and ornamental applications, as well as for oil and grease absorption. 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. KADANT INC (KAI) is classified as a mid-cap stock in the Industrials sector, specifically within the Machinery industry. The company is led by CEO Jeffrey L. Powell and employs approximately 3,100 people, headquartered in Wilmington, Massachusetts. With a market capitalization of $3.4B, KAI is one of the notable companies in the Industrials sector.
KADANT INC (KAI) Stock Rating — Reduce (April 2026)
As of April 2026, KADANT INC receives a Reduce rating with a composite score of 42.6/100 and 2 out of 5 stars from the Blank Capital Research quantitative model.KAI ranks #2,863 out of 4,446 stocks in our coverage universe. Within the Industrials sector, KADANT INC ranks #474 of 752 stocks, placing it in the lower half of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
KAI Stock Price and 52-Week Range
KADANT INC (KAI) currently trades at $325.03. The stock gained $1.30 (0.4%) in the most recent trading session. The 52-week high for KAI is $369.97, which means the stock is currently trading -12.1% from its annual peak. The 52-week low is $244.87, putting the stock 32.7% above its annual trough. Recent trading volume was 74K shares, suggesting relatively thin trading activity.
Is KAI Overvalued or Undervalued? — Valuation Analysis
KADANT INC (KAI) carries a value factor score of 56/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 31.72x, compared to the Industrials sector average of 28.33x — a premium of 12%. The price-to-book ratio stands at 3.51x, versus the sector average of 2.23x. The price-to-sales ratio is 3.30x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, KAI trades at 20.42x EV/EBITDA, versus 5.70x for the sector.
Overall, KAI's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
KADANT INC Profitability — ROE, Margins, and Quality Score
KADANT INC (KAI) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 11.1%, compared to the Industrials sector average of 8.9%, which is within a healthy range. Return on assets (ROA) comes in at 6.4% versus the sector average of 3.3%.
On a margin basis, KADANT INC reports gross margins of 45.5%, compared to 35.8% for the sector. The operating margin is 15.6% (sector: 6.2%). Net profit margin stands at 10.4%, versus 3.9% for the average Industrials stock. Revenue growth is running at 13.5% on a trailing basis, compared to 6.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
KAI Debt, Balance Sheet, and Financial Health
KADANT INC has a debt-to-equity ratio of 38.0%, compared to the Industrials sector average of 70.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 2.38x, indicating strong short-term liquidity. Total debt on the balance sheet is $373M.
KAI has a beta of 1.33, meaning it is more volatile than the broader market — a $10,000 investment in KAI would be expected to move 32.8% more than the S&P 500 on any given day. The stability factor score for KADANT INC is 57/100, reflecting average volatility within the normal range for its sector.
KADANT INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, KADANT INC reported revenue of $1.05B and earnings per share (EPS) of $8.66. Net income for the quarter was $110M. Gross margin was 45.5%. Operating income came in at $164M.
In FY 2025, KADANT INC reported revenue of $1.05B and earnings per share (EPS) of $8.66. Net income for the quarter was $104M. Gross margin was 45.2%. Operating income came in at $157M.
In Q3 2025, KADANT INC reported revenue of $272M and earnings per share (EPS) of $2.35. Net income for the quarter was $28M. Gross margin was 45.2%. Operating income came in at $43M.
In Q3 2026, KADANT INC reported revenue of $272M and earnings per share (EPS) of $2.35. Net income for the quarter was $28M. Gross margin was 45.2%. Revenue grew 0.0% year-over-year compared to Q3 2025. Operating income came in at $43M.
Over the past 8 quarters, KADANT INC has demonstrated a growth trajectory, with revenue expanding from $239M to $1.05B. Investors analyzing KAI stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
KAI Dividend Yield and Income Analysis
KADANT INC (KAI) currently pays a dividend yield of 0.4%. At this yield, a $10,000 investment in KAI stock would generate approximately $$44.00 in annual dividend income. The net margin of 10.4% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
KAI Momentum and Technical Analysis Profile
KADANT INC (KAI) has a momentum factor score of 40/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 28/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 7/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
KAI vs Competitors — Industrials Sector Ranking and Peer Comparison
Within the Industrials sector, KADANT INC (KAI) ranks #474 out of 752 stocks based on the Blank Capital composite score. This places KAI in the lower half of all Industrials stocks in our coverage universe. Key competitors and sector peers include South Bow Corp (SOBO) with a score of 56.5/100, TSAKOS ENERGY NAVIGATION LTD (TEN) with a score of 61.4/100, Great Lakes Dredge & Dock CORP (GLDD) with a score of 56.7/100, Tri Pointe Homes, Inc. (TPH) with a score of 57.3/100, and Clear Channel Outdoor Holdings, Inc. (CCO) with a score of 52.2/100.
Comparing KAI against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full KAI vs S&P 500 (SPY) comparison to assess how KADANT INC stacks up against the broader market across all factor dimensions.
KAI Next Earnings Date
No upcoming earnings date has been announced for KADANT INC (KAI) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy KAI? — Investment Thesis Summary
The quantitative profile for KADANT INC suggests caution.
In summary, KADANT INC (KAI) earns a Reduce rating with a composite score of 42.6/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on KAI stock.
Related Resources for KAI Investors
Explore more research and tools: KAI vs S&P 500 comparison, top Industrials stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare KAI head-to-head with peers: KAI vs SOBO, KAI vs TEN, KAI vs GLDD.