Added to YB: 2025-06-05
Pitch date: 2025-04-15
KAI [bearish]
Kadant Inc.
+7.12%
current return
Author Info
No bio for this author
Company Info
Kadant Inc. supplies technologies and engineered systems worldwide. It operates in three segments: Flow Control, Industrial Processing, and Material Handling.
Market Cap
$3.0B
Pitch Price
$314.63
Price Target
212.00 (-27%)
Dividend
0.53%
EV/EBITDA
14.36
P/E
29.47
EV/Sales
3.07
Sector
Machinery
Category
value
Kadant Inc. - $KAI
KAI short: Trading at peak 31x P/E & 16x EBITDA, 33% downside to $212 PT. Pulp/paper (50%) & housing (25%) overearning as overcapacity (10-15%) meets declining demand. Book/bill <1.0x for 2 years. 'Stable' consumables more cyclical than claimed. Margins pressured by mix shift, competition & SG&A deleverage. Q4 affirmed thesis with negative organic growth.
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