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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

Show full summary:
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.

Read full article (10 min)