Stock under Consideration: Kadant Inc. (NYSE: KAI)

Alton Simmons

WESTFORD, Mass, February 2, 2020 – Shares of Kadant Inc. (NYSE: KAI) declined -1.67% to $109.62. The stock traded total volume of 46.393K shares lower than the average volume of 65.52K shares.

Kadant Inc. (NYSE: KAI) reported that revenue increased five percent to $173.50M compared to the third quarter of 2018, including $20.30M from an acquisition and a $3.50M decrease from the unfavorable effect of foreign currency translation. Excluding the impact of the acquisition and foreign currency translation, revenue decreased five percent compared to the third quarter of 2018. Gross margin was 42.8 percent. Net income was $16.10M, or $1.41 per diluted share, in the third quarter of 2019 compared to $18.80M, or $1.64 per diluted share in the third quarter of 2018. Adjusted diluted EPS decreased eight percent to $1.41 compared to $1.53 in the third quarter of 2018. Adjusted diluted EPS in the third quarter of 2018 excludes $0.03 of restructuring costs and a $0.14 discrete tax benefit.

Adjusted EBITDA decreased four percent to $32.30M compared to $33.50M in the third quarter of 2018. Adjusted EBITDA excludes $0.40M of restructuring costs in the third quarter of 2018. Cash flows from operations increased 51 percent to $25.70M compared to $17.00M in the third quarter of 2018. Bookings increased four percent to $170.90M compared to $165.00M in the third quarter of 2018, including $18.20M from an acquisition and a $3.40M decrease from the unfavorable effect of foreign currency translation. Excluding the impact of the acquisition and foreign currency translation, bookings decreased five percent compared to the third quarter of 2018.

KAI has the market capitalization of $1.22B and its EPS growth ratio for the past five years was 20.60%. The return on assets ratio of the Company was 6.90% while its return on investment ratio stands at 12.80%. Price to sales ratio was 1.78.

Alton Simmons

Alton Simmons

I am Alton Simmons and I focus on breaking news stories and ensuring we (“Tech Business Week”) offer timely reporting on some of the most recent stories released through market wires about “Industrial Goods” sector. I have formerly spent over 3 years as a trader in U.S. Stock Market and is now semi-stepped down. I work on a full time basis for Tech Business Week specializing in quicker moving active shares with a short term view on investment opportunities and trends. Address: 1075 Ashton Lane Lampasas, TX 76550, USA Phone: (+1) 512-566-9658 Email: Altonsimmons@techbusinessweek.com