Stock fact sheet · data as of
Kadant Inc. (KAI): fair value, margin of safety and Wheel Score
Industrials · Industrial - Machinery · United States · Blend
Is KAI undervalued?
Kadant Inc. (KAI) closed at 258.72 on 16 Oct 2026, 46% above the GLS average fair value of 176.98. 6 of the 9 models that produced a number value the shares below the current price. A gap this wide usually means the market is paying for growth or a story the trailing numbers do not show yet; the models work from filed results, not forecasts, so they are conservative by design.
There is a wide gap between DDM (20.89) and 10 Cap (359.02). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files KAI under Blend.
Nine valuation models for KAI
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 160.71 | -38% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 134.58 | -48% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 291.15 | +13% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 109.39 | -58% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 92.27 | -64% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 359.02 | +39% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 321.51 | +24% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 20.89 | -92% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 103.25 | -60% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -19.73 | -108% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 335.00 | +29% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Kadant Inc. scores 6 of 9 on the Piotroski F-score: a middling result that passes the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. On durability KAI scores 6.8/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are moderate - ROIC 7.5%, ROE 10.4%, ROA 6.0% - with debt at 0.38 times equity and a free-cash-flow yield of 5.2%.
The dividend yield is 0.55% with a payout ratio of 16% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Parts and Consumables 69%, Capital 32% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 7.5% |
|---|---|---|---|
| GLS Moat | 6.8 / 10 | ROE | 10.4% |
| Debt / equity | 0.38 | ROA | 6.0% |
| Free-cash-flow yield | 5.2% | Payout ratio | 16% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 54: Fair
A Wheel Score of 54 puts Kadant Inc. in the Fair band - below the 70 the Sunday Scan requires. Value 0/25, Health 13/20, Moat 10/15, Premium 20/20 and Stability 10/20; the weakest part is Value (0/25).
Implied volatility is 44% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is thin - 216 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 118k shares a day on a market cap of $3.1B, with a beta of 1.20 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 10 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -46% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 10 / 15 | moat 6.8/10 | |
| Premium | 20 / 20 | implied volatility 44% | |
| Stability | 10 / 20 | 118k shares/day, $3.1B cap, beta 1.20 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 3 Nov 2026 (after the close), 18 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Industrial - Machinery
The 12 companies below are the closest to Kadant Inc. by market cap within the Industrial - Machinery industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| CXT Crane NXT, Co. | 54.27 | 42.09 | -29% | 53Fair | $3.1B |
| SXI Standex International Corporation | 273.48 | 129.49 | -111% | 49Weak | $3.4B |
| MWA Mueller Water Products, Inc. | 21.65 | 26.66 | +19% | 83Prime | $3.4B |
| BMI Badger Meter, Inc. | 126.88 | 125.37 | -1% | 71Good | $3.7B |
| MIR Mirion Technologies, Inc. | 15.54 | 6.80 | -128% | 57Fair | $3.8B |
| ESAB ESAB Corporation | 65.63 | 55.61 | -18% | 63Fair | $4.1B |
| ALH Alliance Laundry Holdings Inc. | 20.93 | 15.79 | -33% | 56Fair | $4.2B |
| HLIO Helios Technologies, Inc. | 67.86 | 38.79 | -75% | 59Fair | $2.2B |
| FELE Franklin Electric Co., Inc. | 100.69 | 69.51 | -45% | 59Fair | $4.5B |
| GRC The Gorman-Rupp Company | 72.14 | 72.39 | +0% | 70Good | $1.9B |
| MIDD The Middleby Corporation | 108.68 | 182.33 | +40% | 45Weak | $4.9B |
| ALG Alamo Group Inc. | 152.62 | 237.97 | +36% | 71Good | $1.9B |
Screen the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about KAI
Is KAI undervalued right now?
No: at 258.72 the stock trades 46% above the GLS average fair value of 176.98 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of KAI and what does it mean?
KAI scores 54 out of 100 (Fair). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for KAI?
176.98 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Kadant Inc. report earnings next?
The next earnings report is due on 3 Nov 2026 (after the close), 18 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does KAI have listed options, and how liquid are they?
Yes. The nightly snapshot found 336 listed contracts with 216 open interest across all expiries and implied volatility of 44% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.