Kadant Story

<div class='circular--portrait' style='background:#800000;color: #F8F8FF;font-size:3em;'>KAI</div>
KAI -- USA Stock  

USD 107.18  0.64  0.59%

The predictive indicators we use to evaluate Kadant help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of Kadant Inc. We apply different methods to arrive at the intrinsic value of Kadant based on widely used predictive technical indicators. Today's article will concentrate on Kadant. We will evaluate why we are still confident in anticipation of a recovery.
Published over a month ago
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Volatility may be your only friend when it comes to investing in Kadant
Macroaxis provides trade recommendations on Kadant Inc to complement and cross-verify current analyst consensus on Kadant. Our advice engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. About 103.0% of the company shares are owned by institutional investors. The book value of Kadant was now reported as 36.86. Kadant Inc had 1:5 split on the 12th of July 2001.
The successful prediction of Kadant stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Kadant Inc, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Kadant based on Kadant hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to Kadant's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Kadant's related companies.

Use Technical Analysis to project Kadant expected Price

Kadant technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Kadant technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Kadant trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

How Kadant utilizes its cash?

To perform a cash flow analysis of Kadant, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Kadant is receiving and how much cash it distributes out in a given period. The Kadant cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Kadant Net Cash Flow from Operations is most likely to increase significantly in the upcoming years. The last year's value of Net Cash Flow from Operations was reported at 51 Million

Sale by John Albertine of 3500 shares of Kadant

Legal trades by Kadant insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Kadant insider trading alert for sale of common stock by John Albertine, the corporate stakeholder, on 25th of September 2020. This event was filed by Kadant Inc with SEC on 2020-09-25. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking it down a bit more

Kadant reported the last year's revenue of 692.45 M. Total Income to common stockholders was 53.7 M with profit before taxes, overhead, and interest of 290.21 M.
 2012 2016 2017 2020 (projected)
Consolidated Income34.68 M32.47 M52.56 M35.17 M
Direct Expenses209.98 M225.74 M410.88 M216.77 M

Deferred Revenue Breakdown

Kadant Deferred Revenue is decreasing over the last several years with slightly volatile swings. Deferred Revenue is estimated to finish at about 1.3 M this year. Deferred Revenue usually refers to a component of Total Liabilities representing the carrying amount of consideration received or receivable on potential earnings that were not recognized as revenue; including sales; license fees; and royalties; but excluding interest income. Kadant Deferred Revenue is most likely to decrease significantly in the upcoming years. The last year's value of Deferred Revenue was reported at 1.27 Million
2010
2011
2016
2020
201011.28 Million
20114.44 Million
20161.27 Million
20201.3 Million

Another small drop for Kadant

Current jensen alpha is at 0.42. As of the 28th of July, Kadant secures the Mean Deviation of 2.42, risk adjusted performance of 0.3599, and Downside Deviation of 3.05. Kadant Inc technical analysis lets you operate historical price patterns with an objective to determine a pattern that forecasts the direction of the firm's future prices. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We were able to interpolate nineteen technical drivers for Kadant, which can be compared to its peers in the industry. Please verify Kadant Inc coefficient of variation, maximum drawdown, skewness, as well as the relationship between the information ratio and downside variance to decide if Kadant Inc is priced some-what accurately, providing market reflects its recent price of 114.14 per share. Given that Kadant Inc has jensen alpha of 0.4212, we recommend you to check Kadant's last-minute market performance to make sure the company can sustain itself at a future point.

While few other entities under the specialty industrial machinery industry are still a bit expensive, Kadant may offer a potential longer-term growth to stockholders. The inconsistency in the assessment between current Kadant valuation and our trade advice on Kadant is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Kadant.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Kadant Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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