Kadant, Inc. (NYSE:KAI)

CAPS Rating: 3 out of 5

The Company is a supplier of equipment used in the global papermaking and paper recycling industries and also a manufacturer of granules made from papermaking byproducts.

Recs

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Player Avatar Har1en (99.38) Submitted: 11/12/2008 2:59:32 AM : Outperform Start Price: $14.70 KAI Score: +40.78

Companies in bizarre business areas with low debt will come out of the current financial mess smelling like fertilized roses. Kadant seems to be a strong candidate. Historical prices and earnings suggest that this company is a cyclical, booming and busting as recycling goes in and out of fashion. How anyone could have paid a PE of 60 for this company is beyond me, but hey, them was the days, right? Todays numbers seem much more in line with what I would expect. Heck, we might even get lucky and see brighter days ahead for recycling profits. If so, this could be a market thrasher, not just a decent stock in a tough time. I like their low debt, their steady earnings, and their share buybacks. Heck, the more I look at the numbers here, the more I like these guys for my real world port.

Member Avatar XMFCinco (29.83) Submitted: 12/4/2009 8:26:20 PM
Recs: 0

I agree. However, the things that make me hesitate is that a) this company still isn't making money, even though its losing less than it was a couple quarters ago. b) this company is below industry average in management efficiency and c) their net worth is going down. I dont like companies that are worth less than they were before. That said, i still kind of like them, and they're still a little below book value. I do give them the green thumb overall, although i probably would give them neither except that i want to follow them so i can learn. Sort of an experiment.

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