KadantKAI +2.56%87 Pretax Margin % is 12.78% as of Mar. 2026, which is 2% below its 10-year median of 13.10. GuruFocus rates KAI with a GF Score™ of 87/100 and a GF Value™ of $336.90 (Fairly Valued). The stock has 4 warning signs investors should review. Among 3,038 Industrial Products companies, Kadant ranks better than 77.78% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Kadant's Pre-Tax Income for the
three
months ended in Mar. 2026 was $36 Mil. Kadant's Revenue for the
three
months ended in Mar. 2026 was $282 Mil. Therefore, Kadant's pretax margin for the quarter that ended in Mar. 2026 was 12.78%.
The historical rank and industry rank for Kadant's Pretax Margin % or its related term are showing as below:
KAI'
s Pretax Margin % Range Over the Past 10 Years
Min: 9.78 Med: 13.1 Max: 18.31
Current: 13.46
KAI's Pretax Margin % is ranked better than 77.78% of 3038
companies
in the Industrial Products industry
Industry Median: 5.85
vs KAI: 13.46
Kadant (NYSE:KAI) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Kadant Pretax Margin % Related Terms
Kadant Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Kadant's Pretax Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Specialty Industrial Machinery subindustry, Kadant's Pretax Margin %, along with its competitors' market caps and Pretax Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Kadant Pretax Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Kadant's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Kadant's Pretax Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Kadant (KAI) has a Pretax Margin % of 12.78% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Kadant and its competitors. This is near median its historical median of 13.10. Over the past decade, Kadant's Pretax Margin % has ranged from 9.78 to 18.31. According to the industry distribution chart, Kadant ranks #675 out of 3038 companies in the Industrial Products industry, placing it in the top 22.2%.
Is Kadant's Pretax Margin % too high?
Kadant's current Pretax Margin % of 12.78% is near median its 10-year median of 13.10. Over the past 10 years, this metric has ranged from a low of 9.78 to a high of 18.31. The Industrial Products industry median Pretax Margin % is 5.85. Kadant's value of 12.78% is 118.5% above this industry median. Based on the distribution chart, Kadant ranks #675 out of 3038 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Kadant has a GF Score™ of 87/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kadant's Pretax Margin % compare to MWA and SXI?
According to the Industrial Products industry distribution chart, Kadant ranks #675 out of 3038 companies for Pretax Margin %. This places Kadant in the top 22% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 5.85. Kadant's value of 12.78% is 118.5% above this benchmark. Historically, Kadant's own Pretax Margin % has ranged from 9.78 to 18.31 over the past decade. While the company's 10-year median is 13.10 vs. the industry median of 5.85, Kadant has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for an Industrial Products company?
The median Pretax Margin % among Industrial Products companies is 5.85, based on 3,038 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kadant's current Pretax Margin % of 12.78% is 118.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Kadant and its competitors. For the Industrial Products industry, the median Pretax Margin % is 5.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kadant's current Pretax Margin % is 12.78%, which is near median its own 10-year median of 13.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kadant stock overvalued right now?
Based on GuruFocus' analysis, Kadant (KAI) is currently considered Fairly Valued. The stock's GF Value™ is $336.90, compared to a current price of $308.39 — trading 8.5% below its estimated fair value. The current Pretax Margin % is 12.78%, which is near median its 10-year median of 13.10 and 118.5% above the Industrial Products industry median of 5.85. Kadant's overall GF Score™ is 87/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Kadant (KAI), the current Pretax Margin % is 12.78% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Kadant (KAI) Overvalued in 2026?
Based on GuruFocus' analysis, Kadant stock appears to be undervalued.
The current stock price of $308.39 is trading 8.5% below its estimated GF Value™ of $336.90.
GuruFocus considers Kadant to be Fairly Valued.
Key valuation signals for KAI:
Pretax Margin %: 12.78% (near median its 10-year median of 13.10)
GF Value™: $336.90 vs. price of $308.39 (8.5% below fair value)
Industry Position: 118.5% above the Industrial Products median (#675 of 3038)
No single metric tells the full story. See the KAI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kadant Inc. supplies process and engineering equipment for papermaking, recycling, lumber manufacturing, and related industries. The company's three reportable segments are the Flow Control segment which consists of the fluid-handling and doctoring, cleaning, & filtration product lines; the Industrial Processing segment which consists of the wood processing and stock-preparation product lines; and Material handling systems, which provides conveyor-belt equipment for industries such as mining, food processing, and packaging. The company has a geographic presence in the U.S., China, Asia, Germany, Canada, and Others.
87GF Score
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