KadantKAI +0.66%87 Return-on-Tangible-Asset is 12.53% as of Mar. 2026, which is 18% below its 10-year median of 15.36. GuruFocus rates KAI with a GF Score™ of 87/100 and a GF Value™ of $337.89 (Fairly Valued). The stock has 4 warning signs investors should review. Among 3,074 Industrial Products companies, Kadant ranks better than 92.42% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Kadant's annualizedNet Income for the quarter that ended in Mar. 2026 was $102 Mil. Kadant's average total tangible assets for the quarter that ended in Mar. 2026 was $814 Mil. Therefore, Kadant's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 12.53%.
The historical rank and industry rank for Kadant's Return-on-Tangible-Asset or its related term are showing as below:
KAI'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 9.92 Med: 15.36 Max: 21.5
Current: 13.67
During the past 13 years, Kadant's highest Return-on-Tangible-Asset was 21.50%. The lowest was 9.92%. And the median was 15.36%.
KAI's Return-on-Tangible-Asset is ranked better than 92.42% of 3074
companies
in the Industrial Products industry
Industry Median: 3.235
vs KAI: 13.67
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Kadant Return-on-Tangible-Asset Related Terms
Kadant Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Kadant's Return-on-Tangible-Asset 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.
KAI vs SXI, SMR, MWA: Return-on-Tangible-Asset Comparison
For the Specialty Industrial Machinery subindustry, Kadant's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Kadant's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Kadant's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 12.53% mean?
Kadant (KAI) has a Return-on-Tangible-Asset of 12.53% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Kadant and its competitors. This is 18% below median its historical median of 15.36. Over the past decade, Kadant's Return-on-Tangible-Asset has ranged from 9.92 to 21.50. According to the industry distribution chart, Kadant ranks #233 out of 3074 companies in the Industrial Products industry, placing it in the top 7.6%.
Is Kadant's Return-on-Tangible-Asset too high?
Kadant's current Return-on-Tangible-Asset of 12.53% is 18% below median its 10-year median of 15.36. Over the past 10 years, this metric has ranged from a low of 9.92 to a high of 21.50. The Industrial Products industry median Return-on-Tangible-Asset is 3.24. Kadant's value of 12.53% is 287.3% above this industry median. Based on the distribution chart, Kadant ranks #233 out of 3074 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 Return-on-Tangible-Asset compare to SXI and SMR?
According to the Industrial Products industry distribution chart, Kadant ranks #233 out of 3074 companies for Return-on-Tangible-Asset. This places Kadant in the top 8% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.24. Kadant's value of 12.53% is 287.3% above this benchmark. Historically, Kadant's own Return-on-Tangible-Asset has ranged from 9.92 to 21.50 over the past decade. While the company's 10-year median is 15.36 vs. the industry median of 3.24, 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 Return-on-Tangible-Asset for an Industrial Products company?
The median Return-on-Tangible-Asset among Industrial Products companies is 3.24, based on 3,074 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kadant's current Return-on-Tangible-Asset of 12.53% is 287.3% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Kadant and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Asset is 3.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kadant's current Return-on-Tangible-Asset is 12.53%, which is 18% below median its own 10-year median of 15.36. 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 $337.89, compared to a current price of $309.00 — trading 8.6% below its estimated fair value. The current Return-on-Tangible-Asset is 12.53%, which is 18% below median its 10-year median of 15.36 and 287.3% above the Industrial Products industry median of 3.24. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Kadant (KAI), the current Return-on-Tangible-Asset is 12.53% 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 $309.00 is trading 8.6% below its estimated GF Value™ of $337.89.
GuruFocus considers Kadant to be Fairly Valued.
Key valuation signals for KAI:
Return-on-Tangible-Asset: 12.53% (18% below median its 10-year median of 15.36)
GF Value™: $337.89 vs. price of $309.00 (8.6% below fair value)
Industry Position: 287.3% above the Industrial Products median (#233 of 3074)
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
Get the complete analysis for KAI
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
KAI has been successfully added to your 
