Is KADANT INC (KAI) Halal?

NYSE Industrials United States $3.4B
✓ HALAL
Confidence: 83/100
KADANT INC (KAI) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 7.4% against the AAOIFI threshold of 30%, KADANT INC comfortably passes the key financial ratio tests. The company operates in the Industrials sector (Specialty Industrial Machinery), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 7.4%
/ 30%
2.4%
/ 30%
4.1%
/ 30%
N/A ✓ HALAL
DJIM 7.4%
/ 33%
2.4%
/ 33%
4.1%
/ 33%
N/A ✓ HALAL
MSCI 20.2%
/ 33%
6.6%
/ 33%
11.2%
/ 33%
N/A ✓ HALAL
S&P 7.4%
/ 33%
2.4%
/ 33%
4.1%
/ 33%
N/A ✓ HALAL
FTSE 20.2%
/ 33%
6.6%
/ 33%
11.2%
/ 50%
N/A ✓ HALAL

Financial Highlights

P/E Ratio
33.6
Forward: 22.3
EPS
$8.66
Dividend Yield
47.0%
Payout: 15.5%
P/B Ratio
3.5
EV/EBITDA
17.3
EV: $3.7B
Revenue
$1.1B
Growth: 10.9%
Beta
1.2
High volatility
Current Ratio
2.4

Profitability

Gross Margin 45.4%
Operating Margin 14.9%
Net Margin 9.7%
Return on Equity (ROE) 11.2%
Return on Assets (ROA) 6.5%

Cash Flow & Balance Sheet

Operating Cash Flow$171M
Free Cash Flow$154M
Total Debt$375M
Debt-to-Equity42.0
Current Ratio2.4
Total Assets$1.7B

Price & Trading

Last Close$299.50
50-Day MA$325.41
200-Day MA$310.79
Avg Volume150K
Beta1.2
52-Week Range
$244.87
$369.97

About KADANT INC (KAI)

CEO
Mr. Jeffrey L. Powell
Employees
3,900
Website
Sector
Industrials
Industry
Specialty Industrial Machinery
Country
United States
Exchange
NYSE
Market Cap
$3.4B
Currency
USD

Kadant Inc. supplies technologies and engineered systems worldwide. The company operates through three segments: Flow Control, Industrial Processing, and Material Handling. The Flow Control segment develops, manufactures, and markets fluid-handling systems, equipment, and integrated technologies, such as rotary joints, syphons, Turbulator bars, expansion joints, and engineered steam and condensate systems, as well as doctor systems and holders, doctor blades, cleaning showers and fabric-conditioning systems, forming systems and wear surfaces, and water-filtration systems. The Industrial Processing segment provides ring and rotary debarkers, stranders, chippers, engineered knife systems, and industrial automation and control products. This segment also offers recycling and approach flow systems, virgin pulping process equipment, boiler cleaning technologies, and single and double-screw presses. The Material Handling segment provides vibratory and conveying equipment; individual components and equipment for baling recyclable and waste materials; and fiber-based products. It sells its products and services through direct sales, independent sales agents, and distributors. The company was formerly known as Thermo Fibertek, Inc. and changed its name to Kadant Inc. in July 2001. Kadant Inc. was incorporated in 1991 and is headquartered in Westford, Massachusetts.

Related Halal Stocks in Industrials

Frequently Asked Questions

Is KADANT INC (KAI) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), KADANT INC is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is KADANT INC's debt ratio?

KADANT INC's debt ratio is 7.4% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 20.2%.

What are KADANT INC's key financial metrics?

KADANT INC has a market capitalization of $3.4B, trailing P/E ratio of 33.6, and revenue of $1.1B. The company maintains a gross margin of 45.4% and a net margin of 9.7%. Return on equity stands at 11.2%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.