Kadant (NYSE:KAI) Seems To Use Debt Quite Sensibly
Kadant (NYSE:KAI) Seems To Use Debt Quite Sensibly
David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the permanent loss of capital.' When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin. We note that Kadant Inc. (NYSE:KAI) does have debt on its balance sheet. But the real question is whether this debt is making the company risky.
大卫伊本说得很好,他说过:“波动性不是我们关心的风险。我们关心的是避免永久性的资本损失。”当我们考虑一个公司有多大风险时,我们总是喜欢看它的债务使用情况,因为债务过载可能导致毁灭。我们注意到凯登纸业(纽交所:KAI)的资产负债表上确实有债务。但真正的问题是,这些债务是否会让公司变得冒险。
When Is Debt Dangerous?
债务何时有危险?
Generally speaking, debt only becomes a real problem when a company can't easily pay it off, either by raising capital or with its own cash flow. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price. By replacing dilution, though, debt can be an extremely good tool for businesses that need capital to invest in growth at high rates of return. When we examine debt levels, we first consider both cash and debt levels, together.
一般来说,当企业无法轻易地通过筹集资本或自身现金流偿还债务时,债务才会成为真正的问题。最终,如果企业无法履行偿还债务的法律义务,股东可能什么也得不到。虽然这种情况并不太常见,但我们经常看到高负债的公司永久性地稀释股东权益,因为债权人迫使它们以低价 raised capital。不过,通过取代稀释,债务可以成为需要资本以高回报率投资于增长的企业的极好工具。在审查债务水平时,我们首先考虑现金和债务水平两者之间的关系。
What Is Kadant's Debt?
Kadant的债务是多少?
You can click the graphic below for the historical numbers, but it shows that as of June 2024 Kadant had US$343.3m of debt, an increase on US$155.1m, over one year. However, it also had US$73.8m in cash, and so its net debt is US$269.5m.
您可以点击下面的图表查看历史数据,但它显示,截至2024年6月,凯登纸业的债务为34330万美元,比去年增加了15510万美元。然而,它也有7380万美元的现金,因此净债务为26950万美元。
![1725016286203](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240830/43123324-0-1162c4f7ad14a564bc5aa039e1b19ee7.webp/bigjpg)
How Strong Is Kadant's Balance Sheet?
Kadant的资产负债表有多强?
The latest balance sheet data shows that Kadant had liabilities of US$202.0m due within a year, and liabilities of US$435.7m falling due after that. Offsetting this, it had US$73.8m in cash and US$164.8m in receivables that were due within 12 months. So its liabilities outweigh the sum of its cash and (near-term) receivables by US$399.0m.
最新的资产负债表数据显示,凯登纸业的短期负债为2,0200万美元,逾期负债为4,3570万美元。同时,该公司有7,380万美元现金和16,480万美元应于12个月内收回的应收账款。因此,凯登纸业的负债超过现金和(即将到期的)应收账款的总和39,900万美元。
Of course, Kadant has a market capitalization of US$3.74b, so these liabilities are probably manageable. However, we do think it is worth keeping an eye on its balance sheet strength, as it may change over time.
当然,凯登纸业的市场资本化为37.4亿美元,所以这些负债可能是可以应对的。然而,我们认为值得关注其资产负债表强度,因为它可能随时间变化。
We measure a company's debt load relative to its earnings power by looking at its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and by calculating how easily its earnings before interest and tax (EBIT) cover its interest expense (interest cover). This way, we consider both the absolute quantum of the debt, as well as the interest rates paid on it.
我们通过将公司的净债务与其息税折旧摊销前利润(EBITDA)相除,并计算其息税前利润(EBIT)如何覆盖其利息费用(利息覆盖率)来衡量公司的债务负担相对于其盈利能力。因此,我们同时考虑债务的绝对数量以及所支付的利率。
Kadant's net debt is only 1.2 times its EBITDA. And its EBIT covers its interest expense a whopping 15.2 times over. So we're pretty relaxed about its super-conservative use of debt. The good news is that Kadant has increased its EBIT by 8.0% over twelve months, which should ease any concerns about debt repayment. When analysing debt levels, the balance sheet is the obvious place to start. But ultimately the future profitability of the business will decide if Kadant can strengthen its balance sheet over time. So if you're focused on the future you can check out this free report showing analyst profit forecasts.
凯登纸业的净债务仅为EBITDA的1.2倍。其EBIt对其利息支出有15.2倍的覆盖率。所以我们对其超保守的负债使用方式感到相当放心。好消息是,凯登纸业过去12个月的EBIt增长了8.0%,这应该能缓解对债务偿还的担忧。在分析债务水平时,资产负债表是最明显的起点。但最终业务未来的盈利能力将决定凯登纸业能否随时间加强其资产负债表。因此,如果您关注未来,可以查看这份显示分析师利润预测的免费报告。
Finally, while the tax-man may adore accounting profits, lenders only accept cold hard cash. So it's worth checking how much of that EBIT is backed by free cash flow. During the last three years, Kadant produced sturdy free cash flow equating to 71% of its EBIT, about what we'd expect. This free cash flow puts the company in a good position to pay down debt, when appropriate.
最后,尽管财务利润对税务部门来说可能很有用,但只有真金白银的现金才能获得借贷者的接受。因此,值得检查多少EBIt的支持来自自由现金流。在过去的三年中,凯登纸业产生了可靠的自由现金流,相当于其EBIt的71%,这正是我们所期望的。这笔自由现金流使该公司有能力在适当时偿还债务。
Our View
我们的观点
Happily, Kadant's impressive interest cover implies it has the upper hand on its debt. And that's just the beginning of the good news since its conversion of EBIT to free cash flow is also very heartening. Zooming out, Kadant seems to use debt quite reasonably; and that gets the nod from us. After all, sensible leverage can boost returns on equity. There's no doubt that we learn most about debt from the balance sheet. However, not all investment risk resides within the balance sheet - far from it. Case in point: We've spotted 1 warning sign for Kadant you should be aware of.
令人高兴的是,凯登纸业令人印象深刻的利息覆盖率意味着它在债务方面占据了优势。这只是好消息的开始,因为它的经营利润转化为自由现金流也令人非常欣慰。放大来讲,凯登纸业在使用债务方面似乎非常合理,并且我们对此表示赞同。毕竟,明智的杠杆可以提高股本回报率。毫无疑问,我们可以从资产负债表中了解债务的大部分信息。然而,并不是所有的投资风险都存在于资产负债表中-远非如此。例如:我们发现凯登纸业有1个警告信号,你应该注意。
When all is said and done, sometimes its easier to focus on companies that don't even need debt. Readers can access a list of growth stocks with zero net debt 100% free, right now.
说到底,有时候更容易集中精力关注根本不需要债务的公司。读者可以免费访问零净债务增长股票列表。
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