KENNAMETAL INC (KMT) Stock Fundamental Analysis
USA - NYSE:KMT - US4891701009 - Common Stock
20.95 USD
+0.19 (+0.92%)
21 USD
+0.05 (+0.24%)
Overall KMT gets a fundamental rating of 4 out of 10. We evaluated KMT against 128 industry peers in the Machinery industry. KMT has an average financial health and profitability rating. KMT is valued correctly, but it does not seem to be growing. Finally KMT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year KMT was profitable.
KMT had a positive operating cash flow in the past year.
Each year in the past 5 years KMT has been profitable.
In the past 5 years KMT always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of KMT (3.66%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 7.25%, KMT is in line with its industry, outperforming 45.31% of the companies in the same industry.
The Return On Invested Capital of KMT (5.65%) is comparable to the rest of the industry.
KMT had an Average Return On Invested Capital over the past 3 years of 6.49%. This is below the industry average of 10.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.66% | ||
| ROE | 7.25% | ||
| ROIC | 5.65% |
ROA(3y)4.23%
ROA(5y)4.07%
ROE(3y)8.43%
ROE(5y)8.19%
ROIC(3y)6.49%
ROIC(5y)6.48%
1.3 Margins
Looking at the Profit Margin, with a value of 4.73%, KMT is in line with its industry, outperforming 47.66% of the companies in the same industry.
KMT's Profit Margin has declined in the last couple of years.
The Operating Margin of KMT (7.95%) is comparable to the rest of the industry.
KMT's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 30.41%, KMT is in line with its industry, outperforming 47.66% of the companies in the same industry.
KMT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.95% | ||
| PM (TTM) | 4.73% | ||
| GM | 30.41% |
OM growth 3Y-10.25%
OM growth 5Y1.18%
PM growth 3Y-12.98%
PM growth 5YN/A
GM growth 3Y-2.17%
GM growth 5Y1.07%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KMT is destroying value.
Compared to 1 year ago, KMT has less shares outstanding
KMT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for KMT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.68 indicates that KMT is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of KMT (2.68) is comparable to the rest of the industry.
KMT has a debt to FCF ratio of 5.01. This is a neutral value as KMT would need 5.01 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.01, KMT is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 0.47 indicates that KMT is not too dependend on debt financing.
KMT has a Debt to Equity ratio (0.47) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 5.01 | ||
| Altman-Z | 2.68 |
ROIC/WACC0.61
WACC9.32%
2.3 Liquidity
KMT has a Current Ratio of 2.46. This indicates that KMT is financially healthy and has no problem in meeting its short term obligations.
KMT has a better Current ratio (2.46) than 64.06% of its industry peers.
A Quick Ratio of 1.19 indicates that KMT should not have too much problems paying its short term obligations.
The Quick ratio of KMT (1.19) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
KMT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -10.00%.
Measured over the past 5 years, KMT shows a small growth in Earnings Per Share. The EPS has been growing by 7.28% on average per year.
The Revenue has decreased by -3.91% in the past year.
The Revenue has been growing slightly by 0.85% on average over the past years.
EPS 1Y (TTM)-10%
EPS 3Y-8.98%
EPS 5Y7.28%
EPS Q2Q%-30.61%
Revenue 1Y (TTM)-3.91%
Revenue growth 3Y-0.76%
Revenue growth 5Y0.85%
Sales Q2Q%-4.94%
3.2 Future
The Earnings Per Share is expected to grow by 5.92% on average over the next years.
The Revenue is expected to grow by 2.00% on average over the next years.
EPS Next Y-18.45%
EPS Next 2Y1.46%
EPS Next 3Y5.92%
EPS Next 5YN/A
Revenue Next Year0.5%
Revenue Next 2Y1.74%
Revenue Next 3Y2%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.52, which indicates a correct valuation of KMT.
Based on the Price/Earnings ratio, KMT is valued cheaply inside the industry as 82.03% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.27. KMT is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 19.03, KMT is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as KMT.
KMT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.52 | ||
| Fwd PE | 19.03 |
4.2 Price Multiples
KMT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. KMT is cheaper than 92.97% of the companies in the same industry.
KMT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. KMT is cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.34 | ||
| EV/EBITDA | 6.94 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.13
EPS Next 2Y1.46%
EPS Next 3Y5.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.80%, KMT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.74, KMT pays a better dividend. On top of this KMT pays more dividend than 95.31% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, KMT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.8% |
5.2 History
The dividend of KMT has a limited annual growth rate of 0.04%.
KMT has paid a dividend for at least 10 years, which is a reliable track record.
KMT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.04%
Div Incr Years0
Div Non Decr Years34
5.3 Sustainability
KMT pays out 66.42% of its income as dividend. This is not a sustainable payout ratio.
KMT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP66.42%
EPS Next 2Y1.46%
EPS Next 3Y5.92%
20.95
+0.19 (+0.92%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners112.93%
Inst Owner Change2.98%
Ins Owners0.79%
Ins Owner Change6.01%
Market Cap1.59B
Analysts48.75
Price Target21.64 (3.29%)
Short Float %4.38%
Short Ratio2.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.8% |
Yearly Dividend0.8
Dividend Growth(5Y)0.04%
DP66.42%
Div Incr Years0
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)40.75%
Min EPS beat(2)-13.93%
Max EPS beat(2)95.43%
EPS beat(4)2
Avg EPS beat(4)22.4%
Min EPS beat(4)-13.93%
Max EPS beat(4)95.43%
EPS beat(8)5
Avg EPS beat(8)16.41%
EPS beat(12)7
Avg EPS beat(12)11.05%
EPS beat(16)10
Avg EPS beat(16)10.03%
Revenue beat(2)0
Avg Revenue beat(2)-2.47%
Min Revenue beat(2)-3.13%
Max Revenue beat(2)-1.8%
Revenue beat(4)0
Avg Revenue beat(4)-2.13%
Min Revenue beat(4)-3.13%
Max Revenue beat(4)-1.42%
Revenue beat(8)1
Avg Revenue beat(8)-1.74%
Revenue beat(12)4
Avg Revenue beat(12)-1.43%
Revenue beat(16)5
Avg Revenue beat(16)-1.26%
PT rev (1m)-3.88%
PT rev (3m)-1.98%
EPS NQ rev (1m)-0.55%
EPS NQ rev (3m)-17.22%
EPS NY rev (1m)-23.53%
EPS NY rev (3m)-22.06%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-2.31%
Revenue NY rev (1m)-1.57%
Revenue NY rev (3m)-1.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.52 | ||
| Fwd PE | 19.03 | ||
| P/S | 0.81 | ||
| P/FCF | 13.34 | ||
| P/OCF | 7.64 | ||
| P/B | 1.24 | ||
| P/tB | 1.71 | ||
| EV/EBITDA | 6.94 |
EPS(TTM)1.35
EY6.44%
EPS(NY)1.1
Fwd EY5.25%
FCF(TTM)1.57
FCFY7.49%
OCF(TTM)2.74
OCFY13.08%
SpS25.87
BVpS16.89
TBVpS12.29
PEG (NY)N/A
PEG (5Y)2.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.66% | ||
| ROE | 7.25% | ||
| ROCE | 7.37% | ||
| ROIC | 5.65% | ||
| ROICexc | 6.05% | ||
| ROICexgc | 7.35% | ||
| OM | 7.95% | ||
| PM (TTM) | 4.73% | ||
| GM | 30.41% | ||
| FCFM | 6.07% |
ROA(3y)4.23%
ROA(5y)4.07%
ROE(3y)8.43%
ROE(5y)8.19%
ROIC(3y)6.49%
ROIC(5y)6.48%
ROICexc(3y)6.9%
ROICexc(5y)6.86%
ROICexgc(3y)8.4%
ROICexgc(5y)8.39%
ROCE(3y)8.47%
ROCE(5y)8.48%
ROICexcg growth 3Y-10.57%
ROICexcg growth 5Y2%
ROICexc growth 3Y-10.34%
ROICexc growth 5Y2.55%
OM growth 3Y-10.25%
OM growth 5Y1.18%
PM growth 3Y-12.98%
PM growth 5YN/A
GM growth 3Y-2.17%
GM growth 5Y1.07%
F-Score6
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 5.01 | ||
| Debt/EBITDA | 2.04 | ||
| Cap/Depr | 65.18% | ||
| Cap/Sales | 4.52% | ||
| Interest Coverage | 6.32 | ||
| Cash Conversion | 71.11% | ||
| Profit Quality | 128.16% | ||
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 2.68 |
F-Score6
WACC9.32%
ROIC/WACC0.61
Cap/Depr(3y)71.83%
Cap/Depr(5y)77.94%
Cap/Sales(3y)4.77%
Cap/Sales(5y)5.21%
Profit Quality(3y)140.41%
Profit Quality(5y)135.79%
High Growth Momentum
Growth
EPS 1Y (TTM)-10%
EPS 3Y-8.98%
EPS 5Y7.28%
EPS Q2Q%-30.61%
EPS Next Y-18.45%
EPS Next 2Y1.46%
EPS Next 3Y5.92%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.91%
Revenue growth 3Y-0.76%
Revenue growth 5Y0.85%
Sales Q2Q%-4.94%
Revenue Next Year0.5%
Revenue Next 2Y1.74%
Revenue Next 3Y2%
Revenue Next 5YN/A
EBIT growth 1Y-14.21%
EBIT growth 3Y-10.93%
EBIT growth 5Y2.04%
EBIT Next Year86.78%
EBIT Next 3Y25.38%
EBIT Next 5YN/A
FCF growth 1Y-29.6%
FCF growth 3Y12.2%
FCF growth 5YN/A
OCF growth 1Y-24.82%
OCF growth 3Y4.72%
OCF growth 5Y-1.41%