KENNAMETAL INC (KMT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KMT - US4891701009 - Common Stock
30.73 USD
+0.71 (+2.37%)
30.73 USD
0 (0%)
Overall KMT gets a fundamental rating of 5 out of 10. We evaluated KMT against 132 industry peers in the Machinery industry. KMT has an average financial health and profitability rating. KMT is valied quite expensively at the moment, while it does show a decent growth rate. Finally KMT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
KMT had positive earnings in the past year.
In the past year KMT had a positive cash flow from operations.
Each year in the past 5 years KMT has been profitable.
Each year in the past 5 years KMT had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.74%, KMT is in line with its industry, outperforming 53.03% of the companies in the same industry.
Looking at the Return On Equity, with a value of 7.34%, KMT is in line with its industry, outperforming 52.27% of the companies in the same industry.
The Return On Invested Capital of KMT (5.80%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for KMT is below the industry average of 10.21%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.74% | ||
| ROE | 7.34% | ||
| ROIC | 5.8% |
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
KMT has a Profit Margin of 4.76%. This is comparable to the rest of the industry: KMT outperforms 53.03% of its industry peers.
In the last couple of years the Profit Margin of KMT has declined.
KMT has a Operating Margin (8.10%) which is comparable to the rest of the industry.
KMT's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 30.42%, KMT perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Gross Margin of KMT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.1% | ||
| PM (TTM) | 4.76% | ||
| GM | 30.42% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KMT is destroying value.
The number of shares outstanding for KMT has been reduced compared to 1 year ago.
Compared to 5 years ago, KMT has less shares outstanding
KMT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.08 indicates that KMT is not in any danger for bankruptcy at the moment.
KMT's Altman-Z score of 3.08 is in line compared to the rest of the industry. KMT outperforms 50.00% of its industry peers.
KMT has a debt to FCF ratio of 6.44. This is a slightly negative value and a sign of low solvency as KMT would need 6.44 years to pay back of all of its debts.
KMT has a Debt to FCF ratio (6.44) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.47 indicates that KMT is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.47, KMT is in line with its industry, outperforming 48.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 6.44 | ||
| Altman-Z | 3.08 |
ROIC/WACC0.63
WACC9.2%
2.3 Liquidity
KMT has a Current Ratio of 2.60. This indicates that KMT is financially healthy and has no problem in meeting its short term obligations.
KMT has a better Current ratio (2.60) than 70.45% of its industry peers.
A Quick Ratio of 1.18 indicates that KMT should not have too much problems paying its short term obligations.
KMT has a Quick ratio (1.18) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.6 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
KMT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.45%.
KMT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.28% yearly.
The Revenue has decreased by -2.63% in the past year.
KMT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.85% yearly.
EPS 1Y (TTM)1.45%
EPS 3Y-8.98%
EPS 5Y7.28%
EPS Q2Q%17.24%
Revenue 1Y (TTM)-2.63%
Revenue growth 3Y-0.76%
Revenue growth 5Y0.85%
Sales Q2Q%3.33%
3.2 Future
Based on estimates for the next years, KMT will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.71% on average per year.
Based on estimates for the next years, KMT will show a small growth in Revenue. The Revenue will grow by 3.89% on average per year.
EPS Next Y11.92%
EPS Next 2Y12.23%
EPS Next 3Y11.71%
EPS Next 5YN/A
Revenue Next Year6.26%
Revenue Next 2Y5.03%
Revenue Next 3Y3.89%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
Based on the Price/Earnings ratio of 21.95, the valuation of KMT can be described as rather expensive.
KMT's Price/Earnings ratio is a bit cheaper when compared to the industry. KMT is cheaper than 69.70% of the companies in the same industry.
KMT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.00.
With a Price/Forward Earnings ratio of 18.07, KMT is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KMT indicates a somewhat cheap valuation: KMT is cheaper than 74.24% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of KMT to the average of the S&P500 Index (23.70), we can say KMT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.95 | ||
| Fwd PE | 18.07 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KMT indicates a rather cheap valuation: KMT is cheaper than 87.12% of the companies listed in the same industry.
KMT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.18 | ||
| EV/EBITDA | 9.3 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)1.84
PEG (5Y)3.01
EPS Next 2Y12.23%
EPS Next 3Y11.71%
5. Dividend
5.1 Amount
KMT has a Yearly Dividend Yield of 2.82%.
KMT's Dividend Yield is rather good when compared to the industry average which is at 0.85. KMT pays more dividend than 92.42% of the companies in the same industry.
KMT's Dividend Yield is a higher than the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
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
65.12% of the earnings are spent on dividend by KMT. This is not a sustainable payout ratio.
KMT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP65.12%
EPS Next 2Y12.23%
EPS Next 3Y11.71%
30.73
+0.71 (+2.37%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners107.36%
Inst Owner Change0%
Ins Owners0.78%
Ins Owner Change6.97%
Market Cap2.34B
Revenue(TTM)1.98B
Net Income(TTM)94.30M
Analysts48.75
Price Target25.76 (-16.17%)
Short Float %3.77%
Short Ratio3.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
Yearly Dividend0.8
Dividend Growth(5Y)0.04%
DP65.12%
Div Incr Years0
Div Non Decr Years34
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)14.66%
Min EPS beat(2)-13.93%
Max EPS beat(2)43.25%
EPS beat(4)2
Avg EPS beat(4)30.16%
Min EPS beat(4)-13.93%
Max EPS beat(4)95.43%
EPS beat(8)5
Avg EPS beat(8)20%
EPS beat(12)8
Avg EPS beat(12)15.34%
EPS beat(16)10
Avg EPS beat(16)11.78%
Revenue beat(2)1
Avg Revenue beat(2)0.12%
Min Revenue beat(2)-3.13%
Max Revenue beat(2)3.38%
Revenue beat(4)1
Avg Revenue beat(4)-0.93%
Min Revenue beat(4)-3.13%
Max Revenue beat(4)3.38%
Revenue beat(8)2
Avg Revenue beat(8)-0.9%
Revenue beat(12)4
Avg Revenue beat(12)-1.18%
Revenue beat(16)6
Avg Revenue beat(16)-0.94%
PT rev (1m)6.88%
PT rev (3m)19.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)53.44%
EPS NY rev (1m)0%
EPS NY rev (3m)37.25%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)6.09%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)5.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.95 | ||
| Fwd PE | 18.07 | ||
| P/S | 1.18 | ||
| P/FCF | 25.18 | ||
| P/OCF | 12.99 | ||
| P/B | 1.82 | ||
| P/tB | 2.5 | ||
| EV/EBITDA | 9.3 |
EPS(TTM)1.4
EY4.56%
EPS(NY)1.7
Fwd EY5.53%
FCF(TTM)1.22
FCFY3.97%
OCF(TTM)2.37
OCFY7.7%
SpS26.06
BVpS16.88
TBVpS12.31
PEG (NY)1.84
PEG (5Y)3.01
Graham Number23.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.74% | ||
| ROE | 7.34% | ||
| ROCE | 7.57% | ||
| ROIC | 5.8% | ||
| ROICexc | 6.1% | ||
| ROICexgc | 7.37% | ||
| OM | 8.1% | ||
| PM (TTM) | 4.76% | ||
| GM | 30.42% | ||
| FCFM | 4.68% |
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%
ROICexgc growth 3Y-10.57%
ROICexgc 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 Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 6.44 | ||
| Debt/EBITDA | 2 | ||
| Cap/Depr | 63.2% | ||
| Cap/Sales | 4.4% | ||
| Interest Coverage | 6.52 | ||
| Cash Conversion | 60.31% | ||
| Profit Quality | 98.47% | ||
| Current Ratio | 2.6 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 3.08 |
F-Score6
WACC9.2%
ROIC/WACC0.63
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)1.45%
EPS 3Y-8.98%
EPS 5Y7.28%
EPS Q2Q%17.24%
EPS Next Y11.92%
EPS Next 2Y12.23%
EPS Next 3Y11.71%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.63%
Revenue growth 3Y-0.76%
Revenue growth 5Y0.85%
Sales Q2Q%3.33%
Revenue Next Year6.26%
Revenue Next 2Y5.03%
Revenue Next 3Y3.89%
Revenue Next 5YN/A
EBIT growth 1Y-6%
EBIT growth 3Y-10.93%
EBIT growth 5Y2.04%
EBIT Next Year90.69%
EBIT Next 3Y28.09%
EBIT Next 5YN/A
FCF growth 1Y-53.01%
FCF growth 3Y12.2%
FCF growth 5YN/A
OCF growth 1Y-38.82%
OCF growth 3Y4.72%
OCF growth 5Y-1.41%
KENNAMETAL INC / KMT FAQ
What is the ChartMill fundamental rating of KENNAMETAL INC (KMT) stock?
ChartMill assigns a fundamental rating of 5 / 10 to KMT.
What is the valuation status for KMT stock?
ChartMill assigns a valuation rating of 4 / 10 to KENNAMETAL INC (KMT). This can be considered as Fairly Valued.
How profitable is KENNAMETAL INC (KMT) stock?
KENNAMETAL INC (KMT) has a profitability rating of 4 / 10.
What is the valuation of KENNAMETAL INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for KENNAMETAL INC (KMT) is 21.95 and the Price/Book (PB) ratio is 1.82.
Can you provide the dividend sustainability for KMT stock?
The dividend rating of KENNAMETAL INC (KMT) is 7 / 10 and the dividend payout ratio is 65.12%.