KENNAMETAL INC (KMT) Stock Fundamental Analysis
USA - NYSE:KMT - US4891701009 - Common Stock
22.16 USD
-0.07 (-0.31%)
22.16 USD
0 (0%)
Overall KMT gets a fundamental rating of 4 out of 10. We evaluated KMT against 130 industry peers in the Machinery industry. Both the profitability and the financial health of KMT get a neutral evaluation. Nothing too spectacular is happening here. KMT has a valuation in line with the averages, but on the other hand it scores bad on growth. 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.
KMT had positive earnings in each of the past 5 years.
In the past 5 years KMT always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 3.66%, KMT perfoms like the industry average, outperforming 49.23% of the companies in the same industry.
KMT has a Return On Equity (7.25%) which is in line with its industry peers.
KMT has a Return On Invested Capital (5.65%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for KMT is below the industry average of 10.01%.
| 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
KMT's Profit Margin of 4.73% is in line compared to the rest of the industry. KMT outperforms 48.46% of its industry peers.
KMT's Profit Margin has declined in the last couple of years.
KMT has a Operating Margin of 7.95%. This is comparable to the rest of the industry: KMT outperforms 48.46% of its industry peers.
In the last couple of years the Operating Margin of KMT has remained more or less at the same level.
KMT has a Gross Margin of 30.41%. This is comparable to the rest of the industry: KMT outperforms 47.69% of its industry peers.
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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KMT is destroying value.
KMT has less shares outstanding than it did 1 year ago.
KMT has less shares outstanding than it did 5 years ago.
KMT has a better debt/assets ratio than last year.
2.2 Solvency
KMT has an Altman-Z score of 2.73. This is not the best score and indicates that KMT is in the grey zone with still only limited risk for bankruptcy at the moment.
KMT has a Altman-Z score of 2.73. This is comparable to the rest of the industry: KMT outperforms 47.69% of its industry peers.
The Debt to FCF ratio of KMT is 5.01, which is a neutral value as it means it would take KMT, 5.01 years of fcf income to pay off all of its debts.
KMT's Debt to FCF ratio of 5.01 is in line compared to the rest of the industry. KMT outperforms 53.08% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that KMT is not too dependend on debt financing.
KMT has a Debt to Equity ratio of 0.47. This is comparable to the rest of the industry: KMT outperforms 47.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 5.01 | ||
| Altman-Z | 2.73 |
ROIC/WACC0.63
WACC8.9%
2.3 Liquidity
A Current Ratio of 2.46 indicates that KMT has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.46, KMT is doing good in the industry, outperforming 63.08% of the companies in the same industry.
KMT has a Quick Ratio of 1.19. This is a normal value and indicates that KMT is financially healthy and should not expect problems in meeting 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
The earnings per share for KMT have decreased by -10.00% in the last year.
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.
KMT shows a decrease in Revenue. In the last year, the revenue decreased by -3.91%.
KMT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.85% yearly.
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
KMT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.92% yearly.
KMT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.17% yearly.
EPS Next Y-18.45%
EPS Next 2Y1.46%
EPS Next 3Y5.92%
EPS Next 5YN/A
Revenue Next Year0.75%
Revenue Next 2Y2.35%
Revenue Next 3Y2.17%
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
With a Price/Earnings ratio of 16.41, KMT is valued correctly.
Based on the Price/Earnings ratio, KMT is valued a bit cheaper than 78.46% of the companies in the same industry.
When comparing the Price/Earnings ratio of KMT to the average of the S&P500 Index (27.40), we can say KMT is valued slightly cheaper.
KMT is valuated rather expensively with a Price/Forward Earnings ratio of 20.13.
The rest of the industry has a similar Price/Forward Earnings ratio as KMT.
KMT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.41 | ||
| Fwd PE | 20.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KMT is valued cheaper than 91.54% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KMT indicates a rather cheap valuation: KMT is cheaper than 83.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.16 | ||
| EV/EBITDA | 7.32 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.25
EPS Next 2Y1.46%
EPS Next 3Y5.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.60%, KMT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.81, KMT pays a better dividend. On top of this KMT pays more dividend than 93.85% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, KMT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.6% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
The dividend of KMT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP66.42%
EPS Next 2Y1.46%
EPS Next 3Y5.92%
22.16
-0.07 (-0.31%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners108.32%
Inst Owner Change0.01%
Ins Owners0.75%
Ins Owner Change6.01%
Market Cap1.69B
Analysts48.75
Price Target21.64 (-2.35%)
Short Float %5.29%
Short Ratio3.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.6% |
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)0%
PT rev (3m)-3.88%
EPS NQ rev (1m)-2.61%
EPS NQ rev (3m)-18.45%
EPS NY rev (1m)0%
EPS NY rev (3m)-23.53%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)-1.64%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)-1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.41 | ||
| Fwd PE | 20.13 | ||
| P/S | 0.86 | ||
| P/FCF | 14.16 | ||
| P/OCF | 8.11 | ||
| P/B | 1.32 | ||
| P/tB | 1.81 | ||
| EV/EBITDA | 7.32 |
EPS(TTM)1.35
EY6.09%
EPS(NY)1.1
Fwd EY4.97%
FCF(TTM)1.57
FCFY7.06%
OCF(TTM)2.73
OCFY12.33%
SpS25.8
BVpS16.84
TBVpS12.25
PEG (NY)N/A
PEG (5Y)2.25
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 | 2.73 |
F-Score6
WACC8.9%
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)-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 Year0.75%
Revenue Next 2Y2.35%
Revenue Next 3Y2.17%
Revenue Next 5YN/A
EBIT growth 1Y-14.21%
EBIT growth 3Y-10.93%
EBIT growth 5Y2.04%
EBIT Next Year71.16%
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%