KENNAMETAL INC (KMT) Stock Fundamental Analysis
USA - NYSE:KMT - US4891701009 - Common Stock
26.26 USD
+0.2 (+0.77%)
26.26 USD
0 (0%)
Taking everything into account, KMT scores 4 out of 10 in our fundamental rating. KMT was compared to 130 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
KMT had positive earnings in the past year.
In the past year KMT had a positive cash flow from operations.
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
KMT has a Return On Assets (3.66%) which is comparable to the rest of the industry.
The Return On Equity of KMT (7.25%) is comparable to the rest of the industry.
KMT's Return On Invested Capital of 5.65% is in line compared to the rest of the industry. KMT outperforms 42.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KMT is below the industry average of 10.24%.
| 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 49.23% of its industry peers.
In the last couple of years the Profit Margin of KMT has declined.
KMT's Operating Margin of 7.95% is in line compared to the rest of the industry. KMT outperforms 47.69% of its industry peers.
KMT's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 30.41%, KMT perfoms like the industry average, outperforming 48.46% 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 | 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
KMT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, KMT has less shares outstanding
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 2.88. 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 (2.88) which is in line with its industry peers.
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.
KMT has a Debt to FCF ratio of 5.01. This is comparable 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.
Looking at the Debt to Equity ratio, with a value of 0.47, KMT is in line with its industry, outperforming 47.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 5.01 | ||
| Altman-Z | 2.88 |
ROIC/WACC0.63
WACC9.02%
2.3 Liquidity
A Current Ratio of 2.46 indicates that KMT has no problem at all paying its short term obligations.
The Current ratio of KMT (2.46) is better than 62.31% of its industry peers.
A Quick Ratio of 1.19 indicates that KMT should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.19, KMT perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.19 |
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%.
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%.
The Revenue has been growing slightly by 0.85% on average over the past years.
EPS 1Y (TTM)1.45%
EPS 3Y-8.98%
EPS 5Y7.28%
EPS Q2Q%17.24%
Revenue 1Y (TTM)-3.91%
Revenue growth 3Y-0.76%
Revenue growth 5Y0.85%
Sales Q2Q%3.33%
3.2 Future
The Earnings Per Share is expected to grow by 4.97% on average over the next years.
The Revenue is expected to grow by 2.03% on average over the next years.
EPS Next Y-18.78%
EPS Next 2Y0.62%
EPS Next 3Y4.97%
EPS Next 5YN/A
Revenue Next Year0.85%
Revenue Next 2Y2.23%
Revenue Next 3Y2.03%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.76, KMT is valued on the expensive side.
70.77% of the companies in the same industry are more expensive than KMT, based on the Price/Earnings ratio.
KMT is valuated rather cheaply when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 19.21, KMT is valued on the expensive side.
KMT's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.68, KMT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.76 | ||
| Fwd PE | 19.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KMT is valued cheaper than 85.38% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, KMT is valued a bit cheaper than 75.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.77 | ||
| EV/EBITDA | 8.39 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.58
EPS Next 2Y0.62%
EPS Next 3Y4.97%
5. Dividend
5.1 Amount
KMT has a Yearly Dividend Yield of 3.07%.
KMT's Dividend Yield is rather good when compared to the industry average which is at 1.83. KMT pays more dividend than 92.31% of the companies in the same industry.
KMT's Dividend Yield is a higher than the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
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.
KMT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP66.42%
EPS Next 2Y0.62%
EPS Next 3Y4.97%
26.26
+0.2 (+0.77%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners108.32%
Inst Owner Change-0.51%
Ins Owners0.75%
Ins Owner Change6.01%
Market Cap2.00B
Revenue(TTM)1.97B
Net Income(TTM)93.13M
Analysts48.75
Price Target21.74 (-17.21%)
Short Float %5.18%
Short Ratio4.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
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)0.46%
PT rev (3m)-3.44%
EPS NQ rev (1m)0.8%
EPS NQ rev (3m)-18.07%
EPS NY rev (1m)-0.41%
EPS NY rev (3m)-23.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.64%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)-1.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.76 | ||
| Fwd PE | 19.21 | ||
| P/S | 1.02 | ||
| P/FCF | 16.77 | ||
| P/OCF | 9.61 | ||
| P/B | 1.56 | ||
| P/tB | 2.14 | ||
| EV/EBITDA | 8.39 |
EPS(TTM)1.4
EY5.33%
EPS(NY)1.37
Fwd EY5.2%
FCF(TTM)1.57
FCFY5.96%
OCF(TTM)2.73
OCFY10.41%
SpS25.8
BVpS16.84
TBVpS12.25
PEG (NY)N/A
PEG (5Y)2.58
Graham Number23.03
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%
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 Turnover0.77
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 | 2.88 |
F-Score6
WACC9.02%
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 Y-18.78%
EPS Next 2Y0.62%
EPS Next 3Y4.97%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.91%
Revenue growth 3Y-0.76%
Revenue growth 5Y0.85%
Sales Q2Q%3.33%
Revenue Next Year0.85%
Revenue Next 2Y2.23%
Revenue Next 3Y2.03%
Revenue Next 5YN/A
EBIT growth 1Y-14.21%
EBIT growth 3Y-10.93%
EBIT growth 5Y2.04%
EBIT Next Year71.16%
EBIT Next 3Y24.66%
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%
KENNAMETAL INC / KMT FAQ
What is the ChartMill fundamental rating of KENNAMETAL INC (KMT) stock?
ChartMill assigns a fundamental rating of 4 / 10 to KMT.
Can you provide the valuation status for KENNAMETAL INC?
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.
Can you provide the PE and PB ratios for KMT stock?
The Price/Earnings (PE) ratio for KENNAMETAL INC (KMT) is 18.76 and the Price/Book (PB) ratio is 1.56.
What is the financial health of KENNAMETAL INC (KMT) stock?
The financial health rating of KENNAMETAL INC (KMT) is 5 / 10.