KENNAMETAL INC (KMT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KMT - US4891701009 - Common Stock
28.83 USD
-0.3 (-1.03%)
We assign a fundamental rating of 5 out of 10 to KMT. KMT was compared to 130 industry peers in the Machinery industry. KMT has only an average score on both its financial health and profitability. KMT is not valued too expensively and it also shows a decent growth rate. KMT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year KMT was profitable.
In the past year KMT had a positive cash flow from operations.
KMT had positive earnings in each of the past 5 years.
KMT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KMT has a Return On Assets (3.74%) which is comparable to the rest of the industry.
KMT has a Return On Equity of 7.34%. This is comparable to the rest of the industry: KMT outperforms 52.31% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.80%, KMT is in line with its industry, outperforming 45.38% of the companies in the same industry.
KMT had an Average Return On Invested Capital over the past 3 years of 6.49%. This is below the industry average of 10.30%.
| 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
The Profit Margin of KMT (4.76%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of KMT has declined.
KMT has a Operating Margin of 8.10%. This is comparable to the rest of the industry: KMT outperforms 50.77% 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 30.42%. This is comparable to the rest of the industry: KMT outperforms 50.00% 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 | 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
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
Compared to 5 years ago, KMT has less shares outstanding
KMT has a better debt/assets ratio than last year.
2.2 Solvency
KMT has an Altman-Z score of 3.05. This indicates that KMT is financially healthy and has little risk of bankruptcy at the moment.
KMT's Altman-Z score of 3.05 is in line compared to the rest of the industry. KMT outperforms 50.77% 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.
The Debt to FCF ratio of KMT (6.44) is comparable to the rest of the industry.
KMT has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
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 | 6.44 | ||
| Altman-Z | 3.05 |
ROIC/WACC0.63
WACC9.18%
2.3 Liquidity
A Current Ratio of 2.60 indicates that KMT has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.60, KMT is in the better half of the industry, outperforming 70.77% of the companies in the same industry.
KMT has a Quick Ratio of 1.18. This is a normal value and indicates that KMT is financially healthy and should not expect problems in meeting 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%.
The Earnings Per Share has been growing slightly by 7.28% on average over the past years.
KMT shows a decrease in Revenue. In the last year, the revenue decreased by -2.63%.
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)-2.63%
Revenue growth 3Y-0.76%
Revenue growth 5Y0.85%
Sales Q2Q%3.33%
3.2 Future
KMT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.71% yearly.
KMT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.79% yearly.
EPS Next Y11.92%
EPS Next 2Y12.23%
EPS Next 3Y11.71%
EPS Next 5YN/A
Revenue Next Year6.06%
Revenue Next 2Y4.94%
Revenue Next 3Y3.79%
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
The Price/Earnings ratio is 20.59, which indicates a rather expensive current valuation of KMT.
Based on the Price/Earnings ratio, KMT is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
KMT is valuated rather cheaply when we compare the Price/Earnings ratio to 26.55, which is the current average of the S&P500 Index.
KMT is valuated correctly with a Price/Forward Earnings ratio of 16.95.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KMT indicates a somewhat cheap valuation: KMT is cheaper than 69.23% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.78. KMT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.59 | ||
| Fwd PE | 16.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KMT is valued cheaper than 86.15% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as KMT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.62 | ||
| EV/EBITDA | 9.08 |
4.3 Compensation for Growth
KMT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.73
PEG (5Y)2.83
EPS Next 2Y12.23%
EPS Next 3Y11.71%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.69%, KMT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.00, KMT pays a better dividend. On top of this KMT pays more dividend than 90.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, KMT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
5.2 History
The dividend of KMT has a limited annual growth rate of 0.04%.
KMT has been paying a dividend for at least 10 years, so it has 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 65.12% 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.
DP65.12%
EPS Next 2Y12.23%
EPS Next 3Y11.71%
NYSE:KMT (12/16/2025, 2:13:47 PM)
28.83
-0.3 (-1.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners107.44%
Inst Owner Change1.67%
Ins Owners0.75%
Ins Owner Change5.95%
Market Cap2.19B
Revenue(TTM)1.98B
Net Income(TTM)94.30M
Analysts48.75
Price Target25.76 (-10.65%)
Short Float %4.17%
Short Ratio3.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
Yearly Dividend0.8
Dividend Growth(5Y)0.04%
DP65.12%
Div Incr Years0
Div Non Decr Years34
Ex-Date
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)18.48%
PT rev (3m)19.02%
EPS NQ rev (1m)8.21%
EPS NQ rev (3m)48.5%
EPS NY rev (1m)37.81%
EPS NY rev (3m)37.25%
Revenue NQ rev (1m)1.89%
Revenue NQ rev (3m)6.05%
Revenue NY rev (1m)5.16%
Revenue NY rev (3m)5.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.59 | ||
| Fwd PE | 16.95 | ||
| P/S | 1.11 | ||
| P/FCF | 23.62 | ||
| P/OCF | 12.18 | ||
| P/B | 1.71 | ||
| P/tB | 2.34 | ||
| EV/EBITDA | 9.08 |
EPS(TTM)1.4
EY4.86%
EPS(NY)1.7
Fwd EY5.9%
FCF(TTM)1.22
FCFY4.23%
OCF(TTM)2.37
OCFY8.21%
SpS26.06
BVpS16.88
TBVpS12.31
PEG (NY)1.73
PEG (5Y)2.83
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 | 3.05 |
F-Score6
WACC9.18%
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 Year6.06%
Revenue Next 2Y4.94%
Revenue Next 3Y3.79%
Revenue Next 5YN/A
EBIT growth 1Y-6%
EBIT growth 3Y-10.93%
EBIT growth 5Y2.04%
EBIT Next Year90.67%
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.
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 20.59 and the Price/Book (PB) ratio is 1.71.
What is the financial health of KENNAMETAL INC (KMT) stock?
The financial health rating of KENNAMETAL INC (KMT) is 6 / 10.