KENNAMETAL INC (KMT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KMT - US4891701009 - Common Stock
27.85 USD
-0.08 (-0.29%)
27.85 USD
0 (0%)
Taking everything into account, KMT scores 5 out of 10 in our fundamental rating. KMT was compared to 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 correct valuation and a medium growth rate. 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.
KMT had positive earnings in each of the past 5 years.
Each year in the past 5 years KMT had a positive operating cash flow.
1.2 Ratios
KMT's Return On Assets of 3.74% is in line compared to the rest of the industry. KMT outperforms 52.31% of its industry peers.
KMT's Return On Equity of 7.34% is in line compared to the rest of the industry. KMT outperforms 50.00% of its industry peers.
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 10.39%.
| 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
With a Profit Margin value of 4.76%, KMT perfoms like the industry average, outperforming 53.08% of the companies in the same industry.
KMT's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 8.10%, KMT perfoms like the industry average, outperforming 50.77% of the companies in the same industry.
In the last couple of years the Operating Margin of KMT has remained more or less at the same level.
The Gross Margin of KMT (30.42%) is comparable to the rest of the 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KMT is destroying value.
The number of shares outstanding for KMT has been reduced compared to 1 year ago.
The number of shares outstanding for KMT has been reduced compared to 5 years ago.
Compared to 1 year ago, KMT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.01 indicates that KMT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.01, KMT is in line with its industry, outperforming 50.00% of the companies in the same industry.
The Debt to FCF ratio of KMT is 6.44, which is on the high side as it means it would take KMT, 6.44 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of KMT (6.44) 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.
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 | 3.01 |
ROIC/WACC0.65
WACC8.98%
2.3 Liquidity
A Current Ratio of 2.60 indicates that KMT has no problem at all paying its short term obligations.
KMT's Current ratio of 2.60 is fine compared to the rest of the industry. KMT outperforms 70.00% of its industry peers.
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.
The Quick ratio of KMT (1.18) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.6 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.45% over the past year.
The Earnings Per Share has been growing slightly by 7.28% on average over the past years.
Looking at the last year, KMT shows a decrease in Revenue. The Revenue has decreased by -2.63% in the last 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 10.94% on average per year.
The Revenue is expected to grow by 3.84% on average over the next years.
EPS Next Y-18.78%
EPS Next 2Y0.62%
EPS Next 3Y10.94%
EPS Next 5YN/A
Revenue Next Year0.85%
Revenue Next 2Y2.23%
Revenue Next 3Y3.84%
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 accelerating.
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
A Price/Earnings ratio of 19.89 indicates a rather expensive valuation of KMT.
70.77% of the companies in the same industry are more expensive than KMT, based on the Price/Earnings ratio.
KMT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.46.
The Price/Forward Earnings ratio is 20.38, which indicates a rather expensive current valuation of KMT.
KMT's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of KMT to the average of the S&P500 Index (36.10), we can say KMT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.89 | ||
| Fwd PE | 20.38 |
4.2 Price Multiples
KMT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. KMT is cheaper than 86.92% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, KMT is valued a bit cheaper than the industry average as 62.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.82 | ||
| EV/EBITDA | 8.77 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.73
EPS Next 2Y0.62%
EPS Next 3Y10.94%
5. Dividend
5.1 Amount
KMT has a Yearly Dividend Yield of 2.89%.
KMT's Dividend Yield is rather good when compared to the industry average which is at 1.90. KMT pays more dividend than 92.31% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, KMT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
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
65.12% of the earnings are spent on dividend by KMT. This is not a sustainable payout ratio.
The dividend of KMT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP65.12%
EPS Next 2Y0.62%
EPS Next 3Y10.94%
27.85
-0.08 (-0.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners108.32%
Inst Owner Change1.67%
Ins Owners0.75%
Ins Owner Change5.95%
Market Cap2.12B
Revenue(TTM)1.98B
Net Income(TTM)94.30M
Analysts48.75
Price Target24.1 (-13.46%)
Short Float %4.95%
Short Ratio4.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
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)11.36%
PT rev (3m)11.36%
EPS NQ rev (1m)50.93%
EPS NQ rev (3m)48.5%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.41%
Revenue NQ rev (1m)6.08%
Revenue NQ rev (3m)6.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.89 | ||
| Fwd PE | 20.38 | ||
| P/S | 1.07 | ||
| P/FCF | 22.82 | ||
| P/OCF | 11.77 | ||
| P/B | 1.65 | ||
| P/tB | 2.26 | ||
| EV/EBITDA | 8.77 |
EPS(TTM)1.4
EY5.03%
EPS(NY)1.37
Fwd EY4.91%
FCF(TTM)1.22
FCFY4.38%
OCF(TTM)2.37
OCFY8.5%
SpS26.06
BVpS16.88
TBVpS12.31
PEG (NY)N/A
PEG (5Y)2.73
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 | 3.01 |
F-Score6
WACC8.98%
ROIC/WACC0.65
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 3Y10.94%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.63%
Revenue growth 3Y-0.76%
Revenue growth 5Y0.85%
Sales Q2Q%3.33%
Revenue Next Year0.85%
Revenue Next 2Y2.23%
Revenue Next 3Y3.84%
Revenue Next 5YN/A
EBIT growth 1Y-6%
EBIT growth 3Y-10.93%
EBIT growth 5Y2.04%
EBIT Next Year71.16%
EBIT Next 3Y27.14%
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 19.89 and the Price/Book (PB) ratio is 1.65.
What is the financial health of KENNAMETAL INC (KMT) stock?
The financial health rating of KENNAMETAL INC (KMT) is 6 / 10.