KENNAMETAL INC (KMT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KMT - US4891701009 - Common Stock
34.49 USD
-0.19 (-0.55%)
34.49 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
- KMT's Return On Assets of 3.74% is in line compared to the rest of the industry. KMT outperforms 53.03% of its industry peers.
- KMT has a Return On Equity (7.34%) which is comparable to the rest of the industry.
- With a Return On Invested Capital value of 5.80%, KMT perfoms like the industry average, outperforming 46.21% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for KMT is below the industry average of 10.24%.
| 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
- Looking at the Profit Margin, with a value of 4.76%, KMT is in line with its industry, outperforming 53.03% 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 50.76% 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.
- 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.
- KMT has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for KMT has been reduced compared to 5 years ago.
- KMT has a better debt/assets ratio than last year.
2.2 Solvency
- KMT has an Altman-Z score of 3.26. This indicates that KMT is financially healthy and has little risk of bankruptcy at the moment.
- KMT has a Altman-Z score (3.26) which is in line with 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 of 6.44. This is comparable to the rest of the industry: KMT outperforms 48.48% 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 49.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 6.44 | ||
| Altman-Z | 3.26 |
ROIC/WACC0.62
WACC9.34%
2.3 Liquidity
- A Current Ratio of 2.60 indicates that KMT has no problem at all paying its short term obligations.
- With a decent Current ratio value of 2.60, KMT is doing good in the industry, outperforming 70.45% 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 of 1.18. This is comparable to the rest of the industry: KMT outperforms 48.48% of its industry peers.
| 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.
- KMT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.28% yearly.
- Looking at the last year, KMT shows a decrease in Revenue. The Revenue has decreased by -2.63% in the last year.
- Measured over the past years, KMT shows a small growth in Revenue. The Revenue has been growing by 0.85% on average per year.
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.
- KMT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.55% yearly.
EPS Next Y11.92%
EPS Next 2Y12.23%
EPS Next 3Y11.71%
EPS Next 5YN/A
Revenue Next Year7.41%
Revenue Next 2Y5.77%
Revenue Next 3Y4.55%
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.
- 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
- KMT is valuated rather expensively with a Price/Earnings ratio of 24.64.
- 61.36% 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 similar valuation than the S&P500 average which is at 27.21.
- A Price/Forward Earnings ratio of 20.28 indicates a rather expensive valuation of KMT.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of KMT is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, KMT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.64 | ||
| Fwd PE | 20.28 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, KMT is valued cheaper than 82.58% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of KMT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.26 | ||
| EV/EBITDA | 10.49 |
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)2.07
PEG (5Y)3.38
EPS Next 2Y12.23%
EPS Next 3Y11.71%
5. Dividend
5.1 Amount
- KMT has a Yearly Dividend Yield of 2.31%. Purely for dividend investing, there may be better candidates out there.
- KMT's Dividend Yield is rather good when compared to the industry average which is at 0.98. KMT pays more dividend than 89.39% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, KMT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
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
- 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%
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 3 / 10 to KENNAMETAL INC (KMT). This can be considered as Overvalued.
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 24.64 and the Price/Book (PB) ratio is 2.04.
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%.