KENNAMETAL INC (KMT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KMT - US4891701009 - Common Stock
30.72 USD
-0.01 (-0.03%)
30.72 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. Both the profitability and the financial health of KMT get a neutral evaluation. Nothing too spectacular is happening here. KMT is valied quite expensively at the moment, while it does show a decent growth rate. KMT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
KMT had positive earnings in the past year.
KMT had a positive operating cash flow in the past year.
In the past 5 years KMT has always been profitable.
KMT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KMT has a Return On Assets of 3.74%. This is comparable to the rest of the industry: KMT outperforms 53.03% of its industry peers.
Looking at the Return On Equity, with a value of 7.34%, KMT is in line with its industry, outperforming 52.27% of the companies in the same industry.
The Return On Invested Capital of KMT (5.80%) 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 10.25%.
| 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
KMT's Profit Margin of 4.76% is in line compared to the rest of the industry. KMT outperforms 53.03% of its industry peers.
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 50.76% of its industry peers.
KMT's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 30.42%, KMT is in line with its industry, outperforming 50.00% of the companies in the same industry.
KMT's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, KMT has less shares outstanding
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 3.11 indicates that KMT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.11, KMT is in line with its industry, outperforming 50.76% of the companies in the same industry.
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.
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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 6.44 | ||
| Altman-Z | 3.11 |
ROIC/WACC0.64
WACC9.02%
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 70.45% of its industry peers.
A Quick Ratio of 1.18 indicates that KMT should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.18, KMT perfoms like the industry average, outperforming 48.48% of the companies in the same 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.
KMT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.28% yearly.
KMT shows a decrease in Revenue. In the last year, the revenue decreased by -2.63%.
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
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 3.89% yearly.
EPS Next Y11.92%
EPS Next 2Y12.23%
EPS Next 3Y11.71%
EPS Next 5YN/A
Revenue Next Year6.26%
Revenue Next 2Y5.03%
Revenue Next 3Y3.89%
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
Based on the Price/Earnings ratio of 21.94, the valuation of KMT can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of KMT indicates a somewhat cheap valuation: KMT is cheaper than 68.18% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of KMT to the average of the S&P500 Index (27.19), we can say KMT is valued inline with the index average.
KMT is valuated rather expensively with a Price/Forward Earnings ratio of 18.07.
Based on the Price/Forward Earnings ratio, KMT is valued a bit cheaper than 69.70% of the companies in the same industry.
KMT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.94 | ||
| Fwd PE | 18.07 |
4.2 Price Multiples
86.36% of the companies in the same industry are more expensive than KMT, based on the Enterprise Value to EBITDA ratio.
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 | 25.17 | ||
| EV/EBITDA | 9.49 |
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)1.84
PEG (5Y)3.01
EPS Next 2Y12.23%
EPS Next 3Y11.71%
5. Dividend
5.1 Amount
KMT has a Yearly Dividend Yield of 2.66%.
KMT's Dividend Yield is rather good when compared to the industry average which is at 0.80. KMT pays more dividend than 91.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, KMT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
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
65.12% of the earnings are spent on dividend by KMT. 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%
30.72
-0.01 (-0.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners107.36%
Inst Owner Change0.36%
Ins Owners0.78%
Ins Owner Change6.97%
Market Cap2.34B
Revenue(TTM)1.98B
Net Income(TTM)94.30M
Analysts48.75
Price Target25.76 (-16.15%)
Short Float %3.77%
Short Ratio3.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
Yearly Dividend0.8
Dividend Growth(5Y)0.04%
DP65.12%
Div Incr Years0
Div Non Decr Years34
Ex-DateN/A
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)0%
PT rev (3m)19.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)53.44%
EPS NY rev (1m)0%
EPS NY rev (3m)37.25%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)6.09%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)5.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.94 | ||
| Fwd PE | 18.07 | ||
| P/S | 1.18 | ||
| P/FCF | 25.17 | ||
| P/OCF | 12.98 | ||
| P/B | 1.82 | ||
| P/tB | 2.5 | ||
| EV/EBITDA | 9.49 |
EPS(TTM)1.4
EY4.56%
EPS(NY)1.7
Fwd EY5.54%
FCF(TTM)1.22
FCFY3.97%
OCF(TTM)2.37
OCFY7.7%
SpS26.06
BVpS16.88
TBVpS12.31
PEG (NY)1.84
PEG (5Y)3.01
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 | 3.11 |
F-Score6
WACC9.02%
ROIC/WACC0.64
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 Year6.26%
Revenue Next 2Y5.03%
Revenue Next 3Y3.89%
Revenue Next 5YN/A
EBIT growth 1Y-6%
EBIT growth 3Y-10.93%
EBIT growth 5Y2.04%
EBIT Next Year90.69%
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.
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 21.94 and the Price/Book (PB) ratio is 1.82.
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%.