KENNAMETAL INC (KMT) Stock Fundamental Analysis
USA - NYSE:KMT - US4891701009 - Common Stock
26.9 USD
-0.69 (-2.5%)
26.9 USD
0 (0%)
KMT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 is valued correctly, but it does not seem to be growing.
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.
Each year in the past 5 years KMT has been profitable.
In the past 5 years KMT always reported a positive cash flow from operatings.
1.2 Ratios
KMT's Return On Assets of 3.74% is in line compared to the rest of the industry. KMT outperforms 50.77% of its industry peers.
KMT has a Return On Equity (7.34%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 5.80%, KMT is in line with its industry, outperforming 46.15% of the companies in the same 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 has a Profit Margin (4.76%) which 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.
The Gross Margin of KMT (30.42%) is comparable to the rest of the 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
KMT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
KMT has less shares outstanding than it did 1 year ago.
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 2.97. 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's Altman-Z score of 2.97 is in line compared to the rest of the industry. KMT outperforms 52.31% 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.
Looking at the Debt to FCF ratio, with a value of 6.44, KMT is in line with its industry, outperforming 49.23% of the companies in the same industry.
KMT has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
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 | 6.44 | ||
| Altman-Z | 2.97 |
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 has a better Current ratio (2.60) than 68.46% of its industry peers.
A Quick Ratio of 1.18 indicates that KMT should not have too much problems paying 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.
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
Based on estimates for the next years, KMT will show a small growth in Earnings Per Share. The EPS will grow by 4.97% on average per year.
KMT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.03% yearly.
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
KMT is valuated rather expensively with a Price/Earnings ratio of 19.21.
Based on the Price/Earnings ratio, KMT is valued a bit cheaper than 69.23% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.89. KMT is valued slightly cheaper when compared to this.
KMT is valuated rather expensively with a Price/Forward Earnings ratio of 19.68.
KMT's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 34.59. KMT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.21 | ||
| Fwd PE | 19.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KMT is valued cheaply inside the industry as 85.38% of the companies are valued more expensively.
60.77% of the companies in the same industry are more expensive than KMT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.09 | ||
| EV/EBITDA | 8.52 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.64
EPS Next 2Y0.62%
EPS Next 3Y4.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.90%, KMT has a reasonable but not impressive dividend return.
KMT's Dividend Yield is rather good when compared to the industry average which is at 1.87. KMT pays more dividend than 90.77% of the companies in the same industry.
KMT's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
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 2Y0.62%
EPS Next 3Y4.97%
26.9
-0.69 (-2.5%)
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 Change11.23%
Market Cap2.05B
Revenue(TTM)1.98B
Net Income(TTM)94.30M
Analysts48.75
Price Target21.74 (-19.18%)
Short Float %5.18%
Short Ratio4.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
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)0.46%
PT rev (3m)-3.44%
EPS NQ rev (1m)41.8%
EPS NQ rev (3m)37.82%
EPS NY rev (1m)-0.41%
EPS NY rev (3m)-23.84%
Revenue NQ rev (1m)3.87%
Revenue NQ rev (3m)4.05%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)-1.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.21 | ||
| Fwd PE | 19.68 | ||
| P/S | 1.03 | ||
| P/FCF | 22.09 | ||
| P/OCF | 11.39 | ||
| P/B | 1.6 | ||
| P/tB | 2.19 | ||
| EV/EBITDA | 8.52 |
EPS(TTM)1.4
EY5.2%
EPS(NY)1.37
Fwd EY5.08%
FCF(TTM)1.22
FCFY4.53%
OCF(TTM)2.36
OCFY8.78%
SpS26.01
BVpS16.84
TBVpS12.29
PEG (NY)N/A
PEG (5Y)2.64
Graham Number23.03
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 | 2.97 |
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 Y-18.78%
EPS Next 2Y0.62%
EPS Next 3Y4.97%
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 3Y2.03%
Revenue Next 5YN/A
EBIT growth 1Y-6%
EBIT growth 3Y-10.93%
EBIT growth 5Y2.04%
EBIT Next Year71.16%
EBIT Next 3Y24.66%
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 4 / 10 to KMT.
Can you provide the valuation status for KENNAMETAL INC?
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.
Can you provide the PE and PB ratios for KMT stock?
The Price/Earnings (PE) ratio for KENNAMETAL INC (KMT) is 19.21 and the Price/Book (PB) ratio is 1.6.
What is the financial health of KENNAMETAL INC (KMT) stock?
The financial health rating of KENNAMETAL INC (KMT) is 6 / 10.