KENNAMETAL INC (KMT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KMT - US4891701009 - Common Stock
27.68 USD
+0.02 (+0.07%)
27.59 USD
-0.09 (-0.33%)
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 an average financial health and profitability rating. KMT has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally 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
The Return On Assets of KMT (3.74%) is comparable to the rest of the industry.
The Return On Equity of KMT (7.34%) is comparable to the rest of the industry.
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 10.35%.
| 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.
In the last couple of years the Profit Margin of KMT has declined.
The Operating Margin of KMT (8.10%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of KMT has remained more or less at the same level.
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
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.
Compared to 5 years ago, KMT has less shares outstanding
The debt/assets ratio for KMT has been reduced compared to a year ago.
2.2 Solvency
KMT has an Altman-Z score of 3.00. This indicates that KMT is financially healthy and has little risk of bankruptcy at the moment.
KMT has a Altman-Z score (3.00) which is comparable to the rest of the 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.
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.
The Debt to Equity ratio of KMT (0.47) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 6.44 | ||
| Altman-Z | 3 |
ROIC/WACC0.65
WACC8.88%
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.
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%.
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
The Earnings Per Share is expected to grow by 4.97% on average over the next years.
Based on estimates for the next years, KMT will show a small growth in Revenue. The Revenue will grow by 2.03% on average per year.
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.
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 19.77, which indicates a rather expensive current valuation of KMT.
Compared to the rest of the industry, the Price/Earnings ratio of KMT indicates a somewhat cheap valuation: KMT is cheaper than 69.23% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of KMT to the average of the S&P500 Index (26.31), we can say KMT is valued slightly cheaper.
The Price/Forward Earnings ratio is 20.25, which indicates a rather expensive current valuation of KMT.
The rest of the industry has a similar Price/Forward Earnings ratio as KMT.
KMT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.77 | ||
| Fwd PE | 20.25 |
4.2 Price Multiples
86.92% of the companies in the same industry are more expensive than KMT, based on the Enterprise Value to EBITDA ratio.
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 | 22.73 | ||
| EV/EBITDA | 8.72 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.72
EPS Next 2Y0.62%
EPS Next 3Y4.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.13%, KMT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.97, KMT pays a better dividend. On top of this KMT pays more dividend than 93.08% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, KMT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
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 3Y4.97%
27.68
+0.02 (+0.07%)
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 Change6.01%
Market Cap2.11B
Revenue(TTM)1.98B
Net Income(TTM)94.30M
Analysts48.75
Price Target24.1 (-12.93%)
Short Float %5.05%
Short Ratio4.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
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)51.3%
EPS NQ rev (3m)48.87%
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 | 19.77 | ||
| Fwd PE | 20.25 | ||
| P/S | 1.06 | ||
| P/FCF | 22.73 | ||
| P/OCF | 11.72 | ||
| P/B | 1.64 | ||
| P/tB | 2.25 | ||
| EV/EBITDA | 8.72 |
EPS(TTM)1.4
EY5.06%
EPS(NY)1.37
Fwd EY4.94%
FCF(TTM)1.22
FCFY4.4%
OCF(TTM)2.36
OCFY8.53%
SpS26.01
BVpS16.84
TBVpS12.29
PEG (NY)N/A
PEG (5Y)2.72
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 | 3 |
F-Score6
WACC8.88%
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 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 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 19.77 and the Price/Book (PB) ratio is 1.64.
What is the financial health of KENNAMETAL INC (KMT) stock?
The financial health rating of KENNAMETAL INC (KMT) is 6 / 10.