KENNAMETAL INC (KMT)
US4891701009 - Common Stock
Taking everything into account, KMT scores 4 out of 10 in our fundamental rating. KMT was compared to 131 industry peers in the Machinery industry. The financial health of KMT is average, but there are quite some concerns on its profitability. KMT is valued correctly, but it does not seem to be growing. 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.
KMT had positive earnings in 4 of the past 5 years.
KMT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KMT's Return On Assets of 4.02% is in line compared to the rest of the industry. KMT outperforms 51.97% of its industry peers.
The Return On Equity of KMT (7.94%) is comparable to the rest of the industry.
KMT's Return On Invested Capital of 6.27% is in line compared to the rest of the industry. KMT outperforms 48.03% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KMT is below the industry average of 11.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.02% | ||
| ROE | 7.94% | ||
| ROIC | 6.27% |
ROA(3y)4.88%
ROA(5y)3.3%
ROE(3y)9.86%
ROE(5y)6.64%
ROIC(3y)7.41%
ROIC(5y)6.27%
1.3 Margins
KMT has a Profit Margin (4.98%) which is comparable to the rest of the industry.
KMT's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 8.39%, KMT perfoms like the industry average, outperforming 48.03% of the companies in the same industry.
KMT's Operating Margin has declined in the last couple of years.
KMT has a Gross Margin (30.21%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of KMT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.39% | ||
| PM (TTM) | 4.98% | ||
| GM | 30.21% |
OM growth 3Y4.91%
OM growth 5Y-9.21%
PM growth 3Y21.82%
PM growth 5Y-12.11%
GM growth 3Y0.05%
GM growth 5Y-2.63%
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.
The debt/assets ratio for KMT is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.05 indicates that KMT is not in any danger for bankruptcy at the moment.
KMT has a Altman-Z score (3.05) which is comparable to the rest of the industry.
KMT has a debt to FCF ratio of 3.04. This is a good value and a sign of high solvency as KMT would need 3.04 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.04, KMT is in the better half of the industry, outperforming 69.29% 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.
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 | 3.04 | ||
| Altman-Z | 3.05 |
ROIC/WACC0.71
WACC8.81%
2.3 Liquidity
KMT has a Current Ratio of 2.52. This indicates that KMT is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.52, KMT is doing good in the industry, outperforming 66.14% of the companies in the same industry.
KMT has a Quick Ratio of 1.16. This is a normal value and indicates that KMT is financially healthy and should not expect problems in meeting its short term obligations.
KMT's Quick ratio of 1.16 is in line compared to the rest of the industry. KMT outperforms 42.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.52 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The earnings per share for KMT have decreased by -9.21% in the last year.
Measured over the past years, KMT shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -13.06% on average per year.
KMT shows a decrease in Revenue. In the last year, the revenue decreased by -1.90%.
The Revenue has been decreasing by -2.93% on average over the past years.
EPS 1Y (TTM)-9.21%
EPS 3Y12.98%
EPS 5Y-13.06%
EPS Q2Q%-29.27%
Revenue 1Y (TTM)-1.9%
Revenue growth 3Y3.59%
Revenue growth 5Y-2.93%
Sales Q2Q%-2.14%
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 8.04% on average per year.
Based on estimates for the next years, KMT will show a small growth in Revenue. The Revenue will grow by 2.02% on average per year.
EPS Next Y-2.87%
EPS Next 2Y5.42%
EPS Next 3Y8.04%
EPS Next 5YN/A
Revenue Next Year0.1%
Revenue Next 2Y1.33%
Revenue Next 3Y2.02%
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.
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
Based on the Price/Earnings ratio of 21.10, the valuation of KMT can be described as rather expensive.
Based on the Price/Earnings ratio, KMT is valued a bit cheaper than 65.35% of the companies in the same industry.
When comparing the Price/Earnings ratio of KMT to the average of the S&P500 Index (29.20), we can say KMT is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 17.47, the valuation of KMT can be described as rather expensive.
Based on the Price/Forward Earnings ratio, KMT is valued a bit cheaper than 72.44% of the companies in the same industry.
KMT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.00, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.1 | ||
| Fwd PE | 17.47 |
4.2 Price Multiples
KMT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. KMT is cheaper than 81.10% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, KMT is valued cheaper than 92.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.51 | ||
| EV/EBITDA | 8.89 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.42%
EPS Next 3Y8.04%
5. Dividend
5.1 Amount
KMT has a Yearly Dividend Yield of 2.79%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.54, KMT pays a better dividend. On top of this KMT pays more dividend than 94.49% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, KMT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
5.2 History
The dividend of KMT has a limited annual growth rate of 0.08%.
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)0.08%
Div Incr Years0
Div Non Decr Years33
5.3 Sustainability
KMT pays out 62.25% of its income as dividend. This is not a sustainable payout ratio.
The dividend of KMT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP62.25%
EPS Next 2Y5.42%
EPS Next 3Y8.04%
KENNAMETAL INC
NYSE:KMT (11/22/2024, 8:04:00 PM)
After market: 29.12 0 (0%)29.12
+0.29 (+1.01%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.26B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.1 | ||
| Fwd PE | 17.47 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.02% | ||
| ROE | 7.94% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.39% | ||
| PM (TTM) | 4.98% | ||
| GM | 30.21% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.52 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-9.21%
EPS 3Y12.98%
EPS 5Y
EPS Q2Q%
EPS Next Y-2.87%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.9%
Revenue growth 3Y3.59%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y