KENNAMETAL INC (KMT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KMT - US4891701009 - Common Stock
27.8 USD
+0.68 (+2.51%)
27.8 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to KMT. KMT was compared to 130 industry peers in the Machinery industry. KMT has only an average score on both its financial health and profitability. 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
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.
Each year in the past 5 years KMT had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.74%, KMT is in line with its industry, outperforming 52.31% of the companies in the same industry.
KMT has a Return On Equity of 7.34%. This is comparable to the rest of the industry: KMT outperforms 50.00% of its industry peers.
KMT has a Return On Invested Capital (5.80%) which 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 10.34%.
| 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
The Profit Margin of KMT (4.76%) is comparable to the rest of the industry.
KMT's Profit Margin has declined in the last couple of years.
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.
KMT's Operating Margin has been stable in the last couple of years.
KMT's Gross Margin of 30.42% is in line compared to the rest of the industry. KMT outperforms 50.00% of its industry peers.
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.
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.
The debt/assets ratio for KMT has been reduced compared to a year ago.
2.2 Solvency
KMT has an Altman-Z score of 2.98. 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.
Looking at the Altman-Z score, with a value of 2.98, KMT is in line with its industry, outperforming 50.00% 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.
KMT has a Debt to FCF ratio of 6.44. This is comparable to the rest of the industry: KMT outperforms 49.23% 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 48.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 6.44 | ||
| Altman-Z | 2.98 |
ROIC/WACC0.65
WACC8.89%
2.3 Liquidity
A Current Ratio of 2.60 indicates that KMT has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.60, KMT is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
A Quick Ratio of 1.18 indicates that KMT should not have too much problems paying its short term obligations.
KMT has a Quick ratio (1.18) which 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
KMT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.45%.
Measured over the past 5 years, KMT shows a small growth in Earnings Per Share. The EPS has been growing by 7.28% on average per year.
KMT shows a decrease in Revenue. In the last year, the revenue decreased by -2.63%.
KMT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.85% yearly.
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 a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.97% yearly.
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
With a Price/Earnings ratio of 19.86, KMT is valued on the expensive side.
Based on the Price/Earnings ratio, KMT is valued a bit cheaper than 70.00% of the companies in the same industry.
KMT is valuated rather cheaply when we compare the Price/Earnings ratio to 25.98, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 20.34, which indicates a rather expensive current valuation of KMT.
KMT's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of KMT to the average of the S&P500 Index (35.79), we can say KMT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.86 | ||
| Fwd PE | 20.34 |
4.2 Price Multiples
86.15% 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 indicates a somewhat cheap valuation: KMT is cheaper than 60.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.82 | ||
| EV/EBITDA | 8.58 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.73
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.
KMT's Dividend Yield is rather good when compared to the industry average which is at 1.97. KMT pays more dividend than 93.08% of the companies in the same industry.
KMT's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| 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
KMT pays out 65.12% 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.
DP65.12%
EPS Next 2Y0.62%
EPS Next 3Y4.97%
27.8
+0.68 (+2.51%)
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 Cap2.12B
Revenue(TTM)1.98B
Net Income(TTM)94.30M
Analysts48.75
Price Target24.1 (-13.31%)
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 | 19.86 | ||
| Fwd PE | 20.34 | ||
| P/S | 1.07 | ||
| P/FCF | 22.82 | ||
| P/OCF | 11.77 | ||
| P/B | 1.65 | ||
| P/tB | 2.26 | ||
| EV/EBITDA | 8.58 |
EPS(TTM)1.4
EY5.04%
EPS(NY)1.37
Fwd EY4.92%
FCF(TTM)1.22
FCFY4.38%
OCF(TTM)2.36
OCFY8.5%
SpS26.01
BVpS16.84
TBVpS12.29
PEG (NY)N/A
PEG (5Y)2.73
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 | 2.98 |
F-Score6
WACC8.89%
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 4 / 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 19.86 and the Price/Book (PB) ratio is 1.65.
What is the financial health of KENNAMETAL INC (KMT) stock?
The financial health rating of KENNAMETAL INC (KMT) is 5 / 10.