KENNAMETAL INC (KMT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KMT - US4891701009 - Common Stock
27.8 USD
-0.05 (-0.18%)
27.8 USD
0 (0%)
Overall KMT gets a fundamental rating of 5 out of 10. We evaluated KMT against 130 industry peers in the Machinery industry. KMT has an average financial health and profitability rating. KMT has a correct valuation and a medium growth rate. Finally KMT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year KMT was profitable.
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
The Return On Assets of KMT (3.74%) is comparable to the rest of the industry.
KMT has a Return On Equity of 7.34%. This is comparable to the rest of the industry: KMT outperforms 50.77% of its industry peers.
KMT has a Return On Invested Capital (5.80%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KMT is below the industry average of 10.46%.
| 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's Operating Margin of 8.10% is in line compared 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 has a Gross Margin (30.42%) which is in line with its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KMT 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 in line with its industry peers.
The Debt to FCF ratio of KMT is 6.44, which is on the high side as it means it would take KMT, 6.44 years of fcf income to pay off all of its debts.
KMT's Debt to FCF ratio of 6.44 is in line compared to the rest of the industry. KMT outperforms 48.46% of its industry peers.
KMT has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
KMT's Debt to Equity ratio of 0.47 is in line compared to the rest of the industry. KMT outperforms 46.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 6.44 | ||
| Altman-Z | 3 |
ROIC/WACC0.64
WACC9.08%
2.3 Liquidity
A Current Ratio of 2.60 indicates that KMT has no problem at all paying its short term obligations.
The Current ratio of KMT (2.60) is better than 70.77% of its industry peers.
A Quick Ratio of 1.18 indicates that KMT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.18, KMT is in line with its industry, outperforming 48.46% of the companies in the same 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%.
KMT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.28% yearly.
The Revenue has decreased by -2.63% in the past year.
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
The Earnings Per Share is expected to grow by 11.71% on average over the next years. This is quite good.
Based on estimates for the next years, KMT will show a small growth in Revenue. The Revenue will grow by 3.79% on average per year.
EPS Next Y11.92%
EPS Next 2Y12.23%
EPS Next 3Y11.71%
EPS Next 5YN/A
Revenue Next Year6.06%
Revenue Next 2Y4.94%
Revenue Next 3Y3.79%
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
A Price/Earnings ratio of 19.86 indicates a rather expensive valuation of KMT.
KMT's Price/Earnings ratio is a bit cheaper when compared to the industry. KMT is cheaper than 70.00% of the companies in the same industry.
KMT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.34.
With a Price/Forward Earnings ratio of 16.35, KMT is valued correctly.
KMT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KMT is cheaper than 71.54% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.56. KMT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.86 | ||
| Fwd PE | 16.35 |
4.2 Price Multiples
KMT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. KMT is cheaper than 86.92% of the companies in the same industry.
KMT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.78 | ||
| EV/EBITDA | 8.75 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.67
PEG (5Y)2.73
EPS Next 2Y12.23%
EPS Next 3Y11.71%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.86%, KMT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.84, KMT pays a better dividend. On top of this KMT pays more dividend than 92.31% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, KMT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
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 2Y12.23%
EPS Next 3Y11.71%
27.8
-0.05 (-0.18%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners107.44%
Inst Owner Change1.67%
Ins Owners0.75%
Ins Owner Change5.95%
Market Cap2.12B
Revenue(TTM)1.98B
Net Income(TTM)94.30M
Analysts48.75
Price Target25.76 (-7.34%)
Short Float %4.95%
Short Ratio4.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
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)18.48%
PT rev (3m)19.02%
EPS NQ rev (1m)8.21%
EPS NQ rev (3m)48.5%
EPS NY rev (1m)37.81%
EPS NY rev (3m)37.25%
Revenue NQ rev (1m)1.89%
Revenue NQ rev (3m)6.05%
Revenue NY rev (1m)5.16%
Revenue NY rev (3m)5.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.86 | ||
| Fwd PE | 16.35 | ||
| P/S | 1.07 | ||
| P/FCF | 22.78 | ||
| P/OCF | 11.75 | ||
| P/B | 1.65 | ||
| P/tB | 2.26 | ||
| EV/EBITDA | 8.75 |
EPS(TTM)1.4
EY5.04%
EPS(NY)1.7
Fwd EY6.12%
FCF(TTM)1.22
FCFY4.39%
OCF(TTM)2.37
OCFY8.51%
SpS26.06
BVpS16.88
TBVpS12.31
PEG (NY)1.67
PEG (5Y)2.73
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 |
F-Score6
WACC9.08%
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 Year6.06%
Revenue Next 2Y4.94%
Revenue Next 3Y3.79%
Revenue Next 5YN/A
EBIT growth 1Y-6%
EBIT growth 3Y-10.93%
EBIT growth 5Y2.04%
EBIT Next Year90.67%
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.
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 6 / 10.