KENNAMETAL INC (KMT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KMT - US4891701009 - Common Stock
34.02 USD
-0.54 (-1.56%)
34.02 USD
0 (0%)
Taking everything into account, KMT scores 5 out of 10 in our fundamental rating. KMT was compared to 132 industry peers in the Machinery industry. KMT has an average financial health and profitability rating. KMT is valied quite expensively at the moment, while it does show a decent growth rate. 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.
- In the past 5 years KMT always reported a positive cash flow from operatings.
1.2 Ratios
- KMT has a Return On Assets of 3.74%. This is comparable to the rest of the industry: KMT outperforms 53.03% of its industry peers.
- Looking at the Return On Equity, with a value of 7.34%, KMT is in line with its industry, outperforming 52.27% of the companies in the same industry.
- With a Return On Invested Capital value of 5.80%, KMT perfoms like the industry average, outperforming 46.21% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for KMT is below the industry average of 10.24%.
| 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.
- In the last couple of years the Profit Margin of KMT has declined.
- With a Operating Margin value of 8.10%, KMT perfoms like the industry average, outperforming 50.76% of the companies in the same industry.
- In the last couple of years the Operating Margin of KMT has remained more or less at the same level.
- 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
- KMT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.25 indicates that KMT is not in any danger for bankruptcy at the moment.
- KMT has a Altman-Z score (3.25) which is comparable to the rest of the industry.
- 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.
- The Debt to FCF ratio of KMT (6.44) is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.47 indicates that KMT is not too dependend on debt financing.
- 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 | 6.44 | ||
| Altman-Z | 3.25 |
ROIC/WACC0.64
WACC9.07%
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 70.45% 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.
- Looking at the Quick ratio, with a value of 1.18, KMT is in line with its industry, outperforming 48.48% of the companies in the same 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.
- 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.
- The Revenue has decreased by -2.63% in the past year.
- 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
- KMT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.71% yearly.
- The Revenue is expected to grow by 3.89% on average over the next years.
EPS Next Y11.92%
EPS Next 2Y12.23%
EPS Next 3Y11.71%
EPS Next 5YN/A
Revenue Next Year6.26%
Revenue Next 2Y5.03%
Revenue Next 3Y3.89%
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 24.30, the valuation of KMT can be described as rather expensive.
- KMT's Price/Earnings ratio is a bit cheaper when compared to the industry. KMT is cheaper than 61.36% of the companies in the same industry.
- KMT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.47.
- With a Price/Forward Earnings ratio of 20.01, KMT is valued on the expensive side.
- KMT's Price/Forward Earnings ratio is in line with the industry average.
- KMT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.3 | ||
| Fwd PE | 20.01 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, KMT is valued cheaper than 81.82% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of KMT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.88 | ||
| EV/EBITDA | 10.46 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.04
PEG (5Y)3.34
EPS Next 2Y12.23%
EPS Next 3Y11.71%
5. Dividend
5.1 Amount
- KMT has a Yearly Dividend Yield of 2.66%.
- Compared to an average industry Dividend Yield of 0.80, KMT pays a better dividend. On top of this KMT pays more dividend than 92.42% of the companies listed in the same industry.
- KMT's Dividend Yield is a higher than the S&P500 average which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
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.
- 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%
34.02
-0.54 (-1.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)11-05 2025-11-05/bmo
Earnings (Next)02-03 2026-02-03/bmo
Inst Owners107.36%
Inst Owner Change0.36%
Ins Owners0.78%
Ins Owner Change6.97%
Market Cap2.59B
Revenue(TTM)1.98B
Net Income(TTM)94.30M
Analysts48.75
Price Target25.76 (-24.28%)
Short Float %3.77%
Short Ratio3.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
Yearly Dividend0.8
Dividend Growth(5Y)0.04%
DP65.12%
Div Incr Years0
Div Non Decr Years34
Ex-DateN/A
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%
PT rev (3m)19.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)53.44%
EPS NY rev (1m)0%
EPS NY rev (3m)37.25%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)6.09%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)5.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.3 | ||
| Fwd PE | 20.01 | ||
| P/S | 1.31 | ||
| P/FCF | 27.88 | ||
| P/OCF | 14.38 | ||
| P/B | 2.02 | ||
| P/tB | 2.76 | ||
| EV/EBITDA | 10.46 |
EPS(TTM)1.4
EY4.12%
EPS(NY)1.7
Fwd EY5%
FCF(TTM)1.22
FCFY3.59%
OCF(TTM)2.37
OCFY6.96%
SpS26.06
BVpS16.88
TBVpS12.31
PEG (NY)2.04
PEG (5Y)3.34
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 | 3.25 |
F-Score6
WACC9.07%
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 Year6.26%
Revenue Next 2Y5.03%
Revenue Next 3Y3.89%
Revenue Next 5YN/A
EBIT growth 1Y-6%
EBIT growth 3Y-10.93%
EBIT growth 5Y2.04%
EBIT Next Year90.69%
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.
What is the valuation status for KMT stock?
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.
What is the valuation of KENNAMETAL INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for KENNAMETAL INC (KMT) is 24.3 and the Price/Book (PB) ratio is 2.02.
Can you provide the dividend sustainability for KMT stock?
The dividend rating of KENNAMETAL INC (KMT) is 7 / 10 and the dividend payout ratio is 65.12%.