KENNAMETAL INC (KMT) Stock Fundamental Analysis
NYSE:KMT - US4891701009 - Common Stock
21.26 USD
-0.17 (-0.79%)
21.26 USD
0 (0%)
Overall KMT gets a fundamental rating of 4 out of 10. We evaluated KMT against 128 industry peers in the Machinery industry. Both the profitability and the financial health of KMT get a neutral evaluation. Nothing too spectacular is happening here. KMT has a valuation in line with the averages, but on the other hand it scores bad on growth. KMT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
KMT had positive earnings in the past year.
In the past year KMT had a positive cash flow from operations.
In the past 5 years KMT has always been profitable.
KMT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.66%, KMT is in line with its industry, outperforming 48.44% of the companies in the same industry.
The Return On Equity of KMT (7.25%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 5.65%, KMT perfoms like the industry average, outperforming 41.41% 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 9.99%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.66% | ||
| ROE | 7.25% | ||
| ROIC | 5.65% |
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's Profit Margin of 4.73% is in line compared to the rest of the industry. KMT outperforms 47.66% of its industry peers.
KMT's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 7.95%, KMT perfoms like the industry average, outperforming 47.66% 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 of 30.41%. This is comparable to the rest of the industry: KMT outperforms 47.66% of its industry peers.
KMT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.95% | ||
| PM (TTM) | 4.73% | ||
| GM | 30.41% |
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.
The number of shares outstanding for KMT has been reduced compared to 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
An Altman-Z score of 2.70 indicates that KMT is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.70, KMT perfoms like the industry average, outperforming 48.44% of the companies in the same industry.
KMT has a debt to FCF ratio of 5.01. This is a neutral value as KMT would need 5.01 years to pay back of all of its debts.
With a Debt to FCF ratio value of 5.01, KMT perfoms like the industry average, outperforming 50.00% of the companies in the same 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 of 0.47. This is comparable to the rest of the industry: KMT outperforms 47.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 5.01 | ||
| Altman-Z | 2.7 |
ROIC/WACC0.58
WACC9.68%
2.3 Liquidity
KMT has a Current Ratio of 2.46. This indicates that KMT is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.46, KMT is doing good in the industry, outperforming 63.28% of the companies in the same industry.
KMT has a Quick Ratio of 1.19. This is a normal value and indicates that KMT is financially healthy and should not expect problems in meeting its short term obligations.
KMT has a Quick ratio of 1.19. This is comparable to the rest of the industry: KMT outperforms 45.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
The earnings per share for KMT have decreased by -10.00% in the last year.
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 -3.91% 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)-10%
EPS 3Y-8.98%
EPS 5Y7.28%
EPS Q2Q%-30.61%
Revenue 1Y (TTM)-3.91%
Revenue growth 3Y-0.76%
Revenue growth 5Y0.85%
Sales Q2Q%-4.94%
3.2 Future
KMT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.84% yearly.
KMT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.16% yearly.
EPS Next Y-18.45%
EPS Next 2Y1.46%
EPS Next 3Y5.84%
EPS Next 5YN/A
Revenue Next Year0.6%
Revenue Next 2Y1.79%
Revenue Next 3Y2.16%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
The Price/Earnings ratio is 15.75, which indicates a correct valuation of KMT.
Based on the Price/Earnings ratio, KMT is valued cheaper than 82.03% of the companies in the same industry.
When comparing the Price/Earnings ratio of KMT to the average of the S&P500 Index (26.90), we can say KMT is valued slightly cheaper.
With a Price/Forward Earnings ratio of 19.31, KMT is valued on the expensive side.
KMT's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.52. KMT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.75 | ||
| Fwd PE | 19.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KMT is valued cheaply inside the industry as 93.75% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, KMT is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.54 | ||
| EV/EBITDA | 7.07 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.16
EPS Next 2Y1.46%
EPS Next 3Y5.84%
5. Dividend
5.1 Amount
KMT has a Yearly Dividend Yield of 3.69%. Purely for dividend investing, there may be better candidates out there.
KMT's Dividend Yield is rather good when compared to the industry average which is at 1.78. KMT pays more dividend than 94.53% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, KMT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.69% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.04%
Div Incr Years0
Div Non Decr Years34
5.3 Sustainability
KMT pays out 66.42% 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.
DP66.42%
EPS Next 2Y1.46%
EPS Next 3Y5.84%
21.26
-0.17 (-0.79%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners112.93%
Inst Owner Change2.98%
Ins Owners0.79%
Ins Owner Change5.93%
Market Cap1.62B
Analysts47.5
Price Target21.64 (1.79%)
Short Float %4.38%
Short Ratio2.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.69% |
Yearly Dividend0.8
Dividend Growth(5Y)0.04%
DP66.42%
Div Incr Years0
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)40.75%
Min EPS beat(2)-13.93%
Max EPS beat(2)95.43%
EPS beat(4)2
Avg EPS beat(4)22.4%
Min EPS beat(4)-13.93%
Max EPS beat(4)95.43%
EPS beat(8)5
Avg EPS beat(8)16.41%
EPS beat(12)7
Avg EPS beat(12)11.05%
EPS beat(16)10
Avg EPS beat(16)10.03%
Revenue beat(2)0
Avg Revenue beat(2)-2.47%
Min Revenue beat(2)-3.13%
Max Revenue beat(2)-1.8%
Revenue beat(4)0
Avg Revenue beat(4)-2.13%
Min Revenue beat(4)-3.13%
Max Revenue beat(4)-1.42%
Revenue beat(8)1
Avg Revenue beat(8)-1.74%
Revenue beat(12)4
Avg Revenue beat(12)-1.43%
Revenue beat(16)5
Avg Revenue beat(16)-1.26%
PT rev (1m)-3.88%
PT rev (3m)0.68%
EPS NQ rev (1m)-16.54%
EPS NQ rev (3m)-19.89%
EPS NY rev (1m)-23.53%
EPS NY rev (3m)-22.06%
Revenue NQ rev (1m)-1.93%
Revenue NQ rev (3m)-1.35%
Revenue NY rev (1m)-1.47%
Revenue NY rev (3m)-1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.75 | ||
| Fwd PE | 19.31 | ||
| P/S | 0.82 | ||
| P/FCF | 13.54 | ||
| P/OCF | 7.76 | ||
| P/B | 1.26 | ||
| P/tB | 1.73 | ||
| EV/EBITDA | 7.07 |
EPS(TTM)1.35
EY6.35%
EPS(NY)1.1
Fwd EY5.18%
FCF(TTM)1.57
FCFY7.38%
OCF(TTM)2.74
OCFY12.89%
SpS25.87
BVpS16.89
TBVpS12.29
PEG (NY)N/A
PEG (5Y)2.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.66% | ||
| ROE | 7.25% | ||
| ROCE | 7.37% | ||
| ROIC | 5.65% | ||
| ROICexc | 6.05% | ||
| ROICexgc | 7.35% | ||
| OM | 7.95% | ||
| PM (TTM) | 4.73% | ||
| GM | 30.41% | ||
| FCFM | 6.07% |
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%
ROICexcg growth 3Y-10.57%
ROICexcg 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 Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 5.01 | ||
| Debt/EBITDA | 2.04 | ||
| Cap/Depr | 65.18% | ||
| Cap/Sales | 4.52% | ||
| Interest Coverage | 6.32 | ||
| Cash Conversion | 71.11% | ||
| Profit Quality | 128.16% | ||
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 2.7 |
F-Score6
WACC9.68%
ROIC/WACC0.58
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)-10%
EPS 3Y-8.98%
EPS 5Y7.28%
EPS Q2Q%-30.61%
EPS Next Y-18.45%
EPS Next 2Y1.46%
EPS Next 3Y5.84%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.91%
Revenue growth 3Y-0.76%
Revenue growth 5Y0.85%
Sales Q2Q%-4.94%
Revenue Next Year0.6%
Revenue Next 2Y1.79%
Revenue Next 3Y2.16%
Revenue Next 5YN/A
EBIT growth 1Y-14.21%
EBIT growth 3Y-10.93%
EBIT growth 5Y2.04%
EBIT Next Year86.78%
EBIT Next 3Y26.38%
EBIT Next 5YN/A
FCF growth 1Y-29.6%
FCF growth 3Y12.2%
FCF growth 5YN/A
OCF growth 1Y-24.82%
OCF growth 3Y4.72%
OCF growth 5Y-1.41%