KENNAMETAL INC (KMT)
US4891701009 - Common Stock
KMT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 132 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.
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.
KMT had positive earnings in 4 of the past 5 years.
Each year in the past 5 years KMT had a positive operating cash flow.
1.2 Ratios
KMT has a Return On Assets of 4.78%. This is comparable to the rest of the industry: KMT outperforms 58.14% of its industry peers.
KMT has a Return On Equity of 9.44%. This is comparable to the rest of the industry: KMT outperforms 57.36% of its industry peers.
KMT has a Return On Invested Capital (6.70%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for KMT is below the industry average of 10.73%.
The 3 year average ROIC (6.53%) for KMT is below the current ROIC(6.70%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.78% | ||
| ROE | 9.44% | ||
| ROIC | 6.7% |
ROA(3y)4.1%
ROA(5y)4.25%
ROE(3y)8.31%
ROE(5y)8.52%
ROIC(3y)6.53%
ROIC(5y)7.07%
1.3 Margins
KMT has a Profit Margin (5.86%) which is in line with its industry peers.
In the last couple of years the Profit Margin of KMT has declined.
With a Operating Margin value of 9.29%, KMT perfoms like the industry average, outperforming 51.16% of the companies in the same industry.
In the last couple of years the Operating Margin of KMT has declined.
KMT's Gross Margin of 31.20% is in line compared to the rest of the industry. KMT outperforms 58.14% of its industry peers.
In the last couple of years the Gross Margin of KMT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.29% | ||
| PM (TTM) | 5.86% | ||
| GM | 31.2% |
OM growth 3Y8.03%
OM growth 5Y-5.82%
PM growth 3YN/A
PM growth 5Y-7.58%
GM growth 3Y2.56%
GM growth 5Y-2.13%
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.
KMT has less shares outstanding than it did 5 years ago.
KMT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.90 indicates that KMT is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of KMT (2.90) is comparable to the rest of the industry.
The Debt to FCF ratio of KMT is 3.22, which is a good value as it means it would take KMT, 3.22 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of KMT (3.22) is better than 66.67% of its industry peers.
KMT has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.48, KMT perfoms like the industry average, outperforming 44.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.22 | ||
| Altman-Z | 2.9 |
ROIC/WACC0.77
WACC8.75%
2.3 Liquidity
A Current Ratio of 2.44 indicates that KMT has no problem at all paying its short term obligations.
KMT has a Current ratio of 2.44. This is in the better half of the industry: KMT outperforms 63.57% of its industry peers.
A Quick Ratio of 1.06 indicates that KMT should not have too much problems paying its short term obligations.
KMT's Quick ratio of 1.06 is in line compared to the rest of the industry. KMT outperforms 41.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.44 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
The earnings per share for KMT have decreased by -3.73% in the last year.
The earnings per share for KMT have been decreasing by -11.29% on average. This is quite bad
Looking at the last year, KMT shows a small growth in Revenue. The Revenue has grown by 1.96% in the last year.
Measured over the past years, KMT shows a decrease in Revenue. The Revenue has been decreasing by -2.58% on average per year.
EPS 1Y (TTM)-3.73%
EPS 3Y15.14%
EPS 5Y-11.29%
EPS growth Q2Q11.11%
Revenue 1Y (TTM)1.96%
Revenue growth 3Y3.3%
Revenue growth 5Y-2.58%
Revenue growth Q2Q-0.36%
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 8.70% on average per year.
The Revenue is expected to grow by 0.72% on average over the next years.
EPS Next Y2.81%
EPS Next 2Y7.38%
EPS Next 3Y8.7%
EPS Next 5YN/A
Revenue Next Year-2.27%
Revenue Next 2Y-0.07%
Revenue Next 3Y0.72%
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.
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
A Price/Earnings ratio of 15.33 indicates a correct valuation of KMT.
Based on the Price/Earnings ratio, KMT is valued a bit cheaper than 74.42% of the companies in the same industry.
When comparing the Price/Earnings ratio of KMT to the average of the S&P500 Index (25.20), we can say KMT is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.21, the valuation of KMT can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KMT indicates a somewhat cheap valuation: KMT is cheaper than 76.74% of the companies listed in the same industry.
KMT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.33 | ||
| Fwd PE | 14.21 |
4.2 Price Multiples
KMT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. KMT is cheaper than 86.05% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, KMT is valued cheaper than 93.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.79 | ||
| EV/EBITDA | 7.51 |
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)5.45
PEG (5Y)N/A
EPS Next 2Y7.38%
EPS Next 3Y8.7%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.32%, KMT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.71, KMT pays a better dividend. On top of this KMT pays more dividend than 93.80% of the companies listed in the same industry.
KMT's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
5.2 History
The dividend of KMT decreases each year by -0.04%.
KMT has paid a dividend for at least 10 years, which is 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 Years15
5.3 Sustainability
KMT pays out 52.63% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP52.63%
EPS Next 2Y7.38%
EPS Next 3Y8.7%
KENNAMETAL INC
NYSE:KMT (4/25/2024, 7:04:00 PM)
After market: 23.76 0 (0%)23.76
-0.73 (-2.98%)
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 Cap1.88B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
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 | 15.33 | ||
| Fwd PE | 14.21 | ||
| 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)5.45
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.78% | ||
| ROE | 9.44% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.29% | ||
| PM (TTM) | 5.86% | ||
| GM | 31.2% | ||
| 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 Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.44 | ||
| Quick Ratio | 1.06 | ||
| 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)
Growth
EPS 1Y (TTM)-3.73%
EPS 3Y15.14%
EPS 5Y
EPS growth Q2Q
EPS Next Y2.81%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.96%
Revenue growth 3Y3.3%
Revenue growth 5Y
Revenue growth 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