KENNAMETAL INC (KMT) Stock Fundamental Analysis
USA - NYSE:KMT - US4891701009 - Common Stock
22.7 USD
+0.54 (+2.44%)
22.75 USD
+0.05 (+0.22%)
Taking everything into account, KMT scores 4 out of 10 in our fundamental rating. 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
In the past year KMT was profitable.
KMT had a positive operating cash flow in the past year.
KMT had positive earnings in each of the past 5 years.
In the past 5 years KMT always reported a positive cash flow from operatings.
1.2 Ratios
KMT has a Return On Assets (3.66%) which is in line with its industry peers.
KMT has a Return On Equity of 7.25%. This is comparable to the rest of the industry: KMT outperforms 46.92% of its industry peers.
KMT has a Return On Invested Capital of 5.65%. This is comparable to the rest of the industry: KMT outperforms 43.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KMT is below the industry average of 10.01%.
| 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 has a Profit Margin of 4.73%. This is comparable to the rest of the industry: KMT outperforms 48.46% of its industry peers.
KMT's Profit Margin has declined in the last couple of years.
KMT has a Operating Margin (7.95%) which is in line with its industry peers.
KMT's Operating Margin has been stable in the last couple of years.
KMT has a Gross Margin (30.41%) which is comparable to the rest of the industry.
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 | 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.
KMT has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, KMT has less shares outstanding
Compared to 1 year ago, KMT has an improved debt to assets ratio.
2.2 Solvency
KMT has an Altman-Z score of 2.73. 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.
With a Altman-Z score value of 2.73, KMT perfoms like the industry average, outperforming 47.69% 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.
KMT has a Debt to FCF ratio (5.01) which is comparable to the rest of the industry.
KMT has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
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 | 5.01 | ||
| Altman-Z | 2.73 |
ROIC/WACC0.64
WACC8.88%
2.3 Liquidity
A Current Ratio of 2.46 indicates that KMT has no problem at all paying its short term obligations.
The Current ratio of KMT (2.46) is better than 63.08% of its industry peers.
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's Quick ratio of 1.19 is in line compared to the rest of the industry. KMT outperforms 45.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
KMT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -10.00%.
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.
Looking at the last year, KMT shows a decrease in Revenue. The Revenue has decreased by -3.91% in the last 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)-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
Based on estimates for the next years, KMT will show a small growth in Earnings Per Share. The EPS will grow by 5.92% on average per year.
Based on estimates for the next years, KMT will show a small growth in Revenue. The Revenue will grow by 2.17% on average per year.
EPS Next Y-18.45%
EPS Next 2Y1.46%
EPS Next 3Y5.92%
EPS Next 5YN/A
Revenue Next Year0.75%
Revenue Next 2Y2.35%
Revenue Next 3Y2.17%
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.
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
The Price/Earnings ratio is 16.81, which indicates a correct valuation of KMT.
KMT's Price/Earnings ratio is a bit cheaper when compared to the industry. KMT is cheaper than 78.46% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.69, KMT is valued a bit cheaper.
KMT is valuated rather expensively with a Price/Forward Earnings ratio of 20.62.
KMT's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of KMT to the average of the S&P500 Index (23.18), we can say KMT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.81 | ||
| Fwd PE | 20.62 |
4.2 Price Multiples
91.54% 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 rather cheap valuation: KMT is cheaper than 83.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.5 | ||
| EV/EBITDA | 7.32 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.31
EPS Next 2Y1.46%
EPS Next 3Y5.92%
5. Dividend
5.1 Amount
KMT has a Yearly Dividend Yield of 3.60%. 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 1.80. KMT pays more dividend than 93.85% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, KMT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.6% |
5.2 History
The dividend of KMT has a limited annual growth rate of 0.04%.
KMT has paid a dividend for at least 10 years, which is 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
66.42% 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.
DP66.42%
EPS Next 2Y1.46%
EPS Next 3Y5.92%
22.7
+0.54 (+2.44%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners108.32%
Inst Owner Change-0.49%
Ins Owners0.75%
Ins Owner Change6.01%
Market Cap1.73B
Analysts48.75
Price Target21.64 (-4.67%)
Short Float %5.29%
Short Ratio3.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.6% |
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)0%
PT rev (3m)-3.88%
EPS NQ rev (1m)-2.61%
EPS NQ rev (3m)-18.45%
EPS NY rev (1m)0%
EPS NY rev (3m)-23.53%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)-1.64%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)-1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.81 | ||
| Fwd PE | 20.62 | ||
| P/S | 0.88 | ||
| P/FCF | 14.5 | ||
| P/OCF | 8.31 | ||
| P/B | 1.35 | ||
| P/tB | 1.85 | ||
| EV/EBITDA | 7.32 |
EPS(TTM)1.35
EY5.95%
EPS(NY)1.1
Fwd EY4.85%
FCF(TTM)1.57
FCFY6.9%
OCF(TTM)2.73
OCFY12.04%
SpS25.8
BVpS16.84
TBVpS12.25
PEG (NY)N/A
PEG (5Y)2.31
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 | 2.73 |
F-Score6
WACC8.88%
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)-10%
EPS 3Y-8.98%
EPS 5Y7.28%
EPS Q2Q%-30.61%
EPS Next Y-18.45%
EPS Next 2Y1.46%
EPS Next 3Y5.92%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.91%
Revenue growth 3Y-0.76%
Revenue growth 5Y0.85%
Sales Q2Q%-4.94%
Revenue Next Year0.75%
Revenue Next 2Y2.35%
Revenue Next 3Y2.17%
Revenue Next 5YN/A
EBIT growth 1Y-14.21%
EBIT growth 3Y-10.93%
EBIT growth 5Y2.04%
EBIT Next Year71.16%
EBIT Next 3Y25.38%
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%