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%)
We assign a fundamental rating of 5 out of 10 to KMT. KMT was compared to 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. While showing a medium growth rate, KMT is valued expensive at the moment. Finally KMT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year KMT was profitable.
- In the past year KMT had a positive cash flow from operations.
- Each year in the past 5 years KMT has 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 (3.74%) which is in line with its industry peers.
- KMT has a Return On Equity of 7.34%. This is comparable to the rest of the industry: KMT outperforms 52.27% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 5.80%, KMT is in line with its industry, outperforming 46.21% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years 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.
- KMT's Profit Margin has declined in the last couple of years.
- KMT has a Operating Margin of 8.10%. This is comparable to the rest of the industry: KMT outperforms 50.76% 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.
- 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 | 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.
- 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
- Compared to 1 year ago, KMT has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.23 indicates that KMT is not in any danger for bankruptcy at the moment.
- KMT has a Altman-Z score of 3.23. This is comparable to the rest of the industry: KMT outperforms 52.27% of 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 has a Debt to FCF ratio (6.44) 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 | 6.44 | ||
| Altman-Z | 3.23 |
ROIC/WACC0.64
WACC9.12%
2.3 Liquidity
- KMT has a Current Ratio of 2.60. This indicates that KMT is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of KMT (2.60) is better than 70.45% of its industry peers.
- KMT has a Quick Ratio of 1.18. 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 (1.18) which is comparable to the rest of the 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.
- Looking at the last year, KMT shows a decrease in Revenue. The Revenue has decreased by -2.63% in the last 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 4.55% on average per year.
EPS Next Y11.92%
EPS Next 2Y12.23%
EPS Next 3Y11.71%
EPS Next 5YN/A
Revenue Next Year7.41%
Revenue Next 2Y5.77%
Revenue Next 3Y4.55%
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
- With a Price/Earnings ratio of 24.30, KMT is valued on the expensive side.
- 62.12% of the companies in the same industry are more expensive than KMT, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.38. KMT is around the same levels.
- KMT is valuated rather expensively with a Price/Forward Earnings ratio of 20.01.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of KMT is on the same level as its industry peers.
- KMT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.3 | ||
| Fwd PE | 20.01 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KMT indicates a rather cheap valuation: KMT is cheaper than 83.33% of the companies listed in the same industry.
- KMT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.88 | ||
| EV/EBITDA | 10.32 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates KMT does not grow enough to justify the current Price/Earnings ratio.
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 2.31%.
- KMT's Dividend Yield is rather good when compared to the industry average which is at 0.98. KMT pays more dividend than 89.39% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.85, KMT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
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 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%
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)02-04 2026-02-04/bmo
Inst Owners107.36%
Inst Owner Change0.37%
Ins Owners0.78%
Ins Owner Change7.01%
Market Cap2.59B
Revenue(TTM)1.98B
Net Income(TTM)94.30M
Analysts48.75
Price Target28.43 (-16.43%)
Short Float %3.77%
Short Ratio3.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
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)10.4%
PT rev (3m)31.4%
EPS NQ rev (1m)7.66%
EPS NQ rev (3m)65.19%
EPS NY rev (1m)0%
EPS NY rev (3m)37.25%
Revenue NQ rev (1m)1.79%
Revenue NQ rev (3m)7.73%
Revenue NY rev (1m)1.27%
Revenue NY rev (3m)6.61%
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 | 10.32 |
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 | 3.23 |
F-Score6
WACC9.12%
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 Year7.41%
Revenue Next 2Y5.77%
Revenue Next 3Y4.55%
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%.