KENNAMETAL INC (KMT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KMT - US4891701009 - Common Stock
29.33 USD
-0.46 (-1.54%)
29.33 USD
0 (0%)
Overall KMT gets a fundamental rating of 5 out of 10. We evaluated KMT against 130 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 correct valuation and a medium 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.
Each year in the past 5 years KMT has been profitable.
Each year in the past 5 years KMT had a positive operating cash flow.
1.2 Ratios
KMT has a Return On Assets of 3.74%. This is comparable to the rest of the industry: KMT outperforms 53.08% of its industry peers.
With a Return On Equity value of 7.34%, KMT perfoms like the industry average, outperforming 52.31% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.80%, KMT is in line with its industry, outperforming 45.38% 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 10.30%.
| 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
KMT has a Profit Margin (4.76%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of KMT has declined.
KMT has a Operating Margin (8.10%) which is in line with its industry peers.
In the last couple of years the Operating Margin of KMT has remained more or less at the same level.
The Gross Margin of KMT (30.42%) 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 | 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.
KMT has less shares outstanding than it did 1 year ago.
The number of shares outstanding for KMT has been reduced compared to 5 years ago.
Compared to 1 year ago, KMT has an improved debt to assets ratio.
2.2 Solvency
KMT has an Altman-Z score of 3.06. This indicates that KMT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of KMT (3.06) 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's Debt to Equity ratio of 0.47 is in line compared to the rest of the industry. KMT outperforms 46.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 6.44 | ||
| Altman-Z | 3.06 |
ROIC/WACC0.63
WACC9.18%
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.
Looking at the Current ratio, with a value of 2.60, KMT is in the better half of the industry, outperforming 70.77% 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.
With a Quick ratio value of 1.18, KMT perfoms like the industry average, outperforming 47.69% 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.
The Earnings Per Share has been growing slightly by 7.28% on average over the past years.
Looking at the last year, KMT shows a decrease in Revenue. The Revenue has decreased by -2.63% 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)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.
The Revenue is expected to grow by 3.79% on average over the next years.
EPS Next Y11.92%
EPS Next 2Y12.23%
EPS Next 3Y11.71%
EPS Next 5YN/A
Revenue Next Year6.06%
Revenue Next 2Y4.94%
Revenue Next 3Y3.79%
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.
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
With a Price/Earnings ratio of 20.95, KMT is valued on the expensive side.
69.23% 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 26.56. KMT is valued slightly cheaper when compared to this.
KMT is valuated rather expensively with a Price/Forward Earnings ratio of 17.25.
68.46% of the companies in the same industry are more expensive than KMT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.79, KMT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.95 | ||
| Fwd PE | 17.25 |
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 86.15% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as KMT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.03 | ||
| EV/EBITDA | 9.13 |
4.3 Compensation for Growth
KMT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.76
PEG (5Y)2.88
EPS Next 2Y12.23%
EPS Next 3Y11.71%
5. Dividend
5.1 Amount
KMT has a Yearly Dividend Yield of 2.69%. 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 1.00. KMT pays more dividend than 90.00% of the companies in the same industry.
KMT's Dividend Yield is a higher than the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
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
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%
29.33
-0.46 (-1.54%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners107.44%
Inst Owner Change1.67%
Ins Owners0.75%
Ins Owner Change5.95%
Market Cap2.23B
Revenue(TTM)1.98B
Net Income(TTM)94.30M
Analysts48.75
Price Target25.76 (-12.17%)
Short Float %4.95%
Short Ratio4.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
Yearly Dividend0.8
Dividend Growth(5Y)0.04%
DP65.12%
Div Incr Years0
Div Non Decr Years34
Ex-Date
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)18.48%
PT rev (3m)19.02%
EPS NQ rev (1m)8.21%
EPS NQ rev (3m)48.5%
EPS NY rev (1m)37.81%
EPS NY rev (3m)37.25%
Revenue NQ rev (1m)1.89%
Revenue NQ rev (3m)6.05%
Revenue NY rev (1m)5.16%
Revenue NY rev (3m)5.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.95 | ||
| Fwd PE | 17.25 | ||
| P/S | 1.13 | ||
| P/FCF | 24.03 | ||
| P/OCF | 12.39 | ||
| P/B | 1.74 | ||
| P/tB | 2.38 | ||
| EV/EBITDA | 9.13 |
EPS(TTM)1.4
EY4.77%
EPS(NY)1.7
Fwd EY5.8%
FCF(TTM)1.22
FCFY4.16%
OCF(TTM)2.37
OCFY8.07%
SpS26.06
BVpS16.88
TBVpS12.31
PEG (NY)1.76
PEG (5Y)2.88
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 | 3.06 |
F-Score6
WACC9.18%
ROIC/WACC0.63
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 Year6.06%
Revenue Next 2Y4.94%
Revenue Next 3Y3.79%
Revenue Next 5YN/A
EBIT growth 1Y-6%
EBIT growth 3Y-10.93%
EBIT growth 5Y2.04%
EBIT Next Year90.67%
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.
Can you provide the valuation status for KENNAMETAL INC?
ChartMill assigns a valuation rating of 4 / 10 to KENNAMETAL INC (KMT). This can be considered as Fairly Valued.
How profitable is KENNAMETAL INC (KMT) stock?
KENNAMETAL INC (KMT) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for KMT stock?
The Price/Earnings (PE) ratio for KENNAMETAL INC (KMT) is 20.95 and the Price/Book (PB) ratio is 1.74.
What is the financial health of KENNAMETAL INC (KMT) stock?
The financial health rating of KENNAMETAL INC (KMT) is 6 / 10.