KENNAMETAL INC (KMT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KMT - US4891701009 - Common Stock
34.49 USD
-0.19 (-0.55%)
34.49 USD
0 (0%)
Overall KMT gets a fundamental rating of 5 out of 10. We evaluated KMT against 132 industry peers in the Machinery industry. KMT has only an average score on both its financial health and profitability. 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
- 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.
- In the past 5 years KMT always reported a positive cash flow from operatings.
1.2 Ratios
- KMT's Return On Assets of 3.74% is in line compared to the rest of the industry. KMT outperforms 53.03% of its industry peers.
- With a Return On Equity value of 7.34%, KMT perfoms like the industry average, outperforming 52.27% of the companies in the same industry.
- KMT has a Return On Invested Capital (5.80%) which is comparable to the rest of the industry.
- KMT had an Average Return On Invested Capital over the past 3 years of 6.49%. This 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
- Looking at the Profit Margin, with a value of 4.76%, KMT is in line with its industry, outperforming 53.03% of the companies in the same 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.
- In the last couple of years the Operating Margin of KMT has remained more or less at the same level.
- KMT's Gross Margin of 30.42% is in line compared to the rest of the industry. KMT outperforms 50.00% of its industry peers.
- KMT's Gross Margin has been stable in the last couple of years.
| 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
- KMT has a better debt/assets ratio than last year.
2.2 Solvency
- KMT has an Altman-Z score of 3.26. This indicates that KMT is financially healthy and has little risk of bankruptcy at the moment.
- KMT has a Altman-Z score (3.26) which is comparable to the rest of the industry.
- KMT has a debt to FCF ratio of 6.44. This is a slightly negative value and a sign of low solvency as KMT would need 6.44 years to pay back of 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 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 | 3.26 |
ROIC/WACC0.62
WACC9.34%
2.3 Liquidity
- A Current Ratio of 2.60 indicates that KMT has no problem at all paying its short term obligations.
- With a decent Current ratio value of 2.60, KMT is doing good in the industry, outperforming 70.45% 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.
- The Quick ratio of KMT (1.18) 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%.
- 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.
- KMT shows a decrease in Revenue. In the last year, the revenue decreased by -2.63%.
- The Revenue has been growing slightly by 0.85% on average over the past years.
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 4.55% on average over the next years.
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
- 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
- The Price/Earnings ratio is 24.64, which indicates a rather expensive current valuation of KMT.
- KMT's Price/Earnings ratio is a bit cheaper when compared to the industry. KMT is cheaper than 61.36% of the companies in the same industry.
- When comparing the Price/Earnings ratio of KMT to the average of the S&P500 Index (27.21), we can say KMT is valued inline with the index average.
- The Price/Forward Earnings ratio is 20.28, which indicates a rather expensive current valuation of KMT.
- 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 (24.26), we can say KMT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.64 | ||
| Fwd PE | 20.28 |
4.2 Price Multiples
- KMT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. KMT is cheaper than 82.58% of the companies in the same industry.
- KMT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.26 | ||
| EV/EBITDA | 10.49 |
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)2.07
PEG (5Y)3.38
EPS Next 2Y12.23%
EPS Next 3Y11.71%
5. Dividend
5.1 Amount
- KMT has a Yearly Dividend Yield of 2.31%. 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 0.98. KMT pays more dividend than 89.39% of the companies in the same industry.
- KMT's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| 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 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 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%
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 24.64 and the Price/Book (PB) ratio is 2.04.
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%.