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Kennametal

DB:KM3
Snowflake Description

Solid track record with excellent balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
KM3
DB
$3B
Market Cap
  1. Home
  2. DE
  3. Capital Goods
Company description

Kennametal Inc. develops and applies tungsten carbides, ceramics, super-hard materials, and solutions for use in metal cutting and mission-critical wear applications to combat extreme conditions related with wear fatigue, corrosion, and high temperatures worldwide. The last earnings update was 71 days ago. More info.


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KM3 Share Price and Events
7 Day Returns
3.3%
DB:KM3
-2.1%
DE Machinery
-0.3%
DE Market
1 Year Returns
-2.5%
DB:KM3
-28.7%
DE Machinery
-6.7%
DE Market
KM3 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Kennametal (KM3) 3.3% 9.2% -13.7% -2.5% 47.2% -11.1%
DE Machinery -2.1% -6.8% -14.6% -28.7% -20.9% 2.7%
DE Market -0.3% 2.3% -2% -6.7% 11.3% 12.2%
1 Year Return vs Industry and Market
  • KM3 outperformed the Machinery industry which returned -28.7% over the past year.
  • KM3 outperformed the Market in Germany which returned -6.7% over the past year.
Price Volatility
KM3
Industry
5yr Volatility vs Market

KM3 Value

 Is Kennametal undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Kennametal to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Kennametal.

DB:KM3 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.2%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:KM3
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.09
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.087 (1 + (1- 21%) (20.69%))
1.178
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.18
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.178 * 5.96%)
7.25%

Discounted Cash Flow Calculation for DB:KM3 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Kennametal is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:KM3 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.25%)
2020 57.00 Analyst x2 53.15
2021 186.00 Analyst x2 161.71
2022 211.20 Est @ 13.55% 171.22
2023 231.38 Est @ 9.55% 174.90
2024 247.01 Est @ 6.76% 174.10
2025 258.86 Est @ 4.8% 170.13
2026 267.74 Est @ 3.43% 164.07
2027 274.34 Est @ 2.47% 156.76
2028 279.27 Est @ 1.8% 148.79
2029 282.97 Est @ 1.33% 140.57
Present value of next 10 years cash flows $1,515.40
DB:KM3 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $282.97 × (1 + 0.23%) ÷ (7.25% – 0.23%)
$4,040.93
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $4,040.93 ÷ (1 + 7.25%)10
$2,007.47
DB:KM3 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,515.40 + $2,007.47
$3,522.88
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $3,522.88 / 82.39
$42.76
DB:KM3 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:KM3 represents 0.91553x of NYSE:KMT
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.91553x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 42.76 x 0.91553
€39.15
Value per share (EUR) From above. €39.15
Current discount Discount to share price of €31.00
= -1 x (€31.00 - €39.15) / €39.15
20.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Kennametal is available for.
Intrinsic value
21%
Share price is €31 vs Future cash flow value of €39.15
Current Discount Checks
For Kennametal to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Kennametal's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Kennametal's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Kennametal's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Kennametal's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:KM3 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $3.02
NYSE:KMT Share Price ** NYSE (2019-07-17) in USD $33.86
Germany Machinery Industry PE Ratio Median Figure of 37 Publicly-Listed Machinery Companies 14.82x
Germany Market PE Ratio Median Figure of 419 Publicly-Listed Companies 20.05x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Kennametal.

DB:KM3 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:KMT Share Price ÷ EPS (both in USD)

= 33.86 ÷ 3.02

11.2x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kennametal is good value based on earnings compared to the DE Machinery industry average.
  • Kennametal is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Kennametal's expected growth come at a high price?
Raw Data
DB:KM3 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.2x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
2.2%per year
Germany Machinery Industry PEG Ratio Median Figure of 29 Publicly-Listed Machinery Companies 1.3x
Germany Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

DB:KM3 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.2x ÷ 2.2%

5.12x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kennametal is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Kennametal's assets?
Raw Data
DB:KM3 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $16.09
NYSE:KMT Share Price * NYSE (2019-07-17) in USD $33.86
Germany Machinery Industry PB Ratio Median Figure of 47 Publicly-Listed Machinery Companies 1.51x
Germany Market PB Ratio Median Figure of 565 Publicly-Listed Companies 1.75x
DB:KM3 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:KMT Share Price ÷ Book Value per Share (both in USD)

= 33.86 ÷ 16.09

2.1x

* Primary Listing of Kennametal.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kennametal is overvalued based on assets compared to the DE Machinery industry average.
X
Value checks
We assess Kennametal's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. Kennametal has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

KM3 Future Performance

 How is Kennametal expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
2.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Kennametal expected to grow at an attractive rate?
  • Kennametal's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Kennametal's earnings growth is positive but not above the Germany market average.
  • Kennametal's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:KM3 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:KM3 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 2.2%
DB:KM3 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 1.6%
Germany Machinery Industry Earnings Growth Rate Market Cap Weighted Average 11.1%
Germany Machinery Industry Revenue Growth Rate Market Cap Weighted Average 5.5%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:KM3 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:KM3 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-06-30 2,493 405 262 6
2020-06-30 2,456 356 255 11
2019-06-30 2,415 338 250 11
DB:KM3 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 2,417 277 248
2018-12-31 2,428 298 231
2018-09-30 2,412 326 218
2018-06-30 2,368 277 200
2018-03-31 2,287 270 156
2017-12-31 2,207 188 144
2017-09-30 2,124 132 110
2017-06-30 2,058 195 49
2017-03-31 2,015 157 -42
2016-12-31 1,984 163 -65
2016-09-30 2,020 204 -241
2016-06-30 2,098 222 -226

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Kennametal's earnings are expected to grow by 2.2% yearly, however this is not considered high growth (20% yearly).
  • Kennametal's revenue is expected to grow by 1.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:KM3 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Kennametal Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:KM3 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-06-30 3.04 3.50 2.82 4.00
2020-06-30 2.89 3.30 2.56 6.00
2019-06-30 3.00 3.05 2.89 6.00
DB:KM3 Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 3.02
2018-12-31 2.81
2018-09-30 2.66
2018-06-30 2.45
2018-03-31 1.92
2017-12-31 1.78
2017-09-30 1.36
2017-06-30 0.61
2017-03-31 -0.52
2016-12-31 -0.81
2016-09-30 -3.02
2016-06-30 -2.83

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Kennametal is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Kennametal's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Kennametal has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

KM3 Past Performance

  How has Kennametal performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Kennametal's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Kennametal has delivered over 20% year on year earnings growth in the past 5 years.
  • Kennametal's 1-year earnings growth exceeds its 5-year average (59% vs 36.4%)
  • Kennametal's earnings growth has exceeded the DE Machinery industry average in the past year (59% vs -1.3%).
Earnings and Revenue History
Kennametal's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Kennametal Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:KM3 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 2,417.40 248.48 484.98
2018-12-31 2,428.13 230.79 491.34
2018-09-30 2,412.09 217.70 499.75
2018-06-30 2,367.85 200.18 497.65
2018-03-31 2,286.76 156.29 474.56
2017-12-31 2,207.45 144.32 482.13
2017-09-30 2,123.68 109.98 465.69
2017-06-30 2,058.37 49.14 459.67
2017-03-31 2,014.57 -42.02 463.16
2016-12-31 1,983.77 -64.91 462.62
2016-09-30 2,020.22 -241.40 472.70
2016-06-30 2,098.44 -225.97 478.78
2016-03-31 2,214.86 -138.31 489.95
2015-12-31 2,356.00 -200.54 511.67
2015-09-30 2,507.61 -419.61 525.55
2015-06-30 2,647.20 -373.90 547.10
2015-03-31 2,781.75 -349.59 564.96
2014-12-31 2,898.02 -252.49 579.93
2014-09-30 2,912.32 160.02 594.29
2014-06-30 2,837.19 158.37 589.67
2014-03-31 2,736.40 173.73 567.87
2013-12-31 2,636.51 176.78 543.90
2013-09-30 2,579.72 194.71 523.25
2013-06-30 2,589.37 203.27 527.85
2013-03-31 2,657.18 228.50 528.10
2012-12-31 2,698.23 250.08 538.67
2012-09-30 2,706.83 281.63 545.46

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Kennametal has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Kennametal used its assets more efficiently than the DE Machinery industry average last year based on Return on Assets.
  • Kennametal has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Kennametal's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Kennametal has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

KM3 Health

 How is Kennametal's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Kennametal's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Kennametal is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Kennametal's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Kennametal's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Kennametal Company Filings, last reported 3 months ago.

DB:KM3 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,365.41 592.07 112.60
2018-12-31 1,308.28 595.06 96.28
2018-09-30 1,264.11 592.06 102.08
2018-06-30 1,230.33 991.71 556.15
2018-03-31 1,226.15 697.49 221.91
2017-12-31 1,163.95 697.03 159.94
2017-09-30 1,098.08 696.51 110.70
2017-06-30 1,052.65 695.73 190.63
2017-03-31 979.57 695.97 100.82
2016-12-31 934.68 696.34 102.00
2016-09-30 969.41 695.03 119.41
2016-06-30 995.80 694.70 161.58
2016-03-31 1,174.81 703.89 136.56
2015-12-31 1,154.28 706.65 138.98
2015-09-30 1,339.09 750.83 97.20
2015-06-30 1,375.44 749.82 105.49
2015-03-31 1,401.86 903.76 146.18
2014-12-31 1,530.59 962.62 146.27
2014-09-30 1,954.25 1,015.86 156.19
2014-06-30 1,961.61 1,058.90 177.93
2014-03-31 1,934.56 1,135.55 161.82
2013-12-31 1,903.30 1,145.73 163.29
2013-09-30 1,873.19 706.33 333.31
2013-06-30 1,812.29 743.39 377.32
2013-03-31 1,753.83 751.03 322.09
2012-12-31 1,744.44 706.86 216.77
2012-09-30 1,712.53 601.12 110.53
  • Kennametal's level of debt (43.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (58.6% vs 43.4% today).
  • Debt is well covered by operating cash flow (46.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 11.2x coverage).
X
Financial health checks
We assess Kennametal's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Kennametal has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

KM3 Dividends

 What is Kennametal's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.36%
Current annual income from Kennametal dividends. Estimated to be 2.43% next year.
If you bought €2,000 of Kennametal shares you are expected to receive €47 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Kennametal's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.46%).
  • Kennametal's dividend is below the markets top 25% of dividend payers in Germany (3.85%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:KM3 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
Germany Machinery Industry Average Dividend Yield Market Cap Weighted Average of 30 Stocks 2.3%
Germany Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:KM3 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-06-30 0.84 4.00
2020-06-30 0.81 6.00
2019-06-30 0.80 6.00
DB:KM3 Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-07 0.800 2.366
2019-05-06 0.800 2.034
2018-11-05 0.800 2.135
2018-08-10 0.800 1.999
2018-08-06 0.800 2.018
2018-02-01 0.800 2.027
2017-11-07 0.800 1.688
2017-11-01 0.800 1.750
2017-08-14 0.800 2.087
2017-08-02 0.800 2.242
2017-05-09 0.800 2.067
2017-04-25 0.800 1.960
2017-02-08 0.800 2.096
2017-02-02 0.800 2.139
2016-11-07 0.800 2.378
2016-10-27 0.800 2.854
2016-08-11 0.800 2.819
2016-08-01 0.800 2.975
2016-02-03 0.800 3.568
2015-07-30 0.800 3.301
2015-05-08 0.720 2.069
2015-05-05 0.720 1.873
2014-10-30 0.720 2.058
2014-07-31 0.720 1.712
2014-05-01 0.720 1.560
2013-10-24 0.720 1.551
2013-07-25 0.720 1.609
2013-04-25 0.640 1.572
2013-01-24 0.640 1.613
2012-10-24 0.640 1.655
2012-07-26 0.640 1.722
2012-04-26 0.560 1.604
2012-01-26 0.560 1.248
2011-10-27 0.560 1.467
2011-07-28 0.480 1.391
2011-04-28 0.480 1.169
2011-01-27 0.480 1.222
2010-07-29 0.480 1.474
2010-04-29 0.480 1.718
2010-01-28 0.480 1.703
2009-10-29 0.480 1.875
2009-07-30 0.480 2.085
2009-04-24 0.480 2.498
2009-01-29 0.480 2.792
2008-11-06 0.480 2.607
2008-10-23 0.480 2.477
2008-08-14 0.480 1.713

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Kennametal's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.1x coverage).
X
Income/ dividend checks
We assess Kennametal's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Kennametal afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Kennametal has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

KM3 Management

 What is the CEO of Kennametal's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Chris Rossi
COMPENSATION $5,715,803
AGE 55
TENURE AS CEO 1.9 years
CEO Bio

Mr. Christopher Rossi, also known as Chris, has been Chief Executive Officer and President at Kennametal Inc. since August 1, 2017. Mr. Rossi served as the Chief Executive Officer of Dresser-Rand Group Inc. at Siemens Aktiengesellschaft since September 2015 until May 2017. Mr. Rossi served as Executive Vice President of Global Operations at Dresser-Rand Group Inc. from September 2012 to August 2015. He served as the Vice President and General Manager of North American Operations of Dresser-rand Group Inc. from October 2003 to January 5, 2007 and served as its Vice President of Technology & Business Development since January 2009. He served as an Executive Vice President of Product Services Worldwide at Dresser-Rand Group Inc., from January 2007 to December 2008, where he was responsible for worldwide aftermarket sales. He has been with Dresser-Rand Company and its predecessor companies since 1987. He has held various leadership positions within Dresser-Rand Company in the areas of Engineering, Production, Materials Management and Supply Chain Management. He served as the Vice President and General Manager of North American Operations, where he was responsible for all U.S. Plants and Worldwide Development Engineering from October 2003 to December 2006. He served as the Vice President of Supply Chain Management Worldwide from March 1998 to January 2001 and as Vice President and General Manager of Painted Post Operation from February 2001 to October 2003. He serves as a Director of Ramgen Power Systems, LLC. He has been a Director at Kennametal Inc. since August 1, 2107. Mr. Rossi earned a Bachelor of Science in Mechanical Engineering from Virginia Tech and an MBA in Corporate Finance and Operations Management from the University of Rochesters Simon School of Business.

CEO Compensation
  • Insufficient data for Chris to compare compensation growth.
  • Chris's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Kennametal management team in years:

2.3
Average Tenure
54
Average Age
  • The tenure for the Kennametal management team is about average.
Management Team

Chris Rossi

TITLE
President
COMPENSATION
$6M
AGE
55
TENURE
1.9 yrs

Michelle Keating

TITLE
VP, Secretary & General Counsel
COMPENSATION
$1M
AGE
43
TENURE
2.6 yrs

Pete Dragich

TITLE
VP & President of the Industrial Business Segment
COMPENSATION
$2M
AGE
56

Ron Port

TITLE
VP & President of the Infrastructure Business Segment
COMPENSATION
$1M
AGE
53

Damon Audia

TITLE
VP & CFO
AGE
48
TENURE
0.8 yrs

Carlonda Reilly

TITLE
CTO & VP
TENURE
0.8 yrs

Thomas McKee

TITLE
VP & Chief Information Officer
TENURE
2.9 yrs

Judy Bacchus

TITLE
VP & Chief Administrative Officer
COMPENSATION
$1M
AGE
57
TENURE
0.5 yrs

Kelly Boyer

TITLE
Vice President of Investor Relations
TENURE
3.5 yrs

Alexander Broetz

TITLE
VP & President of WIDIA Business segment
TENURE
2.9 yrs
Board of Directors Tenure

Average tenure and age of the Kennametal board of directors in years:

3.1
Average Tenure
62.5
Average Age
  • The tenure for the Kennametal board of directors is about average.
Board of Directors

Larry Stranghoener

TITLE
Chairman & Lead Director
COMPENSATION
$305K
AGE
65
TENURE
1 yrs

Chris Rossi

TITLE
President
COMPENSATION
$6M
AGE
55
TENURE
1.9 yrs

Steven Wunning

TITLE
Independent Director
COMPENSATION
$215K
AGE
68
TENURE
14 yrs

Bill Harvey

TITLE
Independent Director
COMPENSATION
$208K
AGE
68
TENURE
8.3 yrs

Bill Lambert

TITLE
Independent Director
COMPENSATION
$200K
AGE
61
TENURE
3.4 yrs

Tim McLevish

TITLE
Independent Director
COMPENSATION
$215K
AGE
64
TENURE
14.6 yrs

Cindy Davis

TITLE
Independent Director
COMPENSATION
$205K
AGE
57
TENURE
6.7 yrs

Sagar Patel

TITLE
Director
COMPENSATION
$200K
AGE
53
TENURE
2.8 yrs

Joe Alvarado

TITLE
Director
COMPENSATION
$100K
AGE
67
TENURE
1.5 yrs

Lorraine Martin

TITLE
Director
AGE
56
TENURE
1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
26. Feb 19 Sell Peter Dragich Individual 22. Feb 19 22. Feb 19 -35,346 €34.06 €-1,202,962
21. Feb 19 Sell Patrick Watson Individual 20. Feb 19 20. Feb 19 -2,265 €33.45 €-75,613
07. Feb 19 Sell Michelle Keating Individual 06. Feb 19 06. Feb 19 -1,890 €33.01 €-62,313
04. Dec 18 Sell Judith Bacchus Individual 03. Dec 18 03. Dec 18 -5,000 €37.61 €-188,047
11. Sep 18 Sell Michelle Keating Individual 10. Sep 18 10. Sep 18 -720 €36.36 €-26,175
X
Management checks
We assess Kennametal's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Kennametal has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

KM3 News

Simply Wall St News

KM3 Company Info

Description

Kennametal Inc. develops and applies tungsten carbides, ceramics, super-hard materials, and solutions for use in metal cutting and mission-critical wear applications to combat extreme conditions related with wear fatigue, corrosion, and high temperatures worldwide. The company operates through three segments: Industrial, Widia, and Infrastructure. Its product offering includes a selection of standard and customized technologies for metalworking applications, such as turning, milling, hole making, tooling systems, and services for manufacturers of transportation vehicles and components, machine tools, and light and heavy machinery; airframe and aerospace components; and energy-related components for the oil and gas industry, as well as power generation. The company also produces specialized wear components and metallurgical powders that are used for custom-engineered and various applications to producers and suppliers in equipment-intensive operations comprising coal mining, road construction, quarrying, oil and gas exploration, refining, production, and supply. In addition, it offers specified product design, selection, application, and support services. The company provides its products under the Kennametal, WIDIA, WIDIA Hanita, and WIDIA GTD brands through its direct sales force; a network of independent and national chain distributors; integrated supplier channels; and value added resellers, as well as through the Internet. Kennametal Inc. was founded in 1938 and is based in Pittsburgh, Pennsylvania.

Details
Name: Kennametal Inc.
KM3
Exchange: DB
Founded: 1938
$2,549,238,009
82,390,406
Website: http://www.kennametal.com
Address: Kennametal Inc.
600 Grant Street,
Suite 5100,
Pittsburgh,
Pennsylvania, 15219,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE KMT Capital Stock New York Stock Exchange US USD 02. Jan 1968
DB KM3 Capital Stock Deutsche Boerse AG DE EUR 02. Jan 1968
BMV KMT * Capital Stock Bolsa Mexicana de Valores MX MXN 02. Jan 1968
Number of employees
Current staff
Staff numbers
10,500
Kennametal employees.
Industry
Industrial Machinery
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/17 21:20
End of day share price update: 2019/07/17 00:00
Last estimates confirmation: 2019/07/16
Last earnings filing: 2019/05/07
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.