Kennametal Inc. develops and applies tungsten carbides, ceramics, and super-hard materials and solutions for use in metal cutting and extreme wear applications to enable customers work against corrosion and high temperatures conditions worldwide.
Average dividend payer with moderate growth potential.
Share Price & News
How has Kennametal's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: KM3 has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: KM3 underperformed the German Machinery industry which returned 7.8% over the past year.
Return vs Market: KM3 underperformed the German Market which returned 12.4% over the past year.
Price Volatility Vs. Market
How volatile is Kennametal's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is Kennametal undervalued compared to its fair value and its price relative to the market?
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: KM3 (€25.6) is trading above our estimate of fair value (€15.9)
Significantly Below Fair Value: KM3 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: KM3 is unprofitable, so we can't compare its PE Ratio to the DE Machinery industry average.
PE vs Market: KM3 is unprofitable, so we can't compare its PE Ratio to the German market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate KM3's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: KM3 is overvalued based on its PB Ratio (2.1x) compared to the DE Machinery industry average (1.4x).
How is Kennametal forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: KM3 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).
Earnings vs Market: KM3 is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: KM3's is expected to become profitable in the next 3 years.
Revenue vs Market: KM3's revenue (2.2% per year) is forecast to grow slower than the German market (5.9% per year).
High Growth Revenue: KM3's revenue (2.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: KM3's Return on Equity is forecast to be low in 3 years time (13.1%).
How has Kennametal performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: KM3 is currently unprofitable.
Growing Profit Margin: KM3 is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: KM3 is unprofitable, but has reduced losses over the past 5 years at a rate of 60.7% per year.
Accelerating Growth: Unable to compare KM3's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: KM3 is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (-38.8%).
Return on Equity
High ROE: KM3 has a negative Return on Equity (-0.4%), as it is currently unprofitable.
How is Kennametal's financial position?
Financial Position Analysis
Short Term Liabilities: KM3's short term assets ($1.4B) exceed its short term liabilities ($898.1M).
Long Term Liabilities: KM3's short term assets ($1.4B) exceed its long term liabilities ($870.7M).
Debt to Equity History and Analysis
Debt Level: KM3's debt to equity ratio (82.5%) is considered high.
Reducing Debt: KM3's debt to equity ratio has increased from 54.5% to 82.5% over the past 5 years.
Debt Coverage: KM3's debt is well covered by operating cash flow (27.6%).
Interest Coverage: KM3 is unprofitable, therefore interest payments are not well covered by earnings.
What is Kennametal current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: KM3's dividend (2.58%) is higher than the bottom 25% of dividend payers in the German market (1.23%).
High Dividend: KM3's dividend (2.58%) is low compared to the top 25% of dividend payers in the German market (3.74%).
Stability and Growth of Payments
Stable Dividend: KM3's dividends per share have been stable in the past 10 years.
Growing Dividend: KM3's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: KM3 is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: KM3's dividends in 3 years are forecast to be well covered by earnings (38.9% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Chris Rossi (56 yo)
Mr. Christopher Rossi, also known as Chris, has been Chief Executive Officer and President at Kennametal Inc. since August 1, 2017. Mr. Rossi served as the Chief Executive Officer of Dresser-Rand Group Inc ...
CEO Compensation Analysis
Compensation vs Market: Chris's total compensation ($USD5.41M) is above average for companies of similar size in the German market ($USD2.71M).
Compensation vs Earnings: Chris's compensation has been consistent with company performance over the past year.
|VP & CFO||1.92yrs||US$5.39m||0.029% |
|VP & Chief Administrative Officer||1.25yrs||US$1.13m||0.033% |
|Chief Operations Officer of Metal Cutting||no data||US$2.15m||0.053% |
|VP & Chief Commercial Officer of Metal Cutting Business Segments||no data||US$1.47m||0.021% |
|CTO & VP||1.92yrs||no data||0.0031% |
|VP & Chief Information Officer||4yrs||no data||no data|
|Vice President of Investor Relations||4.58yrs||no data||no data|
|VP, Secretary & General Counsel||3.67yrs||US$1.12m||0.0099% |
|VP & President of Infrastructure Business Segment||0.50yr||no data||no data|
|VP of Finance & Corporate Controller||3.42yrs||no data||0.016% |
Experienced Management: KM3's management team is considered experienced (3 years average tenure).
|Independent Director||15.08yrs||US$229.24k||0.061% |
|Independent Director||4.5yrs||US$217.72k||0.012% |
|Independent Chairman of the Board & Lead Director||2.08yrs||US$320.12k||0.023% |
|Independent Director||2.58yrs||US$210.12k||0.0035% |
|Independent Director||2.08yrs||US$217.99k||0.0085% |
|Independent Director||9.42yrs||US$221.37k||0.024% |
|Independent Director||7.75yrs||US$215.57k||0.016% |
|Independent Director||3.92yrs||US$210.12k||0.0043% |
Experienced Board: KM3's board of directors are considered experienced (3.9 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: KM3 insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Kennametal Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Kennametal Inc.
- Ticker: KM3
- Exchange: DB
- Founded: 1938
- Industry: Industrial Machinery
- Sector: Capital Goods
- Market Cap: US$2.569b
- Listing Market Cap: US$2.171b
- Shares outstanding: 82.91m
- Website: https://www.kennametal.com
Number of Employees
- Kennametal Inc.
- 600 Grant Street
- Suite 5100
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|KMT||NYSE (New York Stock Exchange)||Yes||Capital Stock||US||USD||Jan 1968|
|KM3||DB (Deutsche Boerse AG)||Yes||Capital Stock||DE||EUR||Jan 1968|
|KMT *||BMV (Bolsa Mexicana de Valores)||Yes||Capital Stock||MX||MXN||Jan 1968|
Kennametal Inc. develops and applies tungsten carbides, ceramics, and super-hard materials and solutions for use in metal cutting and extreme wear applications to enable customers work against corrosion an ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/08/15 03:48|
|End of Day Share Price||2020/08/14 00:00|
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.