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KMT

Kennametal NYSE:KMT Stock Report

Last Price

US$23.23

Market Cap

US$1.9b

7D

4.9%

1Y

-36.0%

Updated

30 Jun, 2022

Data

Company Financials +
KMT fundamental analysis
Snowflake Score
Valuation6/6
Future Growth2/6
Past Performance5/6
Financial Health6/6
Dividends5/6

KMT Stock Overview

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.

Kennametal Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Kennametal
Historical stock prices
Current Share PriceUS$23.23
52 Week HighUS$41.22
52 Week LowUS$21.62
Beta1.9
1 Month Change-16.26%
3 Month Change-17.65%
1 Year Change-36.01%
3 Year Change-33.87%
5 Year Change-39.36%
Change since IPO208.45%

Recent News & Updates

Jun 14
Return Trends At Kennametal (NYSE:KMT) Aren't Appealing

Return Trends At Kennametal (NYSE:KMT) Aren't Appealing

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Amongst other things...

May 08
Kennametal (NYSE:KMT) Has Announced A Dividend Of US$0.20

Kennametal (NYSE:KMT) Has Announced A Dividend Of US$0.20

The board of Kennametal Inc. ( NYSE:KMT ) has announced that it will pay a dividend on the 24th of May, with investors...

Shareholder Returns

KMTUS MachineryUS Market
7D4.9%0.6%-0.6%
1Y-36.0%-22.9%-21.7%

Return vs Industry: KMT underperformed the US Machinery industry which returned -22.5% over the past year.

Return vs Market: KMT underperformed the US Market which returned -20.8% over the past year.

Price Volatility

Is KMT's price volatile compared to industry and market?
KMT volatility
KMT Average Weekly Movement5.6%
Machinery Industry Average Movement6.0%
Market Average Movement8.0%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market3.2%

Stable Share Price: KMT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: KMT's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19388,635Chris Rossihttps://www.kennametal.com

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. It operates through two segments, Metal Cutting and Infrastructure. The company offers standard and custom products, including turning, milling, hole making, tooling systems, and services, as well as specialized wear components and metallurgical powders for manufacturers engaged in various industries, such as the 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.

Kennametal Fundamentals Summary

How do Kennametal's earnings and revenue compare to its market cap?
KMT fundamental statistics
Market CapUS$1.92b
Earnings (TTM)US$138.01m
Revenue (TTM)US$2.00b

13.9x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KMT income statement (TTM)
RevenueUS$2.00b
Cost of RevenueUS$1.34b
Gross ProfitUS$661.43m
Other ExpensesUS$523.41m
EarningsUS$138.01m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.67
Gross Margin33.10%
Net Profit Margin6.91%
Debt/Equity Ratio45.7%

How did KMT perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

48%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is KMT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for KMT?

Other financial metrics that can be useful for relative valuation.

KMT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.3x
Enterprise Value/EBITDA6.9x
PEG Ratio0.7x

Price to Earnings Ratio vs Peers

How does KMT's PE Ratio compare to its peers?

KMT PE Ratio vs Peers
The above table shows the PE ratio for KMT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average25.7x
B Barnes Group
15.6x21.1%US$1.6b
SPXC SPX
49.4x41.1%US$2.4b
ESE ESCO Technologies
27.9x23.7%US$1.8b
NPO EnPro Industries
9.7x-22.7%US$1.7b
KMT Kennametal
13.9x19.0%US$1.9b

Price-To-Earnings vs Peers: KMT is good value based on its Price-To-Earnings Ratio (13.9x) compared to the peer average (25.7x).


Price to Earnings Ratio vs Industry

How does KMT's PE Ratio compare vs other companies in the US Machinery Industry?

Price-To-Earnings vs Industry: KMT is good value based on its Price-To-Earnings Ratio (13.9x) compared to the US Machinery industry average (20.1x)


Price to Earnings Ratio vs Fair Ratio

What is KMT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

KMT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.9x
Fair PE Ratio20.7x

Price-To-Earnings vs Fair Ratio: KMT is good value based on its Price-To-Earnings Ratio (13.9x) compared to the estimated Fair Price-To-Earnings Ratio (20.7x).


Share Price vs Fair Value

What is the Fair Price of KMT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: KMT ($23.23) is trading below our estimate of fair value ($74.23)

Significantly Below Fair Value: KMT is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: KMT is good value based on its PEG Ratio (0.7x)


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Future Growth

How is Kennametal forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


19.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KMT's forecast earnings growth (19% per year) is above the savings rate (1.9%).

Earnings vs Market: KMT's earnings (19% per year) are forecast to grow faster than the US market (13.7% per year).

High Growth Earnings: KMT's earnings are forecast to grow, but not significantly.

Revenue vs Market: KMT's revenue (4.8% per year) is forecast to grow slower than the US market (8.3% per year).

High Growth Revenue: KMT's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KMT's Return on Equity is forecast to be low in 3 years time (13.4%).


Discover growth companies

Past Performance

How has Kennametal performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-9.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: KMT has high quality earnings.

Growing Profit Margin: KMT's current net profit margins (6.9%) are higher than last year (0.6%).


Past Earnings Growth Analysis

Earnings Trend: KMT has become profitable over the past 5 years, growing earnings by -9.7% per year.

Accelerating Growth: KMT's earnings growth over the past year (1249.5%) exceeds its 5-year average (-9.7% per year).

Earnings vs Industry: KMT earnings growth over the past year (1249.5%) exceeded the Machinery industry 22.7%.


Return on Equity

High ROE: KMT's Return on Equity (10.5%) is considered low.


Discover strong past performing companies

Financial Health

How is Kennametal's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: KMT's short term assets ($1.0B) exceed its short term liabilities ($460.4M).

Long Term Liabilities: KMT's short term assets ($1.0B) exceed its long term liabilities ($837.3M).


Debt to Equity History and Analysis

Debt Level: KMT's net debt to equity ratio (38.3%) is considered satisfactory.

Reducing Debt: KMT's debt to equity ratio has reduced from 70.3% to 45.7% over the past 5 years.

Debt Coverage: KMT's debt is well covered by operating cash flow (30.5%).

Interest Coverage: KMT's interest payments on its debt are well covered by EBIT (9.2x coverage).


Balance Sheet


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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


3.44%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: KMT's dividend (3.44%) is higher than the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: KMT's dividend (3.44%) is low compared to the top 25% of dividend payers in the US market (4.3%).


Stability and Growth of Payments

Stable Dividend: KMT's dividends per share have been stable in the past 10 years.

Growing Dividend: KMT's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (48.5%), KMT's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (68.8%), KMT's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

0.9yrs

Average management tenure


CEO

Chris Rossi (57 yo)

0.083

Tenure

US$6,447,574

Compensation

Mr. Christopher Rossi, also known as Chris, serves as President, Chief Executive Officer and Director at Kennametal Inc. since May 2022. He had been Chief Executive Officer, President and Director at Kenna...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD6.45M) is about average for companies of similar size in the US market ($USD5.57M).

Compensation vs Earnings: Chris's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: KMT's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: KMT's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: KMT insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Kennametal Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Kennametal Inc.
  • Ticker: KMT
  • Exchange: NYSE
  • Founded: 1938
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Implied Market Cap: US$1.920b
  • Shares outstanding: 82.64m
  • Website: https://www.kennametal.com

Number of Employees


Location

  • Kennametal Inc.
  • 525 William Penn Place
  • Suite 3300
  • Pittsburgh
  • Pennsylvania
  • 15219
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/30 00:00
End of Day Share Price2022/06/30 00:00
Earnings2022/03/31
Annual Earnings2021/06/30


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.