A Business at a Glance
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KENNAMETAL INC
KMT
$2.7B
Mkt Cap
$35.23
+1.06%
KENNAMETAL INC (KMT) has a current P/E ratio of 24.6, compared to its historical median P/E of 16.8. The stock is currently considered Fair based on its historical valuation range.
KENNAMETAL INC (KMT) has a 5-year average return on invested capital (ROIC) of 7.5%. This is below average and may indicate limited pricing power.
KENNAMETAL INC (KMT) has a market capitalization of $2.7B. It is classified as a mid-cap stock.
Yes, KENNAMETAL INC (KMT) pays a dividend with a trailing twelve-month yield of 2.27%. The company also returns capital through share buybacks, with a buyback yield of 0.56%.
Based on historical P/E analysis, KENNAMETAL INC (KMT) appears fair. The current P/E of 24.6 is 47% above its historical median of 16.8. The estimated fair value CAGR (P/E method) is 7.8%.
KENNAMETAL INC (KMT) operates in the Machine Tools, Metal Cutting Types industry, within the Industrials sector.
KENNAMETAL INC (KMT) reported annual revenue of $2.0 billion in its most recent fiscal year, based on SEC EDGAR filings.
OVERVIEW With more than 85 years of materials expertise, Kennametal Inc. (the Company) is a global industrial technology leader, that helps customers across the General Engineering, Transportation, Earthworks, Energy and Aerospace & Defense end markets build their products with precision and efficiency. The Company was founded based on a tungsten carbide technology breakthrough in 1938 and was incorporated in Pennsylvania in 1943 as a manufacturer of tungsten carbide metal cutting tooling. In 1967, it was listed on the New York Stock Exchange (NYSE) with the stock ticker KMT. The Company's core expertise includes the development and application of tungsten carbides, ceramics, super-hard materials and solutions used in metal cutting and extreme wear applications to keep customers up and running longer against conditions such as corrosion and high temperatures.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 2.1B | 2.0B | 2.0B | 2.1B | 2.0B | 1.8B |
| Net Income | 137M | 93M | 109M | 118M | 145M | 54M |
| EPS | $1.79 | $1.20 | $1.37 | $1.46 | $1.72 | $0.65 |
| Free Cash Flow | 73M | 119M | 170M | 164M | -278M | 108M |
| ROIC | 8.1% | 6.2% | 7.7% | 8.4% | 9.0% | 6.2% |
| Gross Margin | 31.9% | 30.4% | 30.6% | 31.1% | 32.2% | 30.0% |
| Debt/Equity | 0.44 | 0.47 | 0.48 | 0.47 | 0.48 | 0.45 |
| Dividends/Share | $0.80 | $0.80 | $0.80 | $0.80 | $0.80 | $0.80 |
| Operating Income | 201M | 143M | 170M | 192M | 218M | 102M |
| Operating Margin | 9.4% | 7.3% | 8.3% | 9.3% | 10.8% | 5.5% |
| ROE | 10.1% | 7.4% | 8.7% | 9.4% | 11.2% | 4.3% |
| Shares Outstanding | 76M | 78M | 80M | 81M | 84M | 84M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 2.8B | 2.6B | 2.1B | 2.1B | 2.4B | 2.4B | 1.9B | 1.8B | 2.0B | 2.1B | 2.0B | 2.0B | 2.1B |
| Gross Margin | 31.6% | 30.4% | 29.4% | 31.3% | 34.6% | 35.0% | 28.1% | 30.0% | 32.2% | 31.1% | 30.6% | 30.4% | 31.9% |
| R&D | 44M | 45M | 39M | 38M | 39M | 39M | 39M | 40M | 42M | 43M | 44M | 44M | 44M |
| SG&A | 634M | 448M | 441M | 550M | 530M | 503M | 507M | 450M | 430M | 454M | 457M | 455M | 455M |
| EBIT | 263M | -358M | -175M | 95M | 290M | 329M | 22M | 102M | 218M | 192M | 170M | 143M | 201M |
| Op. Margin | 9.3% | -13.5% | -8.3% | 4.6% | 12.3% | 13.8% | 1.2% | 5.5% | 10.8% | 9.3% | 8.3% | 7.3% | 9.4% |
| Net Income | 158M | -374M | -226M | 49M | 200M | 242M | -5.7M | 54M | 145M | 118M | 109M | 93M | 137M |
| Net Margin | 5.6% | -14.1% | -10.8% | 2.4% | 8.5% | 10.2% | -0.3% | 3.0% | 7.2% | 5.7% | 5.3% | 4.7% | 6.4% |
| Non-Recurring | 35M | 570M | 4.2M | 66M | 28M | 34M | 90M | 59M | 3.4M | 4.9M | 13M | 22M | 11M |
| Returns on Capital | |||||||||||||
| ROIC | 7.7% | -14.9% | -12.0% | 4.0% | 13.7% | 15.5% | 0.9% | 6.2% | 9.0% | 8.4% | 7.7% | 6.2% | 8.1% |
| ROE | 8.5% | -22.8% | -19.6% | 5.0% | 18.1% | 19.1% | -0.4% | 4.3% | 11.2% | 9.4% | 8.7% | 7.4% | 10.1% |
| ROA | 4.4% | -11.1% | -8.7% | 2.1% | 7.5% | 8.7% | -0.2% | 1.9% | 5.5% | 4.6% | 4.3% | 3.7% | 5.0% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 272M | 351M | 222M | 195M | 277M | 301M | 224M | 236M | -181M | 258M | 277M | 208M | 148M |
| Free Cash Flow | 154M | 250M | 112M | 77M | 106M | 88M | -20M | 108M | -278M | 164M | 170M | 119M | 73M |
| Owner Earnings | 124M | 203M | 87M | 67M | 148M | 166M | 88M | 84M | -334M | 99M | 118M | 50M | 1.4B |
| CapEx | 117M | 101M | 111M | 118M | 171M | 212M | 244M | 127M | 97M | 94M | 108M | 89M | 75M |
| Maint. CapEx | 130M | 132M | 117M | 108M | 109M | 112M | 120M | 126M | 132M | 134M | 135M | 136M | -1.3B |
| Growth CapEx | 0 | 0 | 0 | 10M | 62M | 100M | 124M | 814K | 0 | 0 | 0 | 0 | 1.4B |
| D&A | 130M | 132M | 117M | 108M | 109M | 112M | 120M | 126M | 132M | 134M | 135M | 136M | -1.3B |
| CapEx/OCF | 43.2% | 28.7% | 50.5% | 60.4% | 61.7% | 70.7% | 109.1% | 54.0% | 53.4% | 36.6% | 38.8% | 42.7% | 50.7% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 56M | 57M | 64M | 64M | 65M | 66M | 66M | 67M | 67M | 65M | 63M | 62M | 61M |
| Dividend Yield | 2.1% | 2.6% | 4.2% | 3.1% | 2.4% | 2.6% | 3.3% | 2.6% | 2.7% | 3.4% | 3.4% | 3.5% | 2.3% |
| Share Buybacks | 14M | 318K | 295K | 241K | 217K | 214K | 209K | 197K | 86M | 49M | 66M | 60M | 15M |
| Buyback Yield | 0.5% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 4.8% | 2.4% | 3.7% | 3.4% | 0.6% |
| Stock-Based Comp | 18M | 17M | 18M | 21M | 21M | 23M | 16M | 25M | 21M | 25M | 24M | 22M | 30M |
| Debt Repayment | 451M | 309M | 95M | 26M | 190K | 400M | 0 | 300M | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | 811M | 639M | 539M | 509M | 441M | 416M | -8.5M | 444M | 513M | 493M | 471M | 459M | 491M |
| Cash & Equiv. | 178M | 105M | 162M | 191M | 556M | 182M | 607M | 154M | 86M | 106M | 128M | 141M | 107M |
| Long-Term Debt | 989M | 744M | 700M | 700M | 998M | 598M | 598M | 598M | 599M | 599M | 599M | 599M | 597M |
| Debt/Equity | 0.51 | 0.55 | 0.73 | 0.69 | 0.84 | 0.45 | 0.49 | 0.45 | 0.48 | 0.47 | 0.48 | 0.47 | 0.44 |
| Interest Coverage | 8.1 | -11.4 | -6.3 | 3.3 | 9.7 | 10.0 | 0.6 | 2.2 | 8.4 | 6.8 | 6.4 | 5.7 | 8.1 |
| Equity | 1.9B | 1.3B | 964M | 1.0B | 1.2B | 1.3B | 1.2B | 1.3B | 1.3B | 1.3B | 1.2B | 1.3B | 1.4B |
| Total Assets | 3.9B | 2.8B | 2.4B | 2.4B | 2.9B | 2.7B | 3.0B | 2.7B | 2.6B | 2.5B | 2.5B | 2.5B | 2.7B |
| Total Liabilities | 1.9B | 1.5B | 1.4B | 1.4B | 1.7B | 1.3B | 1.8B | 1.3B | 1.3B | 1.2B | 1.2B | 1.2B | 1.3B |
| Intangibles | 343M | 287M | 207M | 191M | 176M | 161M | 133M | 120M | 106M | 93M | 81M | 67M | 60M |
| Retained Earnings | 1.5B | 1.1B | 781M | 766M | 901M | 1.1B | 1.0B | 993M | 1.1B | 1.1B | 1.2B | 1.2B | 1.3B |
| Working Capital | 962M | 776M | 648M | 652M | 660M | 729M | 543M | 567M | 539M | 593M | 587M | 617M | 742M |
| Current Assets | 1.5B | 1.3B | 1.1B | 1.1B | 1.5B | 1.2B | 1.4B | 1.0B | 1.0B | 1.0B | 1.0B | 1.0B | 1.3B |
| Current Liabilities | 563M | 483M | 427M | 461M | 887M | 462M | 898M | 437M | 486M | 434M | 416M | 422M | 536M |
| Per Share Data | |||||||||||||
| EPS | 1.99 | -4.71 | -2.83 | 0.61 | 2.42 | 2.90 | -0.07 | 0.65 | 1.72 | 1.46 | 1.37 | 1.20 | 1.79 |
| Owner EPS | 1.56 | 2.56 | 1.09 | 0.83 | 1.79 | 1.99 | 1.09 | 1.01 | -3.97 | 1.22 | 1.48 | 0.64 | 18.69 |
| Book Value | 24.24 | 16.95 | 12.08 | 12.63 | 14.44 | 16.00 | 15.21 | 15.88 | 14.90 | 15.72 | 15.66 | 16.55 | 17.78 |
| Cash Flow/Share | 3.42 | 4.43 | 2.79 | 2.42 | 3.35 | 3.60 | 2.77 | 2.81 | -2.16 | 3.18 | 3.47 | 2.68 | -15.34 |
| Dividends/Share | 0.72 | 0.72 | 0.80 | 0.80 | 0.80 | 0.80 | 0.80 | 0.80 | 0.80 | 0.80 | 0.80 | 0.80 | 0.80 |
| Shares Out. | 79.6M | 79.4M | 79.8M | 80.6M | 82.7M | 83.4M | 80.9M | 83.7M | 84.1M | 81.1M | 79.8M | 77.6M | 76.2M |
| Valuation | |||||||||||||
| P/E Ratio | 17.1 | N/A | N/A | 49.5 | 12.0 | 10.5 | N/A | 47.8 | 12.3 | 17.4 | 16.3 | 18.7 | 19.7 |
| P/FCF | 17.5 | 8.3 | 11.7 | 31.4 | 22.6 | 28.8 | N/A | 24.0 | N/A | 12.6 | 10.5 | 14.6 | 36.7 |
| EV/EBIT | 12.7 | N/A | N/A | 24.3 | 9.2 | 8.4 | 78.4 | 29.8 | 10.6 | 13.2 | 13.2 | 15.4 | 15.8 |
| Price/Book | 1.4 | 1.6 | 1.4 | 2.4 | 2.0 | 1.9 | 1.5 | 2.0 | 1.4 | 1.6 | 1.4 | 1.4 | 2.0 |
| Price/Sales | 0.9 | 0.8 | 0.7 | 1.0 | 1.2 | 1.1 | 1.1 | 1.4 | 1.2 | 0.9 | 0.9 | 0.9 | 1.3 |
| FCF Yield | 5.7% | 12.0% | 8.5% | 3.2% | 4.4% | 3.5% | -1.1% | 4.2% | -15.6% | 7.9% | 9.5% | 6.8% | 2.7% |
| Market Cap | 2.7B | 2.1B | 1.3B | 2.4B | 2.4B | 2.5B | 1.9B | 2.6B | 1.8B | 2.1B | 1.8B | 1.7B | 2.7B |
| Avg. Price | 33.18 | 28.10 | 18.80 | 26.02 | 33.03 | 30.67 | 24.92 | 30.26 | 29.14 | 23.29 | 23.39 | 22.86 | 35.23 |
| Year-End Price | 33.98 | 26.35 | 16.39 | 30.18 | 29.10 | 30.48 | 23.04 | 31.08 | 21.19 | 25.37 | 22.27 | 22.48 | 35.23 |
KENNAMETAL INC passes 3 of 9 quality checks, indicating weak fundamentals.
KENNAMETAL INC trades at 24.6x trailing earnings, compared to its 15-year median P/E of 16.8x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 27.0x vs a median of 18.6x. The company's 5-year average ROIC is 7.5% with a gross margin of 30.9%. Total shareholder yield (dividends + buybacks) is 2.8%. At current prices, the estimated annualized return to fair value is +25.6%.
KENNAMETAL INC (KMT) has a net profit margin of 4.7%. This is a modest margin.
KENNAMETAL INC (KMT) generated $119 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
KENNAMETAL INC (KMT) has a debt-to-equity ratio of 0.47. This indicates a conservatively financed balance sheet.
KENNAMETAL INC (KMT) reported earnings per share (EPS) of $1.20 in its most recent fiscal year.
KENNAMETAL INC (KMT) has a return on equity (ROE) of 7.4%. This indicates moderate shareholder returns.
KENNAMETAL INC (KMT) has a 5-year average gross margin of 30.9%. This indicates decent pricing power.
The Ledger Terminal provides 17 years of financial data for KENNAMETAL INC (KMT), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
KENNAMETAL INC (KMT) has a book value per share of $16.55, based on its most recent annual SEC filing.