Kennametal Inc

Industrials
Industrial Machinery/Components
www.kennametal.com

Earnings Score
Moat Score
Safety Score

Market Cap $1.55B
PE 16
Debt $596.38M
Cash $121.15M
EV $2.02B
FCF $195.66M

Earnings

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Sales & Net Margins

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Earnings	$96.21M
EBIT	$164.32M
ROE	8%
ROA	7%
FCF	$195.66M
Equity	$1.26B
Growth Stability	-3%
PE	16.08
PEG	0.73
PB	1.23
P/FCF	7.91
P/S	0.76
Price/Cash	0.08
Debt/Equity	0.47
Debt/FCF	3.05
Net Margins	4%
Gross Margins	31%
Op. Margins	8%
Earnings CAGR	-3%
Sales Growth YoY	-3%
Sales Growth QoQ	0%
Sales CAGR	-1%
FCF CAGR	11%
Equity CAGR	2%
Earnings Stability	0.02
Earnings Growth YoY	-22%
Earnings Growth QoQ	-19%
Earnings CAGR 5Y	22%

Sales CAGR 5Y	3%
FCF CAGR 5Y	46%
Equity CAGR 5Y	-0%
Earnings CAGR 3Y	1%
Sales CAGR 3Y	1%
FCF CAGR 3Y	56%
Equity CAGR 3Y	-0%
Market Cap	$1.55B
Revenue	$2.02B
Dividend Yield	4%
Payout Ratio	65%
Assets	$2.44B
Total Debt	$596.38M
Cash	$121.15M
Shares Outstanding	77.72M
EV	2.02B
Earnings Score	6%
Moat Score	80%
Safety Score	61%
Final Score	49%
Working Capital	586.55M
Current Ratio	2.53
Gross Profit	$620.64M
Shares Growth 3y	-2%
Equity Growth QoQ	-4%
Equity Growth YoY	-5%

Assets & ROA

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Stockholders Equity & ROE

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Kennametal Inc is a manufacturer of metalworking tools and wear-resistant engineered components and coatings. The company operates in two business segments: Metal Cutting and infrastructure. It generates maximum revenue from the Metal Cutting segment. The Metal Cutting segment develops and manufactures high performance tooling and metal cutting products and services and offers an assortment of standard and custom metal cutting solutions to diverse end markets, including aerospace, general engineering, energy, and transportation. Geographically, it derives a majority of revenue from the United States.

SEC Filings

Direct access to Kennametal Inc (KMT) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Dec 31
- 10-Q Sep 30
- 10-K Jun 30
- 10-Q Mar 31
2023
- 10-Q Dec 31
- 10-Q Sep 30
- 10-K Jun 30
- 10-Q Mar 31
2022
- 10-Q Dec 31
- 10-Q Sep 30
- 10-K Jun 30
- 10-Q Mar 31

Sector Comparison

How does Kennametal Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Kennametal Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -3%

Stability 2%

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Kennametal Inc Discounted Cash Flow

Fully customizable DCF calculator online for Kennametal Inc.

Years

Calculation mode

= $4.2B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$196M	$217M	$242M	$269M	$299M	$332M	$369M	$410M	$456M	$507M	$563M	$5.6B
DCF		$198M	$200M	$202M	$204M	$206M	$208M	$210M	$213M	$215M	$217M	$2.2B
Value	$4.2B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	06/2015	06/2016	06/2017	06/2018	06/2019	06/2020	06/2021	06/2022	06/2023	06/2024	TTM
Net Margins	-14%	-11%	2%	8%	10%	-0%	3%	7%	6%	5%	4%
ROA	-	-7%	5%	11%	13%	1%	4%	8%	8%	7%	7%
ROE	-	-23%	5%	16%	18%	-0%	4%	11%	9%	8%	8%

Bad Net Margins (4.15%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	06/2015	06/2016	06/2017	06/2018	06/2019	06/2020	06/2021	06/2022	06/2023	06/2024	TTM
Debt over FCF	-	6.45	9.44	13.14	6.78	-29.31	5.52	7.08	3.66	3.53	3.05
Debt over Equity	0.55	0.7	0.67	1.14	0.43	0.47	0.44	0.46	0.46	0.46	0.47
Growth Stability	-	-	-	-	100%	-3%	37%	100%	100%	100%	-3%

Neutral Debt/FCF ratio (3.05)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.47)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (-3%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	06/2015	06/2016	06/2017	06/2018	06/2019	06/2020	06/2021	06/2022	06/2023	06/2024	CAGR 5Y
Revenue YoY growth	-	-21%	-2%	15%	0%	-21%	-2%	9%	3%	-2%	3%
Earnings YoY growth	-	-40%	-122%	307%	21%	-102%	-1K%	166%	-18%	-8%	22%
Equity YoY growth	-	-28%	6%	17%	12%	-8%	8%	-6%	2%	-2%	-0%
FCF YoY growth	-	-57%	-32%	43%	-17%	-123%	-631%	-22%	94%	4%	46%