NYSE
KMT
Last Price
US $31.22
KEY FIGURES
MKT CAP
$2.4B
EPS
TTM
$4.49
PEG
TTM
0.03x
P/E
TTM
6.95x
P/S
TTM
1.01x
YIELD
2.56%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
7.35%
Return on equity
ROIC: 5.14%
Valuation History
19.1X
Price to Earnings
EV/EBITDA: 7.8X
Cash flow
Profit margin
5.06%
(FY vs FY)
EBITDA Y/Y
21.66%
(FY vs FY)
Cash flow Y/Y
-
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $31.22
—
Default assumptions
EBITDA Multiple
Fair Value
Market $31.22
-34.79%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
Kennametal Inc. cash flow to debt ratio of 28.48% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.
Financial risk - Healthy cash flow growth.
Kennametal Inc.'s free cash flow has decreased -29.60% from $169.55M last year to $119.35M, signaling decreasing performance
Financial stability - Healthy debt to equity ratio.
Kennametal Inc.'s debt to equity ratio is 0.44, which means that the company's assets are healthy financed, signaling financial stability. READ MORE: A ratio under 0.60 means the company finances its assets with own equity, signaling financial stability and good management.
Financial stability - Healthy debt to equity ratio development.
Kennametal Inc.'s debt has decreased relative to shareholder equity from 0.50 last year to 0.44 today, signaling strengthened financials
Financial stability - Net debt/EBITDA.
Kennametal Inc. has a net debt to EBITDA ratio of 1.00x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
Kennametal Inc.'s interest coverage ratio of 16.68 indicates that earnings with good margin can cover interest payments on company debt
Financial stability - Profit margin growth.
Kennametal Inc.'s profit margin has increased (206.84%) in the last year from 4.73% to 14.53%, signaling increasing performance
Financial stability - Short term assets vs short term liabilities.
Kennametal Inc.'s short-term assets of $1.77G exceed its short-term liabilities of $676.71M
Increasing performance - ROA.
Kennametal Inc.'s return on assets of 10.80% is higher than the 5.00% threshold, indicating efficient asset utilization
Increasing performance - Absolute return on equity.
Kennametal Inc.'s return on equity of 24.79%, is higher than 15.00%, indicating good performance
Decreasing performance - Earnings quality.
Kennametal Inc.'s operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation
Increasing performance - Earnings stability.
Kennametal Inc. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Kennametal Inc. has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Kennametal Inc. has a free cash flow yield of 5.02%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Increasing performance - Healthy earnings growth.
Kennametal Inc.'s yearly earnings has increased 267.67% since last year from $93.12M to $342.39M, signaling increasing performance
Increasing performance - Healthy revenue growth.
Kennametal Inc.'s yearly revenue has increased 19.82% since last year from $1.97G to $2.36G, signaling increasing performance
Increasing performance - ROIC.
ROIC 14.33% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.
Increasing performance - 3-year revenue CAGR.
Kennametal Inc.'s 3-year revenue CAGR of 4.28% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Kennametal Inc. had revenue growth in 3.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Kennametal Inc. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Kennametal Inc. has insufficient data to evaluate this check.
Undervalued - Earnings yield.
Kennametal Inc. has an earnings yield of 14.38%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
Kennametal Inc. is overvalued relative to its fair value price of 20.36 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Kennametal Inc. has an EV/EBITDA ratio of 4.76x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Undervalued - PEG ratio value.
Kennametal Inc. has a PEG-ratio under 1 which is considered undervalued
Undervalued - P/B ratio.
Kennametal Inc. has a price-to-book ratio of 1.48x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
Kennametal Inc. has a price-to-sales ratio of 1.01x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue