Kennametal, Inc. (KMT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Oceaneering International, Inc.

John Bean Technologies Corp.

Symbotic, Inc.

Enpro, Inc.

Kadant Inc.

Crane NXT Co.

Gates Industrial Corp. Plc

Kennametal, Inc.

Modine Manufacturing Co.

Kulicke & Soffa Industries, Inc.

Enovis Corp.

Why is Kennametal, Inc. ?

Company has a low Debt to Equity ratio (avg) at times

Flat results in Jun 25

OPERATING CASH FLOW(Y) Lowest at USD 208.32 MM
ROCE(HY) Lowest at 7.35%
PRE-TAX PROFIT(Q) At USD 34.66 MM has Fallen at -38.96%

With ROCE of 10.40%, it has a fair valuation with a 1.25 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -2.41%, its profits have fallen by -4.8%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -2.41% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kennametal, Inc. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Kennametal, Inc. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Kennametal, Inc.

-1.13%

0.36

38.93%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.85%

EBIT Growth (5y)

1.80%

EBIT to Interest (avg)

6.52

Debt to EBITDA (avg)

1.75

Net Debt to Equity (avg)

0.42

Sales to Capital Employed (avg)

1.08

Tax Ratio

27.42%

Dividend Payout Ratio

66.92%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

9.90%

ROE (avg)

9.24%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.35

EV to EBIT

11.99

EV to EBITDA

6.87

EV to Capital Employed

1.25

EV to Sales

1.10

PEG Ratio

Dividend Yield

3.05%

ROCE (Latest)

10.40%

ROE (Latest)

9.75%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 71.25%

DEBT-EQUITY RATIO (HY)

Lowest at 39.16 %

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 208.32 MM

ROCE(HY)

Lowest at 7.35%

PRE-TAX PROFIT(Q)

At USD 34.66 MM has Fallen at -38.96%

RAW MATERIAL COST(Y)

Grown by 11.23% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.58 times

NET PROFIT(Q)

Fallen at -35.07%

Here's what is working for Kennametal, Inc.

Debt-Equity Ratio

Lowest at 39.16 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend Payout Ratio

Highest at 71.25%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at USD 35.08 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Kennametal, Inc.

Pre-Tax Profit

At USD 34.66 MM has Fallen at -38.96%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Operating Cash Flow

Lowest at USD 208.32 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Net Profit

Fallen at -35.07%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Debtors Turnover Ratio

Lowest at 6.58 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 11.23% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales