Kennametal (KMT) AI Stock Analysis

• Market Cap: $1.57B
• Dividend Yield: 3.95%
• Average Volume (3M): 1.19M
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.92
• Revenue Growth: -3.91%
• EPS Growth: -12.49%
• Country: US
• Employees: 8,400
• Sector: Industrials
• Sector Strength: 85
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 0.34
• Shares Outstanding: 76,233,570
• 10 Day Avg. Volume: 1,980,279
• 30 Day Avg. Volume: 1,193,003
• PEG Ratio: -1.55
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 0.90
• P/FCF Ratio: 14.86
• Enterprise Value/Market Cap: 1.47
• Enterprise Value/Revenue: 1.17
• Enterprise Value/Gross Profit: 3.86
• Enterprise Value/Ebitda: 7.87
• 1Y Price Target: $22.50
• Price Target Upside: 9.12% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 60 Neutral
• Price Target: $21.50 ▲(4.27% Upside)

Kennametal's overall stock score reflects a stable financial position with efficient operations but is tempered by bearish technical indicators and a cautious earnings outlook. The valuation is reasonable, but market challenges and declining sales impact the score.

Positive Factors

Earnings

KMT reported a better than expected FQ3 with adjusted EPS of $0.47, surpassing consensus estimates of $0.24.

Operational Progress

Operational progress was observed with a metal cutting decremental margin of 27%, better than expected compared to previous quarters.

Negative Factors

End Markets Weakness

Lower organic revenue growth across both Metal Cutting and Infrastructure segments reflects weakness in Europe and Transportation end markets.

Foreign Exchange Impact

Higher foreign exchange headwinds are impacting the company's financial outlook.

Macroeconomic Uncertainty

There is a struggle to see upside due to macroeconomic uncertainty with tariffs, leading to an Underperform rating.

Kennametal Business Overview & Revenue Model

Company Description

Kennametal Inc. engages in development and application of 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. The company operates through two segments, Metal Cutting and Infrastructure. It 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. The company also provides specified product design, selection, application, and support services; and standard and custom metal cutting solutions to aerospace, general engineering, energy, and transportation customers. In addition, it produces compacts, nozzles, frac seats, and custom components used in oil and gas, and petrochemical industries; rod blanks and abrasive water jet nozzles for general industries; earth cutting tools and systems used in underground mining, trenching and foundation drilling, and road milling; tungsten carbide powders for the oil and gas, aerospace, and process industries; and ceramics used by the packaging industry for metallization of films and papers. It provides its products under the Kennametal, WIDIA, WIDIA Hanita, and WIDIA GTD brands through its direct sales force; a network of independent and national distributors; integrated supplier channels; and through the Internet. The company was founded in 1938 and is based in Pittsburgh, Pennsylvania.

How the Company Makes Money

Kennametal generates revenue primarily through the sale of its tooling and wear-resistant products. The company operates a diversified revenue model that includes direct sales to end-users, distribution agreements, and partnerships with original equipment manufacturers (OEMs). Key revenue streams come from the Metal Cutting segment, which focuses on precision cutting tools and solutions, and the Infrastructure segment, which provides products for heavy machinery and construction applications. Additionally, Kennametal benefits from ongoing relationships with customers through service agreements, providing maintenance and support for their products, which creates recurring revenue. The company's innovation in product development and strategic acquisitions also contribute significantly to its earning potential.

Kennametal Financial Statement Overview

Summary

Kennametal demonstrates a stable financial position with consistent profitability and sound cash flow management. Despite slight declines in revenue and profitability margins, the company maintains low leverage and effective capital utilization.

Income Statement

Kennametal's income statement demonstrates a relatively stable financial performance. The Gross Profit Margin for TTM (Trailing-Twelve-Months) is 31.15%, which shows consistent profitability, though slightly down from previous years. The Net Profit Margin stands at 5.45% for TTM, indicating moderate profitability but a decline compared to historical data. Revenue for TTM has decreased by 2.6% compared to the previous year, signaling a slight contraction. EBIT and EBITDA Margins for TTM are 8.76% and 14.01% respectively, reflective of efficient operations, albeit with a decrease from the last year.

Balance Sheet

The balance sheet reflects a robust capital structure with a Debt-to-Equity Ratio of 0.05 for TTM, indicating low leverage and financial stability. Return on Equity (ROE) for TTM is 8.79%, showcasing a reasonable return on shareholders' investment. The Equity Ratio for TTM is 49.67%, signifying a balanced asset financing through equity. Despite the solid equity position, there has been a slight decline in total assets over the years.

Cash Flow

Kennametal's cash flow statement indicates solid cash generation capabilities. The Free Cash Flow for TTM is $152.55 million, albeit a reduction compared to the previous year. The Operating Cash Flow to Net Income Ratio is 2.24, suggesting strong cash earnings. The Free Cash Flow to Net Income Ratio stands at 1.40, reflecting efficient cash management practices despite a decrease in free cash flow growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.97B	1.97B	2.05B	2.08B	2.01B	1.84B
Gross Profit	598.07M	598.07M	627.09M	646.44M	647.98M	552.48M
EBITDA	293.43M	293.43M	306.63M	333.15M	371.12M	282.72M
Net Income	93.13M	93.13M	109.32M	118.46M	144.62M	54.43M
Balance Sheet
Total Assets	2.55B	2.55B	2.50B	2.55B	2.57B	2.67B
Cash, Cash Equivalents and Short-Term Investments	140.54M	140.54M	127.97M	106.02M	85.59M	154.05M
Total Debt	597.76M	597.76M	645.75M	595.86M	615.55M	600.47M
Total Liabilities	1.22B	1.22B	1.22B	1.23B	1.28B	1.30B
Stockholders Equity	1.28B	1.28B	1.25B	1.28B	1.25B	1.33B
Cash Flow
Free Cash Flow	119.35M	119.35M	169.55M	163.56M	84.52M	108.38M
Operating Cash Flow	208.32M	208.32M	277.11M	257.94M	181.44M	235.68M
Investing Cash Flow	-61.83M	-61.83M	-109.43M	-89.23M	-94.94M	-122.98M
Financing Cash Flow	-133.92M	-133.92M	-141.75M	-143.11M	-150.74M	-574.25M

Kennametal Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KMT, the sentiment is Negative. The current price of 20.62 is below the 20-day moving average (MA) of 23.57, below the 50-day MA of 23.00, and below the 200-day MA of 22.87, indicating a bearish trend. The MACD of -0.77 indicates Positive momentum. The RSI at 34.01 is Neutral, neither overbought nor oversold. The STOCH value of 34.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KMT.

Kennametal Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RBC	79 Outperform	$12.78B	50.94	8.56%	―	5.48%	16.88%
SNA	78 Outperform	$16.98B	17.35	18.18%	2.54%	-0.76%	-2.62%
LECO	74 Outperform	$13.36B	27.23	37.35%	1.22%	0.24%	0.05%
TKR	72 Outperform	$5.36B	17.49	10.52%	1.78%	-2.01%	-9.95%
SWK	66 Neutral	$11.06B	22.65	5.38%	4.59%	-2.71%	―
Sector *	64 Neutral	$10.83B	16.50	6.52%	2.09%	2.39%	-16.50%
KMT	60 Neutral	$1.57B	17.18	7.35%	3.95%	-3.91%	-12.49%

Kennametal Corporate Events

Kennametal Declares Quarterly Cash Dividend

On July 27, 2025, Steven H. Wunning announced he will not seek re-election to Kennametal Inc.’s Board of Directors and will retire at the October 2025 Annual Meeting of Shareowners, ending his tenure since 2005 and his role as Chairman of the Audit Committee. On July 29, 2025, Kennametal’s Board declared a quarterly cash dividend of $.20 per share, payable on August 26, 2025, to shareholders recorded by August 12, 2025.

The most recent analyst rating on (KMT) stock is a Sell with a $23.00 price target. To see the full list of analyst forecasts on Kennametal stock, see the KMT Stock Forecast page.

Kennametal Sells Subsidiary to Private Equity Firm

On June 6, 2025, Kennametal Inc. announced the sale of its subsidiary, Kennametal Stellite, L.P., in Goshen, IN, to a Chicago-based private equity firm. The transaction, which brought in $19 million, is part of Kennametal’s strategy to improve its sales mix and focus on long-term strategic priorities. The subsidiary accounted for less than 2% of the company’s total sales and was considered immaterial to its profitability. The proceeds from the sale are intended for general corporate purposes, with potential additional earnings based on future performance.

The most recent analyst rating on (KMT) stock is a Hold with a $24.00 price target. To see the full list of analyst forecasts on Kennametal stock, see the KMT Stock Forecast page.