Kennametal (KMT) AI Stock Analysis

• Market Cap: $1.67B
• Dividend Yield: 3.65%
• Average Volume (3M): 885.04K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 1.01
• Revenue Growth: -2.93%
• EPS Growth: 2.74%
• Country: US
• Employees: 8,400
• Sector: Industrials
• Sector Strength: 90
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 0.47
• Shares Outstanding: 76,233,570
• 10 Day Avg. Volume: 737,211
• 30 Day Avg. Volume: 885,039
• PEG Ratio: 1.13
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.08
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 2.66
• Enterprise Value/Ebitda: 1.36
• 1Y Price Target: $21.88
• Price Target Upside: -1.31% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 71 Outperform
• Price Target: $23.50 ▲(6.00%Upside)

Kennametal's overall stock score reflects a solid financial foundation and positive corporate developments. However, mixed technical indicators and moderate valuation hold back a higher score. Earnings call insights suggest confidence in long-term growth, despite current challenges.

Positive Factors

Earnings

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

Operational Improvement

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

Negative Factors

Foreign Exchange

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

Macroeconomic Uncertainty

Struggles to see upside due to macroeconomic uncertainty with tariffs have led to an Underperform rating.

Revenue Growth

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

Kennametal Business Overview & Revenue Model

Company Description

Kennametal Inc. is a global leader in the manufacturing of tooling and industrial materials. The company operates through two main segments: Industrial and Infrastructure. The Industrial segment provides tooling solutions and engineering services to a wide range of industries, including aerospace, transportation, and general engineering. The Infrastructure segment focuses on products and services for sectors such as energy, earthworks, and mining. Kennametal is known for its high-performance tooling and wear-resistant solutions that enhance productivity and efficiency in challenging environments.

How the Company Makes Money

Kennametal makes money primarily through the sale of its tooling, engineered components, and advanced materials to various industries. Revenue is generated through two main segments: the Industrial segment, which serves industries such as aerospace, defense, transportation, and general engineering with metal-cutting tools and solutions; and the Infrastructure segment, which targets sectors like energy, earthworks, and mining with wear-resistant products and surface technologies. In addition to direct sales, Kennametal benefits from long-term contracts and relationships with key clients, as well as global distribution networks that expand its reach. The company also invests in research and development to innovate and maintain competitive advantages in its product offerings.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
1.99B	2.05B	2.08B	2.01B	1.84B	1.89B
	Gross Profit
620.90M	627.09M	646.44M	647.98M	552.48M	529.47M
	EBIT
174.76M	170.22M	192.42M	218.14M	140.10M	142.09M
	EBITDA
279.35M	306.63M	333.15M	371.12M	282.72M	277.68M
	Net Income Common Stockholders
108.72M	109.32M	118.46M	144.62M	54.43M	-5.05M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
99.98M	127.97M	106.02M	85.59M	154.05M	606.68M
	Total Assets
2.66B	2.50B	2.55B	2.57B	2.67B	3.04B
	Total Debt
621.87M	645.75M	595.86M	615.55M	600.47M	1.09B
	Net Debt
521.89M	517.78M	489.84M	529.96M	446.43M	487.77M
	Total Liabilities
1.30B	1.22B	1.23B	1.28B	1.30B	1.77B
	Stockholders Equity
1.32B	1.25B	1.28B	1.25B	1.33B	1.23B
Cash Flow		Free Cash Flow
152.55M	169.55M	163.56M	84.52M	108.38M	-20.41M
	Operating Cash Flow
243.38M	277.11M	257.94M	181.44M	235.68M	223.74M
	Investing Cash Flow
-83.37M	-109.43M	-89.23M	-94.94M	-122.98M	-218.34M
	Financing Cash Flow
-151.11M	-141.75M	-143.11M	-150.74M	-574.25M	425.45M

Kennametal Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KMT, the sentiment is Positive. The current price of 22.17 is above the 20-day moving average (MA) of 21.67, above the 50-day MA of 20.31, and below the 200-day MA of 23.40, indicating a neutral trend. The MACD of 0.40 indicates Positive momentum. The RSI at 62.41 is Neutral, neither overbought nor oversold. The STOCH value of 82.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KMT.

Kennametal Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LECO	77 Outperform	$11.25B	24.86	34.83%	1.45%	-2.29%	-14.49%
RBC	77 Outperform	$12.00B	49.64	8.51%	―	4.87%	19.66%
SNA	75 Outperform	$16.82B	16.83	19.15%	2.57%	-0.88%	0.04%
TKR	74 Outperform	$5.02B	15.49	11.85%	1.91%	-3.69%	-11.76%
KMT	71 Outperform	$1.67B	15.85	8.69%	3.65%	-2.93%	2.74%
SWK	66 Neutral	$10.23B	28.09	4.03%	4.94%	-3.04%	―
Sector *	66 Neutral	$4.50B	12.29	5.40%	248.66%	4.13%	-12.33%

Kennametal Corporate Events

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.

Kennametal Appoints Shelley Bausch to Board of Directors

On April 29, 2025, Kennametal Inc. announced the appointment of Shelley Bausch to its Board of Directors, effective May 1, 2025, replacing Cindy L. Davis, who will retire on September 1, 2025. Bausch, a seasoned leader with over 30 years of experience in global manufacturing businesses, is expected to bring her expertise in operational and commercial excellence to the board, aiding in the company’s strategic advancement and shareholder value delivery.