Kennametal (KMT) AI Stock Analysis

• Market Cap: $1.92B
• Dividend Yield: 3.49%
• Average Volume (3M): 827.36K
• Price to Earnings (P/E): 20.7
• Beta (1Y): 0.92
• Revenue Growth: -2.63%
• EPS Growth: -4.46%
• Country: US
• Employees: 8,400
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 0.34
• Shares Outstanding: 76,021,576
• 10 Day Avg. Volume: 1,002,952
• 30 Day Avg. Volume: 827,363
• 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: 1.14
• Enterprise Value/Revenue: 1.10
• Enterprise Value/Gross Profit: 3.64
• Enterprise Value/Ebitda: 8.42
• 1Y Price Target: $24.00
• Price Target Upside: -7.90% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 4
• EPS Forecast (FY): 1.25
• Revenue Forecast (FY): $2.00B

• Rating: 72 Outperform
• Price Target: $28.00 ▲(7.44% Upside)

Kennametal's overall score is driven by a positive earnings call and stable financial performance, despite some operational challenges. The technical analysis suggests potential overbought conditions, and valuation metrics indicate reasonable pricing with a good dividend yield.

Positive Factors

Market Share Gains

Securing large project wins across various sectors indicates strong competitive positioning and potential for sustained market share growth.

Improved Sales and EPS Outlook

Raising sales and EPS outlook suggests confidence in strategic initiatives and market conditions, supporting long-term revenue and profitability growth.

Organic Sales Growth

Achieving organic sales growth after a period of decline indicates recovery and potential for sustained revenue expansion in core markets.

Negative Factors

Cash Flow Challenges

Significant decline in cash flow from operations can limit investment in growth opportunities and affect financial flexibility.

Transportation Market Decline

Declining sales in the transportation market suggest potential headwinds in a key sector, impacting overall revenue growth prospects.

General Engineering Market Softness

Flat sales in General Engineering highlight challenges in demand, particularly in EMEA, which could hinder growth in this segment.

Kennametal Business Overview & Revenue Model

Company Description

Kennametal Inc. (KMT) is a global leader in tooling and industrial materials, specializing in providing advanced materials, tooling solutions, and wear-resistant products for various industries, including aerospace, automotive, construction, energy, and metalworking. The company designs and manufactures cutting tools, tooling systems, and other engineered products that enhance productivity and efficiency in manufacturing processes. Kennametal operates through two primary segments: Metal Cutting and Infrastructure, offering a broad range of products such as inserts, tool holders, and wear parts designed to withstand extreme conditions.

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 strengths in operational efficiency and a balanced leverage profile. However, challenges in revenue growth and profitability, as well as declining free cash flow, suggest areas for strategic focus to enhance future performance.

Income Statement

Kennametal's income statement reflects moderate stability with a gross profit margin of approximately 30.4% and a net profit margin of 4.7% in the latest year. However, the company experienced a slight decline in revenue growth rate at -1.35%, indicating challenges in expanding sales. The EBIT and EBITDA margins are relatively healthy at 7.98% and 14.92%, respectively, suggesting efficient operational management despite revenue pressures.

Balance Sheet

The balance sheet shows a solid debt-to-equity ratio of 0.47, indicating a balanced approach to leveraging. The equity ratio stands at approximately 50.4%, reflecting a strong equity base. However, the return on equity is currently at 0%, which highlights a need for improved profitability to enhance shareholder returns.

Cash Flow

Cash flow analysis reveals a decrease in free cash flow growth by 21.76%, which could impact future investments. The operating cash flow to net income ratio is 0.49, suggesting moderate efficiency in converting income to cash. The free cash flow to net income ratio of 0.57 indicates a reasonable level of cash generation relative to profits, though there is room for improvement.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.98B	1.97B	2.05B	2.08B	2.01B	1.84B
Gross Profit	601.61M	598.07M	627.09M	646.44M	647.98M	552.48M
EBITDA	259.75M	293.43M	306.63M	333.15M	371.12M	282.72M
Net Income	94.30M	93.13M	109.32M	118.46M	144.62M	54.43M
Balance Sheet
Total Assets	2.52B	2.55B	2.50B	2.55B	2.57B	2.67B
Cash, Cash Equivalents and Short-Term Investments	103.50M	140.54M	127.97M	106.02M	85.59M	154.05M
Total Debt	598.39M	643.36M	645.75M	595.86M	615.55M	600.47M
Total Liabilities	1.19B	1.22B	1.22B	1.23B	1.28B	1.30B
Stockholders Equity	1.33B	1.28B	1.25B	1.28B	1.25B	1.33B
Cash Flow
Free Cash Flow	92.86M	119.35M	169.55M	163.56M	84.52M	108.38M
Operating Cash Flow	180.06M	208.32M	277.11M	257.94M	181.44M	235.68M
Investing Cash Flow	-64.58M	-61.83M	-109.43M	-89.23M	-94.94M	-122.98M
Financing Cash Flow	-128.64M	-133.92M	-141.75M	-143.11M	-150.74M	-574.25M

Kennametal Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 26.06 is above the 20-day moving average (MA) of 22.61, above the 50-day MA of 21.77, and above the 200-day MA of 21.66, indicating a bullish trend. The MACD of 0.67 indicates Negative momentum. The RSI at 76.32 is Negative, neither overbought nor oversold. The STOCH value of 61.68 is Neutral, 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
RBC	77 Outperform	$13.64B	52.70	8.54%	―	8.27%	19.06%
TKR	76 Outperform	$5.47B	18.56	9.80%	1.77%	-1.01%	-12.13%
LECO	75 Outperform	$12.38B	24.12	38.11%	1.32%	3.27%	10.89%
SNA	75 Outperform	$17.62B	17.75	17.96%	2.51%	0.24%	-1.85%
KMT	72 Outperform	$1.92B	20.75	7.36%	3.49%	-2.63%	-4.46%
SWK	64 Neutral	$10.78B	24.09	4.92%	4.86%	-1.40%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Kennametal Corporate Events

Kennametal Announces Director Elections and Dividend Declaration

At its Annual Meeting on October 28, 2025, Kennametal Inc. announced the election of eight directors, the ratification of PricewaterhouseCoopers LLP as its independent auditor for the fiscal year ending June 30, 2026, and an advisory approval of executive compensation. Additionally, the Board declared a quarterly cash dividend of $0.20 per share, payable on November 24, 2025, indicating a stable financial outlook and commitment to shareholder returns.

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 Inc’s Earnings Call: Mixed Sentiments and Cautious Outlook

Kennametal Inc’s recent earnings call conveyed a mixed sentiment, with positive developments such as significant defense contracts and cost-saving measures being overshadowed by persistent market weaknesses and declining sales. The company expressed a cautious outlook for fiscal 2026 due to these challenges.

Kennametal Inc. Reports Fiscal 2025 Earnings

Kennametal Inc. is a global leader in industrial technology, providing cutting-edge materials science, tooling, and wear-resistant solutions across various sectors, including aerospace, defense, and energy. The company has a strong presence in nearly 100 countries, with a workforce of approximately 8,100 employees.