Kennametal (KMT) AI Stock Analysis

• Market Cap: $2.17B
• Dividend Yield: 2.81%
• Average Volume (3M): 841.86K
• Price to Earnings (P/E): 23.4
• Beta (1Y): 0.79
• 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: 76,093,140
• 10 Day Avg. Volume: 888,064
• 30 Day Avg. Volume: 841,857
• 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: 1.01
• Enterprise Value/Revenue: 1.10
• Enterprise Value/Gross Profit: 3.63
• Enterprise Value/Ebitda: 7.37
• 1Y Price Target: $25.75
• Price Target Upside: -9.43% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 4
• EPS Forecast (FY): 1.5
• Revenue Forecast (FY): $2.09B

• Rating: 72 Outperform
• Price Target: $31.00 ▲(9.04% Upside)

Kennametal's overall stock score reflects a stable financial position with some challenges in profitability and cash flow efficiency. Positive technical indicators and a favorable earnings call outlook contribute to a moderately strong score. Valuation concerns slightly offset these strengths, but corporate events provide additional stability.

Positive Factors

Market Share Gains

Significant project wins in high-growth sectors enhance Kennametal's market position, supporting long-term revenue growth and competitive advantage.

Improved Sales and EPS Outlook

Raising sales and EPS outlook indicates effective strategic execution and pricing power, suggesting potential for sustained financial performance.

Adjusted EBITDA Margin Improvement

Improved EBITDA margins reflect operational efficiency and cost management, enhancing profitability and financial stability over time.

Negative Factors

Cash Flow Challenges

Declining cash flow indicates potential liquidity constraints, which could limit investment capacity and financial flexibility in the long term.

Transportation Market Decline

Declining transportation sales highlight regional market challenges, potentially impacting revenue growth and market presence in key areas.

General Engineering Market Softness

Flat sales in General Engineering suggest demand weakness, which may affect revenue stability and growth prospects in this segment.

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 through the sale of its products, which include cutting tools, industrial components, and wear-resistant materials. The company's revenue model is primarily based on direct sales to end-users in various industries, as well as through distribution partners. Key revenue streams include sales of cutting tools and tooling systems, which are critical in machining operations, and specialized services that enhance tool performance and lifespan. Additionally, Kennametal benefits from long-term contracts and partnerships with large manufacturers, providing a stable revenue base. The company also invests in research and development to innovate and expand its product offerings, ensuring they meet the evolving needs of their customers, which contributes to sustained earnings growth.

Kennametal Financial Statement Overview

Summary

Kennametal shows stable revenue and profit margins with a balanced capital structure. However, declining profitability and cash flow metrics indicate challenges in operational efficiency and liquidity management.

Income Statement

Kennametal's income statement shows a stable gross profit margin of around 30% and a net profit margin of approximately 4.8% in the TTM period. The revenue growth rate is positive at 0.815% TTM, indicating a slight recovery from previous declines. However, the EBIT and EBITDA margins have decreased compared to previous years, suggesting some pressure on operational efficiency.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.45 TTM, indicating a balanced approach to leveraging. Return on equity is at 7.4% TTM, which is a decrease from previous years, suggesting a decline in profitability. The equity ratio remains stable, indicating a solid capital structure.

Cash Flow

Cash flow analysis reveals a decrease in free cash flow growth by 22.2% TTM, highlighting potential liquidity challenges. The operating cash flow to net income ratio is 0.45, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is 0.52, suggesting that cash flow generation is not fully aligned with net income.

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	603.21M	598.07M	627.09M	646.44M	647.98M	552.48M
EBITDA	296.86M	293.43M	305.61M	322.14M	364.32M	237.52M
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	641.59M	643.36M	645.75M	639.42M	663.28M	651.49M
Total Liabilities	1.19B	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	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: 28.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 28.43 is above the 20-day moving average (MA) of 28.01, above the 50-day MA of 25.40, and above the 200-day MA of 22.31, indicating a bullish trend. The MACD of 0.95 indicates Positive momentum. The RSI at 60.69 is Neutral, neither overbought nor oversold. The STOCH value of 46.69 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
SNA	78 Outperform	$18.00B	18.14	17.96%	2.56%	0.24%	-1.85%
LECO	77 Outperform	$13.32B	25.95	38.11%	1.23%	3.27%	10.89%
RBC	77 Outperform	$14.07B	54.88	8.54%	―	8.27%	19.06%
TKR	76 Outperform	$5.86B	19.90	9.80%	1.64%	-1.01%	-12.13%
KMT	72 Outperform	$2.17B	23.40	7.36%	2.81%	-2.63%	-4.46%
SWK	68 Neutral	$11.14B	24.88	4.92%	4.52%	-1.40%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Kennametal Corporate Events

Kennametal Announces New Financial Obligation Agreement

The news release from Kennametal does not provide specific details about the company’s industry, products, or market focus. The release references an agreement, but lacks further context or information about its impact on the company’s operations or industry positioning.

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.