# Kennametal Inc. (KMT) fundamentals

Data as of 2026-11-04. NYSE, United States. Sector: Industrials / Machinery. Price $30.53, market value $2.3 billion.

## Valuation
- **P/E (trailing): 6.9×** (5-yr avg 14.5×, 3-yr avg 14.2×). Kennametal Inc. trades at 6.9× trailing earnings, well below its own five-year average of 14.5×: cheap by its own standards. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 13.1×, higher than trailing, so analysts expect earnings to fall.
- **PEG: 0.05**. A PEG of 0.05 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 1.0×**. Each dollar of revenue is priced at 1.0×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.5×**. The shares trade at 1.5× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 4.7×**. Enterprise value is 4.7× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: -3.5%** (5-yr avg 1.0%). Free cash flow is negative: the business is consuming cash, which is normal for heavy investment phases but a warning otherwise.
- **Earnings yield: 14.5%**. The inverse of the P/E: 14.5% of the price is earned each year.

## Profitability
- **Gross margin: 41.2%**. Kennametal Inc. keeps 41.2% of revenue after the direct cost of what it sells.
- **Operating margin: 20.1%**. 20.1% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 14.5%**. 14.5% of each dollar of sales reaches the bottom line.
- **Return on equity: 21.8%**. 21.8% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 17.3%**. Return on all capital, debt included, is 17.3%: comfortably above what that capital costs.
- **Return on assets: 10.8%**. Each dollar of assets produces 10.8% of profit.

## Growth
- **Revenue growth (1 yr): 19.8%** (3-yr 4.3%/yr, 5-yr 5.1%/yr). Revenue grew 19.8% over the last year, against 5.1% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 268.3%** (3-yr 44.7%/yr, 5-yr 46.7%/yr). Earnings per share rose 268.3%, faster than revenue, so margins expanded or the share count shrank.

## Financial health
- **Debt to equity: 0.44**. Debt is 0.44 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 1.0×**. It would take 1.0 years of operating earnings to repay net borrowings, within the comfortable range.
- **Current ratio: 2.62** (quick 2.62). Current assets cover the next year's liabilities 2.62 times.
- **Altman Z-score: 3.25**. A Z-score of 3.25 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 2.62%** ($0.80 per share, trailing). Kennametal Inc. yields 2.62%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 18%**. 18% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 24**. 24 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 0.0%/yr** (1-yr 0.0%). The dividend has not grown over five years.

## Analyst view
- **Analyst consensus: underperform** (7 analysts). 7 analysts cover Kennametal Inc.; the consensus is underperform, with an average price target of $31.43 (+3% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 42.5%** (YTD 9.3%, 3-mo -12.0%). The shares are up 42.5% over twelve months including dividends.
- **From 52-week high: -30.3%** (40.2% above the low). Trading 30% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 51**. An RSI of 51 is neutral.
- **Beta (1 yr): 1.35** (volatility 45%). Beta of 1.35 against the S&P 500: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=KMT · Page: https://foliofundamentals.com/stocks/kmt

Not investment advice.