Kennametal Inc (KMT) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Kennametal Inc stock (KMT) is currently trading at $36.11. Kennametal Inc PE ratio is 23.86. Kennametal Inc PS ratio (Price-to-Sales) is 1.28. Analyst consensus price target for KMT is $37.14. WallStSmart rates KMT as Moderate Buy.
- KMT PE ratio analysis and historical PE chart
- KMT PS ratio (Price-to-Sales) history and trend
- KMT intrinsic value — DCF, Graham Number, EPV models
- KMT stock price prediction 2025 2026 2027 2028 2029 2030
- KMT fair value vs current price
- KMT insider transactions and insider buying
- Is KMT undervalued or overvalued?
- Kennametal Inc financial analysis — revenue, earnings, cash flow
- KMT Piotroski F-Score and Altman Z-Score
- KMT analyst price target and Smart Rating
Kennametal Inc
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KMT Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Kennametal Inc (KMT)
KMT trades at a significant discount to its Graham intrinsic value of $66.92, offering a 40% margin of safety — a level value investors typically seek before buying.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Kennametal Inc (KMT) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in peg ratio, price/sales, price/book. Concerns around return on equity. Overall metrics suggest strong investment potential with favorable risk/reward.
Kennametal Inc (KMT) Key Strengths (6)
Earnings per share surging 91.30% year-over-year
104.54% of shares held by major funds and institutions
Good growth relative to its price
Paying $1.28 for every $1 of annual revenue
Trading at 1.98x book value, attractively priced
Mid-cap company balancing growth potential with stability
Supporting Valuation Data
Kennametal Inc (KMT) Areas to Watch (4)
Low profitability relative to shareholder equity
Thin operating margins with cost pressures present
Modest revenue growth at 9.80%
Thin profit margins with limited profitability
Kennametal Inc (KMT) Detailed Analysis Report
Overall Assessment
This company scores 66/100 in our Smart Analysis, earning a B- grade. Out of 10 metrics analyzed, 6 register as strengths (avg 8.5/10) while 4 fall into concern territory (avg 3.8/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on EPS Growth, Institutional Own., PEG Ratio. Valuation metrics including PEG Ratio (1.25), Price/Sales (1.28), Price/Book (1.98) suggest the stock is attractively priced. Growth metrics are encouraging with EPS Growth at 91.30%.
The Bear Case
The primary concerns are Return on Equity, Operating Margin, Revenue Growth. Growth concerns include Revenue Growth at 9.80%, which may limit upside. Profitability pressure is visible in Return on Equity at 8.86%, Operating Margin at 10.20%, Profit Margin at 5.43%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Return on Equity improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 8.86% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 9.80% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. The weight of evidence leans positive, with more strengths than concerns. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (EPS Growth, Institutional Own.) and negatives (Return on Equity, Operating Margin). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
KMT Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
KMT's Price-to-Sales ratio of 1.28x sits near its historical average of 1.26x (57th percentile), suggesting the market is pricing in steady-state growth. The current valuation is 55% below its historical high of 2.84x set in Oct 2007, and 184% above its historical low of 0.45x in Jan 2009. Over the past 12 months, the PS ratio has compressed from ~1.5x as trailing revenue scaled faster than the stock price.
WallStSmart Analysis Synopsis
Data-driven financial summary for Kennametal Inc (KMT) · INDUSTRIALS › TOOLS & ACCESSORIES
The Big Picture
Kennametal Inc operates as a stable business with moderate growth and solid fundamentals. Revenue reached 2.0B with 10% growth year-over-year. Profit margins are thin at 5.4%, typical for companies in this phase that are reinvesting heavily in growth.
Key Findings
ROE of 886.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Generating 42M in free cash flow and 55M in operating cash flow. Earnings are translating into actual cash generation.
What to Watch Next
Margin expansion: can Kennametal Inc push profit margins above 15% as the business scales?
Dividend sustainability with a current yield of 227.0%. Watch payout ratio and free cash flow coverage.
Debt management: total debt of 644M is significantly higher than cash (129M). Monitor refinancing risk.
Sector dynamics: monitor TOOLS & ACCESSORIES industry trends, competitive moves, and regulatory changes that could impact Kennametal Inc.
Bottom Line
Kennametal Inc offers stability with moderate growth and solid fundamentals. The valuation may present an opportunity for patient investors, though limited growth means returns will likely come from dividends and modest capital appreciation rather than explosive gains.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(17 last 3 months)
| Insider | Type | Shares |
|---|---|---|
WITT, JOHN WAYNE Vice President | Sell | -5,060 |
Data sourced from SEC Form 4 filings
Last updated: 8:25:09 AM
About Kennametal Inc(KMT)
NYSE
INDUSTRIALS
TOOLS & ACCESSORIES
USA
Kennametal Inc. develops and applies tungsten carbides, ceramics and super hard materials and solutions for use in extreme wear and metal cutting applications to enable customers to work against corrosion and high temperature conditions around the world. The company is headquartered in Pittsburgh, Pennsylvania.