Kennametal Inc.

$ 36.32 -0.11 %

Kennametal Inc. is a global leader in developing and applying cutting-edge materials, including tungsten carbides, ceramics, and super-hard compounds. Their core mission is to provide robust solutions for demanding industrial applications, specifically in metal cutting and environments prone to extreme wear, high temperatures, and corrosion, serving clients worldwide. The company's operations are structured into two primary segments: Metal Cutting and Infrastructure. Within the Metal Cutting division, Kennametal offers a comprehensive portfolio of standard and bespoke products, encompassing tools for turning, milling, and hole-making, integrated tooling systems, and associated technical services. They also supply specialized wear-resistant components and advanced metallurgical powders. These critical products serve a diverse array of manufacturers across industries such as transportation (vehicles and components), machine tools, light and heavy machinery, aerospace (airframes and components), and the energy sector (oil and gas, power generation). The company further supports these clients with expert product design, selection, application guidance, and ongoing support services, delivering customized metal cutting solutions. Under its Infrastructure segment, Kennametal produces a variety of specialized items. This includes compacts, nozzles, frac seats, and tailored components crucial for the oil and gas and petrochemical industries. They also provide rod blanks and abrasive water jet nozzles for broader industrial applications, alongside durable earth-cutting tools and systems essential for underground mining, trenching, foundation drilling, and road milling. Furthermore, the company manufactures tungsten carbide powders for aerospace, oil and gas, and process industries, as well as ceramics specifically utilized by the packaging industry for film and paper metallization. Kennametal's extensive product lines are marketed under well-known brands such as Kennametal, WIDIA, WIDIA Hanita, and WIDIA GTD. Distribution occurs through a multi-channel approach, leveraging a direct sales force, a broad network of independent and national distributors, integrated supplier relationships, and online platforms. Founded in Pittsburgh, Pennsylvania, in 1938, the company boasts a long-standing history in the industrial materials sector.

CEO: Sanjay K. Chowbey - https://www.kennametal.com

Price objectif

$35.75 -1.57 %

Recommandation

Hold

DCF

$ 21.61

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KMT vs S&P500

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Quick ratio

0.99

indicates that the company may have difficulty covering its short-term debts with its readily available assets.

P/E ratio

20.40

is considered reasonable, suggesting that the company has a valuation in line with its current profits.

EPS

1.78

is the net profit of a company divided by the number of outstanding shares, indicating the profit earned per share.

ROE

10.46 %

reflects reasonable profitability, showing good use of equity.

ROIC

6.98 %

does not generate enough return to cover its financing costs, which indicates value destruction and may pose long-term profitability issues.

WACC

9.29

is a company's average cost of capital, weighted by the proportion of debt and equity in its financing. It represents the minimum return the company must generate to satisfy its investors.

Debt-to-Equity Ratio

0.49

indicates that the company uses more equity than debt, suggesting prudent management.

Free cash flow per share

0.96

is a measure of a company's financial flexibility that is determined by dividing free cash flow by the total number of shares outstanding.

Dividend payout ratio

44.42 %

indicates that the company is retaining a large portion of its profits to reinvest in growth

Earnings per share

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Financials

Piotroski score
7 indicates good financial health
Altman score
3.27 indicates good financial health and low risk of bankruptcy
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Cash / Debt

Cash Ratio
0.20 indicates liquidity risk, as the company may not have enough cash to meet its immediate obligations
Debt Ratio
0.24 indicates that the company uses little debt to finance its assets, suggesting good financial stability
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Free Cash Flow

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Earnings Per Share (annual)

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Sales

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