Kennametal Inc

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KMT : NYSE : Industrial Goods
$39.45 up 0.45 | 1.15%
Today's Range: 38.7 - 39.61
Avg. Daily Volume: 992700.0
09/20/17 - 4:02 PM ET

Financial Analysis


KENNAMETAL INC's gross profit margin for the fourth quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. KENNAMETAL INC has average liquidity. Currently, the Quick Ratio is 1.24 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 5.49% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q4 FY17 Q4 FY16
Net Sales ($mil)565.03521.22
EBITDA ($mil)90.0274.55
EBIT ($mil)63.446.7
Net Income ($mil)24.64-66.51


Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)190.63161.58
Total Assets ($mil)2415.52368.79
Total Debt ($mil)695.92701.45
Equity ($mil)1017.29964.32


Profitability Q4 FY17 Q4 FY16
Gross Profit Margin36.2236.96
EBITDA Margin15.9314.3
Operating Margin11.228.96
Sales Turnover0.850.89
Return on Assets2.03-9.53
Return on Equity4.83-23.43
Debt Q4 FY17 Q4 FY16
Current Ratio2.412.52
Debt/Capital0.410.42
Interest Expense7.376.86
Interest Coverage8.616.81


Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)80.6779.69
Div / share0.20.2
EPS0.3-0.83
Book value / share12.6112.1
Institutional Own % n/a n/a
Avg Daily Volume1043900.0845235.0

Valuation


HOLD. The current P/E ratio indicates a significant discount compared to an average of 125.40 for the Machinery industry and a significant premium compared to the S&P 500 average of 24.88. To use another comparison, its price-to-book ratio of 2.90 indicates valuation on par with the S&P 500 average of 3.10 and a significant discount versus the industry average of 6.16. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, KENNAMETAL INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
KMT 60.87 Peers 125.40   KMT 15.33 Peers 19.02

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

KMT is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

KMT is trading at a discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
KMT 13.91 Peers 22.16   KMT 0.23 Peers 1.21

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

KMT is trading at a significant discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

KMT trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
KMT 2.90 Peers 6.16   KMT 121.20 Peers 16.67

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

KMT is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

KMT is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
KMT 1.43 Peers 2.07   KMT -1.91 Peers 6.91

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

KMT is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

KMT significantly trails its peers on the basis of sales growth

 

 

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