Kennametal Inc

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KMT : NYSE : Industrial Goods
$38.68 -0.12 | -0.31%
Today's Range: 38.35 - 39.29
Avg. Daily Volume: 894500.0
05/25/17 - 3:59 PM ET

Financial Analysis


KENNAMETAL INC's gross profit margin for the third quarter of its fiscal year 2017 has increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. KENNAMETAL INC has average liquidity. Currently, the Quick Ratio is 1.12 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, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 17.32% 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 Q3 FY17 Q3 FY16
Net Sales ($mil)528.63497.84
EBITDA ($mil)94.1566.07
EBIT ($mil)67.5438.78
Net Income ($mil)38.8916.0


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)100.82136.56
Total Assets ($mil)2334.742491.94
Total Debt ($mil)696.22703.89
Equity ($mil)945.961144.16


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin39.7836.49
EBITDA Margin17.8113.27
Operating Margin12.787.79
Sales Turnover0.860.89
Return on Assets-1.79-5.55
Return on Equity-4.44-12.08
Debt Q3 FY17 Q3 FY16
Current Ratio2.442.61
Debt/Capital0.420.38
Interest Expense7.337.11
Interest Coverage9.215.45


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)80.0779.68
Div / share0.20.2
EPS0.480.2
Book value / share11.8114.36
Institutional Own % n/a n/a
Avg Daily Volume892187.0936303.0

Valuation


HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. To use another comparison, its price-to-book ratio of 3.14 indicates valuation on par with the S&P 500 average of 3.00 and a significant discount versus the industry average of 4.82. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing 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 NM Peers 26.76   KMT NA Peers 15.45

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

KMT's P/E is negative making this valuation measure meaningless.

 

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

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
KMT 17.04 Peers 21.57   KMT NA Peers 2.50

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

KMT is trading at a valuation on par with its peers.

 

Neutral. 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.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
KMT 3.14 Peers 4.82   KMT 69.55 Peers 23.25

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 1.48 Peers 1.98   KMT -9.05 Peers 12.53

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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