Kennametal Inc.
Find Ratings ReportsKENNAMETAL INC's gross profit margin for the second quarter of its fiscal year 2024 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased. KENNAMETAL INC has weak liquidity. Currently, the Quick Ratio is 0.92 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.01% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q2 FY24 | Q2 FY23 |
---|---|---|
Net Sales ($mil) | 495.32 | 497.12 |
EBITDA ($mil) | 62.29 | 68.61 |
EBIT ($mil) | 29.51 | 33.99 |
Net Income ($mil) | 23.11 | 21.9 |
Balance Sheet | Q2 FY24 | Q2 FY23 |
---|---|---|
Cash & Equiv. ($mil) | 90.74 | 76.78 |
Total Assets ($mil) | 2544.35 | 2578.6 |
Total Debt ($mil) | 666.21 | 717.04 |
Equity ($mil) | 1287.82 | 1250.17 |
Profitability | Q2 FY24 | Q2 FY23 |
---|---|---|
Gross Profit Margin | 34.25 | 35.07 |
EBITDA Margin | 12.57 | 13.8 |
Operating Margin | 5.96 | 6.84 |
Sales Turnover | 0.82 | 0.79 |
Return on Assets | 4.77 | 4.92 |
Return on Equity | 9.44 | 10.17 |
Debt | Q2 FY24 | Q2 FY23 |
---|---|---|
Current Ratio | 2.44 | 2.12 |
Debt/Capital | 0.34 | 0.36 |
Interest Expense | 6.85 | 7.01 |
Interest Coverage | 4.31 | 4.85 |
Share Data | Q2 FY24 | Q2 FY23 |
---|---|---|
Shares outstanding (mil) | 79.26 | 80.51 |
Div / share | 0.2 | 0.2 |
EPS | 0.29 | 0.27 |
Book value / share | 16.25 | 15.53 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 662227.0 | 738585.0 |
HOLD. KENNAMETAL INC's P/E ratio indicates a significant discount compared to an average of 34.89 for the Machinery Manufacturing subsector and a significant discount compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 1.48 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 15.81. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, KENNAMETAL INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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KMT 16.01 | Peers 34.89 | KMT 6.50 | Peers 35.56 | |||||||||||||||||||||
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 significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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KMT 13.97 | Peers 25.65 | KMT 6.16 | Peers 5.15 | |||||||||||||||||||||
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. |
Premium. 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 premium to its peers. |
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Price/Book |
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Earnings Growth |
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KMT 1.48 | Peers 15.81 | KMT -1.97 | Peers 20.44 | |||||||||||||||||||||
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. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, KMT is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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KMT 0.92 | Peers 8.34 | KMT 1.96 | Peers 14.92 | |||||||||||||||||||||
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 subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. KMT significantly trails its peers on the basis of sales growth. |
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