Kennametal Inc

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KMT : NYSE : Industrial Goods
$28.62 -0.25 | -0.87%
Today's Range: 28.59 - 28.94
Avg. Daily Volume: 1,241,900
08/24/16 - 1:31 PM ET

Financial Analysis


KENNAMETAL INC's gross profit margin for the fourth quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. KENNAMETAL INC has average liquidity. Currently, the Quick Ratio is 1.25 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 28.34% 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 FY16 Q4 FY15
Net Sales ($mil)521.22637.65
EBITDA ($mil)74.5588.34
EBIT ($mil)46.756.32
Net Income ($mil)-66.5121.15


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)161.58105.49
Total Assets ($mil)2364.182849.53
Total Debt ($mil)701.45751.59
Equity ($mil)964.321345.81


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin36.9634.12
EBITDA Margin14.313.85
Operating Margin8.968.83
Sales Turnover0.890.93
Return on Assets-9.55-13.12
Return on Equity-23.43-27.78
Debt Q4 FY16 Q4 FY15
Current Ratio2.492.61
Debt/Capital0.420.36
Interest Expense6.867.54
Interest Coverage6.817.47


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)79.6879.38
Div / share0.20.18
EPS-0.830.26
Book value / share12.116.96
Institutional Own % n/a n/a
Avg Daily Volume1215262.01139453.0

Valuation


HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. To use another comparison, its price-to-book ratio of 2.37 indicates a discount versus the S&P 500 average of 2.83 and a significant discount versus the industry average of 4.10. 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 26.27   KMT NA Peers 18.76

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 18.40 Peers 22.07   KMT NA Peers 7.56

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 2.37 Peers 4.10   KMT 40.05 Peers -26.46

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 1.09 Peers 1.87   KMT -20.73 Peers -5.35

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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