Kennametal Inc

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KMT : NYSE : Industrial Goods
$36.71 -0.37 | -1.0%
Today's Range: 35.58 - 36.78
Avg. Daily Volume: 871500.0
03/27/17 - 4:02 PM ET

Financial Analysis


KENNAMETAL INC's gross profit margin for the second quarter of its fiscal year 2017 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased. KENNAMETAL INC has average liquidity. Currently, the Quick Ratio is 1.13 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 19.73% 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 Q2 FY17 Q2 FY16
Net Sales ($mil)487.57524.02
EBITDA ($mil)62.7747.43
EBIT ($mil)35.816.67
Net Income ($mil)7.26-169.23


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)102.0138.98
Total Assets ($mil)2254.782440.25
Total Debt ($mil)696.59706.65
Equity ($mil)902.811124.85


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin35.4531.98
EBITDA Margin12.879.05
Operating Margin7.343.18
Sales Turnover0.880.97
Return on Assets-2.87-8.21
Return on Equity-7.18-17.82
Debt Q2 FY17 Q2 FY16
Current Ratio2.492.69
Debt/Capital0.440.39
Interest Expense7.156.8
Interest Coverage5.012.45


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)80.0779.67
Div / share0.20.2
EPS0.09-2.12
Book value / share11.2814.12
Institutional Own % n/a n/a
Avg Daily Volume862670.01163088.0

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. Conducting a second comparison, its price-to-book ratio of 3.31 indicates a premium versus the S&P 500 average of 2.93 and a significant discount versus the industry average of 4.86. The current price-to-sales ratio is well below the S&P 500 average and is also below 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 28.29   KMT 18.44 Peers 15.54

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.

 

Premium. 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 premium 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 19.36 Peers 22.43   KMT NA Peers 1.85

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

KMT is trading at a premium to 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 3.31 Peers 4.86   KMT 67.86 Peers -12.52

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 1.50 Peers 1.93   KMT -15.80 Peers -1.99

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 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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