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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash to Debt 0.17
KMT's Cash to Debt is ranked lower than
59% of the 1947 Companies
in the Global Tools & Accessories industry.

( Industry Median: 1.42 vs. KMT: 0.17 )
KMT' s 10-Year Cash to Debt Range
Min: 0.02   Max: 0.65
Current: 0.17

0.02
0.65
Equity to Asset 0.50
KMT's Equity to Asset is ranked higher than
61% of the 1955 Companies
in the Global Tools & Accessories industry.

( Industry Median: 0.51 vs. KMT: 0.50 )
KMT' s 10-Year Equity to Asset Range
Min: 0.26   Max: 0.61
Current: 0.5

0.26
0.61
F-Score: 4
Z-Score: 2.83
M-Score: -2.40
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Revenue Growth (%) 7.20
KMT's Revenue Growth (%) is ranked higher than
78% of the 1725 Companies
in the Global Tools & Accessories industry.

( Industry Median: 3.70 vs. KMT: 7.20 )
KMT' s 10-Year Revenue Growth (%) Range
Min: -8.8   Max: 16.1
Current: 7.2

-8.8
16.1
EBITDA Growth (%) -0.30
KMT's EBITDA Growth (%) is ranked higher than
65% of the 1501 Companies
in the Global Tools & Accessories industry.

( Industry Median: 2.90 vs. KMT: -0.30 )
KMT' s 10-Year EBITDA Growth (%) Range
Min: -72.2   Max: 249.4
Current: -0.3

-72.2
249.4
EPS Growth (%) -10.30
KMT's EPS Growth (%) is ranked higher than
59% of the 1343 Companies
in the Global Tools & Accessories industry.

( Industry Median: 4.30 vs. KMT: -10.30 )
KMT' s 10-Year EPS Growth (%) Range
Min: -36   Max: 97
Current: -10.3

-36
97
» KMT's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q3 2013

KMT Guru Trades in Q3 2013

Jim Simons 228,100 sh (New)
Richard Snow 1,654,345 sh (+22.88%)
Diamond Hill Capital 784,280 sh (+9.01%)
Mario Gabelli 182,650 sh (+6.97%)
Columbia Wanger 5,340,800 sh (unchged)
Pioneer Investments 154,697 sh (unchged)
Steven Cohen Sold Out
Chuck Royce 4,183,071 sh (-8.14%)
Third Avenue Management 851,218 sh (-24.31%)
Joel Greenblatt 77,316 sh (-27.58%)
Manning & Napier Advisors, Inc 68,050 sh (-31.11%)
» More
Q4 2013

KMT Guru Trades in Q4 2013

Joel Greenblatt 103,567 sh (+33.95%)
Mario Gabelli 192,300 sh (+5.28%)
Chuck Royce 4,278,038 sh (+2.27%)
Diamond Hill Capital 789,940 sh (+0.72%)
Pioneer Investments 154,697 sh (unchged)
Manning & Napier Advisors, Inc Sold Out
Jim Simons Sold Out
Richard Snow 1,634,165 sh (-1.22%)
Columbia Wanger 5,201,800 sh (-2.6%)
Third Avenue Management 800,873 sh (-5.91%)
» More
Q1 2014

KMT Guru Trades in Q1 2014

Paul Tudor Jones 6,100 sh (New)
Steven Cohen 136,695 sh (New)
Richard Snow 1,872,839 sh (+14.61%)
Diamond Hill Capital 812,471 sh (+2.85%)
Joel Greenblatt Sold Out
Columbia Wanger 5,186,800 sh (-0.29%)
Pioneer Investments 149,948 sh (-3.07%)
Mario Gabelli 186,300 sh (-3.12%)
Chuck Royce 3,909,860 sh (-8.61%)
Third Avenue Management 654,283 sh (-18.3%)
» More
Q2 2014

KMT Guru Trades in Q2 2014

Murray Stahl 4,633 sh (New)
Manning & Napier Advisors, Inc 35,940 sh (New)
John Rogers 1,417,909 sh (New)
Paul Tudor Jones 8,145 sh (+33.52%)
Richard Snow 2,103,163 sh (+12.3%)
Diamond Hill Capital 859,531 sh (+5.79%)
Mario Gabelli 195,890 sh (+5.15%)
Pioneer Investments 149,948 sh (unchged)
Columbia Wanger 5,106,400 sh (-1.55%)
Chuck Royce 3,434,445 sh (-12.16%)
Third Avenue Management 295,876 sh (-54.78%)
» More
» Details

Insider Trades

Latest Guru Trades with KMT

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Joel Greenblatt 2014-03-31 Sold Out 0.13%$41.92 - $52.07 $ 44.81-3%0
Joel Greenblatt 2013-12-31 Add 33.95%0.03%$43.41 - $51.98 $ 44.81-5%103567
Joel Greenblatt 2013-09-30 Reduce -27.58%0.05%$38.16 - $47.29 $ 44.813%77316
Joel Greenblatt 2013-06-30 New Buy0.18%$35.89 - $43.34 $ 44.8112%106762
Mario Gabelli 2013-06-30 Add 23.46%0.01%$35.89 - $43.34 $ 44.8112%170750
Scott Black 2013-03-31 Sold Out 0.15%$38.79 - $43.08 $ 44.819%0
Mario Gabelli 2013-03-31 Add 104.89%0.02%$38.79 - $43.08 $ 44.819%138300
Joel Greenblatt 2012-12-31 Sold Out 0.07%$34.44 - $41.29 $ 44.8120%0
Joel Greenblatt 2012-09-30 New Buy0.07%$32.21 - $39.67 $ 44.8124%29429
Scott Black 2012-09-30 Reduce -27.34%0.05%$32.21 - $39.67 $ 44.8124%27036
Joel Greenblatt 2012-06-30 Sold Out 0.06%$30.88 - $45.61 $ 44.8117%0
Ray Dalio 2011-12-31 Sold Out 0.31%$29.93 - $40.54 $ 44.8122%0
Joel Greenblatt 2011-12-31 Add 86.68%0.03%$29.93 - $40.54 $ 44.8122%14542
Joel Greenblatt 2011-09-30 New Buy0.04%$30.56 - $45.36 $ 44.8120%7790
George Soros 2011-09-30 Sold Out 0.0029%$30.56 - $45.36 $ 44.8120%0
Joel Greenblatt 2011-06-30 Sold Out 0.11%$37.79 - $42.22 $ 44.8113%0
George Soros 2011-06-30 Reduce -65.71%0.01%$37.79 - $42.22 $ 44.8113%4800
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Kennametal Inc

Diamond Hill Capital Comments on Kennametal Inc - Jun 26, 2014

Machine tool manufacturer Kennametal, Inc. (KMT) disappointed investors by reporting lackluster revenue growth and lower operating margins, questioning the ability of the company to achieve its already reduced operating targets for the year.



From Diamond Hill Capital's Small Cap Fund Commentary – First Quarter 2014.



Check out Diamond Hill Capital latest stock trades

Bill Nygren Comments on Kennametal - Oct 08, 2013

Kennametal (KMT) is still operating well below our estimate of mid-cycle earnings though managing expenses consistent with our expectations such that incremental profits from an eventual recovery in demand ought to result in substantial profit improvement.

From Bill Nygren's third quarter 2013 Oakmark Select Fund commentary.
Check out Bill Nygren latest stock trades

Third Avenue Management Comments on Kennmetal - Oct 02, 2012

Kennametal (KMT) is a global producer of tools, highly engineered components and advanced materials serving a broad range of industries, including the energy, construction, aerospace, transportation and machine tool industries. Examples of Kennametal's products include radial bearings used in oil and gas drilling operations or grader blades used for road maintenance. These products have to work in environments where thermal shocks, corrosion and other harsh conditions are commonplace. Such demanding conditions require products with wear resistance and long lives on the one hand, but also translate into "consumables" that provide a high degree of recurring revenue for the business.

Kennametal's operations are highly cash generative and enjoy strong competitive positions. Meanwhile management seems to be focused on the right things, both commercially and as capital allocators: improving the customer value proposition through innovation, balancing organic growth and acquisitions and sharing excess capital with shareholders via buybacks and a growing dividend. Kennametal derives more than half its sales from outside the U.S., however, where economic headwinds of late have stiffened considerably, while some of the company's end markets, such as oil and gas, have softened for industry specific reasons. For investor/speculators hewing to a shortterm timeframe, these may be legitimate concerns. As investors with a long-term time horizon, we are willing to tolerate temporary weakness in a business when the company has compelling longer-term business prospects, an impregnable financial position, a sensibly incentivized and
competent management team and where the shares trade at a significant discount to intrinsic value. In Kennametal's case, we view the opportunity to acquire shares in the mid $30's per share, equating to about nine times earnings, an attractive one given our estimate of intrinsic value in excess of $50. Operating in what we view as "cyclical growth" markets where the "growth path" is unlikely to be a straight one, Kennametal, nonetheless, ought to have ample opportunities to grow at above average rates in the coming years.

From Third Avenue's third-quarter letter, by Curtis R. Jensen, chief investment officer and portfolio manager of Third Avenue Small-Cap Value Fund.
Check out Third Avenue Management latest stock trades

Top Ranked Articles about Kennametal Inc

Diamond Hill Capital Comments on Kennametal Inc
Machine tool manufacturer Kennametal, Inc. (KMT) disappointed investors by reporting lackluster revenue growth and lower operating margins, questioning the ability of the company to achieve its already reduced operating targets for the year. Read more...
Bill Nygren Comments on Kennametal
Kennametal (KMT) is still operating well below our estimate of mid-cycle earnings though managing expenses consistent with our expectations such that incremental profits from an eventual recovery in demand ought to result in substantial profit improvement. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 22.50
KMT's P/E(ttm) is ranked higher than
68% of the 2042 Companies
in the Global Tools & Accessories industry.

( Industry Median: 24.00 vs. KMT: 22.50 )
KMT' s 10-Year P/E(ttm) Range
Min: 6.59   Max: 90.57
Current: 22.5

6.59
90.57
P/B 1.82
KMT's P/B is ranked higher than
60% of the 2042 Companies
in the Global Tools & Accessories industry.

( Industry Median: 1.81 vs. KMT: 1.82 )
KMT' s 10-Year P/B Range
Min: 0.72   Max: 2.41
Current: 1.82

0.72
2.41
P/S 1.26
KMT's P/S is ranked higher than
57% of the 2042 Companies
in the Global Tools & Accessories industry.

( Industry Median: 1.05 vs. KMT: 1.26 )
KMT' s 10-Year P/S Range
Min: 0.4   Max: 1.66
Current: 1.26

0.4
1.66
PFCF 23.22
KMT's PFCF is ranked higher than
77% of the 2042 Companies
in the Global Tools & Accessories industry.

( Industry Median: 9999.00 vs. KMT: 23.22 )
KMT' s 10-Year PFCF Range
Min: 6.41   Max: 34.2
Current: 23.22

6.41
34.2
EV-to-EBIT 17.11
KMT's EV-to-EBIT is ranked higher than
70% of the 2042 Companies
in the Global Tools & Accessories industry.

( Industry Median: 17.27 vs. KMT: 17.11 )
KMT' s 10-Year EV-to-EBIT Range
Min: 4.6   Max: 446.2
Current: 17.11

4.6
446.2
PEG 1.47
KMT's PEG is ranked higher than
87% of the 2042 Companies
in the Global Tools & Accessories industry.

( Industry Median: 9999.00 vs. KMT: 1.47 )
KMT' s 10-Year PEG Range
Min: 0.29   Max: 29.97
Current: 1.47

0.29
29.97
Shiller P/E 26.25
KMT's Shiller P/E is ranked higher than
80% of the 2042 Companies
in the Global Tools & Accessories industry.

( Industry Median: 243.13 vs. KMT: 26.25 )
KMT' s 10-Year Shiller P/E Range
Min: 7.4   Max: 377.08
Current: 26.25

7.4
377.08
Current Ratio 2.71
KMT's Current Ratio is ranked higher than
81% of the 1647 Companies
in the Global Tools & Accessories industry.

( Industry Median: 1.84 vs. KMT: 2.71 )
KMT' s 10-Year Current Ratio Range
Min: 0.99   Max: 3.74
Current: 2.71

0.99
3.74
Quick Ratio 1.46
KMT's Quick Ratio is ranked higher than
70% of the 1647 Companies
in the Global Tools & Accessories industry.

( Industry Median: 1.31 vs. KMT: 1.46 )
KMT' s 10-Year Quick Ratio Range
Min: 0.41   Max: 2.14
Current: 1.46

0.41
2.14

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 1.60
KMT's Dividend Yield is ranked higher than
55% of the 1516 Companies
in the Global Tools & Accessories industry.

( Industry Median: 1.51 vs. KMT: 1.60 )
KMT' s 10-Year Dividend Yield Range
Min: 0.93   Max: 3.55
Current: 1.6

0.93
3.55
Dividend Payout 0.36
KMT's Dividend Payout is ranked higher than
71% of the 2042 Companies
in the Global Tools & Accessories industry.

( Industry Median: 0.59 vs. KMT: 0.36 )
KMT' s 10-Year Dividend Payout Range
Min: 0.05   Max: 2.43
Current: 0.36

0.05
2.43
Dividend growth (3y) 14.50
KMT's Dividend growth (3y) is ranked higher than
85% of the 994 Companies
in the Global Tools & Accessories industry.

( Industry Median: 5.60 vs. KMT: 14.50 )
KMT' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 14.5
Current: 14.5

0
14.5
Yield on cost (5-Year) 2.77
KMT's Yield on cost (5-Year) is ranked higher than
62% of the 1546 Companies
in the Global Tools & Accessories industry.

( Industry Median: 1.76 vs. KMT: 2.77 )
KMT' s 10-Year Yield on cost (5-Year) Range
Min: 1.61   Max: 6.15
Current: 2.77

1.61
6.15
Share Buyback Rate 1.40
KMT's Share Buyback Rate is ranked higher than
89% of the 1252 Companies
in the Global Tools & Accessories industry.

( Industry Median: -0.40 vs. KMT: 1.40 )
KMT' s 10-Year Share Buyback Rate Range
Min: 2.6   Max: -6.4
Current: 1.4

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 5.76
KMT's Price/Tangible Book is ranked lower than
51% of the 2042 Companies
in the Global Tools & Accessories industry.

( Industry Median: 2.33 vs. KMT: 5.76 )
KMT' s 10-Year Price/Tangible Book Range
Min: 2.05   Max: 43.49
Current: 5.76

2.05
43.49
Price/DCF (Projected) 1.17
KMT's Price/DCF (Projected) is ranked higher than
85% of the 2042 Companies
in the Global Tools & Accessories industry.

( Industry Median: 3.87 vs. KMT: 1.17 )
KMT' s 10-Year Price/DCF (Projected) Range
Min: 0.65   Max: 36.18
Current: 1.17

0.65
36.18
Price/Median PS Value 1.18
KMT's Price/Median PS Value is ranked higher than
66% of the 2042 Companies
in the Global Tools & Accessories industry.

( Industry Median: 1.17 vs. KMT: 1.18 )
KMT' s 10-Year Price/Median PS Value Range
Min: 0.25   Max: 1.47
Current: 1.18

0.25
1.47
Price/Graham Number 2.36
KMT's Price/Graham Number is ranked higher than
64% of the 2042 Companies
in the Global Tools & Accessories industry.

( Industry Median: 2.20 vs. KMT: 2.36 )
KMT' s 10-Year Price/Graham Number Range
Min: 1.07   Max: 5.8
Current: 2.36

1.07
5.8
Earnings Yield (Greenblatt) 5.80
KMT's Earnings Yield (Greenblatt) is ranked higher than
63% of the 1846 Companies
in the Global Tools & Accessories industry.

( Industry Median: 6.60 vs. KMT: 5.80 )
KMT' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.2   Max: 21.7
Current: 5.8

0.2
21.7
Forward Rate of Return (Yacktman) 3.46
KMT's Forward Rate of Return (Yacktman) is ranked higher than
69% of the 1452 Companies
in the Global Tools & Accessories industry.

( Industry Median: 5.25 vs. KMT: 3.46 )
KMT' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -20.3   Max: 32.6
Current: 3.46

-20.3
32.6

Business Description

Industry: Industrial Products » Tools & Accessories
Compare:SWK, SKFRY, SNA, MRC, MKTAY » details
Traded in other countries:KM3.Germany
Kennametal Inc. was incorporated in Pennsylvania in 1943. The Company is a supplier of tooling, engineered components and advanced materials consumed in production processes. It operates two reportable operating segments consisting of Industrial and Infrastructure. As a enterprise, it delivers productivity to customers seeking peak performance in demanding environments by providing innovative custom and standard wear-resistant solutions. Its solutions are built around industry-essential technology platforms. These include metalworking tools, engineered components and surface technologies that are mission-critical to the performance of its customers battling extreme conditions such as fatigue wear, corrosion and high temperatures. End users of its products include metalworking and machinery manufacturers and suppliers across a diverse array of industries, including the aerospace, defense, transportation, machine tool, light machinery and heavy machinery, as well as producers and suppliers in a number of equipment-intensive industries such as coal mining, road construction and quarrying, as well as oil and gas exploration, refining, production and supply. Its end users' applications range from airframes to mining operations, engines to oil wells and turbochargers to processing. The Company's product offering includes a selection of standard and customized technologies for metalworking, such as sophisticated metal cutting tools, tooling systems and services, as well as materials, such as cemented tungsten carbide products, super alloys, coatings and investment castings to address customer demands. It offers these products through a variety of channels to meet customer-specified needs. The Company develops and manufactures metalworking tools and wear-resistant engineered components and coatings using a specialized type of powder metallurgy. Its metalworking tools are made of cemented tungsten carbides, ceramics, cermets and super-hard materials. It also manufactures and markets a complete line of tool holders, tool-holding systems and rotary-cutting tools by machining and fabricating steel bars and other metal alloys. In addition, it produces specialized compacts and metallurgical powders, as well as products made from tungsten carbide or other hard materials that are used for custom-engineered and challenging applications, including mining and highway construction, among others. Further, it develops, manufactures and markets engineered components and surface technology solutions with proprietary metal cladding capabilities, as well as process technology and materials that focus on component deburring, polishing and effecting controlled radii. The Company sells its products through the following, distinct sales channels: a direct sales force; a network of independent distributors and sales agents in North America, Europe, Latin America, Asia Pacific and other markets around the world; integrated supply chain channels; and via the Int
» More Articles for KMT

Headlines

Articles On GuruFocus.com
Diamond Hill Capital Comments on Kennametal Inc Jun 26 2014 
Richard Snow's Top Five Highlight Finance and Healthcare Sectors May 14 2014 
Bill Nygren Comments on Kennametal Oct 08 2013 
Bill Nygren's Oakmark Select Fund Third Quarter Commentary Oct 08 2013 
Bill Nygren's Oakmark Select Fund - First Quarter 2013 Commentary Apr 23 2013 
Third Avenue Management Comments on Kennmetal Oct 02 2012 
6 Best Yielding Machine Tools and Accessories Stocks Dec 07 2011 
24 Stocks Providing an Inflation Hedge with Increasing Dividends Oct 31 2011 
Guru Stocks Raising Dividends: NEU, MAC, WMK, KMT, VLO Oct 31 2011 
comment on KMT Oct 15 2011 

More From Other Websites
Kennametal Management Meeting with Financial Community at Longbow Research Industrial Conference Aug 29 2014
KENNAMETAL INC Financials Aug 20 2014
KENNAMETAL INC Files SEC form 8-K, Change in Directors or Principal Officers, Regulation FD... Aug 19 2014
Kennametal CEO Cardoso To Retire In December Aug 19 2014
KENNAMETAL INC Files SEC form 10-K, Annual Report Aug 13 2014
Kennametal Management to Meet with Financial Community at Jefferies Global Industrial Conference Aug 01 2014
Kennametal's (KMT) Q4 Earnings and Revenues Lag Estimates Aug 01 2014
Kennametal (KMT): Moving Average Crossover Alert Jul 31 2014
KENNAMETAL INC Files SEC form 8-K, Results of Operations and Financial Condition, Financial... Jul 31 2014
Kennametal Announces Fourth Quarter & Fiscal 2014 Results Jul 31 2014
Q4 2014 Kennametal Inc. Earnings Release - Before Market Open Jul 31 2014
Can Kennametal (KMT) Beat Earnings Estimates This Quarter? Jul 29 2014
Will Dover Corporation (DOV) Miss Earnings Estimates? Jul 15 2014
Kennametal (NYSE: KMT) Announces Conference Call & Webcast On Fourth Quarter And Fiscal 2014... Jul 11 2014
Kennametal Management to Meet with Financial Community In New York City Jun 11 2014
Kennametal Named to Top 100 Innovative Organizations; Among CIO 100 Awards Recipients Jun 02 2014
Updated Research Report on Kennametal May 22 2014
KENNAMETAL INC Files SEC form 8-K, Change in Directors or Principal Officers, Financial Statements... May 20 2014
Kennametal Names Industrial and Infrastructure Business Leaders: May 20 2014
Kennametal slower growth in April a short-term negative, says Wells Fargo May 14 2014

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