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40.88 (1y: +24%)
Market Cap 3.17 B P/E(ttm) 14.60
Enterprise Value 3.6 B P/B 1.90
KMT- NYSE (USA)
Kennametal Inc.
  • Currently 1/5
Business Predictability Rank: 1-Star (On Watch)
Back Testing Results:
Average gain of all 1-Star stocks: 1.1% per year.
% of Stocks that are in still loss if held for 10yrs: 45%.
Read more:
What is Predictability Rank?
Performances of real portfolio
Top Ranked Predictable Companies
$40.88
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GuruFocus Financial Strength Rank measures how strong a companyย’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 0.206
KMT's Cash to Debt is ranked lower than
61% of the 1849 Companies
in the Global Tools & Accessories industry.

( Industry Median: 1.22 vs. KMT: 0.206 )
KMT' s 10-Year Cash to Debt Range
Min: 0.04   Max: 0.65
Current: 0.21
0.04
0.65
Equity to Asset 0.542
KMT's Equity to Asset is ranked higher than
59% of the 1849 Companies
in the Global Tools & Accessories industry.

( Industry Median: 0.52 vs. KMT: 0.542 )
KMT' s 10-Year Equity to Asset Range
Min: 0.37   Max: 0.6
Current: 0.54
0.37
0.6
Interest Coverage 15.3
KMT's Interest Coverage is ranked higher than
65% of the 1849 Companies
in the Global Tools & Accessories industry.

( Industry Median: 9.50 vs. KMT: 15.3 )
KMT' s 10-Year Interest Coverage Range
Min: 2   Max: 15
Current: 15.3
2
15
F-Score: 5
Z-Score: 3.42
M-Score: -2.63
GuruFocus Profitability Rank ranks how profitable a company is and how likely the companyย’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.
ย•ย•3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rankย•

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
Operating margin (%) 15.20
KMT's Operating margin (%) is ranked higher than
90% of the 1849 Companies
in the Global Tools & Accessories industry.

( Industry Median: 5.60 vs. KMT: 15.20 )
KMT' s 10-Year Operating margin (%) Range
Min: -5   Max: 20.5
Current: 15.2
-5
20.5
Net-margin (%) 11.2
KMT's Net-margin (%) is ranked higher than
89% of the 1849 Companies
in the Global Tools & Accessories industry.

( Industry Median: 3.50 vs. KMT: 11.2 )
KMT' s 10-Year Net-margin (%) Range
Min: -13.4   Max: 11.2
Current: 11.2
-13.4
11.2
ROE (%) 18.7
KMT's ROE (%) is ranked higher than
94% of the 1849 Companies
in the Global Tools & Accessories industry.

( Industry Median: 5.50 vs. KMT: 18.7 )
KMT' s 10-Year ROE (%) Range
Min: -29.7   Max: 19.8
Current: 18.7
-29.7
19.8
ROA (%) 10.1
KMT's ROA (%) is ranked higher than
93% of the 1849 Companies
in the Global Tools & Accessories industry.

( Industry Median: 3.00 vs. KMT: 10.1 )
KMT' s 10-Year ROA (%) Range
Min: -13.9   Max: 10.5
Current: 10.1
-13.9
10.5
ROC (Joel Greenblatt) (%) 29.60
KMT's ROC (Joel Greenblatt) (%) is ranked higher than
88% of the 1849 Companies
in the Global Tools & Accessories industry.

( Industry Median: 10.80 vs. KMT: 29.60 )
KMT' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -8.3   Max: 51.3
Current: 29.6
-8.3
51.3
Revenue Growth (%) 5.3
KMT's Revenue Growth (%) is ranked higher than
80% of the 1849 Companies
in the Global Tools & Accessories industry.

( Industry Median: 0.00 vs. KMT: 5.3 )
KMT' s 10-Year Revenue Growth (%) Range
Min: -6.7   Max: 5.3
Current: 5.3
-6.7
5.3
ยป KMT's 10-Y Financials

Financials


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

» Details

Guru Trades
Q2 2012

KMT Guru Trades in Q2 2012

Third Avenue Management 1,012,480 sh (New)
Jim Simons 229,633 sh (New)
Steven Cohen 95,212 sh (+1913.36%)
Paul Tudor Jones 19,300 sh (+124.42%)
Chuck Royce 7,555,976 sh (+17.07%)
Diamond Hill Capital 1,017,955 sh (+3.15%)
Mario Gabelli 72,500 sh (+2.11%)
Pioneer Investments 154,697 sh (unchged)
Joel Greenblatt Sold Out
Louis Moore Bacon Sold Out
Columbia Wanger 5,535,500 sh (-2.34%)
Scott Black 37,210 sh (-16.12%)
» More
Q3 2012

KMT Guru Trades in Q3 2012

Joel Greenblatt 29,429 sh (New)
Jim Simons 692,500 sh (+201.57%)
Pioneer Investments 308,269 sh (+99.27%)
Steven Cohen 125,888 sh (+32.22%)
Third Avenue Management 1,258,618 sh (+24.31%)
Chuck Royce 7,648,956 sh (+1.23%)
Mario Gabelli 72,500 sh (unchged)
Diamond Hill Capital 1,010,185 sh (-0.76%)
Columbia Wanger 5,490,600 sh (-0.81%)
Scott Black 27,036 sh (-27.34%)
Paul Tudor Jones 8,100 sh (-58.03%)
» More
Q4 2012

KMT Guru Trades in Q4 2012

Richard Snow 404,755 sh (New)
Third Avenue Management 1,352,055 sh (+7.42%)
Pioneer Investments 320,201 sh (+3.87%)
Diamond Hill Capital 1,044,953 sh (+3.44%)
Steven Cohen Sold Out
Joel Greenblatt Sold Out
Paul Tudor Jones Sold Out
Chuck Royce 7,514,621 sh (-1.76%)
Columbia Wanger 5,367,600 sh (-2.24%)
Scott Black 26,051 sh (-3.64%)
Mario Gabelli 67,500 sh (-6.9%)
Jim Simons 378,100 sh (-45.4%)
» More
Q1 2013

KMT Guru Trades in Q1 2013

Paul Tudor Jones 98,000 sh (New)
Manning & Napier Advisors, Inc 104,030 sh (New)
Steven Cohen 5,662 sh (New)
Richard Snow 884,881 sh (+118.62%)
Mario Gabelli 138,300 sh (+104.89%)
Scott Black Sold Out
Jim Simons Sold Out
Columbia Wanger 5,307,800 sh (-1.11%)
Third Avenue Management 1,205,613 sh (-10.83%)
Pioneer Investments 272,101 sh (-15.02%)
Chuck Royce 5,270,984 sh (-29.86%)
Diamond Hill Capital 673,448 sh (-35.55%)
» More
» Details

Insider Trades

Latest Guru Trades with KMT

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Scott Black 2013-03-31 Sold Out 0.15%$38.79 - $43.08 $ 40.880%0
Mario Gabelli 2013-03-31 Add 104.89%0.02%$38.79 - $43.08 $ 40.880%138300
Joel Greenblatt 2012-12-31 Sold Out 0.07%$34.44 - $41.29 $ 40.8810%0
Joel Greenblatt 2012-09-30 New Buy0.07%$32.21 - $39.67 $ 40.8813%29429
Scott Black 2012-09-30 Reduce -27.34%0.05%$32.21 - $39.67 $ 40.8813%27036
Joel Greenblatt 2012-06-30 Sold Out 0.06%$30.88 - $45.61 $ 40.887%0
Ray Dalio 2011-12-31 Sold Out 0.31%$29.93 - $40.54 $ 40.8811%0
Joel Greenblatt 2011-12-31 Add 86.68%0.03%$29.93 - $40.54 $ 40.8811%14542
Joel Greenblatt 2011-09-30 New Buy0.04%$30.56 - $45.36 $ 40.8810%7790
George Soros 2011-09-30 Sold Out 0.0029%$30.56 - $45.36 $ 40.8810%0
Joel Greenblatt 2011-06-30 Sold Out 0.11%$37.79 - $42.22 $ 40.883%0
George Soros 2011-06-30 Reduce -65.71%0.01%$37.79 - $42.22 $ 40.883%4800
Joel Greenblatt 2011-03-31 New Buy0.11%$37.35 - $44.01 $ 40.882%9284
Mario Gabelli 2011-03-31 Reduce -39.04%0.01%$37.35 - $44.01 $ 40.882%69500
George Soros 2011-03-31 Add 108.96%0.01%$37.35 - $44.01 $ 40.882%14000
George Soros 2010-12-31 New Buy$30.67 - $39.38 $ 40.8817%6700
Mario Gabelli 2010-09-30 New Buy0.02%$24.34 - $31.75 $ 40.8849%114000
Ron Baron 2010-03-31 Sold Out 0.07%$23.86 - $30.25 $ 40.8850%0
Premium More recent guru trades are included for Premium Members only!!
ยป Financial Charts

Peter Lynch Chart

Guru Investment Theses on Kennametal Inc.

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.

Third Avenue Management Comments on Kennmetal
October 2, 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. Read more...

Ratios

vs
industry		 vs
history
P/E(ttm) 14.60
KMT's P/E(ttm) is ranked higher than
72% of the 1432 Companies
in the Global Tools & Accessories industry.

( Industry Median: 18.50 vs. KMT: 14.60 )
KMT' s 10-Year P/E(ttm) Range
Min: 6.58   Max: 90.98
Current: 14.6
6.58
90.98
P/B 1.90
KMT's P/B is ranked lower than
53% of the 1684 Companies
in the Global Tools & Accessories industry.

( Industry Median: 1.30 vs. KMT: 1.90 )
KMT' s 10-Year P/B Range
Min: 0.74   Max: 2.45
Current: 1.9
0.74
2.45
P/S 1.25
KMT's P/S is ranked higher than
50% of the 1742 Companies
in the Global Tools & Accessories industry.

( Industry Median: 0.85 vs. KMT: 1.25 )
KMT' s 10-Year P/S Range
Min: 0.32   Max: 1.66
Current: 1.25
0.32
1.66
PFCF 18.50
KMT's PFCF is ranked higher than
59% of the 1191 Companies
in the Global Tools & Accessories industry.

( Industry Median: 17.44 vs. KMT: 18.50 )
KMT' s 10-Year PFCF Range
Min: 2.83   Max: 34.2
Current: 18.5
2.83
34.2
EV-to-EBIT 11.2
KMT's EV-to-EBIT is ranked higher than
69% of the 1407 Companies
in the Global Tools & Accessories industry.

( Industry Median: 12.87 vs. KMT: 11.2 )
KMT' s 10-Year EV-to-EBIT Range
Min: 4.6   Max: 443.3
Current: 11.2
4.6
443.3
Shiller P/E 23.5
KMT's Shiller P/E is ranked lower than
100% of the Companies
in the Global Tools & Accessories industry.

( Industry Median: vs. KMT: 23.5 )
KMT' s 10-Year Shiller P/E Range
Min: 7.4   Max: 377.08
Current: 23.5
7.4
377.08

Dividend & Buy Back

vs
industry		 vs
history
Dividend Yield 1.57
KMT's Dividend Yield is ranked higher than
60% of the 1849 Companies
in the Global Tools & Accessories industry.

( Industry Median: 1.30 vs. KMT: 1.57 )
KMT' s 10-Year Dividend Yield Range
Min: 0.93   Max: 3.55
Current: 1.57
0.93
3.55
Dividend Payout 0.2199
KMT's Dividend Payout is ranked higher than
87% of the 1045 Companies
in the Global Tools & Accessories industry.

( Industry Median: 0.40 vs. KMT: 0.2199 )
KMT' s 10-Year Dividend Payout Range
Min: 0.12   Max: 1.33
Current: 0.22
0.12
1.33
Dividend growth (3y) 3
KMT's Dividend growth (3y) is ranked higher than
93% of the 1849 Companies
in the Global Tools & Accessories industry.

( Industry Median: 0.00 vs. KMT: 3 )
KMT' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 8.1
Current: 3
0
8.1
Yield on cost (5-Year) 1.85
KMT's Yield on cost (5-Year) is ranked higher than
64% of the 1849 Companies
in the Global Tools & Accessories industry.

( Industry Median: 1.22 vs. KMT: 1.85 )
KMT' s 10-Year Yield on cost (5-Year) Range
Min: 1.08   Max: 4.12
Current: 1.85
1.08
4.12
Share Buyback Rate -2.7
KMT's Share Buyback Rate is ranked lower than
60% of the 1849 Companies
in the Global Tools & Accessories industry.

( Industry Median: 0.00 vs. KMT: -2.7 )
KMT' s 10-Year Share Buyback Rate Range
Min: 1.9   Max: -4.7
Current: -2.7

Valuation & Return

vs
industry		 vs
history
Price/Net Current Asset Value 5.1
KMT's Price/Net Current Asset Value is ranked higher than
60% of the 1512 Companies
in the Global Tools & Accessories industry.

( Industry Median: 4.70 vs. KMT: 5.1 )
KMT' s 10-Year Price/Net Current Asset Value Range
Min: 1.8   Max: 6
Current: 5.1
1.8
6
Price/Tangible Book 4.8
KMT's Price/Tangible Book is ranked lower than
69% of the 1527 Companies
in the Global Tools & Accessories industry.

( Industry Median: 1.50 vs. KMT: 4.8 )
KMT' s 10-Year Price/Tangible Book Range
Min: 2.5   Max: 6.6
Current: 4.8
2.5
6.6
Price/DCF (Projected) 1.3
KMT's Price/DCF (Projected) is ranked higher than
61% of the 544 Companies
in the Global Tools & Accessories industry.

( Industry Median: 1.20 vs. KMT: 1.3 )
KMT' s 10-Year Price/DCF (Projected) Range
Min: 0.8   Max: 1.7
Current: 1.3
0.8
1.7
Price/Median PS Value 1.4
KMT's Price/Median PS Value is ranked lower than
59% of the 1599 Companies
in the Global Tools & Accessories industry.

( Industry Median: 1.00 vs. KMT: 1.4 )
KMT' s 10-Year Price/Median PS Value Range
Min: 0.4   Max: 1.7
Current: 1.4
0.4
1.7
Price/Graham Number 1.5
KMT's Price/Graham Number is ranked higher than
52% of the 1254 Companies
in the Global Tools & Accessories industry.

( Industry Median: 1.20 vs. KMT: 1.5 )
KMT' s 10-Year Price/Graham Number Range
Min: 1.2   Max: 3.8
Current: 1.5
1.2
3.8
Earnings Yield (Greenblatt) 8.90
KMT's Earnings Yield (Greenblatt) is ranked higher than
76% of the 1849 Companies
in the Global Tools & Accessories industry.

( Industry Median: 5.90 vs. KMT: 8.90 )
KMT' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.2   Max: 21.8
Current: 8.9
0.2
21.8
Forward Rate of Return (Yacktman) 3.31
KMT's Forward Rate of Return (Yacktman) is ranked higher than
88% of the 1849 Companies
in the Global Tools & Accessories industry.

( Industry Median: 0.00 vs. KMT: 3.31 )
KMT' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -21.5   Max: 32.7
Current: 3.31
-21.5
32.7

Business Description

Kennametal Inc. was incorporated in Pennsylvania in 1943. The Company is a global 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 global 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; a
Company Website
SEC Reports
Industry: Tools & Accessories
Compare:SWK, SKFRY, SNA, MRC, MKTAY
Traded in other countries:KM3.Germany
ยป More Articles for KMT

Headlines

Articles On GuruFocus.com
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 
comment on KMT Jun 26 2011 
best buy list Jun 26 2011 
WSJ: Going on Safari With Warren Buffett Mar 01 2011 
Kennametal Inc. Reports Operating Results (10-Q) Nov 05 2010 

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