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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 0.14
KMT's Cash to Debt is ranked lower than
62% of the 1902 Companies
in the Global Tools & Accessories industry.

( Industry Median: 1.35 vs. KMT: 0.14 )
KMT' s 10-Year Cash to Debt Range
Min: 0.02   Max: 0.65
Current: 0.14

0.02
0.65
Equity to Asset 0.49
KMT's Equity to Asset is ranked higher than
57% of the 1914 Companies
in the Global Tools & Accessories industry.

( Industry Median: 0.53 vs. KMT: 0.49 )
KMT' s 10-Year Equity to Asset Range
Min: 0.26   Max: 0.61
Current: 0.49

0.26
0.61
Interest Coverage 10.79
KMT's Interest Coverage is ranked higher than
55% of the 1274 Companies
in the Global Tools & Accessories industry.

( Industry Median: 24.60 vs. KMT: 10.79 )
KMT' s 10-Year Interest Coverage Range
Min: 1.88   Max: 15.36
Current: 10.79

1.88
15.36
F-Score: 4
Z-Score: 2.78
M-Score: -2.47
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 : 6/10

vs
industry
vs
history
Operating margin (%) 11.45
KMT's Operating margin (%) is ranked higher than
85% of the 1909 Companies
in the Global Tools & Accessories industry.

( Industry Median: 5.93 vs. KMT: 11.45 )
KMT' s 10-Year Operating margin (%) Range
Min: -4.99   Max: 20.45
Current: 11.45

-4.99
20.45
Net-margin (%) 7.85
KMT's Net-margin (%) is ranked higher than
82% of the 1909 Companies
in the Global Tools & Accessories industry.

( Industry Median: 4.16 vs. KMT: 7.85 )
KMT' s 10-Year Net-margin (%) Range
Min: -13.38   Max: 11.23
Current: 7.85

-13.38
11.23
ROE (%) 11.41
KMT's ROE (%) is ranked higher than
84% of the 1896 Companies
in the Global Tools & Accessories industry.

( Industry Median: 6.48 vs. KMT: 11.41 )
KMT' s 10-Year ROE (%) Range
Min: -29.68   Max: 19.78
Current: 11.41

-29.68
19.78
ROA (%) 6.16
KMT's ROA (%) is ranked higher than
84% of the 1912 Companies
in the Global Tools & Accessories industry.

( Industry Median: 3.38 vs. KMT: 6.16 )
KMT' s 10-Year ROA (%) Range
Min: -13.91   Max: 10.52
Current: 6.16

-13.91
10.52
ROC (Joel Greenblatt) (%) 20.58
KMT's ROC (Joel Greenblatt) (%) is ranked higher than
81% of the 1908 Companies
in the Global Tools & Accessories industry.

( Industry Median: 12.69 vs. KMT: 20.58 )
KMT' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -8.34   Max: 51.61
Current: 20.58

-8.34
51.61
Revenue Growth (%) 11.70
KMT's Revenue Growth (%) is ranked higher than
82% of the 1516 Companies
in the Global Tools & Accessories industry.

( Industry Median: 5.40 vs. KMT: 11.70 )
KMT' s 10-Year Revenue Growth (%) Range
Min: -8.8   Max: 17.9
Current: 11.7

-8.8
17.9
EBITDA Growth (%) 27.60
KMT's EBITDA Growth (%) is ranked higher than
90% of the 1256 Companies
in the Global Tools & Accessories industry.

( Industry Median: 5.10 vs. KMT: 27.60 )
KMT' s 10-Year EBITDA Growth (%) Range
Min: -72.2   Max: 249.4
Current: 27.6

-72.2
249.4
EPS Growth (%) 62.20
KMT's EPS Growth (%) is ranked higher than
95% of the 1135 Companies
in the Global Tools & Accessories industry.

( Industry Median: 6.20 vs. KMT: 62.20 )
KMT' s 10-Year EPS Growth (%) Range
Min: -36   Max: 97
Current: 62.2

-36
97
» KMT's 10-Y Financials

Financials


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

» Details

Guru Trades

Q1 2013

KMT Guru Trades in Q1 2013

Paul Tudor Jones 98,000 sh (New)
Steven Cohen 5,662 sh (New)
Manning & Napier Advisors, Inc 104,030 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
Q2 2013

KMT Guru Trades in Q2 2013

Joel Greenblatt 106,762 sh (New)
Steven Cohen 27,862 sh (+392.09%)
Richard Snow 1,346,305 sh (+52.15%)
Mario Gabelli 170,750 sh (+23.46%)
Diamond Hill Capital 719,453 sh (+6.83%)
Columbia Wanger 5,340,800 sh (+0.62%)
Paul Tudor Jones Sold Out
Manning & Napier Advisors, Inc 98,780 sh (-5.05%)
Third Avenue Management 1,124,578 sh (-6.72%)
Chuck Royce 4,553,788 sh (-13.61%)
Pioneer Investments 154,697 sh (-43.15%)
» More
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
» Details

Insider Trades

Latest Guru Trades with KMT

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Joel Greenblatt 2013-12-31 Add 33.95%0.03%$43.41 - $51.98 $ 46.13-2%103567
Joel Greenblatt 2013-09-30 Reduce -27.58%0.05%$38.16 - $47.29 $ 46.136%77316
Joel Greenblatt 2013-06-30 New Buy0.18%$35.89 - $43.34 $ 46.1315%106762
Mario Gabelli 2013-06-30 Add 23.46%0.01%$35.89 - $43.34 $ 46.1315%170750
Scott Black 2013-03-31 Sold Out 0.15%$38.79 - $43.08 $ 46.1312%0
Mario Gabelli 2013-03-31 Add 104.89%0.02%$38.79 - $43.08 $ 46.1312%138300
Joel Greenblatt 2012-12-31 Sold Out 0.07%$34.44 - $41.29 $ 46.1324%0
Joel Greenblatt 2012-09-30 New Buy0.07%$32.21 - $39.67 $ 46.1328%29429
Scott Black 2012-09-30 Reduce -27.34%0.05%$32.21 - $39.67 $ 46.1328%27036
Joel Greenblatt 2012-06-30 Sold Out 0.06%$30.88 - $45.61 $ 46.1321%0
Ray Dalio 2011-12-31 Sold Out 0.31%$29.93 - $40.54 $ 46.1326%0
Joel Greenblatt 2011-12-31 Add 86.68%0.03%$29.93 - $40.54 $ 46.1326%14542
Joel Greenblatt 2011-09-30 New Buy0.04%$30.56 - $45.36 $ 46.1324%7790
George Soros 2011-09-30 Sold Out 0.0029%$30.56 - $45.36 $ 46.1324%0
Joel Greenblatt 2011-06-30 Sold Out 0.11%$37.79 - $42.22 $ 46.1316%0
George Soros 2011-06-30 Reduce -65.71%0.01%$37.79 - $42.22 $ 46.1316%4800
Joel Greenblatt 2011-03-31 New Buy0.11%$37.35 - $44.01 $ 46.1316%9284
George Soros 2011-03-31 Add 108.96%0.01%$37.35 - $44.01 $ 46.1316%14000
Mario Gabelli 2011-03-31 Reduce -39.04%0.01%$37.35 - $44.01 $ 46.1316%69500
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Kennametal Inc.

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.

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) 20.90
KMT's P/E(ttm) is ranked higher than
63% of the 1563 Companies
in the Global Tools & Accessories industry.

( Industry Median: 20.10 vs. KMT: 20.90 )
KMT' s 10-Year P/E(ttm) Range
Min: 6.59   Max: 90.57
Current: 20.9

6.59
90.57
P/B 1.90
KMT's P/B is ranked higher than
54% of the 1848 Companies
in the Global Tools & Accessories industry.

( Industry Median: 1.55 vs. KMT: 1.90 )
KMT' s 10-Year P/B Range
Min: 0.72   Max: 2.41
Current: 1.9

0.72
2.41
P/S 1.40
KMT's P/S is ranked lower than
56% of the 1923 Companies
in the Global Tools & Accessories industry.

( Industry Median: 0.91 vs. KMT: 1.40 )
KMT' s 10-Year P/S Range
Min: 0.4   Max: 1.66
Current: 1.4

0.4
1.66
PFCF 16.70
KMT's PFCF is ranked higher than
67% of the 1025 Companies
in the Global Tools & Accessories industry.

( Industry Median: 18.90 vs. KMT: 16.70 )
KMT' s 10-Year PFCF Range
Min: 6.41   Max: 34.2
Current: 16.7

6.41
34.2
EV-to-EBIT 17.50
KMT's EV-to-EBIT is ranked higher than
53% of the 1637 Companies
in the Global Tools & Accessories industry.

( Industry Median: 14.80 vs. KMT: 17.50 )
KMT' s 10-Year EV-to-EBIT Range
Min: 4.6   Max: 386.3
Current: 17.5

4.6
386.3
PEG 0.20
KMT's PEG is ranked higher than
97% of the 823 Companies
in the Global Tools & Accessories industry.

( Industry Median: 1.90 vs. KMT: 0.20 )
KMT' s 10-Year PEG Range
Min: 0.2   Max: 59.93
Current: 0.2

0.2
59.93
Shiller P/E 27.60
KMT's Shiller P/E is ranked higher than
56% of the 813 Companies
in the Global Tools & Accessories industry.

( Industry Median: 22.75 vs. KMT: 27.60 )
KMT' s 10-Year Shiller P/E Range
Min: 7.44   Max: 377.08
Current: 27.6

7.44
377.08

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 1.50
KMT's Dividend Yield is ranked higher than
52% of the 1411 Companies
in the Global Tools & Accessories industry.

( Industry Median: 1.63 vs. KMT: 1.50 )
KMT' s 10-Year Dividend Yield Range
Min: 0.93   Max: 3.55
Current: 1.5

0.93
3.55
Dividend Payout 0.31
KMT's Dividend Payout is ranked higher than
59% of the 1176 Companies
in the Global Tools & Accessories industry.

( Industry Median: 0.31 vs. KMT: 0.31 )
KMT' s 10-Year Dividend Payout Range
Min: 0.05   Max: 2.43
Current: 0.31

0.05
2.43
Dividend growth (3y) 10.10
KMT's Dividend growth (3y) is ranked higher than
79% of the 732 Companies
in the Global Tools & Accessories industry.

( Industry Median: 6.20 vs. KMT: 10.10 )
KMT' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 11
Current: 10.1

0
11
Yield on cost (5-Year) 2.12
KMT's Yield on cost (5-Year) is ranked higher than
63% of the 1451 Companies
in the Global Tools & Accessories industry.

( Industry Median: 1.80 vs. KMT: 2.12 )
KMT' s 10-Year Yield on cost (5-Year) Range
Min: 1.32   Max: 5.03
Current: 2.12

1.32
5.03
Share Buyback Rate 0.40
KMT's Share Buyback Rate is ranked higher than
86% of the 1183 Companies
in the Global Tools & Accessories industry.

( Industry Median: -0.70 vs. KMT: 0.40 )
KMT' s 10-Year Share Buyback Rate Range
Min: 2.6   Max: -6.4
Current: 0.4

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 6.70
KMT's Price/Tangible Book is ranked lower than
76% of the 1731 Companies
in the Global Tools & Accessories industry.

( Industry Median: 1.80 vs. KMT: 6.70 )
KMT' s 10-Year Price/Tangible Book Range
Min: 2.05   Max: 43.49
Current: 6.7

2.05
43.49
Price/DCF (Projected) 1.30
KMT's Price/DCF (Projected) is ranked higher than
67% of the 818 Companies
in the Global Tools & Accessories industry.

( Industry Median: 1.30 vs. KMT: 1.30 )
KMT' s 10-Year Price/DCF (Projected) Range
Min: 0.64   Max: 33.55
Current: 1.3

0.64
33.55
Price/Median PS Value 1.30
KMT's Price/Median PS Value is ranked lower than
59% of the 1806 Companies
in the Global Tools & Accessories industry.

( Industry Median: 1.10 vs. KMT: 1.30 )
KMT' s 10-Year Price/Median PS Value Range
Min: 0.26   Max: 1.5
Current: 1.3

0.26
1.5
Price/Graham Number 2.50
KMT's Price/Graham Number is ranked lower than
64% of the 1450 Companies
in the Global Tools & Accessories industry.

( Industry Median: 1.30 vs. KMT: 2.50 )
KMT' s 10-Year Price/Graham Number Range
Min: 1.07   Max: 5.8
Current: 2.5

1.07
5.8
Earnings Yield (Greenblatt) 5.70
KMT's Earnings Yield (Greenblatt) is ranked higher than
58% of the 1742 Companies
in the Global Tools & Accessories industry.

( Industry Median: 6.70 vs. KMT: 5.70 )
KMT' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.3   Max: 21.8
Current: 5.7

0.3
21.8
Forward Rate of Return (Yacktman) 3.29
KMT's Forward Rate of Return (Yacktman) is ranked higher than
71% of the 1135 Companies
in the Global Tools & Accessories industry.

( Industry Median: 4.73 vs. KMT: 3.29 )
KMT' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -20.4   Max: 32.5
Current: 3.29

-20.4
32.5

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

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