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Kennametal (Kennametal) PS Ratio : 0.94 (As of Apr. 28, 2024)


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What is Kennametal PS Ratio?

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Kennametal's share price is $24.04. Kennametal's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $25.67. Hence, Kennametal's PS Ratio for today is 0.94.

Good Sign:

Kennametal Inc stock PS Ratio (=0.94) is close to 3-year low of 0.85

The historical rank and industry rank for Kennametal's PS Ratio or its related term are showing as below:

KMT' s PS Ratio Range Over the Past 10 Years
Min: 0.56   Med: 1.23   Max: 2.08
Current: 0.94

During the past 13 years, Kennametal's highest PS Ratio was 2.08. The lowest was 0.56. And the median was 1.23.

KMT's PS Ratio is ranked better than
69.26% of 2970 companies
in the Industrial Products industry
Industry Median: 1.66 vs KMT: 0.94

Kennametal's Revenue per Sharefor the three months ended in Dec. 2023 was $6.18. Its Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $25.67.

Warning Sign:

Kennametal Inc revenue per share has been in decline for the last 5 years.

During the past 12 months, the average Revenue per Share Growth Rate of Kennametal was 4.20% per year. During the past 3 years, the average Revenue per Share Growth Rate was 4.00% per year. During the past 5 years, the average Revenue per Share Growth Rate was -3.20% per year. During the past 10 years, the average Revenue per Share Growth Rate was -3.70% per year.

During the past 13 years, Kennametal's highest 3-Year average Revenue per Share Growth Rate was 17.90% per year. The lowest was -10.70% per year. And the median was 4.40% per year.

Back to Basics: PS Ratio


Kennametal PS Ratio Historical Data

The historical data trend for Kennametal's PS Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Kennametal PS Ratio Chart

Kennametal Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.30 1.26 1.65 0.97 1.11

Kennametal Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
PS Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.98 1.10 1.11 0.97 1.00

Competitive Comparison of Kennametal's PS Ratio

For the Tools & Accessories subindustry, Kennametal's PS Ratio, along with its competitors' market caps and PS Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Kennametal's PS Ratio Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Kennametal's PS Ratio distribution charts can be found below:

* The bar in red indicates where Kennametal's PS Ratio falls into.



Kennametal PS Ratio Calculation

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.

Kennametal's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=24.04/25.671
=0.94

Kennametal's Share Price of today is $24.04.
Kennametal's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $25.67.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

It can also be calculated from the numbers for the whole company:

PS Ratio=Market Cap/Revenue

The Revenue here is for the trailing 12 months.


Kennametal  (NYSE:KMT) PS Ratio Explanation

The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.

When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.

Similar to the PE Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PS Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.


Kennametal PS Ratio Related Terms

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Kennametal (Kennametal) Business Description

Traded in Other Exchanges
Address
525 William Penn Place, Suite 3300, Pittsburgh, PA, USA, 15219
Kennametal Inc is a manufacturer of metalworking tools and wear-resistant engineered components and coatings. The company operates in two business segments: Metal Cutting and infrastructure. It generates maximum revenue from the Metal Cutting segment. The Metal Cutting segment develops and manufactures high performance tooling and metal cutting products and services and offers an assortment of standard and custom metal cutting solutions to diverse end markets, including aerospace, general engineering, energy, and transportation. Geographically, it derives a majority of revenue from the United States.
Executives
William J. Harvey director 26 PHEASANT'S RIDGE SOUTH, GREENVILLE DE 19807
Cindy L Davis director 2635 SW GRENWOLDE PLACE, PORTLAND OR 97201
William M Lambert director C/O MSA SAFETY, 1000 CRANBERRY WOODS DRIVE, CRANBERRY TWP PA 16066
Joseph Alvarado director 705 N. BAR Y ROAD, P.O. BOX 11368, JACKSON WY 83002
Christopher Rossi officer: President and CEO C/O KENNAMETAL INC., 525 WILLIAM PENN PLACE, 33RD FLOOR, PITTSBURGH PA 15219
John Wayne Witt officer: Vice President 525 WILLIAM PENN PLACE, SUITE 3300, PITTSBURGH PA 15219
Sanjay Chowbey officer: Vice President 525 WILLIAM PENN PLACE, SUITE 3300, PITTSBURGH PA 15219
Franklin Cardenas officer: Vice President 525 WILLIAM PENN PLACE, SUITE 3300, PITTSBURGH PA 15219
Steven H Wunning director 471 EAST HIGH POINT DRIVE, PEORIA IL 61614
Lorraine M Martin director 1121 SPRING LAKE DRIVE, ITASCA IL 60143
Paul Sternlieb director 70 WEST MADISON SUITE 4400, CHICAGO IL 60602
Judith L Bacchus officer: Vice President 525 WILLIAM PENN PLACE, 33RD FLOOR, PITTSBURGH PA 15219
Patrick S Watson officer: Vice President 525 WILLIAM PENN PLACE, 33RD FLOOR, PITTSBURGH PA 15219
Ronald L Port officer: Vice President 525 WILLIAM PENN PLACE, 33RD FLOOR, PITTSBURGH PA 15219
Lawrence W Stranghoener director 2035 KIMBERLY COURT, PLYMOUTH MN 55447