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Kennametal Gross Margin %

: 32.14% (As of Mar. 2022)
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Gross Margin % is calculated as gross profit divided by its revenue. Kennametal's Gross Profit for the three months ended in Mar. 2022 was $165 Mil. Kennametal's Revenue for the three months ended in Mar. 2022 was $512 Mil. Therefore, Kennametal's Gross Margin % for the quarter that ended in Mar. 2022 was 32.14%.


The historical rank and industry rank for Kennametal's Gross Margin % or its related term are showing as below:

KMT' s Gross Margin % Range Over the Past 10 Years
Min: 28.08   Med: 31.48   Max: 36.34
Current: 32.2


During the past 13 years, the highest Gross Margin % of Kennametal was 36.34%. The lowest was 28.08%. And the median was 31.48%.

KMT's Gross Margin % is ranked better than
65.43% of 2696 companies
in the Industrial Products industry
Industry Median: 26.31 vs KMT: 32.20

Kennametal had a gross margin of 32.14% for the quarter that ended in Mar. 2022 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Kennametal was -0.60% per year.


Kennametal Gross Margin % Historical Data

The historical data trend for Kennametal's Gross Margin % 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 Annual Data
Trend Jun13 Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 34.64 35.01 28.08 30.00 32.20

Kennametal Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Gross Margin % 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 Premium Member Only Premium Member Only Premium Member Only 34.05 33.25 31.43 32.14 32.01

Competitive Comparison

For the Tools & Accessories subindustry, Kennametal's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution

For the Industrial Products industry and Industrials sector, Kennametal's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Kennametal's Gross Margin % falls into.



Kennametal Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Kennametal's Gross Margin for the fiscal year that ended in Jun. 2021 is calculated as

Gross Margin % (A: Jun. 2021 )=Gross Profit (A: Jun. 2021 ) / Revenue (A: Jun. 2021 )
=552.5 / 1841.441
=(Revenue - Cost of Goods Sold) / Revenue
=(1841.441 - 1288.963) / 1841.441
=30.00 %

Kennametal's Gross Margin for the quarter that ended in Mar. 2022 is calculated as


Gross Margin % (Q: Mar. 2022 )=Gross Profit (Q: Mar. 2022 ) / Revenue (Q: Mar. 2022 )
=164.6 / 512.259
=(Revenue - Cost of Goods Sold) / Revenue
=(512.259 - 347.639) / 512.259
=32.14 %

* 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.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Kennametal  (NYSE:KMT) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Kennametal had a gross margin of 32.14% for the quarter that ended in Mar. 2022 => Competition eroding margins


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Kennametal Gross Margin % Related Terms

Thank you for viewing the detailed overview of Kennametal's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Kennametal Business Description

Kennametal logo
Traded in Other Exchanges
Address
525 William Penn Place, Suite 3300, Pittsburgh, PA, USA, 15219-2706
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
Chowbey Sanjay officer: Vice President 525 WILLIAM PENN PLACE SUITE 3300 PITTSBURGH PA 15219
Stranghoener Lawrence W director 2035 KIMBERLY COURT PLYMOUTH MN 55447
Cardenas Franklin officer: Vice President 525 WILLIAM PENN PLACE SUITE 3300 PITTSBURGH PA 15219
Audia Damon J officer: Vice President 525 WILLIAM PENN PLACE 33RD FLOOR PITTSBURGH PA 15219
Reilly Carlonda R. officer: Vice President 525 WILLIAM PENN PLACE 33RD FLOOR PITTSBURGH PA 15219
Martin Lorraine M director 1121 SPRING LAKE DRIVE ITASCA IL 60143
Port Ronald L officer: Vice President 525 WILLIAM PENN PLACE 33RD FLOOR PITTSBURGH PA 15219
Alvarado Joseph director 705 N. BAR Y ROAD P.O. BOX 11368 JACKSON WY 83002
Patel Sagar A director 1000 EAST DRAKE ROAD FORT COLLINS CO 80525
Van Gaalen Jan Kees officer: Vice President 10205 WESTHEIMER, SUITE 1000 HOUSTON TX 77042
Bacchus Judith L officer: Vice President 525 WILLIAM PENN PLACE 33RD FLOOR PITTSBURGH PA 15219
Keating Michelle R officer: Vice President 525 WILLIAM PENN PLACE 33RD FLOOR PITTSBURGH PA 15219
Rossi Christopher officer: President and CEO C/O KENNAMETAL INC. 525 WILLIAM PENN PLACE, 33RD FLOOR PITTSBURGH PA 15219
Watson Patrick S officer: Vice President 525 WILLIAM PENN PLACE 33RD FLOOR PITTSBURGH PA 15219
Lambert William M director C/O MSA SAFETY 1000 CRANBERRY WOODS DRIVE CRANBERRY TWP PA 16066

Kennametal Headlines

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