Kennametal (FRA:KM3) Moat Score: 5/10 (As of Jul. 07, 2026)


FRA:KM3 Kennametal Inc FRA:KM3
85 GF Score
Price €28.60
GF Value €25.08
Valuation Modestly Overvalued
! 2 Warning Signs
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What is Kennametal Moat Score?

Kennametal FRA:KM3 -2.05% 85 Moat Score is 5 as of Jul. 07, 2026. GuruFocus rates FRA:KM3 with a GF Score™ of 85/100 and a GF Value™ of €25.08 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 3,037 Industrial Products companies, Kennametal ranks better than 96.94% on this metric.

Kennametal has the Moat Score of 5, which implies that the company might have Narrow Moat - Solid narrow moat.

Kennametal has Narrow Moat: Kennametal has a solid narrow moat due to its strong brand in industrial tooling and durable cost advantages from economies of scale. However, it lacks significant network effects or high customer switching costs, limiting its moat to a narrow category.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Kennametal might have Narrow Moat - Solid narrow moat.

Kennametal  (FRA:KM3) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Kennametal Moat Score Related Terms

FRA:KM3 vs HLMN, QEPC, EML: Moat Score Comparison

For the Tools & Accessories subindustry, Kennametal's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Industrial Products Industry

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

* The bar in red indicates where Kennametal's Moat Score falls into.


FRA:KM3
85GF Score
Kennametal Inc FRA:KM3
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 5 mean?
Kennametal (FRA:KM3) has a Moat Score of 5 as of Jul. 07, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Kennametal ranks #93 out of 3037 companies in the Industrial Products industry, placing it in the top 3.1%.
Is Kennametal's Moat Score too high?
Kennametal's current Moat Score is 5. Based on the distribution chart, Kennametal ranks #93 out of 3037 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Kennametal has a GF Score™ of 85/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kennametal's Moat Score compare to HLMN and QEPC?
According to the Industrial Products industry distribution chart, Kennametal ranks #93 out of 3037 companies for Moat Score. This places Kennametal in the top 3% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for an Industrial Products company?
A good Moat Score depends on the Industrial Products industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Kennametal's current Moat Score is 5. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kennametal stock overvalued right now?
Based on GuruFocus' analysis, Kennametal (FRA:KM3) is currently considered Modestly Overvalued. The stock's GF Value™ is €25.08, compared to a current price of €28.60 — trading 14% above its estimated fair value. The current Moat Score is 5. Kennametal's overall GF Score™ is 85/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Kennametal (FRA:KM3), the current Moat Score is 5 as of Jul. 07, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Kennametal (FRA:KM3) Overvalued in 2026?

Based on GuruFocus' analysis, Kennametal stock appears to be overvalued. The current stock price of €28.60 is trading 14% above its estimated GF Value™ of €25.08. GuruFocus considers Kennametal to be Modestly Overvalued.

Key valuation signals for FRA:KM3:

  • Moat Score: 5
  • GF Value™: €25.08 vs. price of €28.60 (14% above fair value)
  • GF Score™: 85/100 with 2 warning signs

No single metric tells the full story. See the FRA:KM3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Kennametal Business Description

Other Exchanges KMT:USAKM3:Germany
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 maximum revenue from the United States and the rest from Germany, China, Canada, India, Italy, and other countries.
85GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€28.60
Price
€25.08
GF Value