Operating Margin % is calculated as Operating Income divided by its Revenue. Kennametal's Operating Income for the
three
months ended in Mar. 2022 was $54 Mil. Kennametal's Revenue for the
three
months ended in Mar. 2022 was $512 Mil. Therefore, Kennametal's Operating Margin % for the quarter that ended in Mar. 2022 was 10.60%.
Good Sign:
Kennametal Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Kennametal's Operating Margin % or its related term are showing as below:
KMT'
s Operating Margin % Range Over the Past 10 Years
Min: 4.78 Med: 9.2 Max: 15.22
Current: 10.73
KMT's Operating Margin % is ranked better than 68.99% of 2725
companies
in the Industrial Products industry
Industry Median: 6.78
vs KMT: 10.73
Kennametal's 5-Year Average Operating Margin % Growth Rate was 5.00% per year.
Kennametal's Operating Income for the
three
months ended in Mar. 2022 was $54 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2022 was $216 Mil.
Kennametal Operating Margin % Historical Data
The historical data trend for Kennametal's Operating 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
Operating Margin %
12.76
14.44
6.75
7.13
10.73
Kennametal Quarterly Data
Sep17
Dec17
Mar18
Jun18
Sep18
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Operating Margin %
12.35
11.33
8.84
10.60
12.03
Competitive Comparison
For the Tools & Accessories subindustry, Kennametal's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % Distribution
For the Industrial Products industry and Industrials sector, Kennametal's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Kennametal's Operating Margin % falls into.
Kennametal Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Kennametal's Operating Margin % for the fiscal year that ended in Jun. 2021 is calculated as
* 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.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Kennametal Operating Margin % Related Terms
Thank you for viewing the detailed overview of Kennametal's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
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.
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