KennametalFRA:KM3 -2.03%85 Dividend Payout Ratio is 0.26 as of Mar. 2026, which is 51% below its 10-year median of 0.53. GuruFocus rates FRA:KM3 with a GF Score™ of 85/100 and a GF Value™ of €25.42 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 1,721 Industrial Products companies, Kennametal ranks worse than 55.84% on this metric.
The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period. Kennametal's Dividend Payout Ratio for the
months ended in Mar. 2026 was 0.26.
The historical rank and industry rank for Kennametal's Dividend Payout Ratio or its related term are showing as below:
FRA:KM3'
s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.27 Med: 0.53 Max: 0.85
Current: 0.42
During the past 13 years, the highest Dividend Payout Ratio of Kennametal was 0.85. The lowest was 0.27. And the median was 0.53.
FRA:KM3's Dividend Payout Ratio is ranked worse than 55.84% of 1721
companies
in the Industrial Products industry
Industry Median: 0.37
vs FRA:KM3: 0.42
During the past 10 years, the average Dividends Per Share Growth Rate was 0.50% per year.
During the past 13 years, the highest 3-Year average Dividends Per Share Growth Rate of Kennametal was 14.50% per year. The lowest was 0.00% per year. And the median was 2.00% per year.
The growth rate is calculated with least square regression.
For more information regarding to dividend, please check our Dividend Page.
* Please note that "special dividend" is not included in the calculation of dividend per share and related fields.
Kennametal (FRA:KM3) Dividend Payout Ratio Explanation
In dividends investing, Dividend Payout Ratio and Dividend Growth Rate are the two most important variables for consideration. A lower payout ratio may indicate that the company has more room to increase its dividends.
Kennametal Dividend Payout Ratio Related Terms
Kennametal Dividend Payout Ratio Historical Data
* Premium members only.
The historical data trend for Kennametal's Dividend Payout 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.
FRA:KM3 vs HLMN, QEPC, EML: Dividend Payout Ratio Comparison
For the Tools & Accessories subindustry, Kennametal's Dividend Payout Ratio, along with its competitors' market caps and Dividend Payout 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 Dividend Payout Ratio vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Kennametal's Dividend Payout Ratio distribution charts can be found below:
* The bar in red indicates where Kennametal's Dividend Payout Ratio falls into.
The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period.
Kennametal's Dividend Payout Ratio for the fiscal year that ended in Jun. 2025 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.
Kennametal (FRA:KM3) has a Dividend Payout Ratio of 0.26 as of Mar. 2026. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Kennametal and its competitors. This is 51% below median its historical median of 0.53. Over the past decade, Kennametal's Dividend Payout Ratio has ranged from 0.27 to 0.85. According to the industry distribution chart, Kennametal ranks #961 out of 1721 companies in the Industrial Products industry, placing it in the top 55.8%.
Is Kennametal's Dividend Payout Ratio too high?
Kennametal's current Dividend Payout Ratio of 0.26 is 51% below median its 10-year median of 0.53. Over the past 10 years, this metric has ranged from a low of 0.27 to a high of 0.85. The Industrial Products industry median Dividend Payout Ratio is 0.37. Kennametal's value of 0.26 is 29.7% below this industry median. Based on the distribution chart, Kennametal ranks #961 out of 1721 companies in the Industrial Products industry, which is below the industry midpoint. 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 Dividend Payout Ratio compare to HLMN and QEPC?
According to the Industrial Products industry distribution chart, Kennametal ranks #961 out of 1721 companies for Dividend Payout Ratio. This places Kennametal in the lower half of its industry. The industry median Dividend Payout Ratio is 0.37. Kennametal's value of 0.26 is 29.7% below this benchmark. Historically, Kennametal's own Dividend Payout Ratio has ranged from 0.27 to 0.85 over the past decade. While the company's 10-year median is 0.53 vs. the industry median of 0.37, Kennametal has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Dividend Payout Ratio for an Industrial Products company?
The median Dividend Payout Ratio among Industrial Products companies is 0.37, based on 1,721 companies in the industry. Companies in the top quartile (top 25%) have a Dividend Payout Ratio significantly above this median, while those in the bottom quartile fall well below. However, Dividend Payout Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kennametal's current Dividend Payout Ratio of 0.26 is 29.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Dividend Payout Ratio mean?
A high Dividend Payout Ratio can signal that a stock is expensive relative to its fundamentals. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Kennametal and its competitors. For the Industrial Products industry, the median Dividend Payout Ratio is 0.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kennametal's current Dividend Payout Ratio is 0.26, which is 51% below median its own 10-year median of 0.53. 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 €25.42, compared to a current price of €29.00 — trading 14.1% above its estimated fair value. The current Dividend Payout Ratio is 0.26, which is 51% below median its 10-year median of 0.53 and 29.7% below the Industrial Products industry median of 0.37. 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 Dividend Payout Ratio calculated?
Dividend Payout Ratio is calculated from a company's financial statements. For Kennametal (FRA:KM3), the current Dividend Payout Ratio is 0.26 as of Mar. 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 €29.00 is trading 14.1% above its estimated GF Value™ of €25.42.
GuruFocus considers Kennametal to be Modestly Overvalued.
Key valuation signals for FRA:KM3:
Dividend Payout Ratio: 0.26 (51% below median its 10-year median of 0.53)
GF Value™: €25.42 vs. price of €29.00 (14.1% above fair value)
Industry Position: 29.7% below the Industrial Products median (#961 of 1721)
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 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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