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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#220
Positioning
Market Dominance
Manufacturing
Machinery
$1.6B
Christopher Rossi
Kennametal Inc. develops and applies tungsten carbides, ceramics, and super-hard materials and solutions for use in metal cutting and extreme wear applications. It operates through two segments, Metal Cutting and Infrastructure. The company provides standard and custom products, including turning, milling, hole making, tooling systems, and services.
Headcount
8.7K
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Dates updated upon official exchange announcement.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = KMT ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 32.9% | 20.5% | 48.8% | 30.6% | 24.4% | 7.7% | 0.9% | 32.0x | $148.6B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.4% | 7.5% | 68.3% | 19.5% | 18.2% | 29.0% | 0.0% | 0.0x | $84M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$KMT KENNAMETAL INC | 66 | 56 | 76 | 80 | 26.9x | 18.2x | 8.3% | 4.3% | 31.5% | 8.3% | 5.6% | 9.9% | 3.8% | 91.0x | $1.6B | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -1.9% | 0.9% | 44.1% | 2.5% | 1.0% | 6.7% | 0.0% | 0.2x | - | REF |
KENNAMETAL INC (KMT) receives a "Buy" rating with a composite score of 66.4/100. It ranks #220 out of 7,333 stocks in our coverage universe and carries a 4-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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HQ Base
Latrobe, Pennsylvania
Outperforming peers — winners tend to keep winning over 3-12 months
Trading at a discount to fundamentals — favorable entry valuation
Average quality profile
Low volatility — smoother ride and historically better risk-adjusted returns
Moderate investment profile
Top-rated overall — multiple factors aligned for strong entry
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for KMT.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 56 | 54 | +2NEUTRAL |
| MOMENTUM | 80 | 86 | -6DRAG |
| VALUATION | 76 | 80 | -4NEUTRAL |
| INVESTMENT | 43 | 81 | -38DRAG |
| STABILITY | 74 | 76 | -2NEUTRAL |
| SHORT INT | 66 | 78 | -12DRAG |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROE proxy 8.3% (sector -1.9%)
GM 32% vs sector 44%, OM 8% vs sector 3%
Capital turnover N/A
Rev growth 10%, 11yr history
Interest coverage N/A
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate KENNAMETAL INC (KMT) as a Buy with a composite score of 66.4/100 at a current price of $40.14. The stock scores above average across the majority of our quantitative factors and ranks #220, reflecting a favorable risk-reward profile.
KENNAMETAL INC holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 66.4/100 places it at rank #220 in our full universe.
The near-term outlook is constructive, with revenue growing at 10% and momentum in the 80th percentile confirming positive market sentiment. The combination of strong top-line growth and favorable price dynamics suggests the company is executing well on its growth strategy.
No Moat
Medium
Poor
Undervalued
Value factor score of 76 suggests attractive pricing.
Positive momentum indicates institutional accumulation.
Stable competitive position in a defensive sector.
Vulnerability to macroeconomic shocks and interest rate volatility.
KENNAMETAL INC represents a buy based on multi-factor quantitative performance.
KENNAMETAL INC receives a Buy rating with a composite score of 66.4/100 and 4 out of 5 stars, ranking #220 of 7,333 stocks in our universe. KMT displays a favorable combination of factors that positions it above the majority of the market. While not without risk, the quantitative profile supports a constructive outlook.
With a quality score of 56/100, KMT shows adequate but unremarkable business quality. The company reports a return on equity of 8.3% (sector avg: -1.9%), gross margins of 31.5% (sector avg: 44.1%), net margins of 5.6% (sector avg: 1.0%). This suggests the company generates acceptable returns but may lack the competitive positioning or operational efficiency to stand out from peers.
KMT carries a solid value score of 76/100, pointing to an attractively priced stock relative to peers. Key valuation metrics include a P/E ratio of 26.95x, an EV/EBITDA of 18.18x, a P/B ratio of 2.22x. This score suggests reasonable compensation for the risks involved, with potential upside if the market recognizes the stock's underlying worth.
With an investment score of 43/100, KMT exhibits moderate growth-oriented spending. Key growth metrics include revenue growth of 9.9% vs. a sector average of 6.7% and a return on assets of 4.3% (sector: 0.9%). The company appears to be balancing growth investments with capital returns, though the pace of investment may not be enough to accelerate top-line growth meaningfully.
KMT shows strong momentum characteristics with a score of 80/100. The stock has been trending above key moving averages, indicating solid demand from institutional buyers. Revenue growth stands at 9.9% year-over-year, while a beta of 1.01 reflects its sensitivity to broader market moves. This level of momentum typically signals sustained investor confidence and favorable near-term price action.
KMT shows good financial stability with a score of 74/100. Key stability metrics include a beta of 1.01 and a debt-to-equity ratio of 91.00x (sector avg: 0.2x). This suggests manageable leverage and moderate price volatility, making it appropriate for investors seeking a balance between growth potential and capital preservation.
KMT carries a short interest score of 66/100, indicating moderate short selling activity. This is a neutral reading — not enough to signal systemic bearishness, but worth monitoring. Specific risk factors include elevated leverage (D/E: 91.00x), small-cap liquidity risk. At $1.6B market cap (small-cap), KENNAMETAL INC offers reasonable institutional liquidity.
KMT pays a solid dividend yield of 3.8%, contributing an income component to total returns. This moderate yield suggests a balance between returning capital to shareholders and retaining earnings for reinvestment — a common profile among quality compounders.
KENNAMETAL INC is a small-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #220 of 7,333 overall (97th percentile). Key comparisons include ROE of 8.3% exceeding the -1.9% sector median and operating margins of 8.3% above the 2.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
Quant Factor Profile
Upgrade catalyst
Investment (43) is the limiting factor — improvement here would lift the composite score most.
EV/EBITDA 59% ABOVE SECTOR MEDIAN
ROE 534% BELOW SECTOR MEDIAN
Gross Margin 28% BELOW SECTOR MEDIAN
Above 50MA
37.18%
Net New Highs
+51081
Kennametal's (KMT) fiscal third-quarter 2024 revenues decrease 3.8% due to the lackluster performance of the Metal Cutting segment.
During times of turbulence and uncertainty in the markets, even when markets are at all-time highs, many investors turn to dividend-yielding stocks. These are often companies that have high free cash flows and reward shareholders with a high dividend payout. Benzinga readers can review the latest analyst takes on their favorite stocks by visiting our Analyst Stock Ratings page. Traders can sort through Benzinga's extensive database of analyst ratings, including by analyst accuracy. Below are the ratings of the most accurate analysts for three high-yielding stocks in the industrials sector. Paychex, Inc. (NASDAQ:PAYX) Dividend Yield: 3.19% RBC Capital analyst Ashish Sabadra reiterated a Sector Perform rating with a price target of $130 on May 21. This analyst has an accuracy rate of 66%. Wedbush analyst Moshe Katri reiterated a Neutral rating with a price target of $115 on April 3. This analyst has an accuracy rate of 62%. Recent News: Paychex ...Full story available on Benzinga.com
Kennametal (KMT) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
The headline numbers for Kennametal (KMT) give insight into how the company performed in the quarter ended March 2024, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Looking beyond Wall Street's top -and-bottom-line estimate forecasts for Kennametal (KMT), delve into some of its key metrics to gain a deeper insight into the company's potential performance for the quarter ended March 2024.