Kennametal Inc. (KMT) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+40.7%

$43.80

vs $31.13 price

Levered DCF

$16.49

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

3.22

Safe zone

Rating

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	7.81×	18.98×	16.65×	19.31×	13.35×	55.26×	-472.2×	12.32×
P/B	1.7×	1.38×	1.46×	1.8×	1.54×	2.26×	1.94×	2.24×
P/S	1.13×	0.9×	0.89×	1.1×	0.96×	1.63×	1.26×	1.26×
EV / EBITDA	5.22×	7.76×	7.66×	8.78×	6.89×	14.74×	18.61×	7.44×
Gross margin	41.2%	30.4%	30.6%	31.1%	32.2%	30.0%	28.1%	35.0%
Operating margin	20.1%	7.3%	8.3%	9.3%	10.8%	5.5%	1.2%	13.8%
Net margin	14.5%	4.7%	5.3%	5.7%	7.2%	3.0%	-0.3%	10.2%
Current ratio	2.62×	2.46×	2.41×	2.37×	2.11×	2.3×	1.6×	2.58×
Debt / equity	0.47×	0.5×	0.52×	0.5×	0.53×	0.49×	0.93×	0.44×
Interest coverage	16.54×	5.74×	6.43×	6.75×	8.42×	2.2×	0.63×	9.97×
Dividend yield	2.3%	3.5%	3.5%	2.8%	3.4%	2.2%	2.8%	2.2%
Payout ratio	17.8%	66.4%	58.0%	54.5%	46.0%	122.6%	-1171.2%	27.2%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	21.8%	7.3%	8.7%	9.3%	11.5%	4.1%	-0.5%	18.1%
Return on invested capital	14.3%	5.0%	6.4%	7.0%	7.5%	4.1%	-2.2%	11.9%
Return on assets	10.8%	3.7%	4.4%	4.7%	5.6%	2.0%	-0.2%	9.1%
Free cash flow yield	-3.0%	6.7%	9.3%	7.1%	4.4%	3.6%	-0.9%	3.0%
Earnings yield	12.8%	5.2%	6.0%	5.2%	7.5%	1.8%	-0.2%	8.1%
Enterprise value	$3.3B	$2.3B	$2.3B	$2.8B	$2.5B	$3.5B	$2.9B	$3.4B
Net debt / EBITDA	1×	1.71×	1.69×	1.66×	1.59×	2.09×	3.42×	0.9×
Cash conversion cycle (days)	258	146	137	144	145	145	142	143