Margins and capital returns are both well above average: 20.05% operating margin, ROIC at 17.11%. Consistent with durable pricing power, though that alone doesn't make it a buy.
Revenue up 19.8% YoY with margins expanding 12.8pp. However, free cash flow softened 168%, worth monitoring whether this is timing or structural.
Free cash flow declined 168% versus the prior year, cash generation momentum has weakened. Negative free cash flow of -$81M. The business is consuming cash, not generating it.
7.0x earnings. The multiple is below average. Either the market is pricing in deterioration you should investigate, or there's genuine value here.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$2.36B
▲ +19.8% YoY
Net Income (TTM)
$342M
▲ +267.7% YoY
Op. Margin
20.05%
▲ +12.8pp YoY
ROIC
17.11%
▲ +11.4pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$81M
▼ -167.8% YoY
Op. Cash Flow (TTM)
-$4M
▼ -101.9% YoY
Net Debt
$636M
Cash & Equiv.
$96M
5Y CAGR: +5.1%
Continue Research
SourceComputed from the 10-Q filed 31 Jul 2026, covering the period ending 30 Jun 2026, as reported to the SEC. Data last refreshed 13 Aug 2026. How this is calculated.
Price from market data, last close as of 21 Oct 2026. Fiscal year ends Jun. Sector medians are approximate S&P 500 benchmarks and update periodically.
Is Kennametal (KMT) overvalued?
At a P/E of 7.0, Kennametal (KMT)'s valuation is best read against its own history, its peers, and the growth its price implies. A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Kennametal scores 51/100 on Intrinsiqq's quality scorecard (a mixed business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 2.6%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
Is Kennametal a high-quality business?+
Kennametal scores 51 out of 100 on Intrinsiqq's quality score, a weighted blend of 7 metrics each scored 0 to 100, which makes it a mixed business on these measures. Recent fundamentals include a 20.1% operating margin and a 17.1% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Does Kennametal (KMT) pay a dividend, and how much?+
Yes, Kennametal pays a regular dividend of about $0.79 per share per year (typically in quarterly installments), a yield of roughly 2.6% at the current price. That is a payout ratio of about 17.8% of earnings, so the dividend is amply covered by earnings. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For KMT's full payout history, growth streak and dividend-safety score, see the dividends tab.
Is Kennametal a good stock to buy right now?+
That depends on valuation and quality together, not either alone. you should weigh KMT's valuation and scores 51/100 on quality (mixed). It also yields about 2.6%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.
Related stocks: Machine Tools, Metal Cutting Types
Spot a number that looks wrong? Check it in KMT's SEC filings or
Download this analysis as a PDF (Pro)
Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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