Stock analysis · Bull Rankings model

KMT analysis

Kennametal Inc.Tools & Accessories. Scored on the same transparent 7-signal model behind the daily rankings.

KMT
Kennametal Inc. · Tools & Accessories
FCF$73mC-
Rev+7.2%B
D/E0.47B+
P/E19.3xA-
PEG1.25B
53.4Score
$34.76$2.6B
1Y Target$36.93Analyst consensus · 7 analysts
5Y Target$54.07Compound horizon
10Y Target$80.20Long-dated conviction
FCF$73mTTM
C-
FCF $73m — barely positive; fragile cash position
Rev+7.2%TTM YoY
B
Revenue +7.2% — at or above S&P median
D/E0.47
B+
D/E 0.47 — below the Industrials debt median (≈40th pctile)
P/E19.3x
A-
P/E 19.3 — cheaper than most Industrials peers (≈25th pctile)
PEG1.25
B
PEG 1.25 — acceptable premium for growth

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 53.4
Quality0.63
Growth0.45
Value0.54
Entry · Margin of safety
52-week rangeMid-range
21% off the 12-month high
vs DCF fair value232% aboveest. fair value ~$10
What the price assumes: free cash flow compounding at ~33% a year for the next decade — vs the ~1% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability25% · Bgross profit ÷ total assets (Novy-Marx)
ROIC11.7% · Breturn on invested capital — not score-weighted
Why now
Tools & Accessories · market cap $2.6b. Down 21% from 52-week high of $43.81 — deep drawdown territory. 7 sell-side analysts rate this a Hold with a mean 1-yr target of $36.93 (implying +6% upside).
Moat
ROE 10% meets the long-run market sustainable threshold — solid but not differentiated; the durability comes from elsewhere.
Risk
Mature compounder — the risk is paying up for quality at a moment when growth is decelerating. Watch for sequential revenue + margin trends; the inflection from "compounder" to "ex-compounder" is hard to spot until the multiple already started compressing.
Horizon
1-3 yr $36.93 (7-analyst consensus) — fundamentals + valuation re-rating. 5 yr $54.07 at ~9% CAGR — compounding case rests on the competitive position widening. 10 yr $80.20 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Trend
+15.4 over 20 daily scores
From 38.0 (Jun 22) → 53.4 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Shares to buy
57
Position size
$1,981
4.0% of portfolio
Stop price
$26.07
25% below $34.76
$ at risk if stopped
$495.33
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

Kennametal Inc. (KMT): score, valuation & FAQ

Kennametal Inc. (KMT) is a Tools & Accessories company that scores 53.4 out of 100 on the Bull Rankings quality-growth model — a middling reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are P/E (A-) and D/E (B+), while FCF (C-) rate weaker. On valuation, KMT sits about 232% above our discounted-cash-flow fair value — the current price implies roughly 33% annual free-cash-flow growth over the next decade.

Is KMT a good stock to buy?

Bull Rankings scores KMT 53.4 out of 100 on its quality-growth model, which is a middling reading. That is driven by P/E (A-) and D/E (B+). A score is a quantitative screen of Kennametal Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does KMT score 53.4 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). KMT earns its highest marks on P/E (A-) and D/E (B+), and is held back by FCF (C-). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is KMT overvalued or undervalued?

Based on $34.76, KMT sits about 232% above our discounted-cash-flow fair value — the current price implies roughly 33% annual free-cash-flow growth over the next decade. It trades at a 19.3x× P/E (graded A-). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in KMT?

Mature compounder — the risk is paying up for quality at a moment when growth is decelerating. Watch for sequential revenue + margin trends; the inflection from "compounder" to "ex-compounder" is hard to spot until the multiple already started compressing.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.

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