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How to buy Kennametal stock
Own Kennametal stock in just a few minutes.
Fact checked
Kennametal Inc is a tools & accessories business based in the US. Kennametal shares (KMT) are listed on the NYSE and all prices are listed in US Dollars. Kennametal employs 8,989 staff and has a trailing 12-month revenue of around USD$1.7 billion.
How to buy shares in Kennametal
- Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
- Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
- Search for Kennametal. Find the stock by name or ticker symbol: KMT. Research its history to confirm it's a solid investment against your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Kennametal reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
- Decide on how many to buy. Weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of Kennametal, depending on your broker.
- Check in on your investment. Congratulations, you own a part of Kennametal. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.
What's in this guide?
Kennametal share price
Use our graph to track the performance of KMT stocks over time.Kennametal shares at a glance
Information last updated 2021-03-03.
| 52-week range | USD$14.0606 - USD$41.2677 |
|---|---|
| 50-day moving average | USD$38.145 |
| 200-day moving average | USD$34.4864 |
| Wall St. target price | USD$35.88 |
| PE ratio | 36.4744 |
| Dividend yield | USD$0.8 (2.07%) |
| Earnings per share (TTM) | USD$0.779 |
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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.
Is it a good time to buy Kennametal stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.
Is Kennametal under- or over-valued?
Valuing Kennametal stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Kennametal's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Kennametal's P/E ratio
Kennametal's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 36x. In other words, Kennametal shares trade at around 36x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
Kennametal's PEG ratio
Kennametal's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 0.56. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Kennametal's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Kennametal's EBITDA
Kennametal's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$264.8 million.
The EBITDA is a measure of a Kennametal's overall financial performance and is widely used to measure a its profitability.
Kennametal financials
| Revenue TTM | USD$1.7 billion |
|---|---|
| Operating margin TTM | 8.43% |
| Gross profit TTM | USD$544.5 million |
| Return on assets TTM | 3.43% |
| Return on equity TTM | -0.51% |
| Profit margin | -0.5% |
| Book value | $15.326 |
| Market capitalisation | USD$3.2 billion |
TTM: trailing 12 months
Shorting Kennametal shares
There are currently 4.2 million Kennametal shares held short by investors – that's known as Kennametal's "short interest". This figure is 6.3% down from 4.5 million last month.
There are a few different ways that this level of interest in shorting Kennametal shares can be evaluated.
Kennametal's "short interest ratio" (SIR)
Kennametal's "short interest ratio" (SIR) is the quantity of Kennametal shares currently shorted divided by the average quantity of Kennametal shares traded daily (recently around 745129.25531915). Kennametal's SIR currently stands at 5.64. In other words for every 100,000 Kennametal shares traded daily on the market, roughly 5640 shares are currently held short.
However Kennametal's short interest can also be evaluated against the total number of Kennametal shares, or, against the total number of tradable Kennametal shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Kennametal's short interest could be expressed as 0.05% of the outstanding shares (for every 100,000 Kennametal shares in existence, roughly 50 shares are currently held short) or 0.0649% of the tradable shares (for every 100,000 tradable Kennametal shares, roughly 65 shares are currently held short).
A SIR below 10% would generally be considered to indicate a fairly optimistic outlook for the share price, with fewer people currently willing to bet against Kennametal.
Find out more about how you can short Kennametal stock.
Kennametal share dividends
Dividend payout ratio: 100% of net profits
Recently Kennametal has paid out, on average, around 100% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 1.99% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Kennametal shareholders could enjoy a 1.99% return on their shares, in the form of dividend payments. In Kennametal's case, that would currently equate to about $0.8 per share.
Kennametal's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.
Kennametal's most recent dividend payout was on 23 February 2021. The latest dividend was paid out to all shareholders who bought their shares by 8 February 2021 (the "ex-dividend date").
Have Kennametal's shares ever split?
Kennametal's shares were split on a 2:1 basis on 19 December 2007. So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your Kennametal shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for Kennametal shares which in turn could have impacted Kennametal's share price.
Kennametal share price volatility
Over the last 12 months, Kennametal's shares have ranged in value from as little as $14.0606 up to $41.2677. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Kennametal's is 2.1099. This would suggest that Kennametal's shares are significantly more volatile than the average for this exchange and represent a higher risk.
Kennametal overview
Kennametal Inc. develops and applies tungsten carbides, ceramics, and super-hard materials and solutions for use in metal cutting and extreme wear applications to enable customers work against corrosion and high temperatures conditions worldwide. It operates through three segments: Industrial, Widia, and Infrastructure. The company offers standard and custom products, including turning, milling, hole making, tooling systems, and services, as well as specialized wear components and metallurgical powders for manufacturers engaged in various industries, such as the manufacturers of transportation vehicles and components, machine tools, and light and heavy machinery; airframe and aerospace components; and energy-related components for the oil and gas industry, as well as power generation. It also provides specified product design, selection, application, and support services; and standard and custom metal cutting solutions to general engineering, aerospace, energy, and transportation customers. In addition, the company produces compacts, nozzles, frac seats, and custom components used in oil and gas, and petrochemical industries; rod blanks and abrasive water jet nozzles for general industries; earth cutting tools and systems used in underground mining, trenching and foundation drilling, and road milling; tungsten carbide and specialty alloy powders for the oil and gas, aerospace, and process industries; and ceramics used by the packaging industry for metallization of films and papers. It provides its products under the Kennametal, WIDIA, WIDIA Hanita, and WIDIA GTD brands through its direct sales force; a network of independent and national chain distributors; integrated supplier channels; and value added resellers, as well as through the Internet. Kennametal Inc. was founded in 1938 and is based in Pittsburgh, Pennsylvania.
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