Recent News
On July 11, 2025, Investor’s Business Daily reported an upgrade in Kennametal’s Relative Strength rating, noting improving price performance but stating the stock remains outside an optimal buy range. A second IBD piece in July highlighted the company’s rising relative price performance versus peers though it noted the firm had not yet surpassed key technical thresholds for a breakout.
Technical Analysis
ADX at 18.84 indicates no established trend; the market lacks directional strength even as short-term momentum attempts to build. This low ADX tempers the conviction behind bullish signals and points to a range-bound environment unless trend strength increases.
DI+ shows a dip-and-reversal and DI- sits at 26.88 and decreasing; both readings count as bullish directional cues. The combination suggests buyers recently regained control of directional pressure, but ADX implies the move carries limited strength.
MACD at -0.26 has crossed above its signal line (-0.31), and the MACD shows a dip-and-reversal. That cross constitutes a bullish momentum shift versus prior selling pressure and supports a near-term lift in price if sustained.
MRO at -17.63 sits negative, indicating price sits below WMDST’s target and therefore carries potential to increase; the MRO displays a dip-and-reversal consistent with the MACD signal for a short-term recovery.
RSI at 47.52 with a dip-and-reversal places momentum near neutral but biased upward; the RSI offers room for upside before reaching overbought territory and confirms the tentative bullish tilt.
Price relationships: the close at $21.10 sits roughly at the 12-day EMA ($21.09) and the 20-day average ($21.13), showing short-term alignment. Price remains below the 50-day ($22.20) and 200-day ($22.04) averages, which act as overhead resistance levels; clearing those averages would strengthen trend conviction.
Bollinger bands position price near the midpoint (lower band ~ $20.27–$20.70, upper band ~ $21.56–$21.99), indicating limited volatility. The SuperTrend lower support at $20.57 sits just below the close and offers a nearby technical floor. Volume at 1.256M modestly exceeds the 10-day average, lending mild confirmation to the recent momentum pickup.
Fundamental Analysis
Total revenue reached $516,447,000 with revenue growth year-over-year at 15.82% and revenue growth quarter-over-quarter at 584.92%. The YoY top-line expansion contrasts with QoQ seasonality in the data and supports short-term earnings variability.
Operating income $37,160,000 and EBIT $36,592,000 produce an EBIT margin of 7.09%. That margin declined QoQ by -30.40% and YoY by -37.33%, placing the company well below the industry peer mean EBIT margin of 20.01% and below the industry peer median of 22.32%.
EPS came in at $0.34 versus an estimate of $0.39, generating an EPS surprise ratio of -12.82%; the miss tightened near-term sentiment on reported earnings metrics. Forward EPS stands at $0.4125 with a forward P/E of 52.23x while trailing P/E sits at 68.55x, reflecting lower current earnings relative to price.
Liquidity and cash flow show strength: cash and short-term investments $140,540,000, operating cash flow $78,594,000, and free cash flow $57,129,000 produce a free cash flow yield of 3.38%, which sits above the industry peer mean free cash flow yield of 1.01%. Current ratio 2.46 and quick ratio 1.19 indicate ample short-term coverage.
Balance sheet and leverage: total debt $643,360,000 and net debt $457,225,000 produce debt-to-equity of 0.50 and debt-to-EBITDA of 8.98x, signaling elevated leverage relative to earnings. Interest coverage at 5.88x provides buffer for interest expense, but the high debt-to-EBITDA multiple warrants monitoring against cyclical earnings pressure.
Profitability metrics remain subdued: return on equity 1.68% and return on assets 0.86% reflect compressed returns after margin declines. Cash conversion cycle 149.31 days exceeds the industry peer mean of 109.27 days, indicating longer working capital deployment that can pressure free cash conversion during slower revenue periods.
Valuation note: WMDST values the stock as under-valued. The valuation reflects a mix of above-peer free cash flow yield and a below-peer price-to-book ratio (P/B 1.32 versus industry peer mean P/B 4.66), offset by compressed margins and elevated leverage that weigh on earnings multiples.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-08-06 |
| NEXT REPORT DATE: | 2025-11-04 |
| CASH FLOW | Begin Period Cash Flow | $ 97.5 M |
| Operating Cash Flow | $ 78.6 M | |
| Capital Expenditures | $ -21.46 M | |
| Change In Working Capital | $ 25.4 M | |
| Dividends Paid | $ -15.25 M | |
| Cash Flow Delta | $ 43.1 M | |
| End Period Cash Flow | $ 140.5 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 516.4 M | |
| Forward Revenue | $ 187.5 M | |
| COSTS | ||
| Cost Of Revenue | $ 370.8 M | |
| Depreciation | $ 32.4 M | |
| Depreciation and Amortization | $ 35.1 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 479.3 M | |
| PROFITABILITY | ||
| Gross Profit | $ 145.7 M | |
| EBITDA | $ 71.7 M | |
| EBIT | $ 36.6 M | |
| Operating Income | $ 37.2 M | |
| Interest Income | — | |
| Interest Expense | $ 6.2 M | |
| Net Interest Income | $ -6.22 M | |
| Income Before Tax | $ 30.4 M | |
| Tax Provision | $ 7.2 M | |
| Tax Rate | 23.855 % | |
| Net Income | $ 21.6 M | |
| Net Income From Continuing Operations | $ 23.1 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.39 | |
| EPS Actual | $ 0.34 | |
| EPS Difference | $ -0.05 | |
| EPS Surprise | -12.821 % | |
| Forward EPS | $ 0.41 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 2.5 B | |
| Intangible Assets | $ 349.9 M | |
| Net Tangible Assets | $ 934.0 M | |
| Total Current Assets | $ 1.0 B | |
| Cash and Short-Term Investments | $ 140.5 M | |
| Cash | $ 140.5 M | |
| Net Receivables | $ 295.4 M | |
| Inventory | $ 538.2 M | |
| Long-Term Investments | $ 25.5 M | |
| LIABILITIES | ||
| Accounts Payable | $ 195.9 M | |
| Short-Term Debt | $ 977.0 K | |
| Total Current Liabilities | $ 422.3 M | |
| Net Debt | $ 457.2 M | |
| Total Debt | $ 643.4 M | |
| Total Liabilities | $ 1.2 B | |
| EQUITY | ||
| Total Equity | $ 1.3 B | |
| Retained Earnings | $ 1.2 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 16.84 | |
| Shares Outstanding | 76.012 M | |
| Revenue Per-Share | $ 6.77 | |
| VALUATION | Market Capitalization | $ 1.7 B |
| Enterprise Value | $ 2.2 B | |
| Enterprise Multiple | 30.59 | |
| Enterprise Multiple QoQ | 19.487 % | |
| Enterprise Multiple YoY | 70.053 % | |
| Enterprise Multiple IPRWA | high: 92.169 median: 70.826 mean: 65.833 KMT: 30.59 low: -24.065 |
|
| EV/R | 4.245 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.982 | |
| Asset To Liability | 2.085 | |
| Debt To Capital | 0.334 | |
| Debt To Assets | 0.253 | |
| Debt To Assets QoQ | -3.648 % | |
| Debt To Assets YoY | 45854.545 % | |
| Debt To Assets IPRWA | high: 0.742 mean: 0.324 median: 0.315 KMT: 0.253 low: 0.015 |
|
| Debt To Equity | 0.501 | |
| Debt To Equity QoQ | -5.136 % | |
| Debt To Equity YoY | 45451.818 % | |
| Debt To Equity IPRWA | high: 2.784 mean: 1.022 median: 0.679 KMT: 0.501 low: 0.02 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.316 | |
| Price To Book QoQ | 3.107 % | |
| Price To Book YoY | -11.598 % | |
| Price To Book IPRWA | high: 10.583 mean: 4.66 median: 3.792 KMT: 1.316 low: 0.483 |
|
| Price To Earnings (P/E) | 68.546 | |
| Price To Earnings QoQ | 55.597 % | |
| Price To Earnings YoY | 40.626 % | |
| Price To Earnings IPRWA | high: 191.429 mean: 90.037 median: 89.604 KMT: 68.546 low: -52.656 |
|
| PE/G Ratio | -2.478 | |
| Price To Sales (P/S) | 3.271 | |
| Price To Sales QoQ | 0.806 % | |
| Price To Sales YoY | -4.462 % | |
| Price To Sales IPRWA | high: 27.05 median: 17.264 mean: 15.676 KMT: 3.271 low: 0.537 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 52.225 | |
| Forward PE/G | -1.888 | |
| Forward P/S | 8.985 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -4.225 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.205 | |
| Asset Turnover Ratio QoQ | 3.869 % | |
| Asset Turnover Ratio YoY | -5.195 % | |
| Asset Turnover Ratio IPRWA | high: 0.357 KMT: 0.205 mean: 0.187 median: 0.18 low: 0.009 |
|
| Receivables Turnover | 1.762 | |
| Receivables Turnover Ratio QoQ | -1.294 % | |
| Receivables Turnover Ratio YoY | -1.715 % | |
| Receivables Turnover Ratio IPRWA | high: 2.527 KMT: 1.762 mean: 1.524 median: 1.491 low: 0.863 |
|
| Inventory Turnover | 0.678 | |
| Inventory Turnover Ratio QoQ | 12.183 % | |
| Inventory Turnover Ratio YoY | -3.229 % | |
| Inventory Turnover Ratio IPRWA | high: 2.099 median: 1.161 mean: 1.056 KMT: 0.678 low: 0.231 |
|
| Days Sales Outstanding (DSO) | 51.8 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 149.313 | |
| Cash Conversion Cycle Days QoQ | 2.231 % | |
| Cash Conversion Cycle Days YoY | 9.599 % | |
| Cash Conversion Cycle Days IPRWA | high: 197.569 KMT: 149.313 mean: 109.271 median: 100.917 low: 28.349 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.837 | |
| CapEx To Revenue | -0.042 | |
| CapEx To Depreciation | -0.662 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.9 B | |
| Net Invested Capital | $ 1.9 B | |
| Invested Capital | $ 1.9 B | |
| Net Tangible Assets | $ 934.0 M | |
| Net Working Capital | $ 616.9 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.333 | |
| Current Ratio | 2.461 | |
| Current Ratio QoQ | 0.929 % | |
| Current Ratio YoY | 2.096 % | |
| Current Ratio IPRWA | high: 6.77 KMT: 2.461 mean: 2.028 median: 1.941 low: 0.435 |
|
| Quick Ratio | 1.186 | |
| Quick Ratio QoQ | 7.808 % | |
| Quick Ratio YoY | 1.131 % | |
| Quick Ratio IPRWA | high: 5.031 mean: 1.382 median: 1.245 KMT: 1.186 low: 0.295 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 8.977 | |
| Cost Of Debt | 0.731 % | |
| Interest Coverage Ratio | 5.878 | |
| Interest Coverage Ratio QoQ | -26.24 % | |
| Interest Coverage Ratio YoY | -40.217 % | |
| Interest Coverage Ratio IPRWA | high: 32.444 mean: 11.908 median: 11.802 KMT: 5.878 low: -13.624 |
|
| Operating Cash Flow Ratio | 0.173 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 53.756 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 1.416 | |
| Dividend Payout Ratio | 0.706 | |
| Dividend Rate | $ 0.20 | |
| Dividend Yield | 0.009 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 2.205 % | |
| Revenue Growth | 6.178 % | |
| Revenue Growth QoQ | 584.922 % | |
| Revenue Growth YoY | 15.823 % | |
| Revenue Growth IPRWA | high: 22.434 % mean: 6.572 % KMT: 6.178 % median: 5.7 % low: -16.343 % |
|
| Earnings Growth | -27.66 % | |
| Earnings Growth QoQ | -131.432 % | |
| Earnings Growth YoY | -143.674 % | |
| Earnings Growth IPRWA | high: 79.63 % mean: 11.625 % median: 10.807 % low: -25.0 % KMT: -27.66 % |
|
| MARGINS | ||
| Gross Margin | 28.205 % | |
| Gross Margin QoQ | -12.262 % | |
| Gross Margin YoY | -10.563 % | |
| Gross Margin IPRWA | high: 64.005 % median: 41.979 % mean: 41.728 % KMT: 28.205 % low: 9.775 % |
|
| EBIT Margin | 7.085 % | |
| EBIT Margin QoQ | -30.403 % | |
| EBIT Margin YoY | -37.334 % | |
| EBIT Margin IPRWA | high: 27.783 % median: 22.321 % mean: 20.011 % KMT: 7.085 % low: -40.613 % |
|
| Return On Sales (ROS) | 7.195 % | |
| Return On Sales QoQ | -29.322 % | |
| Return On Sales YoY | -36.361 % | |
| Return On Sales IPRWA | high: 27.542 % median: 21.334 % mean: 20.953 % KMT: 7.195 % low: -42.559 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 57.1 M | |
| Free Cash Flow Yield | 3.382 % | |
| Free Cash Flow Yield QoQ | 909.552 % | |
| Free Cash Flow Yield YoY | -30.34 % | |
| Free Cash Flow Yield IPRWA | KMT: 3.382 % high: 2.375 % mean: 1.006 % median: 0.922 % low: -6.253 % |
|
| Free Cash Growth | 979.739 % | |
| Free Cash Growth QoQ | -1248.904 % | |
| Free Cash Growth YoY | 1030.947 % | |
| Free Cash Growth IPRWA | KMT: 979.739 % high: 255.172 % mean: 33.337 % median: 2.098 % low: -323.025 % |
|
| Free Cash To Net Income | 2.646 | |
| Cash Flow Margin | 14.129 % | |
| Cash Flow To Earnings | 3.379 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 0.858 % | |
| Return On Assets QoQ | -32.864 % | |
| Return On Assets YoY | -42.066 % | |
| Return On Assets IPRWA | high: 5.203 % median: 3.161 % mean: 2.77 % KMT: 0.858 % low: -6.694 % |
|
| Return On Capital Employed (ROCE) | 1.724 % | |
| Return On Equity (ROE) | 0.017 | |
| Return On Equity QoQ | -33.91 % | |
| Return On Equity YoY | -43.462 % | |
| Return On Equity IPRWA | high: 0.067 mean: 0.041 median: 0.04 KMT: 0.017 low: -0.136 |
|
| DuPont ROE | 1.713 % | |
| Return On Invested Capital (ROIC) | 1.481 % | |
| Return On Invested Capital QoQ | -27.721 % | |
| Return On Invested Capital YoY | -104.405 % | |
| Return On Invested Capital IPRWA | high: 7.382 % median: 4.394 % mean: 3.962 % KMT: 1.481 % low: -1.94 % |
|