Home Sectors Industrials Recent Trend: Kennametal (NYSE: KMT)

Recent Trend: Kennametal (NYSE: KMT)

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Kennametal is part of the industrials sector and trades as part of the industrial products industry. The company CEO is Christopher Rossi. Kennametal Inc is engaged in developing and manufacturing metalworking tools and wear-resistant engineered components and coatings. The company’s operating segments include Industrial, Widia and Infrastructure.

Previous Intraday Trading Performance:

The KMT stock showed a previous change of 5.44% with an open at 31.89 and a close of 33.15. It reached an intraday high of 33.19 and a low of 31.89.

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Liquidity:

The stock has a market cap of $2.7b with 82.4m shares outstanding, of which the float is 80.7m shares. Trading volume reached 588,090 shares compared to its average volume of 726,796 shares. Based on the current average volume and close price, the trading liquidity is bad, highly speculative and an investor may want to avoid this stock.

Historical Trading Performance:

Over the last five trading days, Kennametal shares returned 4.54% and in the past 30 trading days it returned -19.67%. Over three months, it changed -10.10%. In one year it has changed -8.94% and within that year its 52-week high was 45.10 and its 52-week low was 30.32. KMT stock is 9.33% above its 52 Week Low.

Our calculations show a 200 day moving average of 37.67 and a 50 day moving average of 37.03. Currently KMT stock is trading -12.00% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

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Earnings:

The last annual fiscal EPS for the company was reported at 2.42 that ended on 30th of June 2018, which according to the previous close, that is a PE of 13.70. Based on 7 analyst estimates, the consensus EPS for the next quarter is 0.65. The TTM EPS is 2.79, which comes to a TTM PE of 11.88.

Below was the last reported quarterly diluted earnings per share:

1stQtr of 2019 (Reported on 05/06/2019): 0.82
4thQtr of 2018 (Reported on 02/04/2019): 0.66
3rdQtr of 2018 (Reported on 11/05/2018): 0.68
2ndQtr of 2018 (Reported on 08/06/2018): 0.83
1stQtr of 2018 (Reported on 05/02/2018): 0.61

The dividend per share is currently 0.80, which is a dividend yield of 2.41%. Also, the payout ratio is 28.67%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 51.42, which means it is possibly undervalued and has a margin of safety of 35.54%.

Indicators to Watch:

Short-interest was 2,795,589, which was 3.39% of shares outstanding. The short-interest ratio or days-to-cover ratio was 4.00. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 2.21.

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 20.65%, return on assets is 9.95%, profit margin is 10.84%, price-to-sales is 1.07 and price-to-book is 1.95.

Company Scores:

All scores are out of six:
 5  :Valuation Score
 5  :Past Performance Score
 5  :Financial Strength Score
 1  :Future Growth Score
 5  :Dividend Score
 4  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.