Latest Ratios: P/E Ratio 27.8x · EV/EBITDA 10.9x · ROE 7.1%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $2.5B | $1.8B | $1.9B | $2.3B | $2.0B | $3.0B | $2.4B | $3.1B | $3.0B | $3.0B | $1.8B |
| Enterprise Value | $3.0B | $2.3B | $2.4B | $2.8B | $2.5B | $3.5B | $2.9B | $3.5B | $3.4B | $3.5B | $2.3B |
| P/E Ratio → | 27.79 | 19.13 | 17.18 | 19.45 | 13.51 | 55.26 | — | 12.76 | 14.83 | 61.34 | — |
| P/S Ratio | 1.29 | 0.91 | 0.92 | 1.11 | 0.97 | 1.65 | 1.26 | 1.30 | 1.25 | 1.48 | 0.84 |
| P/B Ratio | 1.96 | 1.35 | 1.46 | 1.76 | 1.51 | 2.21 | 1.88 | 2.24 | 2.41 | 2.89 | 1.77 |
| P/FCF | 21.29 | 14.98 | 11.10 | 14.13 | 23.07 | 27.95 | — | 34.94 | 27.95 | 40.94 | 16.25 |
| P/OCF | 12.20 | 8.58 | 6.79 | 8.96 | 10.75 | 12.85 | 10.66 | 10.25 | 10.71 | 15.80 | 8.05 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.16 | 1.17 | 1.37 | 1.26 | 1.92 | 1.55 | 1.47 | 1.44 | 1.72 | 1.10 |
| EV / EBITDA | 10.89 | 8.19 | 7.87 | 8.71 | 7.23 | 15.42 | 20.55 | 7.92 | 8.18 | 16.06 | — |
| EV / EBIT | 21.27 | 14.60 | 14.04 | 15.12 | 10.87 | 31.76 | 78.69 | 10.14 | 11.16 | 32.00 | — |
| EV / FCF | — | 19.20 | 14.16 | 17.39 | 29.91 | 32.54 | — | 39.60 | 32.05 | 47.75 | 21.22 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 30.4% | 30.4% | 30.6% | 31.1% | 32.2% | 30.0% | 28.1% | 35.0% | 35.1% | 32.0% | 29.4% |
| Operating Margin | 7.3% | 7.3% | 8.3% | 9.3% | 10.8% | 5.5% | 1.2% | 13.8% | 13.0% | 5.5% | -8.3% |
| Net Profit Margin | 4.7% | 4.7% | 5.3% | 5.7% | 7.2% | 3.0% | -0.3% | 10.2% | 8.5% | 2.4% | -10.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 7.1% | 7.1% | 8.4% | 9.1% | 10.9% | 4.1% | -0.4% | 18.6% | 17.5% | 4.8% | -19.1% |
| ROA | 3.7% | 3.7% | 4.3% | 4.6% | 5.5% | 1.9% | -0.2% | 8.7% | 7.5% | 2.1% | -8.7% |
| ROIC | 5.9% | 5.9% | 7.0% | 7.8% | 8.8% | 4.2% | 0.9% | 14.3% | 14.3% | 5.5% | -7.4% |
| ROCE | 6.8% | 6.8% | 8.1% | 9.2% | 10.1% | 4.7% | 1.0% | 15.5% | 15.4% | 5.8% | -8.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.49 | 0.49 | 0.50 | 0.49 | 0.51 | 0.48 | 0.90 | 0.43 | 0.81 | 0.66 | 0.70 |
| Debt / EBITDA | 2.30 | 2.30 | 2.12 | 1.96 | 1.90 | 2.85 | 8.04 | 1.34 | 2.38 | 3.15 | — |
| Net Debt / Equity | — | 0.38 | 0.40 | 0.41 | 0.45 | 0.36 | 0.42 | 0.30 | 0.35 | 0.48 | 0.54 |
| Net Debt / EBITDA | 1.80 | 1.80 | 1.70 | 1.63 | 1.65 | 2.18 | 3.77 | 0.93 | 1.05 | 2.29 | — |
| Debt / FCF | — | 4.21 | 3.05 | 3.26 | 6.83 | 4.59 | — | 4.66 | 4.10 | 6.81 | 4.97 |
| Interest Coverage | 6.29 | 6.29 | 6.46 | 6.60 | 8.98 | 2.39 | 1.06 | 10.43 | 10.14 | 3.84 | -6.16 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.46 | 2.46 | 2.41 | 2.37 | 2.11 | 2.30 | 1.60 | 2.58 | 1.74 | 2.41 | 2.49 |
| Quick Ratio | 1.19 | 1.19 | 1.17 | 1.08 | 0.93 | 1.21 | 1.02 | 1.34 | 1.15 | 1.36 | 1.42 |
| Cash Ratio | 0.33 | 0.33 | 0.31 | 0.24 | 0.18 | 0.35 | 0.68 | 0.39 | 0.63 | 0.41 | 0.38 |
| Asset Turnover | — | 0.77 | 0.82 | 0.82 | 0.78 | 0.69 | 0.62 | 0.89 | 0.81 | 0.85 | 0.89 |
| Inventory Turnover | 2.54 | 2.54 | 2.76 | 2.57 | 2.39 | 2.71 | 2.60 | 2.70 | 2.92 | 2.87 | 3.23 |
| Days Sales Outstanding | — | 54.82 | 54.00 | 53.97 | 53.57 | 60.05 | 46.07 | 58.37 | 61.86 | 67.46 | 64.52 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.4% | 3.5% | 3.4% | 2.8% | 3.4% | 2.2% | 2.8% | 2.1% | 2.2% | 2.1% | 3.6% |
| Payout Ratio | 66.4% | 66.4% | 58.0% | 54.5% | 46.0% | 122.6% | — | 27.2% | 32.5% | 130.5% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.6% | 5.2% | 5.8% | 5.1% | 7.4% | 1.8% | — | 7.8% | 6.7% | 1.6% | — |
| FCF Yield | 4.7% | 6.7% | 9.0% | 7.1% | 4.3% | 3.6% | — | 2.9% | 3.6% | 2.4% | 6.2% |
| Buyback Yield | 2.4% | 3.4% | 3.5% | 2.1% | 4.4% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 4.7% | 6.8% | 6.9% | 4.9% | 7.8% | 2.2% | 2.8% | 2.1% | 2.2% | 2.1% | 3.6% |
| Shares Outstanding | — | $78M | $80M | $81M | $84M | $84M | $83M | $83M | $83M | $81M | $80M |
Cyclical Industrial Demand Exposure
According to recent market data, Kennametal trades at a forward P/E of 9.14, which appears to discount a significant earnings recovery compared to its trailing P/E of 29.82, suggesting that investors are pricing in a cyclical rebound rather than long-term structural growth in its core segments.
The wide disparity between trailing and forward multiples indicates that the market expects a sharp normalization of earnings following recent volatility. While the forward multiple appears attractive relative to broader industrial peers, it warrants caution as it relies heavily on management's ability to sustain the recent margin expansion observed in 2026Q3.
Based on reported financial statements, Kennametal's ROIC has struggled to exceed 3.1% in 2026Q3, indicating that the company is currently failing to generate returns that meaningfully exceed its cost of capital, a trend that has persisted throughout the last ten quarters of industrial cycle fluctuations.
The persistent low ROIC suggests that the company's heavy investment in internal modernization programs has yet to translate into superior economic value creation. Investors should monitor whether these returns can scale as revenue growth accelerates, or if the asset-heavy manufacturing footprint acts as a permanent drag on capital efficiency.
As reported in recent filings, Kennametal's cash conversion cycle remains elevated at 150 days in 2026Q3, driven primarily by a high days inventory outstanding of 160 days, which suggests that the company is carrying significant working capital burdens relative to its current revenue generation pace.
The inability to compress the cash conversion cycle despite revenue acceleration implies that inventory management remains a structural challenge. This inefficiency ties up significant liquidity, forcing the company to rely on its balance sheet buffer rather than operational cash flow to fund ongoing dividend payments and capital expenditures.
According to quarterly balance sheet data, Kennametal maintains a debt-to-equity ratio of 0.47, a level that has remained remarkably consistent over the last ten quarters, suggesting that management is prioritizing a conservative capital structure despite the inherent volatility of its industrial end-markets and cyclical revenue streams.
With an interest coverage ratio of 12.40 in 2026Q3, the company appears well-positioned to service its existing debt obligations even if industrial demand softens. This stability provides a necessary safety net, though it does not compensate for the underlying lack of significant top-line growth observed in recent years.
The P/E ratio is frequently misapplied to Kennametal, as it fails to account for the significant non-recurring restructuring charges and LIFO inventory accounting adjustments that frequently distort reported net income, thereby masking the true underlying cash-generating capability of the company's core manufacturing operations.
Analysts should instead prioritize EV/EBITDA or free cash flow yield to better assess the company's valuation, as these metrics are less sensitive to the accounting noise inherent in the company's modernization programs. Relying on P/E risks misinterpreting a temporary earnings trough as a permanent valuation discount.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying KMT stock.
Kennametal Inc.'s current P/E ratio is 27.8x. The historical average is 22.8x. This places it at the 84th percentile of its historical range.
Kennametal Inc.'s current EV/EBITDA is 10.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.1x.
Kennametal Inc.'s return on equity (ROE) is 7.1%. The historical average is 6.4%.
Based on historical data, Kennametal Inc. is trading at a P/E of 27.8x. This is at the 84th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Kennametal Inc.'s current dividend yield is 2.38% with a payout ratio of 66.4%.
Kennametal Inc. has 30.4% gross margin and 7.3% operating margin.
Kennametal Inc.'s Debt/EBITDA ratio is 2.3x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.