Latest Ratios: P/E Ratio 6.8x · EV/EBITDA 4.7x · ROE 23.0%. (1997–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $2.3B | $2.7B | $1.8B | $1.9B | $2.3B | $2.0B | $3.0B | $2.4B | $3.1B | $3.0B | $3.0B |
| Enterprise Value | $2.9B | $3.3B | $2.3B | $2.4B | $2.8B | $2.5B | $3.5B | $2.9B | $3.5B | $3.4B | $3.5B |
| P/E Ratio → | 6.77 | 7.93 | 19.13 | 17.18 | 19.45 | 13.51 | 55.26 | — | 12.76 | 14.83 | 61.34 |
| P/S Ratio | 0.97 | 1.15 | 0.91 | 0.92 | 1.11 | 0.97 | 1.65 | 1.26 | 1.30 | 1.25 | 1.48 |
| P/B Ratio | 1.40 | 1.64 | 1.35 | 1.46 | 1.76 | 1.51 | 2.21 | 1.88 | 2.24 | 2.41 | 2.89 |
| P/FCF | — | — | 14.98 | 11.10 | 14.13 | 23.07 | 27.95 | — | 34.94 | 27.95 | 40.94 |
| P/OCF | — | — | 8.58 | 6.79 | 8.96 | 10.75 | 12.85 | 10.66 | 10.25 | 10.71 | 15.80 |
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 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.42 | 1.16 | 1.17 | 1.37 | 1.26 | 1.92 | 1.55 | 1.47 | 1.44 | 1.72 |
| EV / EBITDA | 4.72 | 5.42 | 8.19 | 7.87 | 8.71 | 7.23 | 15.42 | 20.55 | 7.92 | 8.18 | 16.06 |
| EV / EBIT | 6.14 | 6.81 | 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 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 41.2% | 41.2% | 30.4% | 30.6% | 31.1% | 32.2% | 30.0% | 28.1% | 35.0% | 35.1% | 32.0% |
| Operating Margin | 20.1% | 20.1% | 7.3% | 8.3% | 9.3% | 10.8% | 5.5% | 1.2% | 13.8% | 13.0% | 5.5% |
| Net Profit Margin | 14.5% | 14.5% | 4.7% | 5.3% | 5.7% | 7.2% | 3.0% | -0.3% | 10.2% | 8.5% | 2.4% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 23.0% | 23.0% | 7.1% | 8.4% | 9.1% | 10.9% | 4.1% | -0.4% | 18.6% | 17.5% | 4.8% |
| ROA | 12.0% | 12.0% | 3.7% | 4.3% | 4.6% | 5.5% | 1.9% | -0.2% | 8.7% | 7.5% | 2.1% |
| ROIC | 17.3% | 17.3% | 5.9% | 7.0% | 7.8% | 8.8% | 4.2% | 0.9% | 14.3% | 14.3% | 5.5% |
| ROCE | 20.5% | 20.5% | 6.8% | 8.1% | 9.2% | 10.1% | 4.7% | 1.0% | 15.5% | 15.4% | 5.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.43 | 0.43 | 0.49 | 0.50 | 0.49 | 0.51 | 0.48 | 0.90 | 0.43 | 0.81 | 0.66 |
| Debt / EBITDA | 1.17 | 1.17 | 2.30 | 2.12 | 1.96 | 1.90 | 2.85 | 8.04 | 1.34 | 2.38 | 3.15 |
| Net Debt / Equity | — | 0.38 | 0.38 | 0.40 | 0.41 | 0.45 | 0.36 | 0.42 | 0.30 | 0.35 | 0.48 |
| Net Debt / EBITDA | 1.01 | 1.01 | 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 |
| Interest Coverage | 17.15 | 17.15 | 6.29 | 6.46 | 6.60 | 8.98 | 2.39 | 1.06 | 10.43 | 10.14 | 3.84 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.62 | 2.62 | 2.46 | 2.41 | 2.37 | 2.11 | 2.30 | 1.60 | 2.58 | 1.74 | 2.41 |
| Quick Ratio | 0.98 | 0.98 | 1.19 | 1.17 | 1.08 | 0.93 | 1.21 | 1.02 | 1.34 | 1.15 | 1.36 |
| Cash Ratio | 0.14 | 0.14 | 0.33 | 0.31 | 0.24 | 0.18 | 0.35 | 0.68 | 0.39 | 0.63 | 0.41 |
| Asset Turnover | — | 0.74 | 0.77 | 0.82 | 0.82 | 0.78 | 0.69 | 0.62 | 0.89 | 0.81 | 0.85 |
| Inventory Turnover | 1.25 | 1.25 | 2.54 | 2.76 | 2.57 | 2.39 | 2.71 | 2.60 | 2.70 | 2.92 | 2.87 |
| Days Sales Outstanding | — | 63.26 | 54.82 | 54.00 | 53.97 | 53.57 | 60.05 | 46.07 | 58.37 | 61.86 | 67.46 |
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 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.6% | 2.2% | 3.5% | 3.4% | 2.8% | 3.4% | 2.2% | 2.8% | 2.1% | 2.2% | 2.1% |
| Payout Ratio | 17.8% | 17.8% | 66.4% | 58.0% | 54.5% | 46.0% | 122.6% | — | 27.2% | 32.5% | 130.5% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 14.8% | 12.6% | 5.2% | 5.8% | 5.1% | 7.4% | 1.8% | — | 7.8% | 6.7% | 1.6% |
| FCF Yield | — | — | 6.7% | 9.0% | 7.1% | 4.3% | 3.6% | — | 2.9% | 3.6% | 2.4% |
| Buyback Yield | 0.8% | 0.7% | 3.4% | 3.5% | 2.1% | 4.4% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 3.4% | 2.9% | 6.8% | 6.9% | 4.9% | 7.8% | 2.2% | 2.8% | 2.1% | 2.2% | 2.1% |
| Shares Outstanding | — | $77M | $78M | $80M | $81M | $84M | $84M | $83M | $83M | $83M | $81M |
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 6.8x. The historical average is 22.6x.
Kennametal Inc.'s current EV/EBITDA is 4.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.0x.
Kennametal Inc.'s return on equity (ROE) is 23.0%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 6.6%.
Based on historical data, Kennametal Inc. is trading at a P/E of 6.8x. Compare with industry peers and growth rates for a complete picture.
Kennametal Inc.'s current dividend yield is 2.62% with a payout ratio of 17.8%.
Kennametal Inc. has 41.2% gross margin and 20.1% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Kennametal Inc.'s Debt/EBITDA ratio is 1.2x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Tungsten price normalization risk
Metrics are mathematically derived from official filings.
Margin Spike Raises Peak Earnings Questions
Gross margin surged to 58.9% in 2026Q4 from 28.2% a year earlier, per the latest financials, but the sustainability of this step-change is uncertain as tungsten prices normalize.
The 2026Q4 gross margin of 58.9% and operating margin of 41.1% represent a dramatic departure from the 30% gross margin range seen in prior quarters, suggesting a temporary pricing power spike rather than a structural improvement. Net margin of 30.8% in the same quarter, versus a 4-7% range in the preceding year, implies that the company may be at a cyclical peak, and investors should monitor whether these margins revert as commodity conditions ease.
ROIC Inflection or Commodity Mirage?
ROIC jumped to 10.9% in 2026Q4 from 1.3% a year earlier, as reported in the financial statements, but this may reflect temporary tungsten-driven pricing rather than durable capital efficiency.
The 10.9% ROIC in 2026Q4, up from a sub-2% level in the prior four quarters, appears to be driven by margin expansion rather than asset turnover, which remained flat at 0.25. This suggests the improvement is pricing-led, not efficiency-led, and could reverse if tungsten prices fall. The historical ROIC range of 1.3-2.5% over the past two years indicates that the company has not consistently compounded returns, and the current spike warrants caution.
Working Capital Swings Signal Cash Strain
Cash conversion cycle extended to 229 days in 2026Q4 from 134 days a year earlier, according to the latest balance sheet data, driven by a surge in inventory days to 279.
The dramatic increase in DIO from 130-159 days to 279 days in 2026Q4 suggests a significant inventory buildup, likely tied to higher tungsten costs, which consumed cash and contributed to negative operating cash flow of -$73.7M. The CCC of 229 days is far above the 134-150 day range of the prior year, indicating that working capital is absorbing cash rather than releasing it. This may be a temporary effect of commodity price inflation, but it highlights the company's vulnerability to supply chain disruptions.
Debt Service Comfortable but Rising
Interest coverage improved to 29.58 in 2026Q4 from 5.88 a year earlier, per the latest financials, while D/EBITDA fell to 2.35, indicating a stronger debt service position.
The sharp improvement in interest coverage and D/EBITDA in 2026Q4 is a direct result of the earnings surge, but it is based on peak profitability that may not persist. Total debt rose to $717.5M, and the D/E ratio of 0.44 remains conservative, but if margins normalize, coverage could revert to the 5-8 range seen in prior quarters. The company's ability to service debt appears adequate, but the reliance on temporary pricing power to achieve these metrics warrants monitoring.
Liquidity Adequate Despite Cash Burn
Current ratio improved to 2.62 in 2026Q4 from 2.46 a year earlier, as per the balance sheet, but quick ratio fell to 0.98, indicating heavy inventory dependence.
The current ratio of 2.62 suggests a comfortable short-term liquidity position, but the quick ratio of 0.98 reveals that inventory constitutes a significant portion of current assets, which may be less liquid in a downturn. Cash declined to $95.8M, and negative operating cash flow in 2026Q4 indicates that the company is relying on its balance sheet to fund working capital needs. Under a severe industrial downturn, the inventory buildup could become a drag, but the current ratio provides a buffer.
P/E Misleads on Cyclical Peak Earnings
The trailing P/E of 7.06 appears cheap, but it is based on record earnings that may be inflated by temporary tungsten pricing, as reported in the latest financials.
The P/E of 7.06 and forward P/E of 8.01 are optically attractive, but they rely on earnings that include a 58.9% gross margin, which is far above the company's historical 30% range. This suggests the market may be pricing in peak profitability that could revert, making the P/E misleading. A more appropriate metric would be EV/EBITDA on normalized margins, or a P/E based on mid-cycle earnings, to account for the cyclicality of the business.