Is the business good?
How good a business is KMT?
Kennametal Inc. earns 8.6% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
8.6%
Return on invested capital · cost of capital 9.0% · 0.39 points below what the capital costs: growth destroys value
- Operating margin
- 9.4%
Operating margin · Tools & Accessories median 11% · 12 months to Q3 2026
- Cash conversion
- 0.53×
Cash conversion · 1.40× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- +0.14%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 1.2% |
| FY2021 | 5.5% |
| FY2022 | 11% |
| FY2023 | 9.3% |
| FY2024 | 8.3% |
| FY2025 | 7.3% |
Details›
- Gross margin12 months to Q3 2026
- 32%
- Operating margin12 months to Q3 2026
- 9.4%
- Net margin12 months to Q3 2026
- 6.4%
- Free cash flow margin
- 3.4%
- Revenue, trailing twelve months
- $2.14B
- Free cash flow, trailing twelve months
- $73M
- Net income, trailing twelve months
- $137M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 8.6%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Tools & Accessories
Ranks #3 of 8 by Smart Score