Kennametal Inc Intrinsic Value Calculator – KENNAMETAL INC Reports Fourth Quarter FY2023 Earnings Results for the Period Ending June 30 2023
August 22, 2023
🌥️Earnings Overview
KENNAMETAL INC ($NYSE:KMT) announced its earnings results for the fourth quarter of FY2023, ending June 30 2023, on August 1 2023. Total revenue was recorded at USD 550.2 million, an increase of 3.8% in comparison to the same period in the previous year. Despite this, net income decreased by 12.7%, amounting to USD 36.4 million.
Stock Price
The stock opened at $28.7 and closed at $28.9, a drop of 5.2% compared to the last closing price of 30.5. Despite these setbacks, KENNAMETAL INC was able to maintain its financial performance by investing in new product launches and operational efficiency measures. The company also reported strong organic growth in sales and earnings driven by successful new product launches, cost management and pricing initiatives.
Additionally, KENNAMETAL INC continued to focus on its strategic transformation to create a more sustainable future for its customers, people and planet. The company invested heavily in new technologies to improve the customer experience and optimize its operations to ensure long-term success. Overall, KENNAMETAL INC made significant progress toward achieving their goal of becoming a top-tier industrial solutions provider. Despite the challenging market environment, the company is determined to remain agile and maintain its position as a leader in the industry. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Kennametal Inc. More…
| Total Revenues | Net Income | Net Margin |
| 2.08k | 118.46 | 5.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Kennametal Inc. More…
| Operations | Investing | Financing |
| 214.6 | -94.94 | -150.74 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Kennametal Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.55k | 1.23k | 15.89 |
Key Ratios Snapshot
Some of the financial key ratios for Kennametal Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.3% | 15.6% | 9.1% |
| FCF Margin | ROE | ROA |
| 5.1% | 9.2% | 4.6% |
Analysis – Kennametal Inc Intrinsic Value Calculator
As part of our analysis of KENNAMETAL INC‘s financials, GoodWhale has determined that the intrinsic value of each share is around $30.3. This figure is based on our proprietary Valuation Line, which takes into account both fundamental and technical analysis to generate an estimated fair value for the stock. At the current market price of $28.9, we believe that the stock is undervalued by 4.5%. This presents a good opportunity for investors who are interested in buying KENNAMETAL INC stock at a discount. As the company continues to grow in the future, we expect that its share prices will eventually reach our estimated intrinsic value. More…
Peers
In the metalworking and mining industries, there is intense competition between Kennametal Inc and its competitors KFM Kingdom Holdings Ltd, Kennametal India Ltd, and Jiangsu Tongrun Equipment Technology Co Ltd. All four companies are striving to develop new technologies and products to gain market share. This competition has led to innovation and lower prices for customers. It is expected that this competition will continue to benefit customers in the future.
– KFM Kingdom Holdings Ltd ($SEHK:03816)
Kingdom Holdings Ltd has a market cap of 115.8M as of 2022. The company has a return on equity of 3.48%. The company is involved in the business of investment holding and the provision of management services. The Group’s investment portfolio includes shares, properties, loans and other investments.
– Kennametal India Ltd ($BSE:505890)
Founded in 1938, Kennametal India Ltd is a leading manufacturer of metal cutting and wear-resistant solutions. With a market cap of 56.61B as of 2022, the company has a strong presence in the global market. Kennametal India’s return on equity is 14.77%, indicating that the company is efficient in utilizing its shareholders’ equity to generate profits. The company’s products are used in a variety of industries, including aerospace, automotive, construction, energy, and mining. Kennametal India’s products are known for their durability and performance, making the company a trusted partner for customers around the world.
– Jiangsu Tongrun Equipment Technology Co Ltd ($SZSE:002150)
Jiangsu Tongrun Equipment Technology Co., Ltd. is engaged in the research, development, production and sale of metallurgical equipment and industrial furnaces. The Company’s products portfolio includes blast furnaces, sintering machines, coke ovens, ironmaking and steelmaking equipment, non-ferrous metal smelting and rolling equipment, industrial furnaces, environmental protection and energy conservation products, new materials and new energy equipment, spare parts and other products. The Company operates its business through two segments: manufacture and sale of metallurgical equipment and industrial furnaces, and provision of engineering services. The Company has operations in domestic and overseas markets.
Summary
Kennametal Inc. recently reported its fourth quarter earnings results for FY2023, ending June 30 2023, on August 1 2023. Revenue for the period was USD 550.2 million, a 3.8% increase from the same period last year.
However, net income decreased by 12.7% to USD 36.4 million. The stock price reacted negatively to the news and dropped on the day of the announcement. As an investor, it is important to consider the company’s performance when making investments. Kennametal Inc. has demonstrated steady revenue growth in recent quarters and profitability is still relatively strong. However, the recent decrease in net income and stock price reaction is something to take into account when assessing the company as an investment option.
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