Kennametal Inc. manufactures and supplies tooling, engineered components, and advanced materials consumed in production processes worldwide. The company operates in two segments, Industrial and Infrastructure. The company was founded in 1938 and is based in Latrobe, Pennsylvania.
KMT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Kennametal Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Kennametal Inc ranked in the 4th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Kennametal Inc ended up being:
The company's compound free cash flow growth rate over the past 5.73 years comes in at -0.26%; that's greater than only 6.65% of US stocks we're applying DCF forecasting to.
As a business, Kennametal Inc experienced a tax rate of about 5% over the past twelve months; relative to its sector (Industrials), this tax rate is higher than just 20.92% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
PFSW, RYAAY, SEII, AIR, and AVYA can be thought of as valuation peers to KMT, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.