Kennametal Stock Price and Value Analysis

Should you buy Kennametal stock? (NYSE:KMT). Let's see how it does in our automated value investing analysis system.

AdvantagesDisadvantages
  • This company has a large dividend yield!
  • This stock is available at a great discount!
  • This company is less known than others.
  • This company is making money at a modest rate.
  • This company has wild ups and downs.

Inside the KMT Numbers

KMT Price
(Kennametal stock price per share)
$24.52
[?] KMT Fair Price
(based on intrinsic value)
$44.84
[?] KMT Safety Price (based on a variable margin of safety) $26.90
[?] PE Ratio versus Sector 1431% higher than other Industrial Goods stocks
[?] PE Ratio versus Industry 98% higher than other Tools & Accessories stocks
[?] Cash Yield 18.61%
[?] Free Cash Flow Jitter 300%
[?] Dividend Yield 3%
Shares Shorted 5,388,463

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 5,388,463 shares shorted. With 80,709,948 shares available for purchase and an average trading volume over the past 10 trading days of 531,430, it would take at least 10.14 days for all of the short holders to cover their shorts.

What does this mean to you? At this volume, it'll take more than two trading weeks for shorts to cover. This may indicate a short squeeze play would work! If this stock has good fundamentals and it'll take a while for the short holders to cover, buying now could net you bigger short-term technical gains if and as the price rises.

Is Kennametal Stock on Sale?

We believe that Kennametal may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Even better, Kennametal looks like a stock on sale. Based on our analysis—if the company keeps making money the way it has been—you may be looking at a bargain. Keep this stock in mind as you put together your portfolio! See Before You Buy for your next steps (and read our disclaimer about investing risk).

Should You Buy KMT Stock?

Does Kennametal have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.