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Is this Large Market Cap Stock target price reasonable for Kennametal Inc. (NYSE:KMT)?

The company in question is, Kennametal Inc. (NYSE:KMT) currently with a stock price of 28.65 (1.60% today). The market cap for Kennametal Inc. is 2294.35, and is in the sector Industrial Goods, and Machine Tools & Accessories industry. The target price for Kennametal Inc. is 24.78. Currently Kennametal Inc. is trading with a P/E of *TBA, and a forward P/E of 17.56. Average volume for Kennametal Inc. is 995.45 and so far today it is 347732.

Performance in the last year for Kennametal Inc. has been 6.79%. For EPS growth, Kennametal Inc. has seen a growth of 39.90%, and is looking to grow in the next year to 27.76%. More long term stats show that EPS growth has been -24.80% over the last five years and could be 10.33% for the next five years. Kennametal Inc. has seen sales growth quarter over quarter at -18.30%, with EPS growth quarter over quarter at -413.00%. The 20-day simple moving average is 1.56%, with the 200-day simple moving average coming to 23.51%.

Since the IPO date for Kennametal Inc. on the 11/05/1987, Kennametal Inc. has seen performance year to date to be 50.96%. With Kennametal Inc. trading at 28.65, the dividend yield is 2.84%, and the EPS is -2.83.

So could Kennametal Inc., be undervalued? Well as said before P/E is *TBA. The PEG is *TBA, P/S is 1.09 and the P/B is at 2.34. The P/cash is 14.2, with P/free cash flow at 51.1.

Kennametal Inc. ability to deal with debt shows that the current ratio is 2.5, and the quick ratio is 1.4. This is with long term debt/equity at 0.73, and total debt/equity at 0.73.

In terms of margins, Kennametal Inc. has a gross margin of 29.40%, an operating margin of -8.30% and a profit margin of -10.80%.Payout ratio for Kennametal Inc. is *TBA. Return on assets come to -9.00% with return on investment coming to -12.00%.

Insider ownership for Kennametal Inc., is at 0.20% and institutional ownership comes to *TBA. Outstanding shares are at 81.36. While shares float is 79.41. The float short is currently 4.25%, and short ratio is 3.39.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Mark Hines

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