Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, industry tool manufacturer Kennametal (NYSE: KMT ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Kennametal's business and see what CAPS investors are saying about the stock right now.
Kennametal facts
| Headquarters (Founded) |
Latrobe, Penn. (1938) |
| Market Cap |
$2.6 billion |
| Industry |
Industrial machinery |
| Trailing-12-Month Revenue |
$2.4 billion |
| Management |
Chairman/CEO Carlos Cardozo
Vice President/CFO Frank Simpkins
|
| Return on Equity (Average, Past 3 Years) |
4.1% |
| Cash/Debt |
$204.57 million / $316.05 million |
| Dividend Yield |
1.5% |
| Competitors |
Allegheny Technologies (NYSE: ATI )
Carpenter Technology (NYSE: CRS )
Illinois Tool Works (NYSE: ITW )
|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 95% of the 281 members who have rated Kennametal believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars BudandMolly and RedandBlack, both of whom are ranked in the top 5% of our community.
Earlier this summer , BudandMolly listed several of Kennametal's positives:
Dominate their field of specialized tools for industry. Broad customer base and excellent pricing ability. Good long term investment. Buy on significant dips.
In fact, Kennametal currently sports a cheapish forward P/E of 7.9. That represents a discount to listed rivals like Allegheny (9.8), Carpenter (13.6), and Illinois Tool Works (10.1).
CAPS All-Star RedandBlack expands on the outperform argument:
The fears of a double dip recession have hurt KMT who supplies cutting tools and equipment to machine shops. The company has cut cost the last few years and is improving their returns of invested capital. I really like the repeatable purchase nature of their business. Once their machines are installed customers must repeatedly buy the expendable components to go with it.
What do you think about Kennametal, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Interested in another easy way to track Kennametal? Add it to your watchlist.
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