Digging Up the Facts on Kennametal Inc. (KMT)

Kennametal Inc. (NYSE:KMT) is an interesting player in the Industrial Goods space, with a focus on Machine Tools & Accessories. The stock has been active on the tape, currently trading at $35.24, up from yesterday’s close by 1.97%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

It’s important to get a feel for how any stock is actually valued on the market based on its core numbers. Kennametal Inc. (KMT) currently trades with a market capitalization of $2.82B. That value represents a market adjusting for revenues that have been falling by -14.10% on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For KMT, the company currently has $119.41M of cash on the books, which is offset by $695.41M current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $265.27M over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of 0.22 on a per share basis this quarter. Perhaps, that suggests something about why 100.40% of the outstanding share supply is held by institutional investors.

Technical Analysis

Sometimes, we can understand most about a stock by simply looking at how it has been trading. Looking at the stock’s movement on the chart, Kennametal Inc. recorded a 52-week high of 36.12. It is now trading 1.56 off that level. The stock is trading 33.24 its 50-day moving average by -1.32. The stock carved out a 52-week low down at 15.11.

In recent action, Kennametal Inc. (KMT) has made a move of +9.68% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 100.59, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 79.62M with 4.34% sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of KMT.

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