Kennametal Inc.
KMT Industrials Tools & Accessories
Kennametal Inc.’s revenue for fiscal 2026 (year ended June 2026) was $2.4 billion, up 19.8% from fiscal 2025. In the quarter to June 2026, revenue grew 42.6%, EPS grew 964.3%, free cash flow fell 265.4% and total debt rose 20.0%, each against the same quarter a year earlier. Dividend growth for ten consecutive years; insiders bought in the last twelve months.
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Kennametal Inc. (KMT) Altman Z-score
Kennametal Inc.'s Altman Z-score for fiscal 2026 is 3.34, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2026 | 3.34 | 0.56 |
| FY2025 | 2.78 | (0.12) |
| FY2024 | 2.90 | (0.18) |
| FY2023 | 3.08 | 0.28 |
| FY2022 | 2.80 | (0.18) |
| FY2021 | 2.98 | 0.85 |
| FY2020 | 2.13 | (1.50) |
| FY2019 | 3.63 | 0.75 |
| FY2018 | 2.87 | (0.20) |
| FY2017 | 3.07 | 0.86 |
How fiscal 2026’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.35 | — | 0.41 | |
| Retained earnings / total assets | 0.47 | — | 0.66 | |
| EBIT / total assets | 0.15 | — | 0.49 | |
| Market value of equity / total liabilities | 1.72 | — | 1.03 | |
| Sales / total assets | 0.74 | — | 0.74 | |
| Altman Z-score | Safe zone | 3.34 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 5.89 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| SNA Snap-On Incorporated compare | 7.3× |
| RBC RBC Bearings Incorporated compare | 7.1× |
| LECO Lincoln Electric Holdings, Inc. compare | 7.1× |
| TTC Toro Company (The) compare | 4.8× |
| EML Eastern Company (The) compare | 3.4× |
| KMT Kennametal Inc. | 3.3× |
| TKR Timken Company (The) compare | 2.9× |
| SWK Stanley Black & Decker, Inc. compare | 2.0× |
| HLMN Hillman Solutions Corp. compare | 1.8× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets