Hillman Solutions Corp. (HLMN) vs Kennametal Inc. (KMT)

Hillman Solutions Corp. and Kennametal Inc. are both Tools & Accessories companies. Hillman Solutions Corp. and Kennametal Inc. are of similar size ($1.8B and $1.7B). Kennametal Inc. trades at the lower P/E: 3.0× against 64.6×. Kennametal Inc. grew revenue faster over the last twelve months: 32.5% against 6.40%. Kennametal Inc. has the higher net margin (22.5% vs 1.48%) and the higher return on invested capital (18.7% vs 2.98%). Across the 21 metrics below, Kennametal Inc. leads on 18 and Hillman Solutions Corp. on 3.

Valuation

Metric HLMN KMT Tools & Accessories median
P/E 64.63 3.01 23.82
P/S 1.02 0.68 1.27
P/B 1.35 39.84 3.60
Price to free cash flow 16.16 n/m 15.76
EV/EBITDA 10.18 2.77 12.84
EV/Sales 1.58 1.01 1.66
Earnings yield 1.55% 33.28% 4.03%
Free cash flow yield 6.19% (15.97%) 5.82%

Profitability

Metric HLMN KMT Tools & Accessories median
Gross margin 47.87% 50.59% 34.62%
Operating margin 6.29% 31.00% 10.65%
Net margin 1.48% 22.49% 6.76%
Free cash flow margin 6.31% (10.86%) 9.30%
Return on equity 1.97% 86.20% 10.51%
Return on assets 0.96% 18.46% 4.19%
Return on invested capital 2.98% 18.65% 7.05%

Growth

Metric HLMN KMT Tools & Accessories median
Revenue growth (TTM) 6.40% 32.48% 6.18%
EPS growth (last fiscal year) 122.22% 268.33% 35.90%
Revenue growth, 5-year CAGR 2.55% 5.06% 5.26%
Net income growth, 5-year CAGR 0.00% 44.45% 2.99%

Health

Metric HLMN KMT Tools & Accessories median
Debt to equity 0.78 0.61 0.53
Current ratio 2.60 3.45 2.60
Net debt to EBITDA 2.52 1.01 1.21

Dividend

Metric HLMN KMT Tools & Accessories median
Dividend yield — 3.43% 1.55%
Payout ratio — 0.11 0.34

Size

Metric HLMN KMT Tools & Accessories median
Market cap 1.66b 1.77b 7.39b

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