F

Kennametal Inc. — Earnings Quality Grade F

KMT · Industrials

Major red flags

Revenue
$2.0B
2025
Net Income
$93M
2025
Gross Margin
30.4%
Free Cash Flow
$119M
01

Screening Summary

12
Passed
1
Watch
2
Failed
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 55 days, change +1 days YoY

A2AR vs Revenue Growth

AR outpaced revenue for 2 consecutive years

A3Revenue vs CFFO

Revenue -3.9%, CFFO -24.8%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

Inventory 4.6% vs COGS -3.6%. Normal

B2CapEx vs Revenue

CapEx growth -17.3% vs revenue -3.9%. Normal

B3SG&A Ratio

Insufficient data

B4Gross Margin

Gross margin 30.4%, change -0.2pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 2.24. Profits backed by cash

C2Free Cash Flow

FCF $0.1B, FCF/NI = 1.28

C3Accruals Ratio

Accruals ratio = -4.5%. Low accruals

C4Cash vs Debt

Cash $0.1B covers only 22% of debt $0.6B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $0.3B = 27% of equity. Manageable

D2Leverage

Debt/EBITDA = 2.2x. Healthy

!
D3Soft Asset Growth

Other assets grew 102.3% vs revenue -3.9%

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change -1% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

Insufficient data

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05

Altman Z-Score

4.65
Safe Zone
0 Distress1.102.605.0+ Safe
0.2424
Liquidity
0.4721
Cumulative profit
0.0617
Operating efficiency
1.0518
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25