- Kennametal has put together some very good quarters, with improving end-market demand driving long-awaited meaningful margin improvement.
- Component shortages are likely to slow demand in transportation markets, but aerospace and energy are showing real improvement.
- Restructuring the manufacturing base seems to be really driving margins now, but I see longer-term threats from changes in how companies approach manufacturing/tooling.
- Kennametal shares look undervalued on near-term margin/return-driven EV/EBITDA, as well as long-term discounted cash flow, but stocks like this often underperform at this point in the cycle.
For further details see:
Kennametal A Battleground Between Cycle And Self-Help