Some Investors May Be Worried About Kennametal's (NYSE:KMT) Returns On Capital
Some Investors May Be Worried About Kennametal's (NYSE:KMT) Returns On Capital
To avoid investing in a business that's in decline, there's a few financial metrics that can provide early indications of aging. Businesses in decline often have two underlying trends, firstly, a declining return on capital employed (ROCE) and a declining base of capital employed. This reveals that the company isn't compounding shareholder wealth because returns are falling and its net asset base is shrinking. And from a first read, things don't look too good at Kennametal (NYSE:KMT), so let's see why.
为了避免投资衰退的企业,有一些财务指标可以提供老龄化的早期迹象。衰退的企业通常有两个潜在趋势,首先是衰退 返回 论资本使用率(ROCE)和下降情况 基础 所用资本的百分比。这表明,该公司之所以增加股东财富,并不是因为回报率在下降,其净资产基础正在萎缩。从第一读起,事情看起来不太好 肯纳金属公司 纽约证券交易所代码:KMT),那么让我们看看为什么。
Understanding Return On Capital Employed (ROCE)
了解资本使用回报率 (ROCE)
Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. The formula for this calculation on Kennametal is:
为了澄清一下你是否不确定,投资回报率是评估公司从投资于其业务的资本中获得多少税前收入(按百分比计算)的指标。肯纳金属公司的计算公式为:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
使用资本回报率 = 利息和税前收益 (EBIT) ÷(总资产-流动负债)
0.094 = US$199m ÷ (US$2.5b - US$434m) (Based on the trailing twelve months to June 2023).
0.094 = 1.99 亿美元 ε(25 亿美元至 4.34 亿美元) (基于截至 2023 年 6 月的过去十二个月)。
So, Kennametal has an ROCE of 9.4%. On its own, that's a low figure but it's around the 12% average generated by the Machinery industry.
所以, 肯纳金属公司的投资回报率为9.4%。 就其本身而言,这是一个很低的数字,但约为机械行业创造的12%的平均水平。
View our latest analysis for Kennametal
查看我们对肯纳金属的最新分析
![roce](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20231006/0-8972003c2647b37638e4c24df2da6888-0-5826153dfec12a8a8bc40a759b97bf19.png/big)
Above you can see how the current ROCE for Kennametal compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free report for Kennametal.
在上面你可以看到肯纳金属公司当前的投资回报率与其先前的资本回报率相比如何,但从过去可以看出来的只有那么多。如果您想了解分析师对未来的预测,请查看我们的 免费的 肯纳金属公司的报告。
What The Trend Of ROCE Can Tell Us
ROCE 的趋势能告诉我们什么
We are a bit worried about the trend of returns on capital at Kennametal. About five years ago, returns on capital were 16%, however they're now substantially lower than that as we saw above. And on the capital employed front, the business is utilizing roughly the same amount of capital as it was back then. Since returns are falling and the business has the same amount of assets employed, this can suggest it's a mature business that hasn't had much growth in the last five years. So because these trends aren't typically conducive to creating a multi-bagger, we wouldn't hold our breath on Kennametal becoming one if things continue as they have.
我们对肯纳金属公司的资本回报趋势有些担忧。大约五年前,资本回报率为16%,但现在已大大低于我们在上面看到的水平。在资本使用方面,该企业使用的资本与当时大致相同。由于回报率下降且该企业使用的资产数量相同,这可能表明这是一家成熟的企业,在过去五年中没有太大的增长。因此,由于这些趋势通常不利于制造多装袋机,因此,如果事情照原样继续下去,我们就不会屏住呼吸肯纳金属公司成为一个装袋机。
On a side note, Kennametal has done well to pay down its current liabilities to 17% of total assets. That could partly explain why the ROCE has dropped. What's more, this can reduce some aspects of risk to the business because now the company's suppliers or short-term creditors are funding less of its operations. Some would claim this reduces the business' efficiency at generating ROCE since it is now funding more of the operations with its own money.
顺便说一句,肯纳金属公司在偿还其流动负债至总资产的17%方面做得很好。这可以部分解释投资回报率下降的原因。更重要的是,这可以降低业务的某些方面的风险,因为现在公司的供应商或短期债权人减少了为其运营提供的资金。有人会声称,这降低了企业产生投资回报率的效率,因为它现在用自己的资金为更多的运营提供资金。
The Key Takeaway
关键要点
All in all, the lower returns from the same amount of capital employed aren't exactly signs of a compounding machine. It should come as no surprise then that the stock has fallen 30% over the last five years, so it looks like investors are recognizing these changes. That being the case, unless the underlying trends revert to a more positive trajectory, we'd consider looking elsewhere.
总而言之,使用相同数量的资本所产生的较低回报并不完全是复利机器的迹象。因此,该股在过去五年中下跌了30%也就不足为奇了,因此看来投资者已经意识到了这些变化。既然如此,除非基本趋势恢复到更积极的轨迹,否则我们会考虑将目光投向其他地方。
Like most companies, Kennametal does come with some risks, and we've found 1 warning sign that you should be aware of.
像大多数公司一样,肯纳金属公司确实存在一些风险,我们发现 1 个警告标志 你应该知道的。
If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity.
如果你想寻找收入丰厚的稳健公司,可以看看这个 免费的 资产负债表良好、股本回报率可观的公司名单。
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Simply Wall St 的这篇文章本质上是笼统的。 我们仅使用公正的方法根据历史数据和分析师的预测提供评论,我们的文章无意作为财务建议。 它不构成买入或卖出任何股票的建议,也没有考虑您的目标或财务状况。我们的目标是为您提供由基本面数据驱动的长期重点分析。请注意,我们的分析可能不考虑最新的价格敏感公司公告或定性材料。简而言之,华尔街在上述任何股票中都没有头寸。