Hillman Solutions Corp (HLMN) is slightly undervalued and Kennametal Inc (KMT) is undervalued.
Against our estimates of intrinsic value, KMT trades at the wider discount: a margin of safety of +59%, against +15% for HLMN.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 9.2% (average of 3 methods) values the shares at $8.56; the price of $7.25 is 15% below that value, and 75% of that value comes from beyond year five.
Leak Score 51/100 on 9 of 12 signals
Discounting its cash flows at 9.6% (average of 3 methods) values the shares at $72.76; the price of $29.60 is 59% below that value, and 74% of that value comes from beyond year five.
Leak Score 100/100 on 3 of 12 signals
| Metric | HLMN | KMT |
|---|---|---|
| Verdict | Slightly undervalued | Undervalued |
| Price | $7.25 | $29.60 |
| Intrinsic value | $8.56 | $72.76 |
| Margin of safety | +15% | +59% |
| Leak Score | 51/100 (9/12) | 100/100 (3/12) |
| Market cap | $1.4B | $2.3B |
| Revenue growth, 5 years | 2.5% | 5.1% |
| Operating margin | 6.6% | 20.4% |
| Net margin | 2.6% | 14.5% |
| Return on equity | 3.4% | 24.0% |
| Debt to equity | 0.65 | 0.49 |
| P/E | 35.0x | 6.7x |
| Forward P/E | 10.5x | 12.0x |
| P/B | 1.2x | 1.4x |
| Dividend yield | — | 4.4% |