Kennametal Inc (KMT) is undervalued and Lincoln Electric Holdings Inc (LECO) is overvalued.
Against our estimates of intrinsic value, KMT trades at the wider discount: a margin of safety of +59%, against -40% for LECO.
Values as of the 22 Sept 2026 close.
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
Discounting its cash flows at 10.3% (average of 3 methods) values the shares at $187.86; the price of $262.99 is 40% above that value, and 72% of that value comes from beyond year five.
Leak Score 59/100 on 3 of 12 signals
| Metric | KMT | LECO |
|---|---|---|
| Verdict | Undervalued | Overvalued |
| Price | $29.60 | $262.99 |
| Intrinsic value | $72.76 | $187.86 |
| Margin of safety | +59% | -40% |
| Leak Score | 100/100 (3/12) | 59/100 (3/12) |
| Market cap | $2.3B | $14.3B |
| Revenue growth, 5 years | 5.1% | 9.8% |
| Operating margin | 20.4% | 17.6% |
| Net margin | 14.5% | 12.4% |
| Return on equity | 24.0% | 37.7% |
| Debt to equity | 0.49 | 0.80 |
| P/E | 6.7x | 26.3x |
| Forward P/E | 12.0x | 21.0x |
| P/B | 1.4x | 9.2x |
| Dividend yield | 4.4% | 1.2% |