Is KENNAMETAL INC (KMT) Halal?
Shariah Screening — 5 Standards
Based on financial data from June 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 22.7% / 30% | 5.0% / 30% | 10.4% / 30% | 0.02% / 5% | ✓ HALAL |
| DJIM | 22.7% / 33% | 5.0% / 33% | 10.4% / 33% | 0.02% / 5% | ✓ HALAL |
| MSCI | 25.3% / 33% | 5.5% / 33% | 11.6% / 33% | 0.02% / 5% | ✓ HALAL |
| S&P | 22.7% / 33% | 5.0% / 33% | 10.4% / 33% | 0.02% / 5% | ✓ HALAL |
| FTSE | 25.3% / 33% | 5.5% / 33% | 11.6% / 50% | 0.02% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 31.2% | |
| Operating Margin | 10.2% | |
| Net Margin | 5.4% | |
| Return on Equity (ROE) | 8.9% | |
| Return on Assets (ROA) | 4.5% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $208M |
| Free Cash Flow | $119M |
| Total Debt | $643M |
| Debt-to-Equity | 47.5 |
| Current Ratio | 2.6 |
| Total Assets | $2.5B |
Price & Trading
| Last Close | $35.61 |
| 50-Day MA | $37.54 |
| 200-Day MA | $27.58 |
| Avg Volume | 1.5M |
| Beta | 1.5 |
|
52-Week Range
$17.30
| |
About KENNAMETAL INC (KMT)
Kennametal Inc. engages in development and application of tungsten carbides, ceramics, and hard materials and solutions worldwide. It operates through two segments, Metal Cutting and Infrastructure. The Metal Cutting segment offers milling, hole making, turning, threading, and toolmaking systems used in the manufacture of airframes, aero engines, trucks and automobiles, ships, and various types of industrial equipment under the Kennametal, WIDIA, WIDIA Hanita, and WIDIA GTD brands through its direct sales force, a network of independent and national distributors, integrated supplier channels, and digitally. Its Infrastructure segment produces engineered tungsten carbide and ceramic components, earth-cutting tools, and metallurgical powders, such as compacts, nozzles, frac seats, and custom components used in oil and gas and petrochemical industries; rod blanks and abrasive water jet nozzles for general industries; earth cutting tools and systems used in underground mining, trenching and foundation drilling, and road milling; tungsten carbide powders for the oil and gas, aerospace, and process industries; high temperature critical wear components, tungsten penetrators, and armor solutions for aerospace and defense; and ceramics used by the packaging industry for metallization of films and papers under the Kennametal brand through a direct sales force and distributors. The company was founded in 1938 and is based in Pittsburgh, Pennsylvania.
Purification Calculator
As a halal stock with 0.02% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is KENNAMETAL INC (KMT) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), KENNAMETAL INC is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is KENNAMETAL INC's debt ratio?
KENNAMETAL INC's debt ratio is 22.7% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 25.3%.
Does KENNAMETAL INC require dividend purification?
Yes, KENNAMETAL INC has an impermissible income ratio of 0.02%, which means 0.02% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are KENNAMETAL INC's key financial metrics?
KENNAMETAL INC has a market capitalization of $2.7B, trailing P/E ratio of 25.2, and revenue of $2.0B. The company maintains a gross margin of 31.2% and a net margin of 5.4%. Return on equity stands at 8.9%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.