Is KMT's EPS growth sustainable long-term?

**KMT's diluted EPS growth appears to be unsustainable in the long term.** Here's why:

1. **Recent Performance**: The most recent data shows a significant decline in diluted EPS growth, with a year-over-year decrease of 20.69%. This indicates a sharp deterioration in earnings per share, which is a red flag for sustainability.
2. **Long-term Trend**: Over the past three years, there has been a compound annual growth rate (CAGR) decline of 10.75% in diluted EPS. This consistent decline suggests that the company's earnings per share have been trending downwards, which is not a sign of sustainability.

|code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|---|---|
|KMT|KMT.N|Kennametal|2024 Q3|-37.367688864694856|-3.776238909326986|-38.46153846153847|169|
|KMT|KMT.N|Kennametal|2024 Q4|1.3089560148383677|-1.2589166447063527||169|
|KMT|KMT.N|Kennametal|2025 Q1|-22.730415884619184|-2.137769150171785|-24.324324324324316|169|
|KMT|KMT.N|Kennametal|2025 Q2|-21.748602433410063|-2.6788742631026405|-20.689655172413783|169|

3. **Financial Ratios**: The company's operating margin stands at 5.73%, gross margin at 30.71%, and net margin at 4.41%. While these ratios provide some insight into the company's profitability, they do not necessarily indicate sustainability. The net margin, in particular, being relatively low, could suggest that the company is facing challenges in converting revenue into net income.

|code|Ticker|Name|Date|Gross Profit Margin|Operating Profit Margin|Net Profit Margin|market_code|
|---|---|---|---|---|---|---|---|
|KMT|KMT.N|Kennametal|2024 Q3|30.3112|5.892493370870136|5.0151|169|
|KMT|KMT.N|Kennametal|2024 Q4|30.6362|7.022867273861583|5.5519|169|
|KMT|KMT.N|Kennametal|2025 Q1|31.333|6.165602928116726|4.869|169|
|KMT|KMT.N|Kennametal|2025 Q2|30.7095|5.726147018824709|4.409|169|

4. **Other Financial Indicators**: KMT has a debt-to-equity ratio of 0.47%, which is relatively low and does not necessarily indicate any sustainability concerns. However, the free cash flow stands at $35.94 million, which could be a positive sign for the company's liquidity and ability to meet its financial obligations.

|code|Ticker|Name|Date|Free Cash Flow|Debt-to-Equity Ratio|market_code|
|---|---|---|---|---|---|---|
|KMT|KMT.N|Kennametal|2024 Q3|1.02920661142E8|0.4656426938174155|169|
|KMT|KMT.N|Kennametal|2024 Q4|1.6777590123E8|0.46357090142084545|169|
|KMT|KMT.N|Kennametal|2025 Q1|2.2222330528E7|0.45343306299190494|169|
|KMT|KMT.N|Kennametal|2025 Q2|8.437230111E7|0.4743699116181957|169|

In conclusion, the available data points to KMT's diluted EPS growth being unsustainable in the long term. The company's recent and historical performance in terms of EPS growth rates, along with other financial ratios and indicators, do not paint a picture of sustainability.