ALEXANDER & BALDWIN INC (ALEX) Stock Fundamental Analysis
NYSE:ALEX - New York Stock Exchange, Inc. - US0144911049 - REIT - Currency: USD
Taking everything into account, ALEX scores 5 out of 10 in our fundamental rating. ALEX was compared to 130 industry peers in the Diversified REITs industry. While ALEX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ALEX has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year ALEX was profitable.
In the past year ALEX had a positive cash flow from operations.
Of the past 5 years ALEX 4 years were profitable.
In the past 5 years ALEX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ALEX (3.62%) is better than 86.15% of its industry peers.
The Return On Equity of ALEX (6.03%) is better than 76.92% of its industry peers.
ALEX has a Return On Invested Capital of 3.69%. This is in the better half of the industry: ALEX outperforms 69.23% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ALEX is in line with the industry average of 3.16%.
The 3 year average ROIC (3.24%) for ALEX is below the current ROIC(3.69%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.62% | ||
| ROE | 6.03% | ||
| ROIC | 3.69% |
ROA(3y)0.86%
ROA(5y)0.94%
ROE(3y)1.36%
ROE(5y)1.58%
ROIC(3y)3.24%
ROIC(5y)2.9%
1.3 Margins
The Profit Margin of ALEX (25.57%) is better than 80.77% of its industry peers.
In the last couple of years the Profit Margin of ALEX has grown nicely.
Looking at the Operating Margin, with a value of 32.89%, ALEX is in the better half of the industry, outperforming 71.54% of the companies in the same industry.
ALEX's Operating Margin has improved in the last couple of years.
ALEX's Gross Margin of 45.49% is on the low side compared to the rest of the industry. ALEX is outperformed by 80.00% of its industry peers.
ALEX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.89% | ||
| PM (TTM) | 25.57% | ||
| GM | 45.49% |
OM growth 3Y0.42%
OM growth 5Y32.23%
PM growth 3Y22.77%
PM growth 5YN/A
GM growth 3Y-1.01%
GM growth 5Y15.99%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ALEX is destroying value.
Compared to 1 year ago, ALEX has more shares outstanding
ALEX has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ALEX is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.83, we must say that ALEX is in the distress zone and has some risk of bankruptcy.
ALEX's Altman-Z score of 0.83 is fine compared to the rest of the industry. ALEX outperforms 66.92% of its industry peers.
The Debt to FCF ratio of ALEX is 10.06, which is on the high side as it means it would take ALEX, 10.06 years of fcf income to pay off all of its debts.
ALEX has a Debt to FCF ratio of 10.06. This is amongst the best in the industry. ALEX outperforms 92.31% of its industry peers.
ALEX has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
ALEX has a better Debt to Equity ratio (0.47) than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 10.06 | ||
| Altman-Z | 0.83 |
ROIC/WACC0.48
WACC7.61%
2.3 Liquidity
A Current Ratio of 8.25 indicates that ALEX has no problem at all paying its short term obligations.
ALEX has a better Current ratio (8.25) than 98.46% of its industry peers.
ALEX has a Quick Ratio of 8.25. This indicates that ALEX is financially healthy and has no problem in meeting its short term obligations.
ALEX has a better Quick ratio (8.25) than 98.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.25 | ||
| Quick Ratio | 8.25 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.66% over the past year.
ALEX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.08% yearly.
The Revenue has been growing slightly by 4.31% in the past year.
ALEX shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -11.47% yearly.
EPS 1Y (TTM)3.66%
EPS 3Y19.68%
EPS 5Y36.08%
EPS Q2Q%3.57%
Revenue 1Y (TTM)4.31%
Revenue growth 3Y-2.33%
Revenue growth 5Y-11.47%
Sales Q2Q%4.41%
3.2 Future
Based on estimates for the next years, ALEX will show a decrease in Earnings Per Share. The EPS will decrease by -9.80% on average per year.
Based on estimates for the next years, ALEX will show a small growth in Revenue. The Revenue will grow by 2.31% on average per year.
EPS Next Y-12.57%
EPS Next 2Y-9.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.56%
Revenue Next 2Y2.31%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.39, ALEX is valued on the expensive side.
81.54% of the companies in the same industry are more expensive than ALEX, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.45, ALEX is valued a bit cheaper.
With a Price/Forward Earnings ratio of 26.60, ALEX can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, ALEX is valued cheaply inside the industry as 80.77% of the companies are valued more expensively.
ALEX is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.39 | ||
| Fwd PE | 26.6 |
4.2 Price Multiples
ALEX's Enterprise Value to EBITDA ratio is in line with the industry average.
73.85% of the companies in the same industry are more expensive than ALEX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28 | ||
| EV/EBITDA | 15.45 |
4.3 Compensation for Growth
ALEX has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as ALEX's earnings are expected to decrease with -9.80% in the coming years.
PEG (NY)N/A
PEG (5Y)0.59
EPS Next 2Y-9.8%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ALEX has a Yearly Dividend Yield of 4.93%, which is a nice return.
Compared to an average industry Dividend Yield of 6.66, ALEX has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, ALEX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.93% |
5.2 History
The dividend of ALEX has a limited annual growth rate of 5.27%.
ALEX has paid a dividend for at least 10 years, which is a reliable track record.
ALEX has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.27%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
107.38% of the earnings are spent on dividend by ALEX. This is not a sustainable payout ratio.
ALEX's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP107.38%
EPS Next 2Y-9.8%
EPS Next 3YN/A
18.18
+0.17 (+0.94%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners88.92%
Inst Owner Change-45.58%
Ins Owners0.72%
Ins Owner Change4.05%
Market Cap1.32B
Analysts82
Price Target21.42 (17.82%)
Short Float %1.45%
Short Ratio2.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.93% |
Yearly Dividend0.9
Dividend Growth(5Y)5.27%
DP107.38%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.25%
Min EPS beat(2)11.11%
Max EPS beat(2)21.38%
EPS beat(4)3
Avg EPS beat(4)33.67%
Min EPS beat(4)-8.96%
Max EPS beat(4)111.16%
EPS beat(8)6
Avg EPS beat(8)-2.93%
EPS beat(12)9
Avg EPS beat(12)6.25%
EPS beat(16)11
Avg EPS beat(16)57.22%
Revenue beat(2)2
Avg Revenue beat(2)21.3%
Min Revenue beat(2)17.96%
Max Revenue beat(2)24.65%
Revenue beat(4)3
Avg Revenue beat(4)11.03%
Min Revenue beat(4)-2.32%
Max Revenue beat(4)24.65%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-4.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)12.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.39 | ||
| Fwd PE | 26.6 | ||
| P/S | 5.59 | ||
| P/FCF | 28 | ||
| P/OCF | 13.49 | ||
| P/B | 1.32 | ||
| P/tB | 1.33 | ||
| EV/EBITDA | 15.45 |
EPS(TTM)0.85
EY4.68%
EPS(NY)0.68
Fwd EY3.76%
FCF(TTM)0.65
FCFY3.57%
OCF(TTM)1.35
OCFY7.41%
SpS3.25
BVpS13.8
TBVpS13.68
PEG (NY)N/A
PEG (5Y)0.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.62% | ||
| ROE | 6.03% | ||
| ROCE | 4.67% | ||
| ROIC | 3.69% | ||
| ROICexc | 3.77% | ||
| ROICexgc | 3.79% | ||
| OM | 32.89% | ||
| PM (TTM) | 25.57% | ||
| GM | 45.49% | ||
| FCFM | 19.95% |
ROA(3y)0.86%
ROA(5y)0.94%
ROE(3y)1.36%
ROE(5y)1.58%
ROIC(3y)3.24%
ROIC(5y)2.9%
ROICexc(3y)3.29%
ROICexc(5y)2.96%
ROICexgc(3y)3.31%
ROICexgc(5y)2.98%
ROCE(3y)4.1%
ROCE(5y)3.67%
ROICexcg growth 3Y1.17%
ROICexcg growth 5Y22.15%
ROICexc growth 3Y1.32%
ROICexc growth 5Y22.35%
OM growth 3Y0.42%
OM growth 5Y32.23%
PM growth 3Y22.77%
PM growth 5YN/A
GM growth 3Y-1.01%
GM growth 5Y15.99%
F-Score7
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 10.06 | ||
| Debt/EBITDA | 4.16 | ||
| Cap/Depr | 139.84% | ||
| Cap/Sales | 21.46% | ||
| Interest Coverage | 3.52 | ||
| Cash Conversion | 85.85% | ||
| Profit Quality | 78.02% | ||
| Current Ratio | 8.25 | ||
| Quick Ratio | 8.25 | ||
| Altman-Z | 0.83 |
F-Score7
WACC7.61%
ROIC/WACC0.48
Cap/Depr(3y)93.91%
Cap/Depr(5y)86.99%
Cap/Sales(3y)15.27%
Cap/Sales(5y)16.01%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.66%
EPS 3Y19.68%
EPS 5Y36.08%
EPS Q2Q%3.57%
EPS Next Y-12.57%
EPS Next 2Y-9.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.31%
Revenue growth 3Y-2.33%
Revenue growth 5Y-11.47%
Sales Q2Q%4.41%
Revenue Next Year2.56%
Revenue Next 2Y2.31%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y13.94%
EBIT growth 3Y-1.93%
EBIT growth 5Y17.06%
EBIT Next Year51.74%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y31.52%
FCF growth 3Y-12.59%
FCF growth 5YN/A
OCF growth 1Y46.04%
OCF growth 3Y-7.6%
OCF growth 5Y-9.07%