ALEXANDER & BALDWIN INC (ALEX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALEX - US0144911049 - REIT
20.7 USD
-0.05 (-0.24%)
20.7 USD
0 (0%)
ALEX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 124 industry peers in the Diversified REITs industry. ALEX scores excellent on profitability, but there are concerns on its financial health. ALEX is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- ALEX had positive earnings in the past year.
- In the past year ALEX had a positive cash flow from operations.
- Of the past 5 years ALEX 4 years were profitable.
- ALEX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ALEX's Return On Assets of 4.40% is amongst the best of the industry. ALEX outperforms 88.71% of its industry peers.
- The Return On Equity of ALEX (7.21%) is better than 79.03% of its industry peers.
- ALEX's Return On Invested Capital of 3.57% is fine compared to the rest of the industry. ALEX outperforms 66.94% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ALEX is in line with the industry average of 3.05%.
- The last Return On Invested Capital (3.57%) for ALEX is above the 3 year average (3.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 7.21% | ||
| ROIC | 3.57% |
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
- ALEX's Profit Margin of 33.42% is amongst the best of the industry. ALEX outperforms 87.90% of its industry peers.
- ALEX's Profit Margin has improved in the last couple of years.
- With a decent Operating Margin value of 32.59%, ALEX is doing good in the industry, outperforming 65.32% of the companies in the same industry.
- ALEX's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 45.27%, ALEX is doing worse than 78.23% of the companies in the same industry.
- ALEX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.59% | ||
| PM (TTM) | 33.42% | ||
| GM | 45.27% |
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.
- The number of shares outstanding for ALEX has been increased compared to 1 year ago.
- Compared to 5 years ago, ALEX has more shares outstanding
- ALEX has a worse debt/assets ratio than last year.
2.2 Solvency
- ALEX has an Altman-Z score of 0.98. This is a bad value and indicates that ALEX is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.98, ALEX is in the better half of the industry, outperforming 73.39% of the companies in the same industry.
- ALEX has a debt to FCF ratio of 10.53. This is a negative value and a sign of low solvency as ALEX would need 10.53 years to pay back of all of its debts.
- The Debt to FCF ratio of ALEX (10.53) is better than 90.32% 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.
- Looking at the Debt to Equity ratio, with a value of 0.47, ALEX belongs to the top of the industry, outperforming 89.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 10.53 | ||
| Altman-Z | 0.98 |
ROIC/WACC0.47
WACC7.65%
2.3 Liquidity
- A Current Ratio of 0.78 indicates that ALEX may have some problems paying its short term obligations.
- ALEX's Current ratio of 0.78 is in line compared to the rest of the industry. ALEX outperforms 43.55% of its industry peers.
- A Quick Ratio of 0.78 indicates that ALEX may have some problems paying its short term obligations.
- With a Quick ratio value of 0.78, ALEX perfoms like the industry average, outperforming 43.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
- ALEX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 62.90%, which is quite impressive.
- The Earnings Per Share has been growing by 36.08% on average over the past years. This is a very strong growth
- ALEX shows a decrease in Revenue. In the last year, the revenue decreased by -3.94%.
- 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)62.9%
EPS 3Y19.68%
EPS 5Y36.08%
EPS Q2Q%-23.08%
Revenue 1Y (TTM)-3.94%
Revenue growth 3Y-2.33%
Revenue growth 5Y-11.47%
Sales Q2Q%-18.94%
3.2 Future
- Based on estimates for the next years, ALEX will show a decrease in Earnings Per Share. The EPS will decrease by -3.94% on average per year.
- ALEX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.72% yearly.
EPS Next Y17.79%
EPS Next 2Y-9.8%
EPS Next 3Y-3.94%
EPS Next 5YN/A
Revenue Next Year-0.01%
Revenue Next 2Y1.05%
Revenue Next 3Y1.72%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 20.50 indicates a rather expensive valuation of ALEX.
- 80.65% of the companies in the same industry are more expensive than ALEX, based on the Price/Earnings ratio.
- ALEX is valuated rather cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 30.29, which means the current valuation is very expensive for ALEX.
- 77.42% of the companies in the same industry are more expensive than ALEX, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, ALEX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.5 | ||
| Fwd PE | 30.29 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALEX indicates a slightly more expensive valuation: ALEX is more expensive than 73.39% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, ALEX is valued a bit cheaper than 72.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.37 | ||
| EV/EBITDA | 18 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of ALEX may justify a higher PE ratio.
- ALEX's earnings are expected to decrease with -3.94% in the coming years. This may justify a cheaper valuation.
PEG (NY)1.15
PEG (5Y)0.57
EPS Next 2Y-9.8%
EPS Next 3Y-3.94%
5. Dividend
5.1 Amount
- ALEX has a Yearly Dividend Yield of 4.94%, which is a nice return.
- ALEX's Dividend Yield is comparable with the industry average which is at 6.82.
- Compared to an average S&P500 Dividend Yield of 1.82, ALEX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.94% |
5.2 History
- The dividend of ALEX has a limited annual growth rate of 5.27%.
- ALEX has been paying a dividend for at least 10 years, so it has 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
- 89.83% of the earnings are spent on dividend by ALEX. This is not a sustainable payout ratio.
- The Dividend Rate of ALEX has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP89.83%
EPS Next 2Y-9.8%
EPS Next 3Y-3.94%
ALEXANDER & BALDWIN INC / ALEX FAQ
What is the fundamental rating for ALEX stock?
ChartMill assigns a fundamental rating of 5 / 10 to ALEX.
What is the valuation status of ALEXANDER & BALDWIN INC (ALEX) stock?
ChartMill assigns a valuation rating of 4 / 10 to ALEXANDER & BALDWIN INC (ALEX). This can be considered as Fairly Valued.
Can you provide the profitability details for ALEXANDER & BALDWIN INC?
ALEXANDER & BALDWIN INC (ALEX) has a profitability rating of 7 / 10.
What is the financial health of ALEXANDER & BALDWIN INC (ALEX) stock?
The financial health rating of ALEXANDER & BALDWIN INC (ALEX) is 3 / 10.
Is the dividend of ALEXANDER & BALDWIN INC sustainable?
The dividend rating of ALEXANDER & BALDWIN INC (ALEX) is 5 / 10 and the dividend payout ratio is 89.83%.