ALEXANDER & BALDWIN INC (ALEX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALEX - US0144911049 - REIT
20.77 USD
-0.04 (-0.19%)
20.77 USD
0 (0%)
ALEX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 125 industry peers in the Diversified REITs industry. ALEX has an excellent profitability rating, but there are concerns on its financial health. ALEX has a correct valuation and a medium growth rate.
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.
- 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 88.00% of its industry peers.
- ALEX's Return On Equity of 7.21% is fine compared to the rest of the industry. ALEX outperforms 78.40% of its industry peers.
- ALEX's Return On Invested Capital of 3.57% is fine compared to the rest of the industry. ALEX outperforms 66.40% 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 3.07%.
- The 3 year average ROIC (3.24%) for ALEX is below the current ROIC(3.57%), indicating increased profibility in the last year.
| 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 has a Profit Margin of 33.42%. This is amongst the best in the industry. ALEX outperforms 88.00% of its industry peers.
- ALEX's Profit Margin has improved in the last couple of years.
- ALEX's Operating Margin of 32.59% is fine compared to the rest of the industry. ALEX outperforms 64.80% of its industry peers.
- In the last couple of years the Operating Margin of ALEX has grown nicely.
- Looking at the Gross Margin, with a value of 45.27%, ALEX is doing worse than 78.40% 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.
- 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
- ALEX has an Altman-Z score of 0.99. 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 0.99, ALEX is in the better half of the industry, outperforming 73.60% 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.
- With an excellent Debt to FCF ratio value of 10.53, ALEX belongs to the best of the industry, outperforming 90.40% of the companies in the same industry.
- A Debt/Equity ratio of 0.47 indicates that ALEX is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.47, ALEX belongs to the top of the industry, outperforming 89.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 10.53 | ||
| Altman-Z | 0.99 |
ROIC/WACC0.47
WACC7.67%
2.3 Liquidity
- A Current Ratio of 0.78 indicates that ALEX may have some problems paying its short term obligations.
- ALEX has a Current ratio (0.78) which is comparable to the rest of the industry.
- A Quick Ratio of 0.78 indicates that ALEX may have some problems paying its short term obligations.
- ALEX has a Quick ratio of 0.78. This is comparable to the rest of the industry: ALEX outperforms 43.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 62.90% 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 decreased by -3.94% in the past year.
- Measured over the past years, ALEX shows a very negative growth in Revenue. The Revenue has been decreasing by -11.47% on average per year.
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
- ALEX is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.94% yearly.
- Based on estimates for the next years, ALEX will show a small growth in Revenue. The Revenue will grow by 1.31% on average per year.
EPS Next Y17.79%
EPS Next 2Y-9.8%
EPS Next 3Y-3.94%
EPS Next 5YN/A
Revenue Next Year-0.06%
Revenue Next 2Y0.75%
Revenue Next 3Y1.31%
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.
- 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
- ALEX is valuated rather expensively with a Price/Earnings ratio of 20.56.
- Compared to the rest of the industry, the Price/Earnings ratio of ALEX indicates a somewhat cheap valuation: ALEX is cheaper than 80.00% of the companies listed in the same industry.
- ALEX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.32.
- A Price/Forward Earnings ratio of 30.39 indicates a quite expensive valuation of ALEX.
- Based on the Price/Forward Earnings ratio, ALEX is valued a bit cheaper than 77.60% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of ALEX to the average of the S&P500 Index (24.32), we can say ALEX is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.56 | ||
| Fwd PE | 30.39 |
4.2 Price Multiples
- 74.40% of the companies in the same industry are cheaper than ALEX, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALEX indicates a somewhat cheap valuation: ALEX is cheaper than 72.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.48 | ||
| EV/EBITDA | 18.01 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- ALEX has a very decent profitability rating, which 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)1.16
PEG (5Y)0.57
EPS Next 2Y-9.8%
EPS Next 3Y-3.94%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.92%, ALEX is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 6.59, ALEX has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, ALEX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.92% |
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
- ALEX pays out 89.83% of its income as dividend. 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.
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%.