ALEXANDER & BALDWIN INC (ALEX) Stock Fundamental Analysis
NYSE:ALEX - New York Stock Exchange, Inc. - US0144911049 - REIT - Currency: USD
ALEX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 is not valued too expensively and it also shows a decent 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 has a Return On Assets of 3.62%. This is amongst the best in the industry. ALEX outperforms 83.85% of its industry peers.
ALEX has a better Return On Equity (6.03%) than 78.46% of its industry peers.
ALEX has a better Return On Invested Capital (3.69%) than 72.31% 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 3.19%.
The last Return On Invested Capital (3.69%) for ALEX is above the 3 year average (3.24%), which is a sign of increasing profitability.
| 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
ALEX has a better Profit Margin (25.57%) than 80.00% of its industry peers.
ALEX's Profit Margin has improved in the last couple of years.
ALEX has a better Operating Margin (32.89%) than 71.54% of its industry peers.
ALEX's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 45.49%, ALEX is doing worse than 80.77% of the companies in the same industry.
In the last couple of years the Gross Margin of ALEX has grown nicely.
| 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
Compared to 5 years ago, ALEX has more shares outstanding
ALEX has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.73, we must say that ALEX is in the distress zone and has some risk of bankruptcy.
ALEX's Altman-Z score of 0.73 is fine compared to the rest of the industry. ALEX outperforms 63.85% of its industry peers.
ALEX has a debt to FCF ratio of 10.06. This is a negative value and a sign of low solvency as ALEX would need 10.06 years to pay back of all of its debts.
ALEX has a Debt to FCF ratio of 10.06. This is amongst the best in the industry. ALEX outperforms 90.77% 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's Debt to Equity ratio of 0.47 is amongst the best of the industry. ALEX outperforms 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 10.06 | ||
| Altman-Z | 0.73 |
ROIC/WACC0.49
WACC7.56%
2.3 Liquidity
ALEX has a Current 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 Current ratio (8.25) than 97.69% 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 Quick ratio of 8.25. This is amongst the best in the industry. ALEX outperforms 97.69% 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 grown by an nice 12.20% over the past year.
The Earnings Per Share has been growing by 36.08% on average over the past years. This is a very strong growth
The Revenue has grown by 13.28% in the past year. This is quite good.
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)12.2%
EPS 3Y19.68%
EPS 5Y36.08%
EPS Q2Q%28.57%
Revenue 1Y (TTM)13.28%
Revenue growth 3Y-2.33%
Revenue growth 5Y-11.47%
Sales Q2Q%9.92%
3.2 Future
ALEX is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -9.80% yearly.
The Revenue is expected to grow by 2.41% on average over the next years.
EPS Next Y-22.29%
EPS Next 2Y-9.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.01%
Revenue Next 2Y2.41%
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.
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
Based on the Price/Earnings ratio of 18.16, the valuation of ALEX can be described as rather expensive.
84.62% of the companies in the same industry are more expensive than ALEX, based on the Price/Earnings ratio.
ALEX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.92.
The Price/Forward Earnings ratio is 24.45, which indicates a rather expensive current valuation of ALEX.
Based on the Price/Forward Earnings ratio, ALEX is valued cheaper than 81.54% of the companies in the same industry.
ALEX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.65, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.16 | ||
| Fwd PE | 24.45 |
4.2 Price Multiples
ALEX's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALEX indicates a somewhat cheap valuation: ALEX is cheaper than 71.54% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.73 | ||
| EV/EBITDA | 14.51 |
4.3 Compensation for Growth
The decent profitability rating of ALEX may justify a higher PE ratio.
ALEX's earnings are expected to decrease with -9.80% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.5
EPS Next 2Y-9.8%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ALEX has a Yearly Dividend Yield of 5.39%, which is a nice return.
ALEX's Dividend Yield is comparable with the industry average which is at 16.86.
Compared to an average S&P500 Dividend Yield of 2.51, ALEX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.39% |
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 Years3
Div Non Decr Years3
5.3 Sustainability
ALEX pays out 107.38% 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.
DP107.38%
EPS Next 2Y-9.8%
EPS Next 3YN/A
16.71
+0.07 (+0.42%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners88.73%
Inst Owner Change-2.55%
Ins Owners0.82%
Ins Owner Change2.72%
Market Cap1.21B
Analysts82
Price Target22.44 (34.29%)
Short Float %1.1%
Short Ratio1.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.39% |
Yearly Dividend0.9
Dividend Growth(5Y)5.27%
DP107.38%
Div Incr Years3
Div Non Decr Years3
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)3.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.76%
EPS NY rev (1m)6.67%
EPS NY rev (3m)4.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.94%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.16 | ||
| Fwd PE | 24.45 | ||
| P/S | 5.13 | ||
| P/FCF | 25.73 | ||
| P/OCF | 12.4 | ||
| P/B | 1.21 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 14.51 |
EPS(TTM)0.92
EY5.51%
EPS(NY)0.68
Fwd EY4.09%
FCF(TTM)0.65
FCFY3.89%
OCF(TTM)1.35
OCFY8.07%
SpS3.25
BVpS13.8
TBVpS13.68
PEG (NY)N/A
PEG (5Y)0.5
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 | 0.73 |
F-Score7
WACC7.56%
ROIC/WACC0.49
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)12.2%
EPS 3Y19.68%
EPS 5Y36.08%
EPS Q2Q%28.57%
EPS Next Y-22.29%
EPS Next 2Y-9.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)13.28%
Revenue growth 3Y-2.33%
Revenue growth 5Y-11.47%
Sales Q2Q%9.92%
Revenue Next Year2.01%
Revenue Next 2Y2.41%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y13.94%
EBIT growth 3Y-1.93%
EBIT growth 5Y17.06%
EBIT Next Year40.79%
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%