KAISER ALUMINUM CORP (KALU) Stock Fundamental Analysis
NASDAQ:KALU - Nasdaq - US4830077040 - Common Stock - Currency: USD
KALU gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 151 industry peers in the Metals & Mining industry. KALU has a medium profitability rating, but doesn't score so well on its financial health evaluation. KALU is not valued too expensively and it also shows a decent growth rate. Finally KALU also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
KALU had positive earnings in the past year.
KALU had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: KALU reported negative net income in multiple years.
Of the past 5 years KALU 4 years had a positive operating cash flow.
1.2 Ratios
KALU has a Return On Assets of 2.02%. This is in the better half of the industry: KALU outperforms 66.23% of its industry peers.
The Return On Equity of KALU (7.01%) is better than 70.20% of its industry peers.
With a Return On Invested Capital value of 3.92%, KALU perfoms like the industry average, outperforming 56.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.02% | ||
| ROE | 7.01% | ||
| ROIC | 3.92% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of KALU (1.55%) is better than 62.91% of its industry peers.
In the last couple of years the Profit Margin of KALU has declined.
KALU has a Operating Margin (3.15%) which is comparable to the rest of the industry.
KALU's Operating Margin has declined in the last couple of years.
The Gross Margin of KALU (11.01%) is comparable to the rest of the industry.
KALU's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.15% | ||
| PM (TTM) | 1.55% | ||
| GM | 11.01% |
OM growth 3Y0.96%
OM growth 5Y-20.66%
PM growth 3YN/A
PM growth 5Y-17.68%
GM growth 3Y1.76%
GM growth 5Y-11.02%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KALU is destroying value.
There is no outstanding debt for KALU. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 2.15 indicates that KALU is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of KALU (2.15) is comparable to the rest of the industry.
KALU has a Debt/Equity ratio of 1.58. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.58, KALU is not doing good in the industry: 86.75% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.58 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.15 |
ROIC/WACC0.38
WACC10.43%
2.3 Liquidity
KALU has a Current Ratio of 2.44. This indicates that KALU is financially healthy and has no problem in meeting its short term obligations.
KALU has a Current ratio of 2.44. This is comparable to the rest of the industry: KALU outperforms 58.28% of its industry peers.
KALU has a Quick Ratio of 1.18. This is a normal value and indicates that KALU is financially healthy and should not expect problems in meeting its short term obligations.
KALU has a Quick ratio (1.18) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.44 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
KALU shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.39%.
Measured over the past years, KALU shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -18.22% on average per year.
KALU shows a decrease in Revenue. In the last year, the revenue decreased by -2.04%.
KALU shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.84% yearly.
EPS 1Y (TTM)-8.39%
EPS 3Y1.36%
EPS 5Y-18.22%
EPS Q2Q%-45%
Revenue 1Y (TTM)-2.04%
Revenue growth 3Y4.87%
Revenue growth 5Y14.84%
Sales Q2Q%6.06%
3.2 Future
Based on estimates for the next years, KALU will show a very strong growth in Earnings Per Share. The EPS will grow by 67.45% on average per year.
Based on estimates for the next years, KALU will show a quite strong growth in Revenue. The Revenue will grow by 8.17% on average per year.
EPS Next Y108.88%
EPS Next 2Y67.45%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.34%
Revenue Next 2Y8.17%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 27.39, which means the current valuation is very expensive for KALU.
Based on the Price/Earnings ratio, KALU is valued a bit cheaper than the industry average as 65.56% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of KALU to the average of the S&P500 Index (29.35), we can say KALU is valued inline with the index average.
A Price/Forward Earnings ratio of 13.11 indicates a correct valuation of KALU.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KALU indicates a somewhat cheap valuation: KALU is cheaper than 74.17% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. KALU is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.39 | ||
| Fwd PE | 13.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KALU is valued a bit cheaper than the industry average as 66.23% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.13 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as KALU's earnings are expected to grow with 67.45% in the coming years.
PEG (NY)0.25
PEG (5Y)N/A
EPS Next 2Y67.45%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.56%, KALU is a good candidate for dividend investing.
KALU's Dividend Yield is rather good when compared to the industry average which is at 3.22. KALU pays more dividend than 89.40% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, KALU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.56% |
5.2 History
The dividend of KALU is nicely growing with an annual growth rate of 6.69%!
KALU has paid a dividend for at least 10 years, which is a reliable track record.
KALU has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.69%
Div Incr Years0
Div Non Decr Years17
5.3 Sustainability
KALU pays out 108.33% of its income as dividend. This is not a sustainable payout ratio.
KALU's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP108.33%
EPS Next 2Y67.45%
EPS Next 3YN/A
68.75
+1.26 (+1.87%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners97.62%
Inst Owner Change-0.06%
Ins Owners1.02%
Ins Owner Change8.85%
Market Cap1.11B
Analysts45
Price Target82.11 (19.43%)
Short Float %2.94%
Short Ratio4.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.56% |
Yearly Dividend3.16
Dividend Growth(5Y)6.69%
DP108.33%
Div Incr Years0
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-44.6%
Min EPS beat(2)-49.45%
Max EPS beat(2)-39.76%
EPS beat(4)1
Avg EPS beat(4)-10.94%
Min EPS beat(4)-49.45%
Max EPS beat(4)75.44%
EPS beat(8)4
Avg EPS beat(8)134.82%
EPS beat(12)5
Avg EPS beat(12)-29.48%
EPS beat(16)6
Avg EPS beat(16)-32.21%
Revenue beat(2)1
Avg Revenue beat(2)-1.6%
Min Revenue beat(2)-5.27%
Max Revenue beat(2)2.07%
Revenue beat(4)2
Avg Revenue beat(4)-0.33%
Min Revenue beat(4)-5.27%
Max Revenue beat(4)3.88%
Revenue beat(8)3
Avg Revenue beat(8)-1.57%
Revenue beat(12)6
Avg Revenue beat(12)-0.09%
Revenue beat(16)8
Avg Revenue beat(16)2.11%
PT rev (1m)-0.62%
PT rev (3m)-0.62%
EPS NQ rev (1m)-21.69%
EPS NQ rev (3m)-21.69%
EPS NY rev (1m)-5.69%
EPS NY rev (3m)-5.69%
Revenue NQ rev (1m)2.19%
Revenue NQ rev (3m)2.19%
Revenue NY rev (1m)1.46%
Revenue NY rev (3m)1.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.39 | ||
| Fwd PE | 13.11 | ||
| P/S | 0.37 | ||
| P/FCF | N/A | ||
| P/OCF | 6.62 | ||
| P/B | 1.66 | ||
| P/tB | 1.83 | ||
| EV/EBITDA | 10.13 |
EPS(TTM)2.51
EY3.65%
EPS(NY)5.24
Fwd EY7.63%
FCF(TTM)-0.85
FCFYN/A
OCF(TTM)10.38
OCFY15.1%
SpS187.83
BVpS41.49
TBVpS37.5
PEG (NY)0.25
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.02% | ||
| ROE | 7.01% | ||
| ROCE | 4.98% | ||
| ROIC | 3.92% | ||
| ROICexc | 3.96% | ||
| ROICexgc | 4.1% | ||
| OM | 3.15% | ||
| PM (TTM) | 1.55% | ||
| GM | 11.01% | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y0.96%
OM growth 5Y-20.66%
PM growth 3YN/A
PM growth 5Y-17.68%
GM growth 3Y1.76%
GM growth 5Y-11.02%
F-Score5
Asset Turnover1.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.58 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.98 | ||
| Cap/Depr | 155.33% | ||
| Cap/Sales | 5.98% | ||
| Interest Coverage | 2.35 | ||
| Cash Conversion | 78.93% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.44 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 2.15 |
F-Score5
WACC10.43%
ROIC/WACC0.38
Cap/Depr(3y)140.16%
Cap/Depr(5y)249.82%
Cap/Sales(3y)4.92%
Cap/Sales(5y)8.93%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-8.39%
EPS 3Y1.36%
EPS 5Y-18.22%
EPS Q2Q%-45%
EPS Next Y108.88%
EPS Next 2Y67.45%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-2.04%
Revenue growth 3Y4.87%
Revenue growth 5Y14.84%
Sales Q2Q%6.06%
Revenue Next Year8.34%
Revenue Next 2Y8.17%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-5.46%
EBIT growth 3Y5.87%
EBIT growth 5Y-8.89%
EBIT Next Year165.84%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-119.94%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-21.14%
OCF growth 3Y28.15%
OCF growth 5Y-6.38%