KAISER ALUMINUM CORP (KALU) Stock Fundamental Analysis
USA - NASDAQ:KALU - US4830077040 - Common Stock
78.86 USD
+1.98 (+2.58%)
78.86 USD
0 (0%)
KALU gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 156 industry peers in the Metals & Mining industry. While KALU is still in line with the averages on profitability rating, there are concerns on its financial health. KALU has a correct valuation and a medium growth rate. Finally KALU also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year KALU was profitable.
In the past year KALU had a positive cash flow from operations.
In multiple years KALU reported negative net income over the last 5 years.
KALU had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.54%, KALU is in the better half of the industry, outperforming 67.31% of the companies in the same industry.
The Return On Equity of KALU (8.23%) is better than 73.72% of its industry peers.
With a decent Return On Invested Capital value of 4.59%, KALU is doing good in the industry, outperforming 62.82% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for KALU is significantly below the industry average of 12.92%.
The last Return On Invested Capital (4.59%) for KALU is above the 3 year average (3.08%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.54% | ||
| ROE | 8.23% | ||
| ROIC | 4.59% |
ROA(3y)0.94%
ROA(5y)0.72%
ROE(3y)3.18%
ROE(5y)2.16%
ROIC(3y)3.08%
ROIC(5y)3.31%
1.3 Margins
KALU has a better Profit Margin (2.05%) than 64.10% of its industry peers.
KALU's Profit Margin has declined in the last couple of years.
KALU has a Operating Margin (3.90%) which is in line with its industry peers.
In the last couple of years the Operating Margin of KALU has declined.
KALU has a Gross Margin (11.55%) which is in line with its industry peers.
KALU's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.9% | ||
| PM (TTM) | 2.05% | ||
| GM | 11.55% |
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.
Compared to 1 year ago, KALU has more shares outstanding
The number of shares outstanding for KALU has been increased compared to 5 years ago.
KALU has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.23 indicates that KALU is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of KALU (2.23) is comparable to the rest of the industry.
KALU has a Debt/Equity ratio of 1.39. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.39, KALU is doing worse than 89.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.39 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.23 |
ROIC/WACC0.54
WACC8.52%
2.3 Liquidity
KALU has a Current Ratio of 2.70. This indicates that KALU is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.70, KALU is in line with its industry, outperforming 58.33% of the companies in the same industry.
A Quick Ratio of 1.30 indicates that KALU should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.30, KALU perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.7 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.84% over the past year.
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.
Looking at the last year, KALU shows a small growth in Revenue. The Revenue has grown by 4.62% in the last year.
The Revenue has been growing by 14.84% on average over the past years. This is quite good.
EPS 1Y (TTM)27.84%
EPS 3Y1.36%
EPS 5Y-18.22%
EPS Q2Q%86.15%
Revenue 1Y (TTM)4.62%
Revenue growth 3Y4.87%
Revenue growth 5Y14.84%
Sales Q2Q%6.43%
3.2 Future
KALU is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 64.64% yearly.
KALU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.02% yearly.
EPS Next Y109.28%
EPS Next 2Y64.64%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year15.3%
Revenue Next 2Y17.02%
Revenue Next 3YN/A
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.60, the valuation of KALU can be described as rather expensive.
77.56% of the companies in the same industry are more expensive than KALU, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.41, KALU is valued at the same level.
With a Price/Forward Earnings ratio of 11.59, the valuation of KALU can be described as very reasonable.
Based on the Price/Forward Earnings ratio, KALU is valued a bit cheaper than the industry average as 78.85% of the companies are valued more expensively.
KALU is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.6 | ||
| Fwd PE | 11.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KALU is valued a bit cheaper than the industry average as 75.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.63 |
4.3 Compensation for Growth
KALU's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
KALU's earnings are expected to grow with 64.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.21
PEG (5Y)N/A
EPS Next 2Y64.64%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.98%, KALU has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.51, KALU pays a better dividend. On top of this KALU pays more dividend than 94.23% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, KALU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
5.2 History
The dividend of KALU has a limited annual growth rate of 5.17%.
KALU has been paying a dividend for at least 10 years, so it has a reliable track record.
KALU has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.17%
Div Incr Years0
Div Non Decr Years17
5.3 Sustainability
79.97% of the earnings are spent on dividend by KALU. This is not a sustainable payout ratio.
The dividend of KALU is growing, but earnings are growing more, so the dividend growth is sustainable.
DP79.97%
EPS Next 2Y64.64%
EPS Next 3YN/A
78.86
+1.98 (+2.58%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners95.32%
Inst Owner Change1.59%
Ins Owners1.23%
Ins Owner Change1.23%
Market Cap1.28B
Analysts80
Price Target75.48 (-4.29%)
Short Float %3.5%
Short Ratio4.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
Yearly Dividend3.16
Dividend Growth(5Y)5.17%
DP79.97%
Div Incr Years0
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)93.25%
Min EPS beat(2)55.07%
Max EPS beat(2)131.44%
EPS beat(4)2
Avg EPS beat(4)24.32%
Min EPS beat(4)-49.45%
Max EPS beat(4)131.44%
EPS beat(8)4
Avg EPS beat(8)92.14%
EPS beat(12)7
Avg EPS beat(12)-5.09%
EPS beat(16)7
Avg EPS beat(16)-18.9%
Revenue beat(2)1
Avg Revenue beat(2)-1.77%
Min Revenue beat(2)-6.14%
Max Revenue beat(2)2.6%
Revenue beat(4)2
Avg Revenue beat(4)-1.68%
Min Revenue beat(4)-6.14%
Max Revenue beat(4)2.6%
Revenue beat(8)3
Avg Revenue beat(8)-1.74%
Revenue beat(12)5
Avg Revenue beat(12)-1.28%
Revenue beat(16)8
Avg Revenue beat(16)-0.24%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-23.81%
EPS NQ rev (3m)-26.61%
EPS NY rev (1m)4.78%
EPS NY rev (3m)4.78%
Revenue NQ rev (1m)3.95%
Revenue NQ rev (3m)7.2%
Revenue NY rev (1m)2.76%
Revenue NY rev (3m)5.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.6 | ||
| Fwd PE | 11.59 | ||
| P/S | 0.41 | ||
| P/FCF | N/A | ||
| P/OCF | 8.48 | ||
| P/B | 1.64 | ||
| P/tB | 1.79 | ||
| EV/EBITDA | 9.63 |
EPS(TTM)3.49
EY4.43%
EPS(NY)6.8
Fwd EY8.63%
FCF(TTM)-2.38
FCFYN/A
OCF(TTM)9.3
OCFY11.79%
SpS192.44
BVpS47.96
TBVpS44.13
PEG (NY)0.21
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.54% | ||
| ROE | 8.23% | ||
| ROCE | 5.82% | ||
| ROIC | 4.59% | ||
| ROICexc | 4.62% | ||
| ROICexgc | 4.76% | ||
| OM | 3.9% | ||
| PM (TTM) | 2.05% | ||
| GM | 11.55% | ||
| FCFM | N/A |
ROA(3y)0.94%
ROA(5y)0.72%
ROE(3y)3.18%
ROE(5y)2.16%
ROIC(3y)3.08%
ROIC(5y)3.31%
ROICexc(3y)3.17%
ROICexc(5y)4.17%
ROICexgc(3y)3.29%
ROICexgc(5y)4.37%
ROCE(3y)3.91%
ROCE(5y)4.2%
ROICexcg growth 3Y0.26%
ROICexcg growth 5Y-19.86%
ROICexc growth 3Y1.34%
ROICexc growth 5Y-19.63%
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-Score7
Asset Turnover1.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.39 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.49 | ||
| Cap/Depr | 159.81% | ||
| Cap/Sales | 6.07% | ||
| Interest Coverage | 2.92 | ||
| Cash Conversion | 62.75% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.7 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 2.23 |
F-Score7
WACC8.52%
ROIC/WACC0.54
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)27.84%
EPS 3Y1.36%
EPS 5Y-18.22%
EPS Q2Q%86.15%
EPS Next Y109.28%
EPS Next 2Y64.64%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.62%
Revenue growth 3Y4.87%
Revenue growth 5Y14.84%
Sales Q2Q%6.43%
Revenue Next Year15.3%
Revenue Next 2Y17.02%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y23.6%
EBIT growth 3Y5.87%
EBIT growth 5Y-8.89%
EBIT Next Year175.35%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y80.93%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y774.44%
OCF growth 3Y28.15%
OCF growth 5Y-6.38%