KAISER ALUMINUM CORP (KALU) Stock Fundamental Analysis
NASDAQ:KALU - Nasdaq - US4830077040 - Common Stock - Currency: USD
Taking everything into account, KALU scores 4 out of 10 in our fundamental rating. KALU was compared to 154 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.
KALU had a positive operating cash flow in the past year.
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 1.80%, KALU is in the better half of the industry, outperforming 65.58% of the companies in the same industry.
Looking at the Return On Equity, with a value of 5.79%, KALU is in the better half of the industry, outperforming 68.83% of the companies in the same industry.
The Return On Invested Capital of KALU (4.10%) is better than 61.69% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KALU is significantly below the industry average of 11.67%.
The 3 year average ROIC (3.08%) for KALU is below the current ROIC(4.10%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.8% | ||
| ROE | 5.79% | ||
| ROIC | 4.1% |
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
With a decent Profit Margin value of 1.43%, KALU is doing good in the industry, outperforming 64.29% of the companies in the same industry.
KALU's Profit Margin has declined in the last couple of years.
KALU has a Operating Margin (3.45%) which is in line with its industry peers.
KALU's Operating Margin has declined in the last couple of years.
The Gross Margin of KALU (11.17%) 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 | 3.45% | ||
| PM (TTM) | 1.43% | ||
| GM | 11.17% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KALU is destroying value.
The number of shares outstanding for KALU has been increased compared to 1 year ago.
The number of shares outstanding for KALU has been increased compared to 5 years ago.
Compared to 1 year ago, KALU has an improved debt to assets ratio.
2.2 Solvency
KALU has an Altman-Z score of 2.25. This is not the best score and indicates that KALU is in the grey zone with still only limited risk for bankruptcy at the moment.
KALU's Altman-Z score of 2.25 is in line compared to the rest of the industry. KALU outperforms 48.70% of its industry peers.
A Debt/Equity ratio of 1.38 is on the high side and indicates that KALU has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.38, KALU is doing worse than 90.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.25 |
ROIC/WACC0.52
WACC7.91%
2.3 Liquidity
KALU has a Current Ratio of 2.67. This indicates that KALU is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of KALU (2.67) is better than 60.39% of its industry peers.
KALU has a Quick Ratio of 1.27. This is a normal value and indicates that KALU is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.27, KALU perfoms like the industry average, outperforming 44.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.67 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
KALU shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.28%.
KALU shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -18.22% yearly.
The Revenue has been growing slightly by 1.56% in the past year.
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)-12.28%
EPS 3Y1.36%
EPS 5Y-18.22%
EPS Q2Q%41.18%
Revenue 1Y (TTM)1.56%
Revenue growth 3Y4.87%
Revenue growth 5Y14.84%
Sales Q2Q%5.41%
3.2 Future
The Earnings Per Share is expected to grow by 64.27% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 8.33% on average over the next years. This is quite good.
EPS Next Y99.73%
EPS Next 2Y64.27%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.35%
Revenue Next 2Y8.33%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 27.27, KALU can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of KALU indicates a somewhat cheap valuation: KALU is cheaper than 66.23% of the companies listed in the same industry.
KALU's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.15.
Based on the Price/Forward Earnings ratio of 11.80, the valuation of KALU can be described as reasonable.
68.18% of the companies in the same industry are more expensive than KALU, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.60. KALU is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.27 | ||
| Fwd PE | 11.8 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KALU indicates a somewhat cheap valuation: KALU is cheaper than 66.88% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.44 |
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.
KALU's earnings are expected to grow with 64.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.27
PEG (5Y)N/A
EPS Next 2Y64.27%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.85%, KALU has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.98, KALU pays a better dividend. On top of this KALU pays more dividend than 91.56% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, KALU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
5.2 History
The dividend of KALU has a limited annual growth rate of 5.17%.
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)5.17%
Div Incr Years0
Div Non Decr Years17
5.3 Sustainability
KALU pays out 116.44% 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.
DP116.44%
EPS Next 2Y64.27%
EPS Next 3YN/A
79.9
-1.05 (-1.3%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners95.73%
Inst Owner Change-1.42%
Ins Owners1.12%
Ins Owner Change11.82%
Market Cap1.29B
Analysts77.78
Price Target75.48 (-5.53%)
Short Float %2.78%
Short Ratio2.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
Yearly Dividend3.16
Dividend Growth(5Y)5.17%
DP116.44%
Div Incr Years0
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)40.99%
Min EPS beat(2)-49.45%
Max EPS beat(2)131.44%
EPS beat(4)1
Avg EPS beat(4)3.06%
Min EPS beat(4)-49.45%
Max EPS beat(4)131.44%
EPS beat(8)4
Avg EPS beat(8)106.33%
EPS beat(12)6
Avg EPS beat(12)-18.37%
EPS beat(16)6
Avg EPS beat(16)-24.33%
Revenue beat(2)1
Avg Revenue beat(2)-2.03%
Min Revenue beat(2)-6.14%
Max Revenue beat(2)2.07%
Revenue beat(4)1
Avg Revenue beat(4)-2.83%
Min Revenue beat(4)-6.14%
Max Revenue beat(4)2.07%
Revenue beat(8)3
Avg Revenue beat(8)-2.05%
Revenue beat(12)5
Avg Revenue beat(12)-1.27%
Revenue beat(16)8
Avg Revenue beat(16)2.09%
PT rev (1m)0%
PT rev (3m)-8.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)86.59%
EPS NY rev (1m)0%
EPS NY rev (3m)59.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.27 | ||
| Fwd PE | 11.8 | ||
| P/S | 0.42 | ||
| P/FCF | N/A | ||
| P/OCF | 8.02 | ||
| P/B | 1.71 | ||
| P/tB | 1.86 | ||
| EV/EBITDA | 10.44 |
EPS(TTM)2.93
EY3.67%
EPS(NY)6.77
Fwd EY8.48%
FCF(TTM)-1.75
FCFYN/A
OCF(TTM)9.96
OCFY12.46%
SpS189.72
BVpS46.86
TBVpS42.95
PEG (NY)0.27
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.8% | ||
| ROE | 5.79% | ||
| ROCE | 5.21% | ||
| ROIC | 4.1% | ||
| ROICexc | 4.15% | ||
| ROICexgc | 4.28% | ||
| OM | 3.45% | ||
| PM (TTM) | 1.43% | ||
| GM | 11.17% | ||
| 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-Score5
Asset Turnover1.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.67 | ||
| Cap/Depr | 160.71% | ||
| Cap/Sales | 6.17% | ||
| Interest Coverage | 2.63 | ||
| Cash Conversion | 72.01% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.67 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 2.25 |
F-Score5
WACC7.91%
ROIC/WACC0.52
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)-12.28%
EPS 3Y1.36%
EPS 5Y-18.22%
EPS Q2Q%41.18%
EPS Next Y99.73%
EPS Next 2Y64.27%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.56%
Revenue growth 3Y4.87%
Revenue growth 5Y14.84%
Sales Q2Q%5.41%
Revenue Next Year9.35%
Revenue Next 2Y8.33%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-6.54%
EBIT growth 3Y5.87%
EBIT growth 5Y-8.89%
EBIT Next Year169.9%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y88.25%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y289.62%
OCF growth 3Y28.15%
OCF growth 5Y-6.38%