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 150 industry peers in the Metals & Mining industry. There are concerns on the financial health of KALU while its profitability can be described as average. 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
With a decent Return On Assets value of 2.05%, KALU is doing good in the industry, outperforming 64.34% of the companies in the same industry.
KALU's Return On Equity of 7.09% is fine compared to the rest of the industry. KALU outperforms 73.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.16%, KALU is in line with its industry, outperforming 55.94% of the companies in the same industry.
KALU had an Average Return On Invested Capital over the past 3 years of 3.03%. This is significantly below the industry average of 8.75%.
The 3 year average ROIC (3.03%) for KALU is below the current ROIC(4.16%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.05% | ||
| ROE | 7.09% | ||
| ROIC | 4.16% |
ROA(3y)0.01%
ROA(5y)1.13%
ROE(3y)-0.04%
ROE(5y)2.45%
ROIC(3y)3.03%
ROIC(5y)4.57%
1.3 Margins
Looking at the Profit Margin, with a value of 1.59%, KALU is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
In the last couple of years the Profit Margin of KALU has declined.
KALU's Operating Margin of 3.21% is in line compared to the rest of the industry. KALU outperforms 48.95% of its industry peers.
In the last couple of years the Operating Margin of KALU has declined.
With a Gross Margin value of 11.24%, KALU perfoms like the industry average, outperforming 41.96% of the companies in the same industry.
In the last couple of years the Gross Margin of KALU has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.21% | ||
| PM (TTM) | 1.59% | ||
| GM | 11.24% |
OM growth 3Y-24.39%
OM growth 5Y-18.61%
PM growth 3Y-14.61%
PM growth 5Y-23.36%
GM growth 3Y-18.31%
GM growth 5Y-9.77%
2. Health
2.1 Basic Checks
KALU has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for KALU has been increased compared to 1 year ago.
Compared to 5 years ago, KALU has less shares outstanding
KALU has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.16 indicates that KALU is not a great score, but indicates only limited risk for bankruptcy at the moment.
KALU has a Altman-Z score (2.16) which is comparable to the rest of the industry.
KALU has a debt to FCF ratio of 20.87. This is a negative value and a sign of low solvency as KALU would need 20.87 years to pay back of all of its debts.
With a Debt to FCF ratio value of 20.87, KALU perfoms like the industry average, outperforming 58.04% of the companies in the same industry.
A Debt/Equity ratio of 1.56 is on the high side and indicates that KALU has dependencies on debt financing.
KALU has a Debt to Equity ratio of 1.56. This is amonst the worse of the industry: KALU underperforms 91.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 20.87 | ||
| Altman-Z | 2.16 |
ROIC/WACC0.41
WACC10.05%
2.3 Liquidity
KALU has a Current Ratio of 2.60. This indicates that KALU is financially healthy and has no problem in meeting its short term obligations.
KALU has a Current ratio (2.60) which is comparable to the rest of the industry.
A Quick Ratio of 1.36 indicates that KALU should not have too much problems paying its short term obligations.
KALU has a Quick ratio (1.36) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.6 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
KALU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 64.50%, which is quite impressive.
KALU shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -15.81% yearly.
The Revenue has decreased by -5.13% in the past year.
Measured over the past years, KALU shows a quite strong growth in Revenue. The Revenue has been growing by 14.25% on average per year.
EPS 1Y (TTM)64.5%
EPS 3Y-2.32%
EPS 5Y-15.81%
EPS Q2Q%10.87%
Revenue 1Y (TTM)-5.13%
Revenue growth 3Y38.08%
Revenue growth 5Y14.25%
Sales Q2Q%0.55%
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 38.91% on average per year.
The Revenue is expected to grow by 3.54% on average over the next years.
EPS Next Y7.21%
EPS Next 2Y42.44%
EPS Next 3Y38.91%
EPS Next 5YN/A
Revenue Next Year-2.35%
Revenue Next 2Y2.14%
Revenue Next 3Y3.54%
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
Based on the Price/Earnings ratio of 25.23, the valuation of KALU can be described as expensive.
Based on the Price/Earnings ratio, KALU is valued a bit cheaper than 65.03% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.47, KALU is valued at the same level.
KALU is valuated correctly with a Price/Forward Earnings ratio of 12.62.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KALU indicates a somewhat cheap valuation: KALU is cheaper than 71.33% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 92.74. KALU is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.23 | ||
| Fwd PE | 12.62 |
4.2 Price Multiples
61.54% of the companies in the same industry are more expensive than KALU, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, KALU is valued a bit cheaper than the industry average as 75.52% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.57 | ||
| EV/EBITDA | 10.07 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
KALU's earnings are expected to grow with 38.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.5
PEG (5Y)N/A
EPS Next 2Y42.44%
EPS Next 3Y38.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.35%, KALU is a good candidate for dividend investing.
KALU's Dividend Yield is rather good when compared to the industry average which is at 3.15. KALU pays more dividend than 88.81% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, KALU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.35% |
5.2 History
On average, the dividend of KALU grows each year by 6.69%, which is quite nice.
KALU has been paying a dividend for at least 10 years, so it has a reliable track record.
KALU has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.69%
Div Incr Years0
Div Non Decr Years17
5.3 Sustainability
107.19% of the earnings are spent on dividend by KALU. This is not a sustainable payout ratio.
KALU's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP107.19%
EPS Next 2Y42.44%
EPS Next 3Y38.91%
KAISER ALUMINUM CORP
NASDAQ:KALU (2/4/2025, 8:00:02 PM)
After market: 71.49 +1.35 (+1.92%)70.14
+0.95 (+1.37%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners102.17%
Inst Owner Change0.41%
Ins Owners1.28%
Ins Owner Change0.12%
Market Cap1.13B
Analysts45
Price Target82.62 (17.79%)
Short Float %2.82%
Short Ratio4.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.35% |
Yearly Dividend3.16
Dividend Growth(5Y)6.69%
DP107.19%
Div Incr Years0
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-34.87%
Min EPS beat(2)-39.76%
Max EPS beat(2)-29.97%
EPS beat(4)2
Avg EPS beat(4)152.47%
Min EPS beat(4)-39.76%
Max EPS beat(4)604.19%
EPS beat(8)4
Avg EPS beat(8)-46.57%
EPS beat(12)5
Avg EPS beat(12)-31.83%
EPS beat(16)7
Avg EPS beat(16)-27.67%
Revenue beat(2)0
Avg Revenue beat(2)-3.63%
Min Revenue beat(2)-5.27%
Max Revenue beat(2)-1.99%
Revenue beat(4)1
Avg Revenue beat(4)-1.24%
Min Revenue beat(4)-5.27%
Max Revenue beat(4)3.88%
Revenue beat(8)2
Avg Revenue beat(8)-2.34%
Revenue beat(12)6
Avg Revenue beat(12)0.3%
Revenue beat(16)8
Avg Revenue beat(16)2.12%
PT rev (1m)0%
PT rev (3m)3.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)9.51%
EPS NY rev (3m)9.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.23 | ||
| Fwd PE | 12.62 | ||
| P/S | 0.38 | ||
| P/FCF | 22.57 | ||
| P/OCF | 5.7 | ||
| P/B | 1.69 | ||
| P/tB | 1.88 | ||
| EV/EBITDA | 10.07 |
EPS(TTM)2.78
EY3.96%
EPS(NY)5.56
Fwd EY7.93%
FCF(TTM)3.11
FCFY4.43%
OCF(TTM)12.31
OCFY17.54%
SpS185.23
BVpS41.45
TBVpS37.39
PEG (NY)3.5
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.05% | ||
| ROE | 7.09% | ||
| ROCE | 4.96% | ||
| ROIC | 4.16% | ||
| ROICexc | 4.26% | ||
| ROICexgc | 4.41% | ||
| OM | 3.21% | ||
| PM (TTM) | 1.59% | ||
| GM | 11.24% | ||
| FCFM | 1.68% |
ROA(3y)0.01%
ROA(5y)1.13%
ROE(3y)-0.04%
ROE(5y)2.45%
ROIC(3y)3.03%
ROIC(5y)4.57%
ROICexc(3y)3.32%
ROICexc(5y)6.11%
ROICexgc(3y)3.49%
ROICexgc(5y)6.42%
ROCE(3y)3.62%
ROCE(5y)5.45%
ROICexcg growth 3Y-16.91%
ROICexcg growth 5Y-17.24%
ROICexc growth 3Y-16.58%
ROICexc growth 5Y-16.63%
OM growth 3Y-24.39%
OM growth 5Y-18.61%
PM growth 3Y-14.61%
PM growth 5Y-23.36%
GM growth 3Y-18.31%
GM growth 5Y-9.77%
F-Score6
Asset Turnover1.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 20.87 | ||
| Debt/EBITDA | 4.93 | ||
| Cap/Depr | 128.14% | ||
| Cap/Sales | 4.97% | ||
| Interest Coverage | 2.3 | ||
| Cash Conversion | 93.75% | ||
| Profit Quality | 105.71% | ||
| Current Ratio | 2.6 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 2.16 |
F-Score6
WACC10.05%
ROIC/WACC0.41
Cap/Depr(3y)331.45%
Cap/Depr(5y)243.28%
Cap/Sales(3y)11.41%
Cap/Sales(5y)8.53%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)64.5%
EPS 3Y-2.32%
EPS 5Y-15.81%
EPS Q2Q%10.87%
EPS Next Y7.21%
EPS Next 2Y42.44%
EPS Next 3Y38.91%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.13%
Revenue growth 3Y38.08%
Revenue growth 5Y14.25%
Sales Q2Q%0.55%
Revenue Next Year-2.35%
Revenue Next 2Y2.14%
Revenue Next 3Y3.54%
Revenue Next 5YN/A
EBIT growth 1Y21.45%
EBIT growth 3Y4.39%
EBIT growth 5Y-7.01%
EBIT Next Year162.52%
EBIT Next 3Y56.56%
EBIT Next 5YN/A
FCF growth 1Y106.83%
FCF growth 3Y-23.76%
FCF growth 5Y15.87%
OCF growth 1Y1684%
OCF growth 3Y0.8%
OCF growth 5Y7.13%