ALEXANDER & BALDWIN INC (ALEX) Stock Fundamental Analysis
NYSE:ALEX - New York Stock Exchange, Inc. - US0144911049 - REIT - Currency: USD
We assign a fundamental rating of 5 out of 10 to ALEX. ALEX was compared to 129 industry peers in the Diversified REITs industry. ALEX has an excellent profitability rating, but there are some minor concerns on its financial health. ALEX has a valuation in line with the averages, but it does not seem to be growing.
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's Return On Assets of 3.62% is amongst the best of the industry. ALEX outperforms 86.05% of its industry peers.
ALEX's Return On Equity of 6.03% is fine compared to the rest of the industry. ALEX outperforms 76.74% of its industry peers.
The Return On Invested Capital of ALEX (3.69%) is better than 69.77% 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 3.15%.
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 Profit Margin of 25.57%. This is amongst the best in the industry. ALEX outperforms 80.62% of its industry peers.
In the last couple of years the Profit Margin of ALEX has grown nicely.
With a decent Operating Margin value of 32.89%, ALEX is doing good in the industry, outperforming 71.32% of the companies in the same industry.
In the last couple of years the Operating Margin of ALEX has grown nicely.
ALEX has a worse Gross Margin (45.49%) than 79.84% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ALEX is destroying value.
Compared to 1 year ago, ALEX has more shares outstanding
ALEX has more shares outstanding than it did 5 years ago.
ALEX has a worse debt/assets ratio than last year.
2.2 Solvency
ALEX has an Altman-Z score of 0.77. This is a bad value and indicates that ALEX is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 0.77, ALEX is doing good in the industry, outperforming 65.89% of the companies in the same industry.
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 92.25% 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 has a Debt to Equity ratio of 0.47. This is amongst the best in the industry. ALEX outperforms 89.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 10.06 | ||
| Altman-Z | 0.77 |
ROIC/WACC0.48
WACC7.68%
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 Current ratio of 8.25. This is amongst the best in the industry. ALEX outperforms 98.45% of its industry peers.
A Quick Ratio of 8.25 indicates that ALEX has no problem at all paying its short term obligations.
ALEX has a Quick ratio of 8.25. This is amongst the best in the industry. ALEX outperforms 98.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.25 | ||
| Quick Ratio | 8.25 |
3. Growth
3.1 Past
ALEX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.66%.
ALEX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.08% yearly.
Looking at the last year, ALEX shows a small growth in Revenue. The Revenue has grown by 4.31% in the last year.
ALEX shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -11.47% yearly.
EPS 1Y (TTM)3.66%
EPS 3Y19.68%
EPS 5Y36.08%
EPS Q2Q%3.57%
Revenue 1Y (TTM)4.31%
Revenue growth 3Y-2.33%
Revenue growth 5Y-11.47%
Sales Q2Q%4.41%
3.2 Future
The Earnings Per Share is expected to decrease by -10.48% on average over the next years. This is quite bad
ALEX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.31% yearly.
EPS Next Y-12.57%
EPS Next 2Y-10.48%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.56%
Revenue Next 2Y2.31%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.36, ALEX is valued on the expensive side.
Based on the Price/Earnings ratio, ALEX is valued cheaply inside the industry as 80.62% of the companies are valued more expensively.
ALEX is valuated rather cheaply when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 25.71, the valuation of ALEX can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALEX indicates a rather cheap valuation: ALEX is cheaper than 80.62% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. ALEX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.36 | ||
| Fwd PE | 25.71 |
4.2 Price Multiples
ALEX's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, ALEX is valued a bit cheaper than the industry average as 72.87% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.66 | ||
| EV/EBITDA | 14.89 |
4.3 Compensation for Growth
ALEX has a very decent profitability rating, which may justify a higher PE ratio.
ALEX's earnings are expected to decrease with -10.48% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.56
EPS Next 2Y-10.48%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.16%, ALEX is a good candidate for dividend investing.
ALEX's Dividend Yield is comparable with the industry average which is at 6.80.
ALEX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.16% |
5.2 History
The dividend of ALEX has a limited annual growth rate of 5.27%.
ALEX has paid a dividend for at least 10 years, which is 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
107.38% of the earnings are spent on dividend by ALEX. This is not a sustainable payout ratio.
The Dividend Rate of ALEX has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP107.38%
EPS Next 2Y-10.48%
EPS Next 3YN/A
17.31
-0.08 (-0.46%)
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 Change0.03%
Ins Owners0.82%
Ins Owner Change4.05%
Market Cap1.26B
Analysts82
Price Target21.42 (23.74%)
Short Float %1.3%
Short Ratio1.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.16% |
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)-4.55%
PT rev (3m)-3.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)12.5%
EPS NY rev (3m)20%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.97%
Revenue NY rev (1m)0.54%
Revenue NY rev (3m)3.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.36 | ||
| Fwd PE | 25.71 | ||
| P/S | 5.32 | ||
| P/FCF | 26.66 | ||
| P/OCF | 12.84 | ||
| P/B | 1.25 | ||
| P/tB | 1.27 | ||
| EV/EBITDA | 14.89 |
EPS(TTM)0.85
EY4.91%
EPS(NY)0.67
Fwd EY3.89%
FCF(TTM)0.65
FCFY3.75%
OCF(TTM)1.35
OCFY7.79%
SpS3.25
BVpS13.8
TBVpS13.68
PEG (NY)N/A
PEG (5Y)0.56
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 | 0.77 |
F-Score7
WACC7.68%
ROIC/WACC0.48
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)3.66%
EPS 3Y19.68%
EPS 5Y36.08%
EPS Q2Q%3.57%
EPS Next Y-12.57%
EPS Next 2Y-10.48%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.31%
Revenue growth 3Y-2.33%
Revenue growth 5Y-11.47%
Sales Q2Q%4.41%
Revenue Next Year2.56%
Revenue Next 2Y2.31%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y13.94%
EBIT growth 3Y-1.93%
EBIT growth 5Y17.06%
EBIT Next Year51.74%
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%