ALEXANDER & BALDWIN INC (ALEX) Stock Fundamental Analysis
NYSE:ALEX - New York Stock Exchange, Inc. - US0144911049 - REIT - Currency: USD
Taking everything into account, ALEX scores 6 out of 10 in our fundamental rating. ALEX was compared to 130 industry peers in the Diversified REITs industry. ALEX scores excellent on profitability, but there are some minor concerns on its financial health. ALEX has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
ALEX had positive earnings in the past year.
ALEX had a positive operating cash flow in the past year.
ALEX had positive earnings in 4 of the past 5 years.
In the past 5 years ALEX always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 3.62%, ALEX belongs to the best of the industry, outperforming 83.85% of the companies in the same industry.
ALEX's Return On Equity of 6.03% is fine compared to the rest of the industry. ALEX outperforms 78.46% of its industry peers.
ALEX has a better Return On Invested Capital (3.69%) than 71.54% of its industry peers.
ALEX had an Average Return On Invested Capital over the past 3 years of 3.24%. This is in line with the industry average of 3.17%.
The 3 year average ROIC (3.24%) for ALEX is below the current ROIC(3.69%), indicating increased profibility in the last year.
| 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 in the better half of the industry: ALEX outperforms 80.00% of its industry peers.
ALEX's Profit Margin has improved in the last couple of years.
The Operating Margin of ALEX (32.89%) is better than 71.54% of its industry peers.
In the last couple of years the Operating Margin of ALEX has grown nicely.
The Gross Margin of ALEX (45.49%) is worse than 80.77% of its industry peers.
ALEX's Gross Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for ALEX has been increased compared to 1 year ago.
ALEX has more shares outstanding than it did 5 years ago.
ALEX has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.76, we must say that ALEX is in the distress zone and has some risk of bankruptcy.
ALEX's Altman-Z score of 0.76 is fine compared to the rest of the industry. ALEX outperforms 65.38% of its industry peers.
The Debt to FCF ratio of ALEX is 10.06, which is on the high side as it means it would take ALEX, 10.06 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.06, ALEX belongs to the top of the industry, outperforming 90.77% of the companies in the same industry.
ALEX has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
ALEX's Debt to Equity ratio of 0.47 is amongst the best of the industry. ALEX outperforms 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 10.06 | ||
| Altman-Z | 0.76 |
ROIC/WACC0.5
WACC7.44%
2.3 Liquidity
A Current Ratio of 8.25 indicates that ALEX has no problem at all paying its short term obligations.
The Current ratio of ALEX (8.25) is better than 97.69% of its industry peers.
ALEX has a Quick Ratio of 8.25. This indicates that ALEX is financially healthy and has no problem in meeting its short term obligations.
ALEX has a better Quick ratio (8.25) than 97.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.25 | ||
| Quick Ratio | 8.25 |
3. Growth
3.1 Past
ALEX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.20%, which is quite good.
Measured over the past years, ALEX shows a very strong growth in Earnings Per Share. The EPS has been growing by 36.08% on average per year.
ALEX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.28%.
The Revenue for ALEX have been decreasing by -11.47% on average. This is quite bad
EPS 1Y (TTM)12.2%
EPS 3Y19.68%
EPS 5Y36.08%
EPS Q2Q%28.57%
Revenue 1Y (TTM)13.28%
Revenue growth 3Y-2.33%
Revenue growth 5Y-11.47%
Sales Q2Q%9.92%
3.2 Future
ALEX is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -9.80% yearly.
ALEX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.41% yearly.
EPS Next Y-22.29%
EPS Next 2Y-9.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.01%
Revenue Next 2Y2.41%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.85, ALEX is valued on the expensive side.
ALEX's Price/Earnings ratio is a bit cheaper when compared to the industry. ALEX is cheaper than 77.69% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.88, ALEX is valued a bit cheaper.
The Price/Forward Earnings ratio is 25.37, which means the current valuation is very expensive for ALEX.
79.23% of the companies in the same industry are more expensive than ALEX, based on the Price/Forward Earnings ratio.
ALEX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.85 | ||
| Fwd PE | 25.37 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALEX is on the same level as its industry peers.
ALEX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ALEX is cheaper than 70.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.7 | ||
| EV/EBITDA | 14.81 |
4.3 Compensation for Growth
The decent profitability rating of ALEX may justify a higher PE ratio.
A cheap valuation may be justified as ALEX's earnings are expected to decrease with -9.80% in the coming years.
PEG (NY)N/A
PEG (5Y)0.52
EPS Next 2Y-9.8%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ALEX has a Yearly Dividend Yield of 5.26%, which is a nice return.
Compared to an average industry Dividend Yield of 16.29, ALEX has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, ALEX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.26% |
5.2 History
The dividend of ALEX has a limited annual growth rate of 5.27%.
ALEX has been paying a dividend for at least 10 years, so it has 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-9.8%
EPS Next 3YN/A
17.34
+0.16 (+0.93%)
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 Change-2.46%
Ins Owners0.82%
Ins Owner Change4.05%
Market Cap1.26B
Analysts82
Price Target22.44 (29.41%)
Short Float %1.09%
Short Ratio1.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.26% |
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)0%
PT rev (3m)3.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.76%
EPS NY rev (1m)0%
EPS NY rev (3m)4.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.94%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.85 | ||
| Fwd PE | 25.37 | ||
| P/S | 5.33 | ||
| P/FCF | 26.7 | ||
| P/OCF | 12.87 | ||
| P/B | 1.26 | ||
| P/tB | 1.27 | ||
| EV/EBITDA | 14.81 |
EPS(TTM)0.92
EY5.31%
EPS(NY)0.68
Fwd EY3.94%
FCF(TTM)0.65
FCFY3.74%
OCF(TTM)1.35
OCFY7.77%
SpS3.25
BVpS13.8
TBVpS13.68
PEG (NY)N/A
PEG (5Y)0.52
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 | 0.76 |
F-Score7
WACC7.44%
ROIC/WACC0.5
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)12.2%
EPS 3Y19.68%
EPS 5Y36.08%
EPS Q2Q%28.57%
EPS Next Y-22.29%
EPS Next 2Y-9.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)13.28%
Revenue growth 3Y-2.33%
Revenue growth 5Y-11.47%
Sales Q2Q%9.92%
Revenue Next Year2.01%
Revenue Next 2Y2.41%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y13.94%
EBIT growth 3Y-1.93%
EBIT growth 5Y17.06%
EBIT Next Year40.79%
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%