ALEXANDER & BALDWIN INC (ALEX) Stock Fundamental Analysis
USA - NYSE:ALEX - US0144911049 - REIT
16.88 USD
-0.15 (-0.88%)
16.95 USD
+0.07 (+0.41%)
We assign a fundamental rating of 5 out of 10 to ALEX. ALEX was compared to 130 industry peers in the Diversified REITs industry. ALEX has an excellent profitability rating, but there are concerns on its financial health. ALEX has a correct valuation and a medium growth rate.
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.
ALEX had positive earnings in 4 of the past 5 years.
ALEX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ALEX (4.75%) is better than 93.08% of its industry peers.
ALEX has a Return On Equity of 7.70%. This is amongst the best in the industry. ALEX outperforms 81.54% of its industry peers.
With a decent Return On Invested Capital value of 3.79%, ALEX is doing good in the industry, outperforming 70.77% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ALEX is in line with the industry average of 3.02%.
The 3 year average ROIC (3.24%) for ALEX is below the current ROIC(3.79%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.75% | ||
| ROE | 7.7% | ||
| ROIC | 3.79% |
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
With an excellent Profit Margin value of 33.94%, ALEX belongs to the best of the industry, outperforming 86.92% of the companies in the same industry.
ALEX's Profit Margin has improved in the last couple of years.
ALEX's Operating Margin of 33.16% is fine compared to the rest of the industry. ALEX outperforms 70.00% of its industry peers.
ALEX's Operating Margin has improved in the last couple of years.
ALEX has a Gross Margin of 45.92%. This is amonst the worse of the industry: ALEX underperforms 80.00% of its industry peers.
In the last couple of years the Gross Margin of ALEX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.16% | ||
| PM (TTM) | 33.94% | ||
| GM | 45.92% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ALEX is destroying value.
ALEX has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ALEX has been increased compared to 5 years ago.
The debt/assets ratio for ALEX is higher compared to a year ago.
2.2 Solvency
ALEX has an Altman-Z score of 0.76. 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 0.76, ALEX is doing good in the industry, outperforming 68.46% of the companies in the same industry.
The Debt to FCF ratio of ALEX is 8.92, which is on the high side as it means it would take ALEX, 8.92 years of fcf income to pay off all of its debts.
ALEX's Debt to FCF ratio of 8.92 is amongst the best of the industry. ALEX outperforms 90.77% of its industry peers.
ALEX has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
ALEX has a Debt to Equity ratio of 0.44. This is amongst the best in the industry. ALEX outperforms 90.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 8.92 | ||
| Altman-Z | 0.76 |
ROIC/WACC0.51
WACC7.37%
2.3 Liquidity
A Current Ratio of 0.27 indicates that ALEX may have some problems paying its short term obligations.
ALEX has a worse Current ratio (0.27) than 89.23% of its industry peers.
ALEX has a Quick Ratio of 0.27. This is a bad value and indicates that ALEX is not financially healthy enough and could expect problems in meeting its short term obligations.
ALEX has a worse Quick ratio (0.27) than 89.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 62.12% over the past year.
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.
The Revenue has been growing slightly by 5.60% in the past year.
Measured over the past years, ALEX shows a very negative growth in Revenue. The Revenue has been decreasing by -11.47% on average per year.
EPS 1Y (TTM)62.12%
EPS 3Y19.68%
EPS 5Y36.08%
EPS Q2Q%169.23%
Revenue 1Y (TTM)5.6%
Revenue growth 3Y-2.33%
Revenue growth 5Y-11.47%
Sales Q2Q%1.28%
3.2 Future
ALEX is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.82% yearly.
Based on estimates for the next years, ALEX will show a small growth in Revenue. The Revenue will grow by 2.18% on average per year.
EPS Next Y9.29%
EPS Next 2Y-10.14%
EPS Next 3Y-4.82%
EPS Next 5YN/A
Revenue Next Year1.3%
Revenue Next 2Y1.54%
Revenue Next 3Y2.18%
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
A Price/Earnings ratio of 15.78 indicates a correct valuation of ALEX.
ALEX's Price/Earnings ratio is rather cheap when compared to the industry. ALEX is cheaper than 90.77% of the companies in the same industry.
When comparing the Price/Earnings ratio of ALEX to the average of the S&P500 Index (27.70), we can say ALEX is valued slightly cheaper.
A Price/Forward Earnings ratio of 24.89 indicates a rather expensive valuation of ALEX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALEX indicates a rather cheap valuation: ALEX is cheaper than 83.08% of the companies listed in the same industry.
ALEX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.78 | ||
| Fwd PE | 24.89 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ALEX.
73.85% of the companies in the same industry are more expensive than ALEX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.33 | ||
| EV/EBITDA | 14.77 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent 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 -4.82% in the coming years.
PEG (NY)1.7
PEG (5Y)0.44
EPS Next 2Y-10.14%
EPS Next 3Y-4.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.07%, ALEX is a good candidate for dividend investing.
ALEX's Dividend Yield is comparable with the industry average which is at 6.68.
Compared to an average S&P500 Dividend Yield of 2.44, ALEX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.07% |
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 Years4
Div Non Decr Years4
5.3 Sustainability
83.71% of the earnings are spent on dividend by ALEX. This is not a sustainable payout ratio.
ALEX's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP83.71%
EPS Next 2Y-10.14%
EPS Next 3Y-4.82%
16.88
-0.15 (-0.88%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners88.16%
Inst Owner Change0%
Ins Owners0.71%
Ins Owner Change1.09%
Market Cap1.23B
Analysts82
Price Target21.68 (28.44%)
Short Float %1.23%
Short Ratio2.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.07% |
Yearly Dividend0.9
Dividend Growth(5Y)5.27%
DP83.71%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)209.23%
Min EPS beat(2)89.54%
Max EPS beat(2)328.92%
EPS beat(4)4
Avg EPS beat(4)112.74%
Min EPS beat(4)11.11%
Max EPS beat(4)328.92%
EPS beat(8)6
Avg EPS beat(8)47.55%
EPS beat(12)9
Avg EPS beat(12)34.36%
EPS beat(16)11
Avg EPS beat(16)27.65%
Revenue beat(2)0
Avg Revenue beat(2)-1.25%
Min Revenue beat(2)-1.29%
Max Revenue beat(2)-1.22%
Revenue beat(4)2
Avg Revenue beat(4)10.02%
Min Revenue beat(4)-1.29%
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)1.19%
EPS NQ rev (1m)-9.37%
EPS NQ rev (3m)-9.37%
EPS NY rev (1m)14.65%
EPS NY rev (3m)25%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)-1.88%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-1.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.78 | ||
| Fwd PE | 24.89 | ||
| P/S | 5.34 | ||
| P/FCF | 24.33 | ||
| P/OCF | 12.03 | ||
| P/B | 1.21 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 14.77 |
EPS(TTM)1.07
EY6.34%
EPS(NY)0.68
Fwd EY4.02%
FCF(TTM)0.69
FCFY4.11%
OCF(TTM)1.4
OCFY8.32%
SpS3.16
BVpS13.92
TBVpS13.8
PEG (NY)1.7
PEG (5Y)0.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.75% | ||
| ROE | 7.7% | ||
| ROCE | 4.79% | ||
| ROIC | 3.79% | ||
| ROICexc | 3.81% | ||
| ROICexgc | 3.83% | ||
| OM | 33.16% | ||
| PM (TTM) | 33.94% | ||
| GM | 45.92% | ||
| FCFM | 21.96% |
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 | 0.44 | ||
| Debt/FCF | 8.92 | ||
| Debt/EBITDA | 3.96 | ||
| Cap/Depr | 137.36% | ||
| Cap/Sales | 22.47% | ||
| Interest Coverage | 3.34 | ||
| Cash Conversion | 89.72% | ||
| Profit Quality | 64.71% | ||
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.27 | ||
| Altman-Z | 0.76 |
F-Score7
WACC7.37%
ROIC/WACC0.51
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)62.12%
EPS 3Y19.68%
EPS 5Y36.08%
EPS Q2Q%169.23%
EPS Next Y9.29%
EPS Next 2Y-10.14%
EPS Next 3Y-4.82%
EPS Next 5YN/A
Revenue 1Y (TTM)5.6%
Revenue growth 3Y-2.33%
Revenue growth 5Y-11.47%
Sales Q2Q%1.28%
Revenue Next Year1.3%
Revenue Next 2Y1.54%
Revenue Next 3Y2.18%
Revenue Next 5YN/A
EBIT growth 1Y-0.85%
EBIT growth 3Y-1.93%
EBIT growth 5Y17.06%
EBIT Next Year67.88%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y268.39%
FCF growth 3Y-12.59%
FCF growth 5YN/A
OCF growth 1Y140.28%
OCF growth 3Y-7.6%
OCF growth 5Y-9.07%