ALEXANDER & BALDWIN INC (ALEX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALEX - US0144911049 - REIT
20.75 USD
-0.02 (-0.1%)
20.74 USD
-0.01 (-0.05%)
Taking everything into account, ALEX scores 5 out of 10 in our fundamental rating. ALEX was compared to 125 industry peers in the Diversified REITs industry. While ALEX belongs to the best of the industry regarding profitability, there are concerns on its financial health. ALEX has a decent growth rate and is not valued too expensively.
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.
- Of the past 5 years ALEX 4 years were profitable.
- In the past 5 years ALEX always reported a positive cash flow from operatings.
1.2 Ratios
- ALEX has a Return On Assets of 4.40%. This is amongst the best in the industry. ALEX outperforms 88.00% of its industry peers.
- With a decent Return On Equity value of 7.21%, ALEX is doing good in the industry, outperforming 78.40% of the companies in the same industry.
- ALEX's Return On Invested Capital of 3.57% is fine compared to the rest of the industry. ALEX outperforms 66.40% 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 3.07%.
- The 3 year average ROIC (3.24%) for ALEX is below the current ROIC(3.57%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 7.21% | ||
| ROIC | 3.57% |
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 better Profit Margin (33.42%) than 88.00% 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 32.59%, ALEX is doing good in the industry, outperforming 64.80% of the companies in the same industry.
- ALEX's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 45.27%, ALEX is not doing good in the industry: 78.40% of the companies in the same industry are doing better.
- ALEX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.59% | ||
| PM (TTM) | 33.42% | ||
| GM | 45.27% |
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
- ALEX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, ALEX has more shares outstanding
- The number of shares outstanding for ALEX has been increased compared to 5 years ago.
- Compared to 1 year ago, ALEX has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.99, we must say that ALEX is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of ALEX (0.99) is better than 73.60% of its industry peers.
- The Debt to FCF ratio of ALEX is 10.53, which is on the high side as it means it would take ALEX, 10.53 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 10.53, ALEX belongs to the top of the industry, outperforming 90.40% of the companies in the same industry.
- A Debt/Equity ratio of 0.47 indicates that ALEX is not too dependend on debt financing.
- The Debt to Equity ratio of ALEX (0.47) is better than 89.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 10.53 | ||
| Altman-Z | 0.99 |
ROIC/WACC0.47
WACC7.66%
2.3 Liquidity
- ALEX has a Current Ratio of 0.78. 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 Current ratio of 0.78. This is comparable to the rest of the industry: ALEX outperforms 43.20% of its industry peers.
- A Quick Ratio of 0.78 indicates that ALEX may have some problems paying its short term obligations.
- ALEX has a Quick ratio (0.78) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
- ALEX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 62.90%, which is quite impressive.
- The Earnings Per Share has been growing by 36.08% on average over the past years. This is a very strong growth
- ALEX shows a decrease in Revenue. In the last year, the revenue decreased by -3.94%.
- 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)62.9%
EPS 3Y19.68%
EPS 5Y36.08%
EPS Q2Q%-23.08%
Revenue 1Y (TTM)-3.94%
Revenue growth 3Y-2.33%
Revenue growth 5Y-11.47%
Sales Q2Q%-18.94%
3.2 Future
- Based on estimates for the next years, ALEX will show a decrease in Earnings Per Share. The EPS will decrease by -3.94% on average per year.
- ALEX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.31% yearly.
EPS Next Y17.79%
EPS Next 2Y-9.8%
EPS Next 3Y-3.94%
EPS Next 5YN/A
Revenue Next Year-0.06%
Revenue Next 2Y0.75%
Revenue Next 3Y1.31%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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 20.54, ALEX is valued on the expensive side.
- Compared to the rest of the industry, the Price/Earnings ratio of ALEX indicates a somewhat cheap valuation: ALEX is cheaper than 80.00% of the companies listed in the same industry.
- ALEX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- Based on the Price/Forward Earnings ratio of 30.36, the valuation of ALEX can be described as expensive.
- ALEX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ALEX is cheaper than 77.60% of the companies in the same industry.
- ALEX is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.54 | ||
| Fwd PE | 30.36 |
4.2 Price Multiples
- ALEX's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ALEX is more expensive than 74.40% of the companies in the same industry.
- 72.00% 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 | 33.45 | ||
| EV/EBITDA | 18.01 |
4.3 Compensation for Growth
- ALEX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- ALEX has a very decent profitability rating, which may justify a higher PE ratio.
- ALEX's earnings are expected to decrease with -3.94% in the coming years. This may justify a cheaper valuation.
PEG (NY)1.16
PEG (5Y)0.57
EPS Next 2Y-9.8%
EPS Next 3Y-3.94%
5. Dividend
5.1 Amount
- ALEX has a Yearly Dividend Yield of 4.92%, which is a nice return.
- Compared to an average industry Dividend Yield of 6.59, ALEX has a dividend in line with its industry peers.
- ALEX's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.92% |
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
- ALEX pays out 89.83% of its income as dividend. 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.
DP89.83%
EPS Next 2Y-9.8%
EPS Next 3Y-3.94%
ALEXANDER & BALDWIN INC / ALEX FAQ
What is the fundamental rating for ALEX stock?
ChartMill assigns a fundamental rating of 5 / 10 to ALEX.
What is the valuation status of ALEXANDER & BALDWIN INC (ALEX) stock?
ChartMill assigns a valuation rating of 4 / 10 to ALEXANDER & BALDWIN INC (ALEX). This can be considered as Fairly Valued.
Can you provide the profitability details for ALEXANDER & BALDWIN INC?
ALEXANDER & BALDWIN INC (ALEX) has a profitability rating of 7 / 10.
What is the financial health of ALEXANDER & BALDWIN INC (ALEX) stock?
The financial health rating of ALEXANDER & BALDWIN INC (ALEX) is 3 / 10.
Is the dividend of ALEXANDER & BALDWIN INC sustainable?
The dividend rating of ALEXANDER & BALDWIN INC (ALEX) is 5 / 10 and the dividend payout ratio is 89.83%.