KAISER ALUMINUM CORP (KALU) Stock Fundamental Analysis
USA - NASDAQ:KALU - US4830077040 - Common Stock
79.75 USD
-0.25 (-0.31%)
79.75 USD
0 (0%)
Taking everything into account, KALU scores 5 out of 10 in our fundamental rating. KALU was compared to 155 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. KALU also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
KALU had positive earnings in the past year.
KALU had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: KALU reported negative net income in multiple years.
KALU had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.54%, KALU is in the better half of the industry, outperforming 67.74% of the companies in the same industry.
KALU's Return On Equity of 8.23% is fine compared to the rest of the industry. KALU outperforms 74.19% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.59%, KALU is in the better half of the industry, outperforming 62.58% of the companies in the same industry.
KALU had an Average Return On Invested Capital over the past 3 years of 3.08%. This is significantly below the industry average of 12.30%.
The 3 year average ROIC (3.08%) for KALU is below the current ROIC(4.59%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.54% | ||
| ROE | 8.23% | ||
| ROIC | 4.59% |
ROA(3y)0.94%
ROA(5y)0.72%
ROE(3y)3.18%
ROE(5y)2.16%
ROIC(3y)3.08%
ROIC(5y)3.31%
1.3 Margins
The Profit Margin of KALU (2.05%) is better than 64.52% of its industry peers.
In the last couple of years the Profit Margin of KALU has declined.
Looking at the Operating Margin, with a value of 3.90%, KALU is in line with its industry, outperforming 56.77% of the companies in the same industry.
KALU's Operating Margin has declined in the last couple of years.
KALU has a Gross Margin (11.55%) which is in line with its industry peers.
KALU's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.9% | ||
| PM (TTM) | 2.05% | ||
| GM | 11.55% |
OM growth 3Y0.96%
OM growth 5Y-20.66%
PM growth 3YN/A
PM growth 5Y-17.68%
GM growth 3Y1.76%
GM growth 5Y-11.02%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KALU is destroying value.
Compared to 1 year ago, KALU has more shares outstanding
Compared to 5 years ago, KALU has more shares outstanding
Compared to 1 year ago, KALU has an improved debt to assets ratio.
2.2 Solvency
KALU has an Altman-Z score of 2.25. This is not the best score and indicates that KALU is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of KALU (2.25) is worse than 62.58% of its industry peers.
KALU has a Debt/Equity ratio of 1.39. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.39, KALU is not doing good in the industry: 89.68% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.39 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.25 |
ROIC/WACC0.57
WACC8.05%
2.3 Liquidity
KALU has a Current Ratio of 2.70. This indicates that KALU is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.70, KALU is in line with its industry, outperforming 56.13% of the companies in the same industry.
KALU has a Quick Ratio of 1.30. This is a normal value and indicates that KALU is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of KALU (1.30) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.7 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
KALU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.84%, which is quite impressive.
Measured over the past years, KALU shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -18.22% on average per year.
KALU shows a small growth in Revenue. In the last year, the Revenue has grown by 4.62%.
Measured over the past years, KALU shows a quite strong growth in Revenue. The Revenue has been growing by 14.84% on average per year.
EPS 1Y (TTM)27.84%
EPS 3Y1.36%
EPS 5Y-18.22%
EPS Q2Q%86.15%
Revenue 1Y (TTM)4.62%
Revenue growth 3Y4.87%
Revenue growth 5Y14.84%
Sales Q2Q%6.43%
3.2 Future
The Earnings Per Share is expected to grow by 59.75% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 17.02% on average over the next years. This is quite good.
EPS Next Y88.56%
EPS Next 2Y59.75%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year15.3%
Revenue Next 2Y17.02%
Revenue Next 3YN/A
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 22.85, which indicates a rather expensive current valuation of KALU.
Based on the Price/Earnings ratio, KALU is valued a bit cheaper than 77.42% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.77, KALU is valued at the same level.
Based on the Price/Forward Earnings ratio of 12.45, the valuation of KALU can be described as correct.
74.19% of the companies in the same industry are more expensive than KALU, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.23. KALU is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.85 | ||
| Fwd PE | 12.45 |
4.2 Price Multiples
KALU's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KALU is cheaper than 76.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.82 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as KALU's earnings are expected to grow with 59.75% in the coming years.
PEG (NY)0.26
PEG (5Y)N/A
EPS Next 2Y59.75%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.87%, KALU has a reasonable but not impressive dividend return.
KALU's Dividend Yield is rather good when compared to the industry average which is at 2.42. KALU pays more dividend than 94.19% of the companies in the same industry.
KALU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
5.2 History
The dividend of KALU has a limited annual growth rate of 5.17%.
KALU has paid a dividend for at least 10 years, which is a reliable track record.
KALU has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.17%
Div Incr Years0
Div Non Decr Years17
5.3 Sustainability
79.97% of the earnings are spent on dividend by KALU. This is not a sustainable payout ratio.
The dividend of KALU is growing, but earnings are growing more, so the dividend growth is sustainable.
DP79.97%
EPS Next 2Y59.75%
EPS Next 3YN/A
79.75
-0.25 (-0.31%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners98.15%
Inst Owner Change0.26%
Ins Owners1.14%
Ins Owner Change1.57%
Market Cap1.29B
Analysts43.33
Price Target75.48 (-5.35%)
Short Float %3.41%
Short Ratio4.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
Yearly Dividend3.16
Dividend Growth(5Y)5.17%
DP79.97%
Div Incr Years0
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)93.25%
Min EPS beat(2)55.07%
Max EPS beat(2)131.44%
EPS beat(4)2
Avg EPS beat(4)24.32%
Min EPS beat(4)-49.45%
Max EPS beat(4)131.44%
EPS beat(8)4
Avg EPS beat(8)92.14%
EPS beat(12)7
Avg EPS beat(12)-5.09%
EPS beat(16)7
Avg EPS beat(16)-18.9%
Revenue beat(2)1
Avg Revenue beat(2)-1.77%
Min Revenue beat(2)-6.14%
Max Revenue beat(2)2.6%
Revenue beat(4)2
Avg Revenue beat(4)-1.68%
Min Revenue beat(4)-6.14%
Max Revenue beat(4)2.6%
Revenue beat(8)3
Avg Revenue beat(8)-1.74%
Revenue beat(12)5
Avg Revenue beat(12)-1.28%
Revenue beat(16)8
Avg Revenue beat(16)-0.24%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)10.63%
EPS NQ rev (3m)-18.81%
EPS NY rev (1m)-9.9%
EPS NY rev (3m)-5.6%
Revenue NQ rev (1m)-6.39%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)5.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.85 | ||
| Fwd PE | 12.45 | ||
| P/S | 0.41 | ||
| P/FCF | N/A | ||
| P/OCF | 8.58 | ||
| P/B | 1.66 | ||
| P/tB | 1.81 | ||
| EV/EBITDA | 9.82 |
EPS(TTM)3.49
EY4.38%
EPS(NY)6.41
Fwd EY8.03%
FCF(TTM)-2.38
FCFYN/A
OCF(TTM)9.3
OCFY11.66%
SpS192.44
BVpS47.96
TBVpS44.13
PEG (NY)0.26
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.54% | ||
| ROE | 8.23% | ||
| ROCE | 5.82% | ||
| ROIC | 4.59% | ||
| ROICexc | 4.62% | ||
| ROICexgc | 4.76% | ||
| OM | 3.9% | ||
| PM (TTM) | 2.05% | ||
| GM | 11.55% | ||
| FCFM | N/A |
ROA(3y)0.94%
ROA(5y)0.72%
ROE(3y)3.18%
ROE(5y)2.16%
ROIC(3y)3.08%
ROIC(5y)3.31%
ROICexc(3y)3.17%
ROICexc(5y)4.17%
ROICexgc(3y)3.29%
ROICexgc(5y)4.37%
ROCE(3y)3.91%
ROCE(5y)4.2%
ROICexcg growth 3Y0.26%
ROICexcg growth 5Y-19.86%
ROICexc growth 3Y1.34%
ROICexc growth 5Y-19.63%
OM growth 3Y0.96%
OM growth 5Y-20.66%
PM growth 3YN/A
PM growth 5Y-17.68%
GM growth 3Y1.76%
GM growth 5Y-11.02%
F-Score7
Asset Turnover1.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.39 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.49 | ||
| Cap/Depr | 159.81% | ||
| Cap/Sales | 6.07% | ||
| Interest Coverage | 2.92 | ||
| Cash Conversion | 62.75% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.7 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 2.25 |
F-Score7
WACC8.05%
ROIC/WACC0.57
Cap/Depr(3y)140.16%
Cap/Depr(5y)249.82%
Cap/Sales(3y)4.92%
Cap/Sales(5y)8.93%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)27.84%
EPS 3Y1.36%
EPS 5Y-18.22%
EPS Q2Q%86.15%
EPS Next Y88.56%
EPS Next 2Y59.75%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.62%
Revenue growth 3Y4.87%
Revenue growth 5Y14.84%
Sales Q2Q%6.43%
Revenue Next Year15.3%
Revenue Next 2Y17.02%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y23.6%
EBIT growth 3Y5.87%
EBIT growth 5Y-8.89%
EBIT Next Year167.33%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y80.93%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y774.44%
OCF growth 3Y28.15%
OCF growth 5Y-6.38%