KAISER ALUMINUM CORP (KALU) Stock Fundamental Analysis
NASDAQ:KALU - Nasdaq - US4830077040 - Common Stock - Currency: USD
Overall KALU gets a fundamental rating of 5 out of 10. We evaluated KALU against 157 industry peers in the Metals & Mining industry. KALU has a medium profitability rating, but doesn't score so well on its financial health evaluation. KALU has a correct valuation and a medium growth rate. KALU also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year KALU was profitable.
KALU had a positive operating cash flow in the past year.
In multiple years KALU reported negative net income over the last 5 years.
Of the past 5 years KALU 4 years had a positive operating cash flow.
1.2 Ratios
KALU has a better Return On Assets (2.54%) than 68.79% of its industry peers.
With a decent Return On Equity value of 8.23%, KALU is doing good in the industry, outperforming 74.52% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.59%, KALU is in the better half of the industry, outperforming 63.06% 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 12.11%.
The last Return On Invested Capital (4.59%) for KALU is above the 3 year average (3.08%), which is a sign of increasing profitability.
| 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
KALU's Profit Margin of 2.05% is fine compared to the rest of the industry. KALU outperforms 66.24% of its industry peers.
In the last couple of years the Profit Margin of KALU has declined.
The Operating Margin of KALU (3.90%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of KALU has declined.
KALU has a Gross Margin of 11.55%. This is comparable to the rest of the industry: KALU outperforms 43.31% of 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.
KALU has more shares outstanding than it did 1 year ago.
The number of shares outstanding for KALU has been increased compared to 5 years ago.
Compared to 1 year ago, KALU has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.21 indicates that KALU is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of KALU (2.21) is comparable to the rest of the industry.
KALU has a Debt/Equity ratio of 1.39. This is a high value indicating a heavy dependency on external financing.
KALU has a Debt to Equity ratio of 1.39. This is amonst the worse of the industry: KALU underperforms 88.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.39 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.21 |
ROIC/WACC0.55
WACC8.39%
2.3 Liquidity
A Current Ratio of 2.70 indicates that KALU has no problem at all paying its short term obligations.
With a Current ratio value of 2.70, KALU perfoms like the industry average, outperforming 59.24% of the companies in the same industry.
A Quick Ratio of 1.30 indicates that KALU should not have too much problems paying its short term obligations.
KALU's Quick ratio of 1.30 is in line compared to the rest of the industry. KALU outperforms 44.59% of its industry peers.
| 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.
KALU shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -18.22% yearly.
KALU shows a small growth in Revenue. In the last year, the Revenue has grown by 4.62%.
KALU shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.84% yearly.
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 64.27% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 11.87% on average over the next years. This is quite good.
EPS Next Y99.73%
EPS Next 2Y64.27%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.21%
Revenue Next 2Y11.87%
Revenue Next 3YN/A
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 accelerating.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.95, KALU is valued on the expensive side.
Based on the Price/Earnings ratio, KALU is valued a bit cheaper than 73.89% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.99, KALU is valued a bit cheaper.
A Price/Forward Earnings ratio of 10.80 indicates a reasonable valuation of KALU.
KALU's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KALU is cheaper than 78.98% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of KALU to the average of the S&P500 Index (36.36), we can say KALU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.95 | ||
| Fwd PE | 10.8 |
4.2 Price Multiples
71.97% of the companies in the same industry are more expensive than KALU, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.42 |
4.3 Compensation for Growth
KALU's 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 64.27% in the coming years.
PEG (NY)0.21
PEG (5Y)N/A
EPS Next 2Y64.27%
EPS Next 3YN/A
5. Dividend
5.1 Amount
KALU has a Yearly Dividend Yield of 3.98%. Purely for dividend investing, there may be better candidates out there.
KALU's Dividend Yield is rather good when compared to the industry average which is at 2.86. KALU pays more dividend than 92.36% of the companies in the same industry.
KALU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
5.2 History
The dividend of KALU has a limited annual growth rate of 5.17%.
KALU has been paying a dividend for at least 10 years, so it has 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.
KALU's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP79.97%
EPS Next 2Y64.27%
EPS Next 3YN/A
73.13
-0.63 (-0.85%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners95.73%
Inst Owner Change-0.32%
Ins Owners1.12%
Ins Owner Change11.72%
Market Cap1.18B
Analysts77.78
Price Target75.48 (3.21%)
Short Float %2.91%
Short Ratio3.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
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)-3.67%
EPS NQ rev (3m)-19.54%
EPS NY rev (1m)0%
EPS NY rev (3m)38.84%
Revenue NQ rev (1m)3.13%
Revenue NQ rev (3m)4.68%
Revenue NY rev (1m)2.62%
Revenue NY rev (3m)3.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.95 | ||
| Fwd PE | 10.8 | ||
| P/S | 0.38 | ||
| P/FCF | N/A | ||
| P/OCF | 7.87 | ||
| P/B | 1.52 | ||
| P/tB | 1.66 | ||
| EV/EBITDA | 9.42 |
EPS(TTM)3.49
EY4.77%
EPS(NY)6.77
Fwd EY9.26%
FCF(TTM)-2.38
FCFYN/A
OCF(TTM)9.3
OCFY12.71%
SpS192.44
BVpS47.96
TBVpS44.13
PEG (NY)0.21
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 | 2.21 |
F-Score7
WACC8.39%
ROIC/WACC0.55
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 Y99.73%
EPS Next 2Y64.27%
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 Year12.21%
Revenue Next 2Y11.87%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y23.6%
EBIT growth 3Y5.87%
EBIT growth 5Y-8.89%
EBIT Next Year169.9%
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%