KAISER ALUMINUM CORP (KALU) Stock Fundamental Analysis
NASDAQ:KALU - Nasdaq - US4830077040 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to KALU. KALU was compared to 152 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 decent growth rate and is not valued too expensively. 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.
Of the past 5 years KALU 4 years had a positive operating cash flow.
1.2 Ratios
KALU has a better Return On Assets (2.02%) than 67.11% of its industry peers.
Looking at the Return On Equity, with a value of 7.01%, KALU is in the better half of the industry, outperforming 70.39% of the companies in the same industry.
With a Return On Invested Capital value of 3.92%, KALU perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for KALU is significantly below the industry average of 8.61%.
The 3 year average ROIC (3.08%) for KALU is below the current ROIC(3.92%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.02% | ||
| ROE | 7.01% | ||
| ROIC | 3.92% |
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 has a Profit Margin of 1.55%. This is in the better half of the industry: KALU outperforms 63.16% of its industry peers.
In the last couple of years the Profit Margin of KALU has declined.
KALU has a Operating Margin of 3.15%. This is comparable to the rest of the industry: KALU outperforms 53.29% of its industry peers.
KALU's Operating Margin has declined in the last couple of years.
The Gross Margin of KALU (11.01%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of KALU has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.15% | ||
| PM (TTM) | 1.55% | ||
| GM | 11.01% |
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
KALU has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 2.11 indicates that KALU is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.11, KALU is in line with its industry, outperforming 49.34% of the companies in the same industry.
A Debt/Equity ratio of 1.58 is on the high side and indicates that KALU has dependencies on debt financing.
With a Debt to Equity ratio value of 1.58, KALU is not doing good in the industry: 88.16% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.58 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.11 |
ROIC/WACC0.44
WACC8.93%
2.3 Liquidity
KALU has a Current Ratio of 2.44. This indicates that KALU is financially healthy and has no problem in meeting its short term obligations.
KALU has a Current ratio (2.44) which is in line with its industry peers.
A Quick Ratio of 1.18 indicates that KALU should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.18, KALU perfoms like the industry average, outperforming 41.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.44 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The earnings per share for KALU have decreased strongly by -12.28% in the last year.
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 decrease in Revenue. In the last year, the revenue decreased by -2.04%.
The Revenue has been growing by 14.84% on average over the past years. This is quite good.
EPS 1Y (TTM)-12.28%
EPS 3Y1.36%
EPS 5Y-18.22%
EPS Q2Q%41.18%
Revenue 1Y (TTM)-2.04%
Revenue growth 3Y4.87%
Revenue growth 5Y14.84%
Sales Q2Q%5.41%
3.2 Future
KALU is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 53.66% yearly.
Based on estimates for the next years, KALU will show a quite strong growth in Revenue. The Revenue will grow by 9.41% on average per year.
EPS Next Y43.86%
EPS Next 2Y53.66%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.98%
Revenue Next 2Y9.41%
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 Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.30 indicates a rather expensive valuation of KALU.
71.71% of the companies in the same industry are more expensive than KALU, based on the Price/Earnings ratio.
KALU's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.92.
A Price/Forward Earnings ratio of 10.53 indicates a reasonable valuation of KALU.
KALU's Price/Forward Earnings ratio is rather cheap when compared to the industry. KALU is cheaper than 82.24% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of KALU to the average of the S&P500 Index (21.65), we can say KALU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.3 | ||
| Fwd PE | 10.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KALU is valued a bit cheaper than 67.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.65 |
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 53.66% in the coming years.
PEG (NY)0.49
PEG (5Y)N/A
EPS Next 2Y53.66%
EPS Next 3YN/A
5. Dividend
5.1 Amount
KALU has a Yearly Dividend Yield of 5.23%, which is a nice return.
KALU's Dividend Yield is rather good when compared to the industry average which is at 2.98. KALU pays more dividend than 93.42% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, KALU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.23% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.17%
Div Incr Years0
Div Non Decr Years17
5.3 Sustainability
108.33% 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.
DP108.33%
EPS Next 2Y53.66%
EPS Next 3YN/A
62.42
+3.5 (+5.94%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners97.62%
Inst Owner Change0.28%
Ins Owners1.02%
Ins Owner Change8.85%
Market Cap1.00B
Analysts45
Price Target75.48 (20.92%)
Short Float %2.85%
Short Ratio4.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.23% |
Yearly Dividend3.16
Dividend Growth(5Y)5.17%
DP108.33%
Div Incr Years0
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-44.6%
Min EPS beat(2)-49.45%
Max EPS beat(2)-39.76%
EPS beat(4)1
Avg EPS beat(4)-10.94%
Min EPS beat(4)-49.45%
Max EPS beat(4)75.44%
EPS beat(8)4
Avg EPS beat(8)134.82%
EPS beat(12)5
Avg EPS beat(12)-29.48%
EPS beat(16)6
Avg EPS beat(16)-32.21%
Revenue beat(2)1
Avg Revenue beat(2)-1.6%
Min Revenue beat(2)-5.27%
Max Revenue beat(2)2.07%
Revenue beat(4)2
Avg Revenue beat(4)-0.33%
Min Revenue beat(4)-5.27%
Max Revenue beat(4)3.88%
Revenue beat(8)3
Avg Revenue beat(8)-1.57%
Revenue beat(12)6
Avg Revenue beat(12)-0.09%
Revenue beat(16)8
Avg Revenue beat(16)2.11%
PT rev (1m)0%
PT rev (3m)-0.62%
EPS NQ rev (1m)-25%
EPS NQ rev (3m)-41.27%
EPS NY rev (1m)-31.13%
EPS NY rev (3m)-35.05%
Revenue NQ rev (1m)3.18%
Revenue NQ rev (3m)5.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.3 | ||
| Fwd PE | 10.53 | ||
| P/S | 0.33 | ||
| P/FCF | N/A | ||
| P/OCF | 6.01 | ||
| P/B | 1.5 | ||
| P/tB | 1.66 | ||
| EV/EBITDA | 9.65 |
EPS(TTM)2.93
EY4.69%
EPS(NY)5.93
Fwd EY9.49%
FCF(TTM)-0.85
FCFYN/A
OCF(TTM)10.38
OCFY16.63%
SpS187.83
BVpS41.49
TBVpS37.5
PEG (NY)0.49
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.02% | ||
| ROE | 7.01% | ||
| ROCE | 4.98% | ||
| ROIC | 3.92% | ||
| ROICexc | 3.96% | ||
| ROICexgc | 4.1% | ||
| OM | 3.15% | ||
| PM (TTM) | 1.55% | ||
| GM | 11.01% | ||
| 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-Score5
Asset Turnover1.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.58 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.98 | ||
| Cap/Depr | 155.33% | ||
| Cap/Sales | 5.98% | ||
| Interest Coverage | 2.35 | ||
| Cash Conversion | 78.93% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.44 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 2.11 |
F-Score5
WACC8.93%
ROIC/WACC0.44
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)-12.28%
EPS 3Y1.36%
EPS 5Y-18.22%
EPS Q2Q%41.18%
EPS Next Y43.86%
EPS Next 2Y53.66%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-2.04%
Revenue growth 3Y4.87%
Revenue growth 5Y14.84%
Sales Q2Q%5.41%
Revenue Next Year7.98%
Revenue Next 2Y9.41%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-5.46%
EBIT growth 3Y5.87%
EBIT growth 5Y-8.89%
EBIT Next Year147.03%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-119.94%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-21.14%
OCF growth 3Y28.15%
OCF growth 5Y-6.38%