KAISER ALUMINUM CORP (KALU) Stock Fundamental Analysis
NASDAQ:KALU - Nasdaq - US4830077040 - Common Stock - Currency: USD
KALU gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 156 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. Finally 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.
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 Return On Assets of 1.80%. This is in the better half of the industry: KALU outperforms 65.38% of its industry peers.
KALU has a Return On Equity of 5.79%. This is in the better half of the industry: KALU outperforms 68.59% of its industry peers.
With a decent Return On Invested Capital value of 4.10%, KALU is doing good in the industry, outperforming 62.18% 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 10.98%.
The last Return On Invested Capital (4.10%) for KALU is above the 3 year average (3.08%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.8% | ||
| ROE | 5.79% | ||
| ROIC | 4.1% |
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 1.43% is fine compared to the rest of the industry. KALU outperforms 64.74% of its industry peers.
In the last couple of years the Profit Margin of KALU has declined.
With a Operating Margin value of 3.45%, KALU perfoms like the industry average, outperforming 53.21% of the companies in the same industry.
In the last couple of years the Operating Margin of KALU has declined.
KALU has a Gross Margin (11.17%) which 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 | 3.45% | ||
| PM (TTM) | 1.43% | ||
| GM | 11.17% |
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
The number of shares outstanding for KALU has been increased compared to 5 years ago.
The debt/assets ratio for KALU has been reduced compared to a year ago.
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.
KALU has a Altman-Z score of 2.25. This is comparable to the rest of the industry: KALU outperforms 48.72% of its industry peers.
A Debt/Equity ratio of 1.38 is on the high side and indicates that KALU has dependencies on debt financing.
KALU has a worse Debt to Equity ratio (1.38) than 89.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.25 |
ROIC/WACC0.52
WACC7.89%
2.3 Liquidity
A Current Ratio of 2.67 indicates that KALU has no problem at all paying its short term obligations.
KALU's Current ratio of 2.67 is fine compared to the rest of the industry. KALU outperforms 60.90% of its industry peers.
A Quick Ratio of 1.27 indicates that KALU should not have too much problems paying its short term obligations.
The Quick ratio of KALU (1.27) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.67 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
The earnings per share for KALU have decreased strongly by -12.28% in the last year.
The earnings per share for KALU have been decreasing by -18.22% on average. This is quite bad
The Revenue has been growing slightly by 1.56% in the past year.
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)-12.28%
EPS 3Y1.36%
EPS 5Y-18.22%
EPS Q2Q%41.18%
Revenue 1Y (TTM)1.56%
Revenue growth 3Y4.87%
Revenue growth 5Y14.84%
Sales Q2Q%5.41%
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
Based on estimates for the next years, KALU will show a quite strong growth in Revenue. The Revenue will grow by 8.33% on average per year.
EPS Next Y99.73%
EPS Next 2Y64.27%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.35%
Revenue Next 2Y8.33%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 27.39, the valuation of KALU can be described as expensive.
KALU's Price/Earnings ratio is a bit cheaper when compared to the industry. KALU is cheaper than 67.95% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.86, KALU is valued at the same level.
A Price/Forward Earnings ratio of 11.85 indicates a reasonable valuation of KALU.
Based on the Price/Forward Earnings ratio, KALU is valued a bit cheaper than 67.95% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.43, KALU is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.39 | ||
| Fwd PE | 11.85 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KALU indicates a somewhat cheap valuation: KALU is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.36 |
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.
KALU's earnings are expected to grow with 64.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.27
PEG (5Y)N/A
EPS Next 2Y64.27%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.09%, KALU is a good candidate for dividend investing.
KALU's Dividend Yield is rather good when compared to the industry average which is at 2.96. KALU pays more dividend than 91.67% of the companies in the same industry.
KALU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.09% |
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
116.44% 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.
DP116.44%
EPS Next 2Y64.27%
EPS Next 3YN/A
NASDAQ:KALU (6/27/2025, 9:40:25 AM)
80.25
+0.29 (+0.36%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners95.73%
Inst Owner Change-1.42%
Ins Owners1.12%
Ins Owner Change11.82%
Market Cap1.30B
Analysts77.78
Price Target75.48 (-5.94%)
Short Float %2.78%
Short Ratio2.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.09% |
Yearly Dividend3.16
Dividend Growth(5Y)5.17%
DP116.44%
Div Incr Years0
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)40.99%
Min EPS beat(2)-49.45%
Max EPS beat(2)131.44%
EPS beat(4)1
Avg EPS beat(4)3.06%
Min EPS beat(4)-49.45%
Max EPS beat(4)131.44%
EPS beat(8)4
Avg EPS beat(8)106.33%
EPS beat(12)6
Avg EPS beat(12)-18.37%
EPS beat(16)6
Avg EPS beat(16)-24.33%
Revenue beat(2)1
Avg Revenue beat(2)-2.03%
Min Revenue beat(2)-6.14%
Max Revenue beat(2)2.07%
Revenue beat(4)1
Avg Revenue beat(4)-2.83%
Min Revenue beat(4)-6.14%
Max Revenue beat(4)2.07%
Revenue beat(8)3
Avg Revenue beat(8)-2.05%
Revenue beat(12)5
Avg Revenue beat(12)-1.27%
Revenue beat(16)8
Avg Revenue beat(16)2.09%
PT rev (1m)0%
PT rev (3m)-8.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-22.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.29%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.39 | ||
| Fwd PE | 11.85 | ||
| P/S | 0.42 | ||
| P/FCF | N/A | ||
| P/OCF | 8.06 | ||
| P/B | 1.71 | ||
| P/tB | 1.87 | ||
| EV/EBITDA | 10.36 |
EPS(TTM)2.93
EY3.65%
EPS(NY)6.77
Fwd EY8.44%
FCF(TTM)-1.75
FCFYN/A
OCF(TTM)9.96
OCFY12.41%
SpS189.72
BVpS46.86
TBVpS42.95
PEG (NY)0.27
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.8% | ||
| ROE | 5.79% | ||
| ROCE | 5.21% | ||
| ROIC | 4.1% | ||
| ROICexc | 4.15% | ||
| ROICexgc | 4.28% | ||
| OM | 3.45% | ||
| PM (TTM) | 1.43% | ||
| GM | 11.17% | ||
| 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 Turnover1.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.67 | ||
| Cap/Depr | 160.71% | ||
| Cap/Sales | 6.17% | ||
| Interest Coverage | 2.63 | ||
| Cash Conversion | 72.01% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.67 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 2.25 |
F-Score5
WACC7.89%
ROIC/WACC0.52
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 Y99.73%
EPS Next 2Y64.27%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.56%
Revenue growth 3Y4.87%
Revenue growth 5Y14.84%
Sales Q2Q%5.41%
Revenue Next Year9.35%
Revenue Next 2Y8.33%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-6.54%
EBIT growth 3Y5.87%
EBIT growth 5Y-8.89%
EBIT Next Year169.9%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y88.25%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y289.62%
OCF growth 3Y28.15%
OCF growth 5Y-6.38%