KAISER ALUMINUM CORP (KALU) Stock Fundamental Analysis
NASDAQ:KALU - US4830077040 - Common Stock
77.87 USD
-0.63 (-0.8%)
77.87 USD
0 (0%)
KALU gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 155 industry peers in the Metals & Mining industry. While KALU is still in line with the averages on profitability rating, there are concerns on its financial health. KALU is not valued too expensively and it also shows a decent growth rate. Finally KALU also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
KALU had positive earnings in the past year.
In the past year KALU had a positive cash flow from operations.
In multiple years KALU reported negative net income over the last 5 years.
KALU had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
KALU's Return On Assets of 2.54% is fine compared to the rest of the industry. KALU outperforms 66.45% of its industry peers.
KALU's Return On Equity of 8.23% is fine compared to the rest of the industry. KALU outperforms 73.55% of its industry peers.
KALU has a better Return On Invested Capital (4.59%) than 61.94% of its industry peers.
KALU had an Average Return On Invested Capital over the past 3 years of 3.08%. This is significantly below the industry average of 12.86%.
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
Looking at the Profit Margin, with a value of 2.05%, KALU is in the better half of the industry, outperforming 63.23% of the companies in the same industry.
KALU's Profit Margin has declined in the last couple of years.
KALU has a Operating Margin (3.90%) which is in line with its industry peers.
In the last couple of years the Operating Margin of KALU has declined.
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
KALU has more shares outstanding than it did 5 years ago.
KALU has a better debt/assets ratio than last year.
2.2 Solvency
KALU has an Altman-Z score of 2.24. 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 (2.24) which is in line with its industry peers.
A Debt/Equity ratio of 1.39 is on the high side and indicates that KALU has dependencies on debt financing.
With a Debt to Equity ratio value of 1.39, KALU is not doing good in the industry: 88.39% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.39 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.24 |
ROIC/WACC0.51
WACC8.98%
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.
KALU has a Current ratio of 2.70. This is comparable to the rest of the industry: KALU outperforms 58.71% of its industry peers.
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.
KALU has a Quick ratio of 1.30. This is comparable to the rest of the industry: KALU outperforms 45.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.7 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.84% over the past 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 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
KALU is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 64.64% yearly.
Based on estimates for the next years, KALU will show a quite strong growth in Revenue. The Revenue will grow by 11.87% on average per year.
EPS Next Y109.28%
EPS Next 2Y64.64%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 22.31, KALU is valued on the expensive side.
Based on the Price/Earnings ratio, KALU is valued a bit cheaper than 74.84% of the companies in the same industry.
When comparing the Price/Earnings ratio of KALU to the average of the S&P500 Index (27.08), we can say KALU is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 11.45, the valuation of KALU can be described as reasonable.
KALU's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KALU is cheaper than 74.19% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.72. KALU is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.31 | ||
| Fwd PE | 11.45 |
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 72.90% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.74 |
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.
KALU's earnings are expected to grow with 64.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.2
PEG (5Y)N/A
EPS Next 2Y64.64%
EPS Next 3YN/A
5. Dividend
5.1 Amount
KALU has a Yearly Dividend Yield of 4.06%, which is a nice return.
KALU's Dividend Yield is rather good when compared to the industry average which is at 2.59. KALU pays more dividend than 94.84% of the companies in the same industry.
KALU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
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
KALU pays out 79.97% of its income as dividend. 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 2Y64.64%
EPS Next 3YN/A
77.87
-0.63 (-0.8%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners95.32%
Inst Owner Change1.59%
Ins Owners1.23%
Ins Owner Change9.91%
Market Cap1.26B
Analysts77.78
Price Target75.48 (-3.07%)
Short Float %2.87%
Short Ratio3.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
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)4.78%
EPS NY rev (3m)4.78%
Revenue NQ rev (1m)3.13%
Revenue NQ rev (3m)4.68%
Revenue NY rev (1m)2.62%
Revenue NY rev (3m)2.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.31 | ||
| Fwd PE | 11.45 | ||
| P/S | 0.4 | ||
| P/FCF | N/A | ||
| P/OCF | 8.38 | ||
| P/B | 1.62 | ||
| P/tB | 1.76 | ||
| EV/EBITDA | 9.74 |
EPS(TTM)3.49
EY4.48%
EPS(NY)6.8
Fwd EY8.74%
FCF(TTM)-2.38
FCFYN/A
OCF(TTM)9.3
OCFY11.94%
SpS192.44
BVpS47.96
TBVpS44.13
PEG (NY)0.2
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 | 2.24 |
F-Score7
WACC8.98%
ROIC/WACC0.51
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 Y109.28%
EPS Next 2Y64.64%
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 Year175.35%
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%