KAISER ALUMINUM CORP (KALU)
US4830077040 - Common Stock
Overall KALU gets a fundamental rating of 4 out of 10. We evaluated KALU against 154 industry peers in the Metals & Mining industry. KALU has only an average score on both its financial health and profitability. 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.
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 2.08% is fine compared to the rest of the industry. KALU outperforms 63.64% of its industry peers.
KALU has a Return On Equity of 7.24%. This is in the better half of the industry: KALU outperforms 72.08% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.45%, KALU is in the better half of the industry, outperforming 62.34% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for KALU is significantly below the industry average of 8.93%.
The 3 year average ROIC (3.03%) for KALU is below the current ROIC(4.45%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.08% | ||
| ROE | 7.24% | ||
| ROIC | 4.45% |
ROA(3y)0.01%
ROA(5y)1.13%
ROE(3y)-0.04%
ROE(5y)2.45%
ROIC(3y)3.03%
ROIC(5y)4.57%
1.3 Margins
KALU's Profit Margin of 1.53% is in line compared to the rest of the industry. KALU outperforms 59.74% of its industry peers.
In the last couple of years the Profit Margin of KALU has declined.
KALU has a Operating Margin (3.27%) which is in line with its industry peers.
KALU's Operating Margin has declined in the last couple of years.
KALU has a Gross Margin (10.76%) 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 | 3.27% | ||
| PM (TTM) | 1.53% | ||
| GM | 10.76% |
OM growth 3Y-24.39%
OM growth 5Y-18.61%
PM growth 3Y-14.61%
PM growth 5Y-23.36%
GM growth 3Y-18.31%
GM growth 5Y-9.77%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KALU is destroying value.
The number of shares outstanding for KALU has been increased compared to 1 year ago.
The number of shares outstanding for KALU has been reduced compared to 5 years ago.
The debt/assets ratio for KALU is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.41 indicates that KALU is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of KALU (2.41) is comparable to the rest of the industry.
KALU has a debt to FCF ratio of 15.35. This is a negative value and a sign of low solvency as KALU would need 15.35 years to pay back of all of its debts.
KALU has a Debt to FCF ratio of 15.35. This is in the better half of the industry: KALU outperforms 65.58% of its industry peers.
A Debt/Equity ratio of 1.61 is on the high side and indicates that KALU has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.61, KALU is doing worse than 92.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.61 | ||
| Debt/FCF | 15.35 | ||
| Altman-Z | 2.41 |
ROIC/WACC0.58
WACC7.68%
2.3 Liquidity
KALU has a Current Ratio of 2.68. This indicates that KALU is financially healthy and has no problem in meeting its short term obligations.
KALU has a Current ratio (2.68) which is comparable to the rest of the industry.
KALU has a Quick Ratio of 1.39. This is a normal value and indicates that KALU is financially healthy and should not expect problems in meeting its short term obligations.
KALU's Quick ratio of 1.39 is in line compared to the rest of the industry. KALU outperforms 48.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.68 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
KALU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 251.28%, 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 -15.81% yearly.
The Revenue has decreased by -9.94% in the past year.
Measured over the past years, KALU shows a quite strong growth in Revenue. The Revenue has been growing by 14.25% on average per year.
EPS 1Y (TTM)251.28%
EPS 3Y-2.32%
EPS 5Y-15.81%
EPS growth Q2Q233.33%
Revenue 1Y (TTM)-9.94%
Revenue growth 3Y38.08%
Revenue growth 5Y14.25%
Revenue growth Q2Q-7%
3.2 Future
The Earnings Per Share is expected to grow by 56.63% on average over the next years. This is a very strong growth
KALU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.70% yearly.
EPS Next Y33.64%
EPS Next 2Y56.63%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.73%
Revenue Next 2Y2.7%
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
KALU is valuated quite expensively with a Price/Earnings ratio of 33.55.
Compared to the rest of the industry, the Price/Earnings ratio of KALU indicates a somewhat cheap valuation: KALU is cheaper than 61.04% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.02. KALU is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 25.11, KALU can be considered very expensive at the moment.
KALU's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.32. KALU is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.55 | ||
| Fwd PE | 25.11 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as KALU.
Based on the Price/Free Cash Flow ratio, KALU is valued a bit cheaper than 74.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.44 | ||
| EV/EBITDA | 11.92 |
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 56.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)1
PEG (5Y)N/A
EPS Next 2Y56.63%
EPS Next 3YN/A
5. Dividend
5.1 Amount
KALU has a Yearly Dividend Yield of 3.24%.
KALU's Dividend Yield is rather good when compared to the industry average which is at 2.89. KALU pays more dividend than 87.01% of the companies in the same industry.
KALU's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
5.2 History
On average, the dividend of KALU grows each year by 6.69%, which is quite nice.
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)6.69%
Div Incr Years0
Div Non Decr Years16
5.3 Sustainability
KALU pays out 106.78% of its income as dividend. This is not a sustainable payout ratio.
KALU's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP106.78%
EPS Next 2Y56.63%
EPS Next 3YN/A
KAISER ALUMINUM CORP
NASDAQ:KALU (4/30/2024, 1:41:40 PM)
91.93
-3.22 (-3.38%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.47B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.55 | ||
| Fwd PE | 25.11 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.08% | ||
| ROE | 7.24% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.27% | ||
| PM (TTM) | 1.53% | ||
| GM | 10.76% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.61 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.68 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)251.28%
EPS 3Y-2.32%
EPS 5Y
EPS growth Q2Q
EPS Next Y33.64%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-9.94%
Revenue growth 3Y38.08%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y