KAISER ALUMINUM CORP (KALU) Stock Fundamental Analysis
NASDAQ:KALU - Nasdaq - US4830077040 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to KALU. KALU was compared to 153 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 decent growth rate and is not valued too expensively. 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.
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
With a decent Return On Assets value of 2.02%, KALU is doing good in the industry, outperforming 67.97% of the companies in the same industry.
KALU has a better Return On Equity (7.01%) than 71.24% of its industry peers.
KALU has a Return On Invested Capital (3.92%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KALU is significantly below the industry average of 8.54%.
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
With a decent Profit Margin value of 1.55%, KALU is doing good in the industry, outperforming 64.71% of the companies in the same industry.
KALU's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 3.15%, KALU is in line with its industry, outperforming 54.25% of the companies in the same industry.
In the last couple of years the Operating Margin of KALU has declined.
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.
KALU has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.15 indicates that KALU is not a great score, but indicates only limited risk for bankruptcy at the moment.
KALU has a Altman-Z score (2.15) which is comparable to the rest of the industry.
KALU has a Debt/Equity ratio of 1.58. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.58, KALU is not doing good in the industry: 88.24% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.58 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.15 |
ROIC/WACC0.44
WACC8.99%
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.
With a Current ratio value of 2.44, KALU perfoms like the industry average, outperforming 56.21% of the companies in the same industry.
KALU has a Quick Ratio of 1.18. 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 1.18 is in line compared to the rest of the industry. KALU outperforms 41.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.44 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
KALU shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.28%.
The earnings per share for KALU have been decreasing by -18.22% on average. This is quite bad
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.
The Revenue is expected to grow by 9.41% on average over the next years. This is quite good.
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 23.55 indicates a rather expensive valuation of KALU.
Based on the Price/Earnings ratio, KALU is valued a bit cheaper than 69.93% of the companies in the same industry.
KALU's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.10.
KALU is valuated reasonably with a Price/Forward Earnings ratio of 11.64.
Based on the Price/Forward Earnings ratio, KALU is valued a bit cheaper than 76.47% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of KALU to the average of the S&P500 Index (20.74), we can say KALU is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.55 | ||
| Fwd PE | 11.64 |
4.2 Price Multiples
KALU's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KALU is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.18 |
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 53.66% in the coming years.
PEG (NY)0.54
PEG (5Y)N/A
EPS Next 2Y53.66%
EPS Next 3YN/A
5. Dividend
5.1 Amount
KALU has a Yearly Dividend Yield of 4.62%, which is a nice return.
Compared to an average industry Dividend Yield of 2.93, KALU pays a better dividend. On top of this KALU pays more dividend than 91.50% of the companies listed 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 | 4.62% |
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.
The dividend of KALU is growing, but earnings are growing more, so the dividend growth is sustainable.
DP108.33%
EPS Next 2Y53.66%
EPS Next 3YN/A
68.99
-0.17 (-0.25%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners97.62%
Inst Owner Change-1.85%
Ins Owners1.02%
Ins Owner Change8.91%
Market Cap1.11B
Analysts77.78
Price Target75.48 (9.41%)
Short Float %2.17%
Short Ratio1.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.62% |
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)-8.07%
PT rev (3m)-8.64%
EPS NQ rev (1m)32.14%
EPS NQ rev (3m)-41.27%
EPS NY rev (1m)14.94%
EPS NY rev (3m)-35.05%
Revenue NQ rev (1m)1.02%
Revenue NQ rev (3m)5.44%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.55 | ||
| Fwd PE | 11.64 | ||
| P/S | 0.37 | ||
| P/FCF | N/A | ||
| P/OCF | 6.67 | ||
| P/B | 1.67 | ||
| P/tB | 1.85 | ||
| EV/EBITDA | 10.18 |
EPS(TTM)2.93
EY4.25%
EPS(NY)5.93
Fwd EY8.59%
FCF(TTM)-0.85
FCFYN/A
OCF(TTM)10.35
OCFY15%
SpS187.24
BVpS41.36
TBVpS37.38
PEG (NY)0.54
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 | 2.15 |
F-Score5
WACC8.99%
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%