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 154 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.
In the past year KALU had a positive cash flow from operations.
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 Return On Assets of 1.80%. This is in the better half of the industry: KALU outperforms 65.58% of its industry peers.
KALU has a better Return On Equity (5.79%) than 68.83% of its industry peers.
KALU has a better Return On Invested Capital (4.10%) than 61.69% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KALU is significantly below the industry average of 11.16%.
The 3 year average ROIC (3.08%) for KALU is below the current ROIC(4.10%), indicating increased profibility in the last year.
| 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
With a decent Profit Margin value of 1.43%, KALU is doing good in the industry, outperforming 64.94% of the companies in the same industry.
In the last couple of years the Profit Margin of KALU has declined.
Looking at the Operating Margin, with a value of 3.45%, KALU is in line with its industry, outperforming 53.25% of the companies in the same industry.
KALU's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 11.17%, KALU is in line with its industry, outperforming 44.16% of the companies in the same industry.
KALU's Gross Margin has declined in the last couple of years.
| 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
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.
Compared to 5 years ago, KALU has more shares outstanding
The debt/assets ratio for KALU has been reduced compared to a year ago.
2.2 Solvency
KALU has an Altman-Z score of 2.23. 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.
The Altman-Z score of KALU (2.23) is comparable to the rest of the industry.
KALU has a Debt/Equity ratio of 1.38. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.38, KALU is not doing good in the industry: 88.96% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.23 |
ROIC/WACC0.47
WACC8.69%
2.3 Liquidity
A Current Ratio of 2.67 indicates that KALU has no problem at all paying its short term obligations.
KALU has a Current ratio of 2.67. This is in the better half of the industry: KALU outperforms 60.39% of its industry peers.
KALU has a Quick Ratio of 1.27. 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 (1.27) which 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
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 small growth in Revenue. In the last year, the Revenue has grown by 1.56%.
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)-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
Based on estimates for the next years, KALU will show a very strong growth in Earnings Per Share. The EPS will grow by 64.27% on average per year.
KALU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.33% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 26.68, which means the current valuation is very expensive for KALU.
Based on the Price/Earnings ratio, KALU is valued a bit cheaper than the industry average as 68.18% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of KALU to the average of the S&P500 Index (26.52), we can say KALU is valued inline with the index average.
KALU is valuated reasonably with a Price/Forward Earnings ratio of 11.54.
KALU's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KALU is cheaper than 70.13% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of KALU to the average of the S&P500 Index (22.25), we can say KALU is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.68 | ||
| Fwd PE | 11.54 |
4.2 Price Multiples
65.58% of the companies in the same industry are more expensive than KALU, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.19 |
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 64.27% in the coming years.
PEG (NY)0.27
PEG (5Y)N/A
EPS Next 2Y64.27%
EPS Next 3YN/A
5. Dividend
5.1 Amount
KALU has a Yearly Dividend Yield of 4.21%, which is a nice return.
Compared to an average industry Dividend Yield of 2.97, KALU pays a better dividend. On top of this KALU pays more dividend than 91.56% 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
5.2 History
The dividend of KALU has a limited annual growth rate of 5.17%.
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)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.
The dividend of KALU is growing, but earnings are growing more, so the dividend growth is sustainable.
DP116.44%
EPS Next 2Y64.27%
EPS Next 3YN/A
78.165
+0.59 (+0.75%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners97.62%
Inst Owner Change-1.42%
Ins Owners1.02%
Ins Owner Change8.91%
Market Cap1.26B
Analysts77.78
Price Target75.48 (-3.44%)
Short Float %2.56%
Short Ratio2.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
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)-9.2%
EPS NQ rev (1m)1.55%
EPS NQ rev (3m)-46.32%
EPS NY rev (1m)38.84%
EPS NY rev (3m)-4.38%
Revenue NQ rev (1m)-0.99%
Revenue NQ rev (3m)-1.68%
Revenue NY rev (1m)1.27%
Revenue NY rev (3m)4.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.68 | ||
| Fwd PE | 11.54 | ||
| P/S | 0.41 | ||
| P/FCF | N/A | ||
| P/OCF | 7.85 | ||
| P/B | 1.67 | ||
| P/tB | 1.82 | ||
| EV/EBITDA | 10.19 |
EPS(TTM)2.93
EY3.75%
EPS(NY)6.77
Fwd EY8.66%
FCF(TTM)-1.75
FCFYN/A
OCF(TTM)9.96
OCFY12.74%
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 | 2.23 |
F-Score5
WACC8.69%
ROIC/WACC0.47
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%