123.01 USD
-0.51 (-0.41%)
123.01 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to KALU. KALU was compared to 154 industry peers in the Metals & Mining industry. There are concerns on the financial health of KALU while its profitability can be described as average. KALU is not valued too expensively and it also shows a decent growth rate. 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
- With a decent Return On Assets value of 3.53%, KALU is doing good in the industry, outperforming 67.53% of the companies in the same industry.
- KALU's Return On Equity of 11.34% is fine compared to the rest of the industry. KALU outperforms 78.57% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 5.73%, KALU is in the better half of the industry, outperforming 63.64% 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 10.32%.
- The 3 year average ROIC (3.08%) for KALU is below the current ROIC(5.73%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.53% | ||
| ROE | 11.34% | ||
| ROIC | 5.73% |
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 2.85%, KALU is doing good in the industry, outperforming 62.34% of the companies in the same industry.
- In the last couple of years the Profit Margin of KALU has declined.
- With a Operating Margin value of 4.74%, KALU perfoms like the industry average, outperforming 56.49% 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 of 12.42%. This is comparable to the rest of the industry: KALU outperforms 43.51% of its industry peers.
- In the last couple of years the Gross Margin of KALU has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.74% | ||
| PM (TTM) | 2.85% | ||
| GM | 12.42% |
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.
- The number of shares outstanding for KALU has been increased compared to 1 year ago.
- The number of shares outstanding for KALU has been increased compared to 5 years ago.
- Compared to 1 year ago, KALU has an improved debt to assets ratio.
2.2 Solvency
- KALU has an Altman-Z score of 2.52. 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's Altman-Z score of 2.52 is on the low side compared to the rest of the industry. KALU is outperformed by 63.64% of its industry peers.
- KALU has a debt to FCF ratio of 80.41. This is a negative value and a sign of low solvency as KALU would need 80.41 years to pay back of all of its debts.
- KALU's Debt to FCF ratio of 80.41 is in line compared to the rest of the industry. KALU outperforms 55.19% of its industry peers.
- KALU has a Debt/Equity ratio of 1.29. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.29, KALU is doing worse than 85.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 80.41 | ||
| Altman-Z | 2.52 |
ROIC/WACC0.59
WACC9.71%
2.3 Liquidity
- A Current Ratio of 2.48 indicates that KALU has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 2.48, KALU is in line with its industry, outperforming 53.25% of the companies in the same industry.
- KALU has a Quick Ratio of 1.08. 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 1.08. This is in the lower half of the industry: KALU underperforms 64.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.48 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 74.10% over the past year.
- The earnings per share for KALU have been decreasing by -18.22% on average. This is quite bad
- Looking at the last year, KALU shows a small growth in Revenue. The Revenue has grown by 7.69% in the last 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)74.1%
EPS 3Y1.36%
EPS 5Y-18.22%
EPS Q2Q%264.71%
Revenue 1Y (TTM)7.69%
Revenue growth 3Y4.87%
Revenue growth 5Y14.84%
Sales Q2Q%12.81%
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 52.14% on average per year.
- The Revenue is expected to grow by 8.96% on average over the next years. This is quite good.
EPS Next Y140.17%
EPS Next 2Y72.24%
EPS Next 3Y52.14%
EPS Next 5YN/A
Revenue Next Year11.1%
Revenue Next 2Y12.04%
Revenue Next 3Y8.96%
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.
- 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
- With a Price/Earnings ratio of 25.42, KALU can be considered very expensive at the moment.
- KALU's Price/Earnings ratio is rather cheap when compared to the industry. KALU is cheaper than 81.82% of the companies in the same industry.
- When comparing the Price/Earnings ratio of KALU to the average of the S&P500 Index (28.87), we can say KALU is valued inline with the index average.
- The Price/Forward Earnings ratio is 16.52, which indicates a correct valuation of KALU.
- Based on the Price/Forward Earnings ratio, KALU is valued a bit cheaper than 68.18% of the companies in the same industry.
- KALU's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.42 | ||
| Fwd PE | 16.52 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, KALU is valued cheaper than 80.52% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of KALU is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 153.38 | ||
| EV/EBITDA | 11.08 |
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 52.14% in the coming years.
PEG (NY)0.18
PEG (5Y)N/A
EPS Next 2Y72.24%
EPS Next 3Y52.14%
5. Dividend
5.1 Amount
- KALU has a Yearly Dividend Yield of 2.35%. Purely for dividend investing, there may be better candidates out there.
- KALU's Dividend Yield is rather good when compared to the industry average which is at 1.02. KALU pays more dividend than 87.01% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, KALU pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
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
- 56.02% of the earnings are spent on dividend by KALU. This is a bit on the high side, but may be sustainable.
- The dividend of KALU is growing, but earnings are growing more, so the dividend growth is sustainable.
DP56.02%
EPS Next 2Y72.24%
EPS Next 3Y52.14%
KAISER ALUMINUM CORP / KALU FAQ
What is the ChartMill fundamental rating of KAISER ALUMINUM CORP (KALU) stock?
ChartMill assigns a fundamental rating of 5 / 10 to KALU.
What is the valuation status of KAISER ALUMINUM CORP (KALU) stock?
ChartMill assigns a valuation rating of 6 / 10 to KAISER ALUMINUM CORP (KALU). This can be considered as Fairly Valued.
Can you provide the profitability details for KAISER ALUMINUM CORP?
KAISER ALUMINUM CORP (KALU) has a profitability rating of 4 / 10.
How financially healthy is KAISER ALUMINUM CORP?
The financial health rating of KAISER ALUMINUM CORP (KALU) is 3 / 10.
How sustainable is the dividend of KAISER ALUMINUM CORP (KALU) stock?
The dividend rating of KAISER ALUMINUM CORP (KALU) is 7 / 10 and the dividend payout ratio is 56.02%.