Kaiser Aluminum
Market Cap
US$1.1b
Last Updated
2020/07/12 23:59 UTC
Data Sources
Company Financials +
Executive Summary
Kaiser Aluminum Corporation manufactures and sells semi-fabricated specialty aluminum mill products.
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer with adequate balance sheet.
Similar Companies
Share Price & News
How has Kaiser Aluminum's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: KALU's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-2.8%
KALU
3.7%
US Metals and Mining
2.3%
US Market
1 Year Return
-27.3%
KALU
6.2%
US Metals and Mining
6.7%
US Market
Return vs Industry: KALU underperformed the US Metals and Mining industry which returned 6.1% over the past year.
Return vs Market: KALU underperformed the US Market which returned 6.7% over the past year.
Shareholder returns
| KALU | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.8% | 3.7% | 2.3% |
| 30 Day | -6.9% | 8.3% | 6.0% |
| 90 Day | -5.7% | 19.4% | 18.9% |
| 1 Year | -25.2%-27.3% | 8.8%6.2% | 9.0%6.7% |
| 3 Year | -21.1%-26.5% | 9.7%2.6% | 36.6%27.7% |
| 5 Year | -7.0%-17.2% | 53.1%40.2% | 64.2%46.1% |
Price Volatility Vs. Market
How volatile is Kaiser Aluminum's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 months ago | Simply Wall St
Kaiser Aluminum (NASDAQ:KALU) Has A Pretty Healthy Balance Sheet3 months ago | Simply Wall St
How Does Kaiser Aluminum's (NASDAQ:KALU) P/E Compare To Its Industry, After The Share Price Drop?3 months ago | Simply Wall St
We Think Kaiser Aluminum's (NASDAQ:KALU) Statutory Profit Might Understate Its Earnings PotentialValuation
Is Kaiser Aluminum undervalued compared to its fair value and its price relative to the market?
17.25x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: KALU ($68.35) is trading above our estimate of fair value ($41.08)
Significantly Below Fair Value: KALU is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: KALU is poor value based on its PE Ratio (17.3x) compared to the US Metals and Mining industry average (8.7x).
PE vs Market: KALU is poor value based on its PE Ratio (17.3x) compared to the US market (16.2x).
Price to Earnings Growth Ratio
PEG Ratio: KALU is good value based on its PEG Ratio (0.6x)
Price to Book Ratio
PB vs Industry: KALU is overvalued based on its PB Ratio (1.5x) compared to the US Metals and Mining industry average (1.3x).
Next Steps
Future Growth
How is Kaiser Aluminum forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
31.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: KALU's forecast earnings growth (31.1% per year) is above the savings rate (2.2%).
Earnings vs Market: KALU's earnings (31.1% per year) are forecast to grow faster than the US market (22.9% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: KALU's revenue (2.3% per year) is forecast to grow slower than the US market (9.4% per year).
High Growth Revenue: KALU's revenue (2.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: KALU's Return on Equity is forecast to be low in 3 years time (12.5%).
Next Steps
Past Performance
How has Kaiser Aluminum performed over the past 5 years?
50.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: KALU has a large one-off loss of $42.1M impacting its March 31 2020 financial results.
Growing Profit Margin: KALU's current net profit margins (4.2%) are lower than last year (5.9%).
Past Earnings Growth Analysis
Earnings Trend: KALU has become profitable over the past 5 years, growing earnings by 50.5% per year.
Accelerating Growth: KALU's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: KALU had negative earnings growth (-32.9%) over the past year, making it difficult to compare to the Metals and Mining industry average (-11.3%).
Return on Equity
High ROE: KALU's Return on Equity (8.8%) is considered low.
Next Steps
Financial Health
How is Kaiser Aluminum's financial position?
Financial Position Analysis
Short Term Liabilities: KALU's short term assets ($806.4M) exceed its short term liabilities ($199.1M).
Long Term Liabilities: KALU's short term assets ($806.4M) exceed its long term liabilities ($632.9M).
Debt to Equity History and Analysis
Debt Level: KALU's debt to equity ratio (68.3%) is considered high.
Reducing Debt: KALU's debt to equity ratio has increased from 52.5% to 68.3% over the past 5 years.
Debt Coverage: KALU's debt is well covered by operating cash flow (53.1%).
Interest Coverage: KALU's interest payments on its debt are well covered by EBIT (6.1x coverage).
Balance Sheet
Next Steps
Dividend
What is Kaiser Aluminum current dividend yield, its reliability and sustainability?
3.92%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: KALU's dividend (3.92%) is higher than the bottom 25% of dividend payers in the US market (1.68%).
High Dividend: KALU's dividend (3.92%) is low compared to the top 25% of dividend payers in the US market (4.6%).
Stability and Growth of Payments
Stable Dividend: KALU's dividends per share have been stable in the past 10 years.
Growing Dividend: KALU's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (64.1%), KALU's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: KALU's dividends in 3 years are forecast to be covered by earnings (53.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.3yrs
Average management tenure
CEO
Jack Hockema (73yo)
18.75yrs
Tenure
US$5,248,430
Compensation
Mr. Jack A. Hockema has been the Chief Executive Officer of Kaiser Aluminum Corporation (Kaiser) since October 2001, and has been its Chairman since July 2006. Mr. Hockema served as the Chief Executive Off ...
CEO Compensation Analysis
Compensation vs Market: Jack's total compensation ($USD5.25M) is above average for companies of similar size in the US market ($USD3.17M).
Compensation vs Earnings: Jack's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 18.75yrs | US$5.25m | 0.21% $2.3m | |
| President & COO | 4.58yrs | US$3.12m | 0.20% $2.2m | |
| Senior VP & CFO | 1.42yrs | US$1.55m | 0.032% $343.6k | |
| Executive Vice President of Legal | 8.08yrs | US$1.79m | 0.038% $411.7k | |
| Senior Vice President of Advanced Engineering | 0.50yr | US$1.05m | 0.065% $695.5k | |
| VP & Chief Accounting Officer | 1.33yrs | no data | 0.0031% $32.9k | |
| Vice President of Investor Relations & Corporate Communications | 5.08yrs | no data | 0.049% $521.8k | |
| VP, Corporate Secretary & Deputy General Counsel | no data | no data | no data | |
| VP & Treasurer | 1.92yrs | no data | no data |
3.3yrs
Average Tenure
60.5yo
Average Age
Experienced Management: KALU's management team is considered experienced (3.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 18.75yrs | US$5.25m | 0.21% $2.3m | |
| Independent Director | 9.83yrs | US$213.87k | 0.14% $1.5m | |
| Independent Director | 1.08yrs | US$179.17k | 0.030% $317.0k | |
| Independent Director | 5.83yrs | US$190.12k | 0.076% $817.1k | |
| Lead Independent Director | no data | US$216.12k | 0.16% $1.7m | |
| Independent Director | 14yrs | US$206.37k | 0.096% $1.0m | |
| Independent Director | 2.08yrs | US$189.12k | 0.027% $286.5k | |
| Independent Director | 14yrs | US$211.12k | 0.10% $1.1m | |
| Independent Director | 11.08yrs | US$188.62k | 0.10% $1.1m | |
| Independent Director | 1.08yrs | US$180.17k | 0.021% $220.6k |
9.8yrs
Average Tenure
67.5yo
Average Age
Experienced Board: KALU's board of directors are considered experienced (9.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Kaiser Aluminum Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Kaiser Aluminum Corporation
- Ticker: KALU
- Exchange: NasdaqGS
- Founded: 1946
- Industry: Aluminum
- Sector: Materials
- Market Cap: US$1.074b
- Shares outstanding: 15.71m
- Website: https://www.kaiseraluminum.com
Number of Employees
Location
- Kaiser Aluminum Corporation
- 27422 Portola Parkway
- Suite 200
- Foothill Ranch
- California
- 92610-2831
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| KALU | NasdaqGS (Nasdaq Global Select) | Yes | New Common Stock | US | USD | Jun 2006 |
| KLU1 | DB (Deutsche Boerse AG) | Yes | New Common Stock | DE | EUR | Jun 2006 |
Biography
Kaiser Aluminum Corporation manufactures and sells semi-fabricated specialty aluminum mill products. The company offers rolled, extruded, and drawn aluminum products used principally for aerospace and defense, automotive, consumer durables, electronics, electrical, and machinery and equipment applications. Its aerospace and high strength products include heat treat plates and sheets, hard alloy extruded shapes, cold finish rods and bars, seamless drawn tubes, and billets for aerospace and defense industries. The company’s automotive extrusions include extruded aluminum products for structural components, crash management systems, anti-lock braking systems, and drawn tubes for drive shafts, as well as offers fabrication services, including sawing and cutting to length. Its general engineering products comprise alloy plate, sheet, rod, bar, tube, wire, and standard extrusion shapes used in various applications, including the production of military vehicles, ordnances, semiconductor manufacturing cells, electronic devices, after-market motor sport parts, tooling plates, parts for machinery and equipment, bolts, screws, nails, and rivets. The company also offers extruded, drawn, and cast billet aluminum products for industrial end uses. It sells its products directly to customers through sales personnel located in the United States, Canada, Western Europe, and China, as well as through independent sales agents in other regions of Asia, Latin America, and the Middle East. Kaiser Aluminum Corporation was founded in 1946 and is based in Foothill Ranch, California.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/12 23:59 |
| End of Day Share Price | 2020/07/10 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.