Is Kaiser Aluminum Corporation (NASDAQ:KALU) Potentially Underrated?

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Kaiser Aluminum Corporation (NASDAQ:KALU) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of KALU, it is a highly-regarded dividend-paying company that has been able to sustain great financial health over the past. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my broad commentary, take a look at the report on Kaiser Aluminum here.

Established dividend payer with adequate balance sheet

KALU’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. KALU appears to have made good use of debt, producing operating cash levels of 0.39x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

NasdaqGS:KALU Historical Debt, June 27th 2019
NasdaqGS:KALU Historical Debt, June 27th 2019

For those seeking income streams from their portfolio, KALU is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.5%.

NasdaqGS:KALU Historical Dividend Yield, June 27th 2019
NasdaqGS:KALU Historical Dividend Yield, June 27th 2019

Next Steps:

For Kaiser Aluminum, I’ve put together three essential aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for KALU’s future growth? Take a look at our free research report of analyst consensus for KALU’s outlook.
  2. Historical Performance: What has KALU’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of KALU? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.