NasdaqGS:KALU

Stock Analysis Report

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Market Cap

US$2.0b

Last Updated

2021/06/19 02:59 UTC

Data Sources

Company Financials +

Executive Summary

Kaiser Aluminum Corporation manufactures and sells semi-fabricated specialty aluminum mill products. More Details


Snowflake Analysis

High growth potential second-rate dividend payer.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: KALU's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-7.4%

KALU

-10.4%

US Metals and Mining

-0.2%

US Market


1 Year Return

68.1%

KALU

75.4%

US Metals and Mining

39.4%

US Market

Return vs Industry: KALU underperformed the US Metals and Mining industry which returned 75.4% over the past year.

Return vs Market: KALU exceeded the US Market which returned 39.4% over the past year.


Shareholder returns

KALUIndustryMarket
7 Day-7.4%-10.4%-0.2%
30 Day-2.6%-12.9%3.1%
90 Day9.2%1.5%5.6%
1 Year73.9%68.1%79.4%75.4%41.7%39.4%
3 Year23.4%13.4%47.7%37.9%59.7%49.9%
5 Year62.6%43.0%110.0%91.5%122.6%97.6%

Long-Term 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

Valuation

Is Kaiser Aluminum undervalued compared to its fair value and its price relative to the market?

466.93x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KALU ($124.17) is trading above our estimate of fair value ($49.74)

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 (466.9x) compared to the US Metals and Mining industry average (15.8x).

PE vs Market: KALU is poor value based on its PE Ratio (466.9x) compared to the US market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: KALU is poor value based on its PEG Ratio (5.1x)


Price to Book Ratio

PB vs Industry: KALU is overvalued based on its PB Ratio (2.7x) compared to the US Metals and Mining industry average (2.5x).


Future Growth

How is Kaiser Aluminum forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

90.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KALU's forecast earnings growth (90.9% per year) is above the savings rate (2%).

Earnings vs Market: KALU's earnings (90.9% per year) are forecast to grow faster than the US market (15.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: KALU's revenue (20.3% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: KALU's revenue (20.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if KALU's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Kaiser Aluminum performed over the past 5 years?

-17.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KALU has a large one-off loss of $22.1M impacting its March 31 2021 financial results.

Growing Profit Margin: KALU's current net profit margins (0.4%) are lower than last year (4.2%).


Past Earnings Growth Analysis

Earnings Trend: KALU's earnings have declined by 17.5% per year over the past 5 years.

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 (-93.3%) over the past year, making it difficult to compare to the Metals and Mining industry average (17.4%).


Return on Equity

High ROE: KALU's Return on Equity (0.6%) is considered low.


Financial Health

How is Kaiser Aluminum's financial position?


Financial Position Analysis

Short Term Liabilities: KALU's short term assets ($930.8M) exceed its short term liabilities ($350.4M).

Long Term Liabilities: KALU's short term assets ($930.8M) do not cover its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: KALU's debt to equity ratio (114.1%) is considered high.

Reducing Debt: KALU's debt to equity ratio has increased from 25% to 114.1% over the past 5 years.

Debt Coverage: KALU's debt is not well covered by operating cash flow (17.1%).

Interest Coverage: KALU's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet


Dividend

What is Kaiser Aluminum current dividend yield, its reliability and sustainability?

2.32%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KALU's dividend (2.32%) is higher than the bottom 25% of dividend payers in the US market (1.29%).

High Dividend: KALU's dividend (2.32%) is low compared to the top 25% of dividend payers in the US market (3.43%).


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 high payout ratio (1045.4%), KALU's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.4yrs

Average management tenure


CEO

Keith Harvey (60 yo)

0.92

Tenure

US$3,231,260

Compensation

Mr. Keith A. Harvey has been Chief Executive Officer of Kaiser Aluminum Corporation (Kaiser) since July 31, 2020. Mr. Harvey has been the President at Kaiser Aluminum Corporation since December 2015. He se...


CEO Compensation Analysis

Compensation vs Market: Keith's total compensation ($USD3.23M) is about average for companies of similar size in the US market ($USD3.72M).

Compensation vs Earnings: Keith's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: KALU's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: KALU's board of directors are considered experienced (6.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: KALU insiders have only sold shares 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$1.958b
  • Shares outstanding: 15.77m
  • 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


Biography

Kaiser Aluminum Corporation manufactures and sells semi-fabricated specialty aluminum mill products. The company provides rolled, extruded, and drawn aluminum products used principally for aerospace and de...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/19 02:59
End of Day Share Price2021/06/18 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.