NasdaqGS:KALU

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

1.1%

NasdaqGS:KALU

3.9%

US Metals and Mining

1.1%

US Market


1 Year Return

-8.7%

NasdaqGS:KALU

-8.4%

US Metals and Mining

2.1%

US Market

KALU underperformed the Metals and Mining industry which returned -7.2% over the past year.

KALU underperformed the Market in United States of America which returned 2% over the past year.


Share holder returns

KALUIndustryMarket
7 Day1.1%3.9%1.1%
30 Day9.5%8.2%3.7%
90 Day3.0%2.2%2.3%
1 Year-6.5%-8.7%-5.7%-8.4%4.4%2.1%
3 Year26.3%18.0%15.3%9.3%47.0%37.4%
5 Year42.9%28.0%-5.2%-12.6%61.6%43.8%

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 based on future cash flows and its price relative to the stock market?

26%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Kaiser Aluminum's share price is below the future cash flow value, and at a moderate discount (> 20%).

Kaiser Aluminum's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Kaiser Aluminum is overvalued based on earnings compared to the US Metals and Mining industry average.

Kaiser Aluminum is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Kaiser Aluminum is poor value based on expected growth next year.


Price Based on Value of Assets

Kaiser Aluminum is overvalued based on assets compared to the US Metals and Mining industry average.


Next Steps

Future Growth

How is Kaiser Aluminum expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

7.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Kaiser Aluminum's revenue is expected to grow by 4.1% yearly, however this is not considered high growth (20% yearly).

Kaiser Aluminum's earnings are expected to grow by 7.5% yearly, however this is not considered high growth (20% yearly).

Kaiser Aluminum's revenue growth is positive but not above the United States of America market average.

Kaiser Aluminum's earnings growth is positive but not above the United States of America market average.

Kaiser Aluminum's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Kaiser Aluminum will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Kaiser Aluminum performed over the past 5 years?

31.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Kaiser Aluminum has delivered over 20% year on year earnings growth in the past 5 years.

Kaiser Aluminum's 1-year earnings growth exceeds its 5-year average (81% vs 31.4%)

Kaiser Aluminum's earnings growth has exceeded the US Metals and Mining industry average in the past year (81% vs 27.3%).


Return on Equity

Kaiser Aluminum has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Kaiser Aluminum used its assets less efficiently than the US Metals and Mining industry average last year based on Return on Assets.


Return on Capital Employed

Kaiser Aluminum's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Kaiser Aluminum's financial position?


Financial Position Analysis

Kaiser Aluminum is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Kaiser Aluminum's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Kaiser Aluminum's level of debt (49.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (35.9% vs 49.7% today).

Debt is well covered by operating cash flow (36.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6.4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.8x debt.


Next Steps

Dividend

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

2.53%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Kaiser Aluminum's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Kaiser Aluminum's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.2x coverage).


Next Steps

Management

What is the CEO of Kaiser Aluminum's salary, the management and board of directors tenure and is there insider trading?

2.4yrs

Average management tenure


CEO

Jack Hockema (72yo)

17.9yrs

Tenure

US$5,413,871

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

Jack's remuneration is higher than average for companies of similar size in United States of America.

Jack's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.4yrs

Average Tenure

59yo

Average Age

The tenure for the Kaiser Aluminum management team is about average.


Board Age and Tenure

10.3yrs

Average Tenure

66.5yo

Average Age

The average tenure for the Kaiser Aluminum board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

Kaiser Aluminum individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$95,00015 Aug 19
Carolyn Bartholomew
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$95.00
SellUS$102,78215 May 19
Mark Krouse
EntityIndividual
Shares1,100
Max PriceUS$93.44
SellUS$104,90126 Nov 18
Melinda Ellsworth
EntityIndividual
Role
Head of Investor Relations
VP of Investor Relations & Corporate Communications
Shares1,100
Max PriceUS$95.36

Ownership Breakdown


Management Team

  • Jack Hockema (72yo)

    Chairman & CEO

    • Tenure: 17.9yrs
    • Compensation: US$5.41m
  • Melinda Ellsworth (60yo)

    VP of Investor Relations & Corporate Communications

    • Tenure: 4.3yrs
  • John Donnan (58yo)

    Executive Vice President of Legal

    • Tenure: 7.3yrs
    • Compensation: US$1.77m
  • Neal West (60yo)

    Senior VP & CFO

    • Tenure: 0.6yrs
  • Samuel Romeo

    Vice President of Sales Distribution & Aerospace

    • Tenure: 0yrs
  • Cherrie Tsai

    VP, Corporate Secretary & Deputy General Counsel

    • Tenure: 0yrs
  • Keith Harvey (59yo)

    President & COO

    • Tenure: 3.8yrs
    • Compensation: US$3.11m
  • Courtney R. Lynn (37yo)

    VP & Treasurer

    • Tenure: 1.1yrs
  • Del Miller (59yo)

    Vice President of Procurement and Metal Management

    • Tenure: 1.1yrs
  • Jennifer Huey (38yo)

    VP & Chief Accounting Officer

    • Tenure: 0.5yrs

Board Members

  • Lauralee Martin (68yo)

    Independent Director

    • Tenure: 9yrs
    • Compensation: US$212.30k
  • Pat Hassey (73yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$190.80k
  • Jack Hockema (72yo)

    Chairman & CEO

    • Tenure: 17.9yrs
    • Compensation: US$5.41m
  • Alfred Osborne (75yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$216.05k
  • Brett Wilcox (65yo)

    Independent Director

    • Tenure: 13.2yrs
    • Compensation: US$204.80k
  • Emily Liggett (64yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$178.10k
  • Thomas Van Leeuwen (62yo)

    Independent Director

    • Tenure: 13.2yrs
    • Compensation: US$211.05k
  • Carolyn Bartholomew (61yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$191.30k
  • David Foster (71yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: US$187.80k
  • Teresa Sebastian (61yo)

    Director

    • Tenure: 0.3yrs

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$1.586b
  • Shares outstanding: 15.92m
  • Website: https://www.kaiseraluminum.com

Number of Employees


Location

  • Kaiser Aluminum Corporation
  • 27422 Portola Parkway
  • Suite 200
  • Foothill Ranch
  • California
  • 92610
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KALUNasdaqGS (Nasdaq Global Select)YesNew Common StockUSUSDJun 2006
KLU1DB (Deutsche Boerse AG)YesNew Common StockDEEURJun 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 defe ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/17 00:02
End of Day Share Price2019/09/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.