NYSE:ALEX

Stock Analysis Report

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Market Cap

US$1.3b

Last Updated

2021/07/24 23:22 UTC

Data Sources

Company Financials +

Executive Summary

Alexander & Baldwin, Inc. ("A&B") is Hawai'i's premier commercial real estate company and the largest owner of grocery-anchored, neighborhood shopping centers in the state. More Details


Snowflake Analysis

Moderate growth potential unattractive dividend payer.


Similar Companies

Share Price & News

How has Alexander & Baldwin's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ALEX is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ALEX's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-0.2%

ALEX

0.3%

US REITs

2.0%

US Market


1 Year Return

57.6%

ALEX

36.0%

US REITs

39.1%

US Market

Return vs Industry: ALEX exceeded the US REITs industry which returned 36% over the past year.

Return vs Market: ALEX exceeded the US Market which returned 39.1% over the past year.


Shareholder returns

ALEXIndustryMarket
7 Day-0.2%0.3%2.0%
30 Day-1.5%3.5%1.6%
90 Day4.7%8.6%3.5%
1 Year61.8%57.6%40.4%36.0%41.3%39.1%
3 Year-14.6%-20.1%49.1%32.4%64.0%53.8%
5 Year-21.3%-52.8%49.6%20.7%123.9%99.0%

Long-Term Price Volatility Vs. Market

How volatile is Alexander & Baldwin's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Alexander & Baldwin undervalued compared to its fair value and its price relative to the market?

137.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ALEX ($18.6) is trading above our estimate of fair value ($17.95)

Significantly Below Fair Value: ALEX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ALEX is poor value based on its PE Ratio (137.3x) compared to the US REITs industry average (48.5x).

PE vs Market: ALEX is poor value based on its PE Ratio (137.3x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: ALEX is poor value based on its PEG Ratio (5x)


Price to Book Ratio

PB vs Industry: ALEX is good value based on its PB Ratio (1.2x) compared to the US REITs industry average (1.9x).


Future Growth

How is Alexander & Baldwin forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

27.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALEX's forecast earnings growth (27.4% per year) is above the savings rate (2%).

Earnings vs Market: ALEX's earnings (27.4% per year) are forecast to grow faster than the US market (15% per year).

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

Revenue vs Market: ALEX's revenue (4.9% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: ALEX's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has Alexander & Baldwin performed over the past 5 years?

-28.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALEX has a large one-off gain of $3.8M impacting its March 31 2021 financial results.

Growing Profit Margin: ALEX became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ALEX's earnings have declined by 28.2% per year over the past 5 years.

Accelerating Growth: ALEX has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ALEX has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (-8.8%).


Return on Equity

High ROE: ALEX's Return on Equity (0.9%) is considered low.


Financial Health

How is Alexander & Baldwin's financial position?


Financial Position Analysis

Short Term Liabilities: ALEX's short term assets ($201.4M) exceed its short term liabilities ($106.2M).

Long Term Liabilities: ALEX's short term assets ($201.4M) do not cover its long term liabilities ($779.4M).


Debt to Equity History and Analysis

Debt Level: ALEX's debt to equity ratio (58.9%) is considered high.

Reducing Debt: ALEX's debt to equity ratio has increased from 55.7% to 58.9% over the past 5 years.

Debt Coverage: ALEX's debt is not well covered by operating cash flow (9.9%).

Interest Coverage: ALEX's interest payments on its debt are not well covered by EBIT (1.2x coverage).


Balance Sheet


Dividend

What is Alexander & Baldwin current dividend yield, its reliability and sustainability?

3.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ALEX's dividend (3.44%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: ALEX's dividend (3.44%) is low compared to the top 25% of dividend payers in the US market (3.56%).


Stability and Growth of Payments

Stable Dividend: ALEX has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: ALEX's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45%), ALEX's dividend payments are 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?

3.5yrs

Average management tenure


CEO

Chris Benjamin (58 yo)

5.5yrs

Tenure

US$3,470,755

Compensation

Mr. Christopher J. Benjamin, also known as Chris, has been the President of Alexander & Baldwin, Inc., since June 2012 and has been its Chief Executive Officer since January 1, 2016. Mr. Benjamin served as...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD3.47M) is about average for companies of similar size in the US market ($USD3.72M).

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


Leadership Team

Experienced Management: ALEX's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: ALEX's board of directors are considered experienced (3.1 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Alexander & Baldwin, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Alexander & Baldwin, Inc.
  • Ticker: ALEX
  • Exchange: NYSE
  • Founded: 1870
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: US$1.348b
  • Shares outstanding: 72.47m
  • Website: https://www.alexanderbaldwin.com

Number of Employees


Location

  • Alexander & Baldwin, Inc.
  • 822 Bishop Street
  • Post Office Box 3440
  • Honolulu
  • Hawaii
  • 96801
  • United States

Listings


Biography

Alexander & Baldwin, Inc. ("A&B") is Hawai'i's premier commercial real estate company and the largest owner of grocery-anchored, neighborhood shopping centers in the state. A&B owns, operates and manages a...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/24 23:22
End of Day Share Price2021/07/23 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.