NYSE:ALEX

Stock Analysis Report

Executive Summary

Alexander & Baldwin, Inc. is Hawai'i's premier commercial real estate company and the state's foremost owner of grocery-anchored retail centers.

Rewards

Trading at 36.1% below its fair value

Earnings are forecast to grow 87.32% per year

Risk Analysis

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Fair value with moderate growth potential.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.2%

ALEX

-0.7%

US REITs

-0.3%

US Market


1 Year Return

6.3%

ALEX

12.2%

US REITs

18.6%

US Market

Return vs Industry: ALEX underperformed the US REITs industry which returned 12.2% over the past year.

Return vs Market: ALEX underperformed the US Market which returned 18.6% over the past year.


Shareholder returns

ALEXIndustryMarket
7 Day-3.2%-0.7%-0.3%
30 Day-8.6%0.6%2.2%
90 Day-8.8%-0.8%5.6%
1 Year9.5%6.3%17.0%12.2%21.1%18.6%
3 Year-26.9%-54.4%35.2%18.3%45.6%36.2%
5 Year-5.9%-41.9%56.0%23.8%71.1%52.2%

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?

36.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ALEX ($20.98) is trading below our estimate of fair value ($32.84)

Significantly Below Fair Value: ALEX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ALEX is unprofitable, so we can't compare its PE Ratio to the REITs industry average.

PE vs Market: ALEX is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ALEX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ALEX is good value based on its PB Ratio (1.3x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

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

87.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALEX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: ALEX is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ALEX's is expected to become profitable in the next 3 years.

Revenue vs Market: ALEX's revenue is expected to decline over the next 3 years (-7.1% per year).

High Growth Revenue: ALEX's revenue is forecast to decline over the next 3 years (-7.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ALEX's Return on Equity is forecast to be low in 3 years time (5.6%).


Next Steps

Past Performance

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

-8.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALEX is currently unprofitable.

Growing Profit Margin: ALEX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ALEX is unprofitable, and losses have increased over the past 5 years at a rate of -8.5% per year.

Accelerating Growth: Unable to compare ALEX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ALEX is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (8.3%).


Return on Equity

High ROE: ALEX has a negative Return on Equity (-15.66%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Alexander & Baldwin's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: ALEX has a high level of physical assets or inventory.

Debt Coverage by Assets: ALEX's debt is not covered by short term assets (assets are 0.3x debt).


Financial Institutions Analysis

Asset Level: ALEX's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if ALEX has a sufficient allowance for bad loans.

Low Risk Liabilities: ALEX reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if ALEX has an acceptable proportion of non-loan assets held.

Low Risk Deposits: ALEX has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if ALEX has an appropriate level of bad loans.


Next Steps

Dividend

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

3.62%

Current Dividend Yield


Dividend Yield vs Market

company3.6%marketbottom25%1.4%markettop25%3.7%industryaverage3.7%forecastin3Years3.8%

Current dividend yield vs market & industry

Notable Dividend: ALEX's dividend (3.62%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: ALEX's dividend (3.62%) is low compared to the top 25% of dividend payers in the US market (3.7%).


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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (9.6%), ALEX's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ALEX's dividends in 3 years are forecast to be thoroughly covered by earnings (1.3% payout ratio).


Next Steps

Management

What is the CEO of Alexander & Baldwin's salary, the management and board of directors tenure and is there insider trading?

2.2yrs

Average management tenure


CEO

Chris Benjamin (56yo)

3.9yrs

Tenure

US$3,479,433

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD3.48M) is about average for companies of similar size in the US market ($USD3.87M).

Compensation vs Earnings: Chris's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

2.2yrs

Average Tenure

56yo

Average Age

Experienced Management: ALEX's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

7.5yrs

Average Tenure

64yo

Average Age

Experienced Board: ALEX's board of directors are considered experienced (7.5 years average tenure).


Insider Trading

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 been diluted in the past year, with total shares outstanding growing by 10.9%.


Management Team

  • Meredith Ching (62yo)

    Executive Vice President of External Affairs

    • Tenure: 12.5yrs
    • Compensation: US$771.66k
  • Chris Benjamin (56yo)

    President

    • Tenure: 3.9yrs
    • Compensation: US$3.48m
  • Diana Laing (64yo)

    Interim Executive VP & Director

    • Tenure: 0.7yrs
    • Compensation: US$597.86k
  • Nelson N. Chun (66yo)

    Executive VP & Chief Legal Officer

    • Tenure: 7.5yrs
    • Compensation: US$881.24k
  • Brett Brown (54yo)

    Executive VP & CFO

    • Tenure: 0.6yrs
  • Lance Parker (45yo)

    Executive VP & Chief Real Estate Officer

    • Tenure: 2.2yrs
    • Compensation: US$1.37m
  • Clayton Chun (40yo)

    Senior VP

    • Tenure: 1.9yrs
  • Jeff Pauker

    Senior Vice President of Investments

    • Tenure: 1.9yrs
  • Suzy Hollinger

    Vice President of Investor Relations

    • Tenure: 7.9yrs
  • Francisco Gutierrez

    Senior Vice President of Development

    • Tenure: 1.3yrs

Board Members

  • Wilton Doane (71yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: US$157.25k
  • Stan Kuriyama (65yo)

    Chairman

    • Tenure: 7.5yrs
    • Compensation: US$221.50k
  • Tom Lewis (66yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$154.25k
  • Doug Pasquale (64yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$193.60k
  • Eric Yeaman (51yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: US$157.25k
  • Chris Benjamin (56yo)

    President

    • Tenure: 3.9yrs
    • Compensation: US$3.48m
  • Diana Laing (64yo)

    Interim Executive VP & Director

    • Tenure: 0.7yrs
    • Compensation: US$597.86k
  • Bob Harrison (59yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$160.25k
  • Michele Saito (59yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$165.95k

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$1.524b
  • Shares outstanding: 72.26m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALEXNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 2012
ABUDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2012

Biography

Alexander & Baldwin, Inc. is Hawai'i's premier commercial real estate company and the state's foremost owner of grocery-anchored retail centers. A&B is a fully integrated real estate investment trust and o ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 00:22
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
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.