Fact based stock research
Kaiser Aluminum (NasdaqGS:KALU)
US4830077040
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Kaiser Aluminum stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 37 (worse than 63% compared with investment alternatives), Kaiser Aluminum (Aluminum, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Kaiser Aluminum are a good value (attractively priced) with a consolidated Value Rank of 76 (better than 76% of alternatives) but show below-average growth (Growth Rank of 41), and are riskily financed (Safety Rank of 24), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 37, is a hold recommendation based on Kaiser Aluminum's financial characteristics. As the company Kaiser Aluminum's key financial metrics exhibit good value (Obermatt Value Rank of 76) but low growth (Obermatt Growth Rank of 41) and risky financing practices (Obermatt Safety Rank of 24), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 76% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | USA |
| Industry | Aluminum |
| Index | Low Emissions, Dividends USA, Energy Efficient, NASDAQ |
| Size class | Large |
This stock has achievements: Top 10 Stock.
14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Kaiser Aluminum
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 48 |
|
51 |
|
65 |
|
76 |
|
| GROWTH | ||||||||
| GROWTH | 55 |
|
63 |
|
63 |
|
41 |
|
| SAFETY | ||||||||
| SAFETY | 26 |
|
40 |
|
18 |
|
24 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
6 |
|
37 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
15 |
|
34 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 37 (worse than 63% compared with investment alternatives), Kaiser Aluminum (Aluminum, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Kaiser Aluminum are a good value (attractively priced) with a consolidated Value Rank of 76 (better than 76% of alternatives) but show below-average growth (Growth Rank of 41), and are riskily financed (Safety Rank of 24), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 37, is a hold recommendation based on Kaiser Aluminum's financial characteristics. As the company Kaiser Aluminum's key financial metrics exhibit good value (Obermatt Value Rank of 76) but low growth (Obermatt Growth Rank of 41) and risky financing practices (Obermatt Safety Rank of 24), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 76% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 48 |
|
51 |
|
65 |
|
76 |
|
| GROWTH | ||||||||
| GROWTH | 55 |
|
63 |
|
63 |
|
41 |
|
| SAFETY | ||||||||
| SAFETY | 26 |
|
40 |
|
18 |
|
24 |
|
| COMBINED | ||||||||
| COMBINED | 28 |
|
51 |
|
42 |
|
37 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 76 (better than 76% compared with alternatives) for 2024, Kaiser Aluminum shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for Kaiser Aluminum. Price-to-Sales (P/S) is 91, which means that the stock price compared with what market professionals expect for future sales is lower than for 91% of comparable companies, indicating a good value concerning Kaiser Aluminum's revenue size. The same is valid for dividend yields with a Dividend Yield rank of 87, which means that dividends are expected to be higher than for 87% of comparable investments. On the other hand, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is less favorable than for 64% of alternatives (only 36% of peers have an even higher ratio). The same is valid for the Price-to-Profit (or Price / Earnings, P/E) ratio, which is higher than for 54% of comparable companies, making the stock more expensive compared with the company's expected profit levels. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 76, is a buy recommendation based on Kaiser Aluminum's stock price compared with the company's operational size and dividend yields. This is a somewhat surprising picture, because it means that profits are low while dividends are high. One interpretation could be that profits are expected to increase, justifying the high dividend payments. But it could also mean that the company desperately keeps the high dividends to avoid a collapsing share price. This would be a rather dangerous constellation. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 72 |
|
81 |
|
93 |
|
91 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 9 |
|
17 |
|
18 |
|
46 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 42 |
|
37 |
|
41 |
|
36 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 75 |
|
89 |
|
96 |
|
87 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 48 |
|
51 |
|
65 |
|
76 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 41 (better than 41% compared with alternatives), Kaiser Aluminum shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for Kaiser Aluminum. Sales Growth has a below market rank of 47, which means that, currently, professionals expect the company to grow less than 53% of its competitors. The same is valid for Capital Growth, with a rank of 24, and Profit Growth, with a rank of 41. Currently, professionals expect the company to grow its profits less than 59% of its competitors). Only shareholders are optimistic. Stock Returns are above average at a rank of 65, which means that the stock returns have recently been above 65% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 41, is a hold recommendation for growth and momentum investors. That picture may be the result for a company that has reached the bottom. All went south for Kaiser Aluminum, and it still looks bad, but some investors already see light at the end of the tunnel, rewarding the stock with recent above-market stock returns. It could also mean that investors are correcting an overreaction to negative news. If that were the case, the positive stock returns are not yet a sign of recovery. Investors should look closely at the Value and Sentiment indicators before they make a stock purchasing decision, because growth is unlikely to be the driving argument behind this investment. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is low here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 76 |
|
70 |
|
47 |
|
47 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 69 |
|
47 |
|
100 |
|
41 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
76 |
|
28 |
|
24 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 75 |
|
43 |
|
23 |
|
65 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 55 |
|
63 |
|
63 |
|
41 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 24 (better than 24% compared with alternatives), the company Kaiser Aluminum has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Kaiser Aluminum is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Kaiser Aluminum and the other two below average. Refinancing is at 85, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 85% of its competitors. But Leverage is high with a rank of 2, meaning the company has an above-average debt-to-equity ratio. It has more debt than 98% of its competitors. Liquidity is also on the riskier side with a rank of 26, meaning the company generates less profit to service its debt than 74% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 24 (worse than 76% compared with alternatives), Kaiser Aluminum has a financing structure that is significantly riskier than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Kaiser Aluminum are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with Kaiser Aluminum and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 17 |
|
17 |
|
2 |
|
2 |
|
| REFINANCING | ||||||||
| REFINANCING | 85 |
|
80 |
|
87 |
|
85 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 13 |
|
36 |
|
10 |
|
26 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 26 |
|
40 |
|
18 |
|
24 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
2 |
|
1 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
50 |
|
50 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
53 |
|
48 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
32 |
|
67 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
6 |
|
37 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Kaiser Aluminum from November 14, 2024.
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