| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $1,514 | $1,173 | $2,622 | $3,428 | $3,087 | $3,024 |
| Operating Margins | 8% | 7% | 2% | 0% | 3% | 3% |
| Net Margins | 4% | 2% | -1% | -1% | 2% | 2% |
| Net Income (M) | $62 | $29 | -$18 | -$30 | $47 | $47 |
| Net Interest Expense (M) | -$25 | $41 | $50 | $48 | $47 | $40 |
| Depreciation & Amort. (M) | $46 | $49 | $82 | $98 | $103 | $112 |
| Diluted Shares (M) | 16 | 16 | 16 | 16 | 16 | 16 |
| Earnings Per Share | $3.83 | $1.81 | -$1.17 | -$1.86 | $2.92 | $2.87 |
| EPS Growth | n/a | -52.74% | -164.64% | -58.97% | 256.99% | -1.71% |
| Avg. Price | $87.78 | $68.92 | $105.74 | $89.91 | $71.19 | $114.39 |
| P/E Ratio | 22.62 | 37.87 | -90.38 | -48.34 | 24.13 | 39.31 |
| Free Cash Flow (M) | $172 | $155 | $21 | -$206 | $69 | -$14 |
| CAPEX (M) | $60 | $52 | $58 | $142 | $143 | $181 |
| EV / EBITDA | 9.54 | 8.82 | 16.37 | 23.69 | 10.51 | 14.3 |
| Total Debt (M) | $493 | $838 | $1,036 | $1,038 | $1,040 | $1,042 |
| Net Debt / EBITDA | 1.33 | 0.44 | 4.99 | 9.65 | 4.81 | 5.13 |
| Current Ratio | 4.58 | 7.08 | 2.64 | 2.49 | 2.68 | 2.68 |
Kaiser Aluminum Corporation's stock may be overvalued due to several factors. The company's PEG ratio of 2.05 suggests that the market may be overvaluing its growth potential, as a PEG ratio above 2 is generally considered high. Furthermore, Kaiser Aluminum has experienced a decline in earnings per share over the last 6 years, with an annualized growth rate of -4.7%. This is a concerning trend for potential investors.
In terms of profitability, Kaiser Aluminum's operating margins are 2.9%, which is significantly lower than the industry average of 11.55%. This indicates that the company may be less efficient in generating profits compared to its peers in the Metal Fabrication industry.
However, there are some positive aspects to consider. Kaiser Aluminum has shown strong revenue growth, with a 17.6% annualized growth rate, reaching $3.02 billion in revenues. The company also has a healthy current ratio of 2.68, indicating that its current assets far exceed its current liabilities. Additionally, Kaiser Aluminum has a track record of paying dividends over the last 13 years, with a current yield of 2.7%.
From a valuation perspective, Kaiser Aluminum's P/E ratio of 22.1 is lower than the Industrials sector average of 24.03 and the S&P 500 average of 29.3. The company's forward P/E ratio of 15.6, based on earnings guidance, suggests that the stock may be undervalued relative to its future earnings potential. Furthermore, Kaiser Aluminum's Price to Book Ratio of 2.27 is lower than the sector average of 2.89, indicating that the stock may be attractively priced in terms of its book value.
On the downside, the company's free cash flows have shown a compounded average growth rate of -41.0% over the last 5 years, which raises concerns about its ability to generate cash. Additionally, Kaiser Aluminum has a highly leveraged balance sheet, with a Net Debt / EBITDA ratio of 5.13, indicating a significant level of debt relative to its earnings.
