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Kaiser Aluminum

Nasdaq:KALU
Snowflake Description

Established dividend payer with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
KALU
Nasdaq
$1B
Market Cap
  1. Home
  2. US
  3. Materials
Company description

Kaiser Aluminum Corporation manufactures and sells semi-fabricated specialty aluminum mill products. The last earnings update was 36 days ago. More info.


Add to Portfolio Compare Print
  • Kaiser Aluminum has significant price volatility in the past 3 months.
KALU Share Price and Events
7 Day Returns
9.8%
NasdaqGS:KALU
1%
US Metals and Mining
7.2%
US Market
1 Year Returns
-35.7%
NasdaqGS:KALU
-28.5%
US Metals and Mining
-10.4%
US Market
KALU Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Kaiser Aluminum (KALU) 9.8% -29.4% -37.8% -35.7% -11.1% -10.8%
US Metals and Mining 1% -17.6% -32.2% -28.5% -28.8% -11.5%
US Market 7.2% -12.6% -19.4% -10.4% 8.3% 21%
1 Year Return vs Industry and Market
  • KALU underperformed the Metals and Mining industry which returned -28.5% over the past year.
  • KALU underperformed the Market in United States of America which returned -10.4% over the past year.
Price Volatility
KALU
Industry
5yr Volatility vs Market

Value

 Is Kaiser Aluminum undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Kaiser Aluminum to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Kaiser Aluminum.

NasdaqGS:KALU Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:KALU
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 0.83
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.829 (1 + (1- 21%) (48.2%))
1.097
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (1.097 * 5.44%)
7.71%

Discounted Cash Flow Calculation for NasdaqGS:KALU using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Kaiser Aluminum is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:KALU DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.71%)
2020 19.00 Analyst x2 17.64
2021 84.00 Analyst x2 72.41
2022 73.00 Analyst x1 58.42
2023 66.79 Est @ -8.51% 49.62
2024 63.16 Est @ -5.43% 43.57
2025 61.09 Est @ -3.28% 39.12
2026 60.00 Est @ -1.77% 35.68
2027 59.57 Est @ -0.72% 32.89
2028 59.58 Est @ 0.02% 30.54
2029 59.90 Est @ 0.53% 28.50
Present value of next 10 years cash flows $408.00
NasdaqGS:KALU DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $59.90 × (1 + 1.74%) ÷ (7.71% – 1.74%)
$1,020.86
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,020.86 ÷ (1 + 7.71%)10
$485.76
NasdaqGS:KALU Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $408.00 + $485.76
$893.76
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $893.76 / 15.82
$56.49
NasdaqGS:KALU Discount to Share Price
Calculation Result
Value per share (USD) From above. $56.49
Current discount Discount to share price of $69.20
= -1 x ($69.20 - $56.49) / $56.49
-22.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Kaiser Aluminum is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Kaiser Aluminum's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Kaiser Aluminum's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:KALU PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $3.88
NasdaqGS:KALU Share Price ** NasdaqGS (2020-03-31) in USD $69.2
United States of America Metals and Mining Industry PE Ratio Median Figure of 35 Publicly-Listed Metals and Mining Companies 8.43x
United States of America Market PE Ratio Median Figure of 2,938 Publicly-Listed Companies 13.11x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Kaiser Aluminum.

NasdaqGS:KALU PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:KALU Share Price ÷ EPS (both in USD)

= 69.2 ÷ 3.88

17.85x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kaiser Aluminum is overvalued based on earnings compared to the US Metals and Mining industry average.
  • Kaiser Aluminum is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Kaiser Aluminum's expected growth come at a high price?
Raw Data
NasdaqGS:KALU PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 17.85x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
38.5%per year
United States of America Metals and Mining Industry PEG Ratio Median Figure of 22 Publicly-Listed Metals and Mining Companies -0.13x
United States of America Market PEG Ratio Median Figure of 2,007 Publicly-Listed Companies 1.01x

*Line of best fit is calculated by linear regression .

NasdaqGS:KALU PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 17.85x ÷ 38.5%

0.46x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kaiser Aluminum is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Kaiser Aluminum's assets?
Raw Data
NasdaqGS:KALU PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $46.27
NasdaqGS:KALU Share Price * NasdaqGS (2020-03-31) in USD $69.2
United States of America Metals and Mining Industry PB Ratio Median Figure of 105 Publicly-Listed Metals and Mining Companies 1.06x
United States of America Market PB Ratio Median Figure of 5,134 Publicly-Listed Companies 1.27x
NasdaqGS:KALU PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:KALU Share Price ÷ Book Value per Share (both in USD)

= 69.2 ÷ 46.27

1.5x

* Primary Listing of Kaiser Aluminum.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kaiser Aluminum is overvalued based on assets compared to the US Metals and Mining industry average.
X
Value checks
We assess Kaiser Aluminum's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. Kaiser Aluminum has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Kaiser Aluminum expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
38.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Kaiser Aluminum expected to grow at an attractive rate?
  • Kaiser Aluminum's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • Kaiser Aluminum's earnings growth is expected to exceed the United States of America market average.
  • Kaiser Aluminum's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:KALU Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:KALU Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 38.5%
NasdaqGS:KALU Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 2.3%
United States of America Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 8.6%
United States of America Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 3.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:KALU Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:KALU Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 1,614 1
2021-12-31 1,592 176 137 3
2020-12-31 1,523 150 112 4
2020-04-01
NasdaqGS:KALU Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 1,514 232 62
2019-09-30 1,535 192 96
2019-06-30 1,553 137 93
2019-03-31 1,593 147 94
2018-12-31 1,586 150 92
2018-09-30 1,550 123 53
2018-06-30 1,489 152 51
2018-03-31 1,430 164 35
2017-12-31 1,398 142 45
2017-09-30 1,376 190 85
2017-06-30 1,364 167 80
2017-03-31 1,343 148 101

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Kaiser Aluminum's earnings are expected to grow significantly at over 20% yearly.
  • Kaiser Aluminum's revenue is expected to grow by 2.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:KALU Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Kaiser Aluminum Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:KALU Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31 8.43 8.43 8.43 1.00
2020-12-31 6.89 7.08 6.70 2.00
2020-04-01
NasdaqGS:KALU Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 3.88
2019-09-30 5.97
2019-06-30 5.68
2019-03-31 5.72
2018-12-31 5.53
2018-09-30 3.17
2018-06-30 3.05
2018-03-31 2.09
2017-12-31 2.67
2017-09-30 4.94
2017-06-30 4.58
2017-03-31 5.73

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Kaiser Aluminum is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Kaiser Aluminum's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Kaiser Aluminum has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Kaiser Aluminum performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Kaiser Aluminum's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Kaiser Aluminum has delivered over 20% year on year earnings growth in the past 5 years.
  • Kaiser Aluminum's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Kaiser Aluminum's 1-year earnings growth is negative, it can't be compared to the US Metals and Mining industry average.
Earnings and Revenue History
Kaiser Aluminum's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Kaiser Aluminum Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:KALU Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 1,514.10 62.00 104.50
2019-09-30 1,534.80 96.20 104.00
2019-06-30 1,553.00 92.50 104.40
2019-03-31 1,593.10 94.00 103.50
2018-12-31 1,585.90 91.70 102.30
2018-09-30 1,549.60 52.90 102.30
2018-06-30 1,489.30 51.10 105.10
2018-03-31 1,430.20 35.10 103.40
2017-12-31 1,397.50 45.40 102.00
2017-09-30 1,376.30 85.10 104.80
2017-06-30 1,364.10 80.10 103.10
2017-03-31 1,342.70 101.40 105.20
2016-12-31 1,330.60 91.70 108.40
2016-09-30 1,315.30 80.50 103.00
2016-06-30 1,331.10 87.70 98.30
2016-03-31 1,363.40 81.90 95.30
2015-12-31 1,391.90 -236.60 91.70
2015-09-30 1,413.30 -234.30 84.50
2015-06-30 1,415.80 -240.50 75.80
2015-03-31 1,392.70 -236.20 66.30
2014-12-31 1,356.10 71.80 57.70
2014-09-30 1,329.40 83.50 55.90
2014-06-30 1,310.40 93.00 56.30
2014-03-31 1,295.20 87.10 56.50
2013-12-31 1,297.50 104.80 57.90
2013-09-30 1,300.20 86.60 59.50
2013-06-30 1,315.80 90.40 62.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Kaiser Aluminum has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Kaiser Aluminum used its assets less efficiently than the US Metals and Mining industry average last year based on Return on Assets.
  • Kaiser Aluminum's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Kaiser Aluminum's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Kaiser Aluminum has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Kaiser Aluminum's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Kaiser Aluminum's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Kaiser Aluminum's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Kaiser Aluminum Company Filings, last reported 3 months ago.

NasdaqGS:KALU Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 733.90 492.60 343.00
2019-09-30 751.40 371.10 197.40
2019-06-30 746.30 370.90 146.80
2019-03-31 747.90 370.60 137.60
2018-12-31 740.40 370.40 162.30
2018-09-30 762.50 370.20 182.70
2018-06-30 761.00 370.00 235.90
2018-03-31 753.60 369.80 218.80
2017-12-31 746.30 369.60 234.80
2017-09-30 783.60 369.40 265.30
2017-06-30 768.80 369.20 232.80
2017-03-31 798.60 368.90 229.90
2016-12-31 804.70 368.70 286.20
2016-09-30 814.10 368.50 273.90
2016-06-30 808.30 368.20 267.30
2016-03-31 787.80 194.80 80.70
2015-12-31 774.40 194.60 102.50
2015-09-30 772.30 218.90 112.60
2015-06-30 758.80 225.00 84.30
2015-03-31 754.30 400.00 250.90
2014-12-31 1,015.90 397.50 291.70
2014-09-30 1,100.70 395.20 312.40
2014-06-30 1,093.70 392.90 301.40
2014-03-31 1,082.30 390.70 290.10
2013-12-31 1,084.20 388.50 299.00
2013-09-30 1,095.10 386.40 340.50
2013-06-30 1,076.80 384.30 329.00
  • Kaiser Aluminum's level of debt (67.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (39.2% vs 67.1% today).
  • Debt is well covered by operating cash flow (47.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.1x coverage).
X
Financial health checks
We assess Kaiser Aluminum's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Kaiser Aluminum has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.87%
Current annual income from Kaiser Aluminum dividends. Estimated to be 3.9% next year.
If you bought $2,000 of Kaiser Aluminum shares you are expected to receive $77 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Kaiser Aluminum's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.95%).
  • Kaiser Aluminum's dividend is below the markets top 25% of dividend payers in United States of America (5.4%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:KALU Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
United States of America Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 31 Stocks 3.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1946 Stocks 2.9%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.9%
United States of America Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:KALU Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 2.68 1.00
2021-12-31 2.73 3.00
2020-12-31 2.66 3.00
2020-04-01
NasdaqGS:KALU Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-01-14 2.680 3.029
2019-10-15 2.400 2.212
2019-07-15 2.400 2.537
2019-04-15 2.400 2.516
2019-01-15 2.400 2.315
2018-10-15 2.200 2.335
2018-07-16 2.200 2.030
2018-04-16 2.200 2.067
2018-01-16 2.200 2.081
2017-10-12 2.000 1.984
2017-07-17 2.000 2.036
2017-04-17 2.000 2.360
2017-01-17 2.000 2.525
2016-10-14 1.800 2.278
2016-07-15 1.800 2.126
2016-04-15 1.800 2.034
2016-01-15 1.800 2.272
2015-10-13 1.600 1.936
2015-07-14 1.600 1.920
2015-04-16 1.600 1.948
2015-01-13 1.600 2.160
2014-10-24 1.400 1.955
2014-07-15 1.400 1.825
2014-04-15 1.400 1.979
2014-01-14 1.400 1.990
2013-10-15 1.200 1.766
2013-07-15 1.200 1.744
2013-04-15 1.200 1.908
2013-01-16 1.200 1.916
2012-10-15 1.000 1.651
2012-07-12 1.000 1.782
2012-04-16 1.000 1.999
2012-01-13 1.000 2.037
2011-10-11 0.960 2.098
2011-07-14 0.960 1.950
2011-04-07 0.960 1.899
2011-01-12 0.960 1.961
2010-10-11 0.960 2.017
2010-07-15 0.960 2.397
2010-04-12 0.960 2.556
2010-01-15 0.960 2.617
2009-10-13 0.960 2.357
2009-07-16 0.960 2.740
2009-04-14 0.960 3.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Kaiser Aluminum's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.3x coverage).
X
Income/ dividend checks
We assess Kaiser Aluminum's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Kaiser Aluminum afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Kaiser Aluminum has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jack Hockema
COMPENSATION $5,413,871
AGE 72
TENURE AS CEO 18.5 years
CEO Bio

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 Officer of DCO Management, LLC (formerly, Kaiser Aluminum & Chemical Corporation) since October 2001 and served as its President from October 2001 to December 2015. He served as an Executive Vice President of Kaiser Aluminum Corporation from May 2000 to October 2001 and President of Kaiser Aluminum Fabricated Products from January 2000 to October 2001. He was responsible for sales and manufacturing operations for DCO Management, LLC's Engineered Products business unit and the Flat-Rolled Products business unit. He served as Vice President of Kaiser Aluminum Corporation from May 1997 to May 2000 and served as its President from October 2001 to January 2016. Mr. Hockema served as Vice President of DCO Management, LLC and President of Kaiser Engineered Products from March 1997 to January 2000. He served as President of Kaiser Extruded Products and Engineered Components from September 1996 to March 1997. Since 1982, Mr. Hockema served as Vice President and General Manager of Bohn Extruded Products, a division of Gulf+Western and served as Group Vice President of American Brass Specialty Products until June 1992. From June 1992 to September 1996, he provided consulting and investment advisory services to individuals and companies in the metals industry. Mr. Hockema serves as Member of the Board of Trustees at The Conference Board, Inc. Prior to joining Kaiser in 1995, he served as the Principal in a metals industry management consulting and investment advisory firm. He served as Plant Manager of former Union City, California, can plant and as Operations Manager for Kaiser Extruded Products. He served as a Consultant to DCO Management, LLC and served as an Acting President of Kaiser Engineered Components from September 1995 to September 1996. Mr. Hockema served as Chairman of DCO Management, LLC, from 1977 to 1982 and worked at its Trentwood facility. He served as the Chairman of DCO Management, LLC since July 2006 and also since October 2001. He has been a Director of Kaiser Aluminum Corporation since October 2001. He was an Independent Director of Superior Industries International, Inc. since December 2, 2014 until 2018. He served as a Director of DCO Management, LLC since October 2001. He served as a Director of Metals Service Center Institute. He served as a Director of Clearwater Paper Corporation from December 16, 2008 to June 30, 2009. He holds a Master of Science degree in Industrial Management and a Bachelor of Science degree in Civil Engineering, both from Purdue University.

CEO Compensation
  • Jack's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Jack's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Kaiser Aluminum management team in years:

3
Average Tenure
59.5
Average Age
  • The tenure for the Kaiser Aluminum management team is about average.
Management Team

Jack Hockema

TITLE
Chairman & CEO
COMPENSATION
$5M
AGE
72
TENURE
18.5 yrs

Keith Harvey

TITLE
President & COO
COMPENSATION
$3M
AGE
59
TENURE
4.3 yrs

John Donnan

TITLE
Executive Vice President of Legal
COMPENSATION
$2M
AGE
58
TENURE
7.8 yrs

Neal West

TITLE
Senior VP & CFO
AGE
60
TENURE
1.2 yrs

Jennifer Huey

TITLE
VP & Chief Accounting Officer
AGE
38
TENURE
1.1 yrs

Melinda Ellsworth

TITLE
Vice President of Investor Relations & Corporate Communications
AGE
60
TENURE
4.8 yrs

Ray Parkinson

TITLE
Senior Vice President of Advanced Engineering
AGE
60
TENURE
0.2 yrs

Cherrie Tsai

TITLE
VP, Corporate Secretary & Deputy General Counsel

Courtney R. Lynn

TITLE
VP & Treasurer
AGE
37
TENURE
1.7 yrs
Board of Directors Tenure

Average tenure and age of the Kaiser Aluminum board of directors in years:

10.8
Average Tenure
66.5
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.
Board of Directors

Jack Hockema

TITLE
Chairman & CEO
COMPENSATION
$5M
AGE
72
TENURE
13.8 yrs

Thomas Van Leeuwen

TITLE
Independent Director
COMPENSATION
$211K
AGE
62
TENURE
13.8 yrs

Alfred Osborne

TITLE
Lead Independent Director
COMPENSATION
$216K
AGE
75

Lauralee Martin

TITLE
Independent Director
COMPENSATION
$212K
AGE
68
TENURE
9.6 yrs

Brett Wilcox

TITLE
Independent Director
COMPENSATION
$205K
AGE
65
TENURE
13.8 yrs

Carolyn Bartholomew

TITLE
Independent Director
COMPENSATION
$191K
AGE
61
TENURE
12.8 yrs

David Foster

TITLE
Independent Director
COMPENSATION
$188K
AGE
71
TENURE
10.8 yrs

Pat Hassey

TITLE
Independent Director
COMPENSATION
$191K
AGE
73
TENURE
5.6 yrs

Emily Liggett

TITLE
Independent Director
COMPENSATION
$178K
AGE
64
TENURE
1.8 yrs

Teresa Sebastian

TITLE
Independent Director
AGE
61
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
06. Nov 19 Sell Raymond Parkinson Individual 04. Nov 19 04. Nov 19 -2,594 $109.42 $-283,824
31. Oct 19 Sell Mark Krouse Individual 30. Oct 19 31. Oct 19 -2,283 $108.26 $-246,694
30. Oct 19 Sell Raymond Parkinson Individual 28. Oct 19 28. Oct 19 -1,400 $108.61 $-152,053
30. Oct 19 Sell Brett Wilcox Individual 28. Oct 19 28. Oct 19 -4,000 $108.45 $-433,800
15. Aug 19 Sell Carolyn Bartholomew Individual 13. Aug 19 13. Aug 19 -1,000 $95.00 $-95,000
15. May 19 Sell Mark Krouse Individual 13. May 19 13. May 19 -1,100 $93.44 $-102,782
X
Management checks
We assess Kaiser Aluminum's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Kaiser Aluminum has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Does Kaiser Aluminum Corporation's (NASDAQ:KALU) CEO Salary Compare Well With Others?

See our latest analysis for Kaiser Aluminum How Does Jack Hockema's Compensation Compare With Similar Sized Companies? … Our data indicates that Kaiser Aluminum Corporation is worth US$1.4b, and total annual CEO compensation is US$5.4m. … We compared total CEO remuneration at Kaiser Aluminum Corporation with the amount paid at companies with a similar market capitalization.

Simply Wall St -

Is There An Opportunity With Kaiser Aluminum Corporation's (NASDAQ:KALU) 38% Undervaluation?

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Kaiser Aluminum Corporation (NASDAQ:KALU) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. … Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) forecast 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF ($, Millions) $121.3m $148.0m $160.0m $164.0m $168.2m $172.6m $177.1m $181.8m $186.7m $191.8m Growth Rate Estimate Source Analyst x3 Analyst x1 Analyst x1 Analyst x1 Est @ 2.55% Est @ 2.6% Est @ 2.64% Est @ 2.67% Est @ 2.69% Est @ 2.7% Present Value ($, Millions) Discounted @ 9.49% $110.8 $123.5 $121.9 $114.1 $106.9 $100.2 $93.9 $88.1 $82.6 $77.5 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= $1.0b The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$192m × (1 + 2.7%) ÷ (9.5% – 2.7%) = US$2.9b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$2.9b ÷ ( 1 + 9.5%)10 = $1.18b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $2.20b.

Simply Wall St -

Read This Before Buying Kaiser Aluminum Corporation (NASDAQ:KALU) Shares

For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.' Check out our latest analysis for Kaiser Aluminum The Last 12 Months Of Insider Transactions At Kaiser Aluminum In the last twelve months, the biggest single sale by an insider was when the VP of Investor Relations & Corporate Communications, Melinda Ellsworth, sold US$105k worth of shares at a price of US$95.36 per share. … NasdaqGS:KALU Recent Insider Trading, August 17th 2019 Kaiser Aluminum Insiders Are Selling The Stock Over the last three months, we've seen significant insider selling at Kaiser Aluminum. … An insider sold Kaiser Aluminum shares recently, but they didn't buy any.

Simply Wall St -

Introducing Kaiser Aluminum (NASDAQ:KALU), The Stock That Dropped 18% In The Last Year

For example, the Kaiser Aluminum Corporation (NASDAQ:KALU) share price is down 18% in the last year. … Even though the Kaiser Aluminum share price is down over the year, its EPS actually improved. … Its history of dividend payouts mean that Kaiser Aluminum's TSR, which was a 16% drop over the last year, was not as bad as the share price return.

Simply Wall St -

Kaiser Aluminum Corporation (NASDAQ:KALU) Has A ROE Of 12%

View our latest analysis for Kaiser Aluminum How Do I Calculate Return On Equity? … The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Kaiser Aluminum: 12% = US$93m ÷ US$746m (Based on the trailing twelve months to June 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Combining Kaiser Aluminum's Debt And Its 12% Return On Equity While Kaiser Aluminum does have some debt, with debt to equity of just 0.51, we wouldn't say debt is excessive.

Simply Wall St -

Be Sure To Check Out Kaiser Aluminum Corporation (NASDAQ:KALU) Before It Goes Ex-Dividend

Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Kaiser Aluminum Corporation (NASDAQ:KALU) is about to go ex-dividend in just 4 days. … We'd take that over an earnings decline any day, but in the long run, the best dividend stocks all grow their earnings per share. … We would prefer to see earnings growing faster, but the best dividend stocks over the long term typically combine strong earnings per share growth with a low payout ratio, and Kaiser Aluminum is halfway there.

Simply Wall St -

What Should We Expect From Kaiser Aluminum Corporation's (NASDAQ:KALU) Earnings In The Year Ahead?

See our latest analysis for Kaiser Aluminum Can we expect Kaiser Aluminum to keep growing? … I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of KALU's earnings growth over these next few years. … NasdaqGS:KALU Past and Future Earnings, July 16th 2019 This results in an annual growth rate of 5.6% based on the most recent earnings level of US$92m to the final forecast of US$124m by 2022.

Simply Wall St -

Is Kaiser Aluminum Corporation (NASDAQ:KALU) Potentially Underrated?

If you're interested in understanding beyond my broad commentary, take a look at the report on Kaiser Aluminum here. … NasdaqGS:KALU Historical Dividend Yield, June 27th 2019 Next Steps: For Kaiser Aluminum, I've put together three essential aspects you should further research: Future Outlook: What are well-informed industry analysts predicting for KALU’s future growth? … Take a look at our free research report of analyst consensus for KALU’s outlook.

Simply Wall St -

Are You An Income Investor? Don't Miss Out On Kaiser Aluminum Corporation (NASDAQ:KALU)

Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. … Dividend Growth Potential While dividend payments have been relatively reliable, it would also be nice if earnings per share (EPS) were growing, as this is essential to maintaining the dividend's purchasing power over the long term. … Conclusion To summarise, shareholders should always check that Kaiser Aluminum's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend.

Simply Wall St -

Why Kaiser Aluminum Corporation’s (NASDAQ:KALU) Return On Capital Employed Is Impressive

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Kaiser Aluminum: 0.12 = US$145m ÷ (US$1.4b - US$204m) (Based on the trailing twelve months to March 2019.) So, Kaiser Aluminum has an ROCE of 12%. … Kaiser Aluminum's Current Liabilities And Their Impact On Its ROCE Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. … Current liabilities are minimal, limiting the impact on ROCE.

Simply Wall St -

Company Info

Description

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 defense, automotive, consumer durables, electronics, electrical, and machinery and equipment applications. Its aerospace and high strength products include heat treat plates and sheets, hard alloy extruded shapes, cold finish rods and bars, seamless drawn tubes, and billets for aerospace and defense industries. The company’s automotive extrusions include extruded aluminum products for structural components, crash management systems, anti-lock braking systems, and drawn tubes for drive shafts, as well as offers fabrication services, including sawing and cutting to length. Its general engineering products comprise alloy plate, sheet, rod, bar, tube, wire, and standard extrusion shapes used in various applications, including the production of military vehicles, ordnances, semiconductor manufacturing cells, electronic devices, after-market motor sport parts, tooling plates, parts for machinery and equipment, bolts, screws, nails, and rivets. The company also offers extruded, drawn, and cast billet aluminum products for industrial end uses. It sells its products directly to customers through sales personnel located in the United States, Canada, Western Europe, and China, as well as through independent sales agents in other regions of Asia, Latin America, and the Middle East. Kaiser Aluminum Corporation was founded in 1946 and is based in Foothill Ranch, California.

Details
Name: Kaiser Aluminum Corporation
KALU
Exchange: NasdaqGS
Founded: 1946
$1,096,120,517
15,821,601
Website: http://www.kaiseraluminum.com
Address: Kaiser Aluminum Corporation
27422 Portola Parkway,
Suite 200,
Foothill Ranch,
California, 92610-2831,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS KALU New Common Stock Nasdaq Global Select US USD 15. Jun 2006
DB KLU1 New Common Stock Deutsche Boerse AG DE EUR 15. Jun 2006
Number of employees
Current staff
Staff numbers
2,820
Kaiser Aluminum employees.
Industry
Aluminum
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/01 01:37
End of day share price update: 2020/03/31 00:00
Last estimates confirmation: 2020/03/13
Last earnings filing: 2020/02/25
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.