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Alexander & Baldwin (ALEX)
NYSE:ALEX
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Alexander & Baldwin
(NYSE:ALEX)
Rating:70Outperform
Price Target:
$19.50
▲(7.91%Upside)
Positive Factors
Business Model
Alexander & Baldwin continues to benefit from a more streamlined business model, the portfolio are supported by commercial real estate land limitations, while the balance sheet is positioned to accommodate growth.
Market Position
ALEX continues to leverage its dominant market position to source off-market deals that are complementary to the portfolio, supplementing its steady portfolio growth.
Market Trends
Market trends generally favorable, with its unique position as the dominant landlord in Hawaii, the company continues to be a benefactor of market trends, which remain generally favorable relative to the mainland.
Negative Factors
NOI Growth
Same-store NOI growth came in at 2.9%, decelerating both from the prior quarter and the prior year.
Stock Performance
Shares lack an upside catalyst.
Alexander & Baldwin (ALEX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.31B
Dividend Yield4.99%
Average Volume (3M)409.15K
Price to Earnings (P/E)21.1
Beta (1Y)0.49
Revenue Growth4.31%
EPS Growth39.56%
CountryUS
Employees96
SectorReal Estate
Sector Strength63
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.29
Shares Outstanding72,711,540
10 Day Avg. Volume352,041
30 Day Avg. Volume409,152
Financial Highlights & Ratios
PEG Ratio17.23
Price to Book (P/B)1.26
Price to Sales (P/S)0.00
P/FCF Ratio22.42
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$21.50Price Target Upside18.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Alexander & Baldwin Business Overview & Revenue Model
Company DescriptionAlexander & Baldwin (ALEX) is a premier real estate and land assets company headquartered in Hawaii. The company focuses primarily on commercial real estate, land operations, and materials and construction management. With a rich history dating back to its founding in 1870, Alexander & Baldwin operates primarily across the Hawaiian Islands, delivering value through strategic management and development of its diverse portfolio of assets.
How the Company Makes MoneyAlexander & Baldwin generates revenue through several key streams primarily centered around its real estate operations. The company's primary revenue source is its commercial real estate sector, where it earns income from leasing retail, industrial, and office properties. Additionally, Alexander & Baldwin capitalizes on its land operations by selling parcels of land and engaging in development projects. Its materials and construction management segment contributes to revenue through the sale of construction materials such as aggregates, as well as providing paving and other construction-related services. Significant partnerships with local businesses and government entities further enhance its earnings potential by facilitating development projects and ensuring steady demand for its services.
Alexander & Baldwin Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q1-2025)
| % Change Since: 8.14%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Positive
The earnings call was generally positive, with strong financial performance, improvements in leasing metrics, and strategic asset management activities. However, the company remains cautious due to macroeconomic uncertainty and potential impacts from tariffs and lease contingencies.Q1-2025 Updates
Positive Updates
CRE Portfolio Performance Improvement
Same-store NOI grew by 4.2% for the quarter, with leased occupancy at Kakaako Commerce Center up to 95.6% from 83.2% last quarter.
Successful Ground Lease and Strategic Investment
Transferred a five-acre lot at Maui Business Park into the ground lease portfolio, signing a seventy-five-year lease with a self-storage developer, contributing nearly a penny to 2025 FFO.
Increase in Total FFO Guidance
Raised total company FFO guidance to a range of $1.17 to $1.23 per share, reflecting better-than-expected first-quarter land operations results.
Strong Financial Performance
First-quarter CRE and corporate FFO per share was 30¢, reflecting an 11.1% increase when normalized for the prior year's adjustments.
Robust Leasing Activity
Executed 42 leases representing approximately 237,000 square feet of GLA and $5.6 million of ABR, with strong blended leasing spreads at 10.2%.
Negative Updates
Macro Economic Uncertainty
Maintained guidance for same-store NOI and CRE-related FFO due to macroeconomic uncertainty affecting the market.
Potential Contingency Risks
Leased 75% of the exposed industrial vacancy, but the tenant has a contingency in the lease which could affect occupancy if unresolved.
Tariff and Construction Cost Concerns
Concerns about tariff impacts on construction costs, with steel prices already seeing an 8% increase.
Company Guidance
In the first quarter of 2025, Alexander & Baldwin, Inc. reported strong financial performance, surpassing expectations and achieving several key priorities. The company's commercial real estate (CRE) portfolio showed impressive growth, with same-store net operating income (NOI) increasing by 4.2%, and leased occupancy rising to 95.4%, an 80 basis point improvement sequentially. Economic occupancy also improved to 93.9%, marking a 100 basis point increase from the previous quarter. The company executed 42 leases, covering approximately 237,000 square feet of gross leasable area (GLA) and generating $5.6 million in annualized base rent (ABR). Financially, the CRE portfolio generated $33.2 million in NOI, reflecting a 4.6% increase from the previous year, while funds from operations (FFO) per share from CRE and corporate activities grew by 11.1% to $0.30 when adjusted for prior-year adjustments. Total FFO for the quarter was $0.36 per share, driven by $0.06 from land operations, including $2.2 million from agricultural land sales. The company raised its total FFO guidance to $1.17-$1.23 per share, though it maintained its CRE and corporate-related FFO guidance, citing macroeconomic uncertainties. Overall, Alexander & Baldwin, Inc. demonstrated solid operational performance and prudent financial management in the face of market challenges.Alexander & Baldwin Financial Statement Overview
Summary
Alexander & Baldwin demonstrates robust financial health with strong profitability and improving cash flow metrics. The zero-debt position in the latest period enhances its financial flexibility. While revenue trends show some past fluctuations, the company appears well-positioned for stable growth, supported by efficient operations and solid equity backing.Income Statement
Alexander & Baldwin's income statement reveals solid profitability, with a consistent gross profit margin around 60% and improved net profit margin, reaching 27.04% in TTM. The company shows positive revenue growth over several years, although recent fluctuations indicate variability. Strong EBIT and EBITDA margins underscore operational efficiency.75
Positive
Balance Sheet
The balance sheet indicates financial stability with no debt in the TTM period, enhancing the debt-to-equity ratio. A robust equity ratio of 60.97% in TTM signifies strong shareholder backing, although previous periods showed significant leverage. Return on Equity is healthy at 6.17% in TTM, reflecting effective utilization of equity.70
Positive
Cash Flow
Cash flow analysis highlights a positive trend in free cash flow, with significant growth in recent periods. The operating cash flow to net income ratio is stable, indicating effective cash generation relative to income. Free cash flow to net income ratio is strong, though slightly volatile, reflecting good cash conversion but with room for improvement.65
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 229.18M | 236.64M | 208.90M | 230.50M | 379.30M | 305.30M | Gross Profit |
| 112.27M | 107.65M | 102.30M | 131.80M | 125.20M | 71.80M | EBIT |
| 86.78M | 79.77M | 64.60M | 80.10M | 62.10M | 29.70M | EBITDA |
| 119.38M | 126.01M | 100.60M | 100.70M | 137.00M | 79.70M | Net Income Common Stockholders |
| 61.99M | 60.54M | 29.80M | -49.50M | 17.20M | 5.60M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 15.92M | 33.44M | 13.50M | 33.30M | 70.00M | 57.20M | Total Assets |
| 1.64B | 1.67B | 1.65B | 1.79B | 1.88B | 2.04B | Total Debt |
| 457.57M | 474.84M | 465.10M | 477.10M | 552.10M | 705.50M | Net Debt |
| 441.65M | 441.40M | 451.60M | 443.80M | 482.10M | 648.30M | Total Liabilities |
| 629.96M | 666.89M | 643.20M | 743.60M | 806.30M | 939.90M | Stockholders Equity |
| 1.01B | 1.00B | 1.00B | 1.04B | 1.07B | 1.10B |
| Cash Flow | Free Cash Flow | ||||
| 56.73M | 47.21M | 35.90M | 12.30M | 70.70M | 38.00M | Operating Cash Flow |
| 107.93M | 97.99M | 67.10M | 34.00M | 124.20M | 63.10M | Investing Cash Flow |
| -28.23M | -16.11M | 7.10M | 44.60M | 96.50M | 12.00M | Financing Cash Flow |
| -78.06M | -61.96M | -94.90M | -115.20M | -207.10M | -33.10M |
Alexander & Baldwin Technical Analysis
Positive
18.07
Price Trends
17.18
Positive
17.36
Positive
17.91
Positive
Market Momentum
0.21
Negative
65.16
Neutral
90.92
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALEX, the sentiment is Positive. The current price of 18.07 is above the 20-day moving average (MA) of 17.64, above the 50-day MA of 17.18, and above the 200-day MA of 17.91, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 65.16 is Neutral, neither overbought nor oversold. The STOCH value of 90.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALEX.
Alexander & Baldwin Risk Analysis
Alexander & Baldwin disclosed 44 risk factors in its most recent earnings report. Alexander & Baldwin reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
There are risks relating to investments in real estate that could adversely affect our financial condition, cash flows, results of operations, and ability to satisfy our debt service obligations and make distributions to our shareholders. Q4, 2024
2.
Instability in the financial industry could negatively impact our ability to sell our real estate holdings. Q4, 2024
3.
We may need to incur additional indebtedness, in the future, which could adversely affect our business, financial condition, and ability to make distributions to our stockholders. Q4, 2024
Alexander & Baldwin Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.24B | 15.26 | 6.74% | 6.70% | 12.64% | 49.11% | |
70 Outperform | $1.31B | 21.09 | 6.47% | 4.99% | 4.31% | 39.56% | |
69 Neutral | $1.33B | 26.01 | 5.44% | 1.77% | 1.41% | 3.11% | |
67 Neutral | $708.41M | 122.63 | 3.05% | 10.80% | -12.13% | -14.54% | |
63 Neutral | $1.07B | 10.07 | 4.51% | 4.75% | 1.54% | ― | |
61 Neutral | $2.82B | 10.84 | 0.42% | 8439.00% | 5.74% | -20.95% | |
56 Neutral | $1.71B | ― | -13.01% | 13.23% | 16.69% | 39.04% |
* Real Estate Sector Average
Performance Comparison
ALEX
Alexander & Baldwin
18.07
2.05
12.80%
SAFE
Safehold
15.29
-3.04
-16.58%
ESRT
Empire State Realty
7.94
-1.26
-13.70%
AHH
Armada Hoffler Properties
7.00
-3.34
-32.30%
AAT
American Assets
20.24
-0.57
-2.74%
GNL
Global Net Lease
7.57
0.93
14.01%
Alexander & Baldwin Corporate Events
Shareholder MeetingsBusiness Operations and StrategyFinancial Disclosures
Alexander & Baldwin Reports Strong Q1 2025 Results
Positive
Apr 24, 2025
On April 22, 2025, Alexander & Baldwin held its Annual Meeting of Shareholders, where six directors were elected, executive compensation was approved, and Deloitte & Touche LLP was ratified as the independent accounting firm. The company decided to hold annual advisory votes on executive compensation. On April 24, 2025, Alexander & Baldwin reported its first quarter 2025 results, showing a net income of $21.4 million and a CRE operating profit of $23.4 million. The company achieved a 4.2% growth in CRE Same-Store NOI and executed a 75-year ground lease at Maui Business Park, contributing to its strategic growth efforts.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.