Kaiser Aluminum (KALU) AI Stock Analysis

• Market Cap: $1.28B
• Dividend Yield: 3.91%
• Average Volume (3M): 127.28K
• Price to Earnings (P/E): 20.2
• Beta (1Y): 1.81
• Revenue Growth: 4.62%
• EPS Growth: 56.04%
• Country: US
• Employees: 3,900
• Sector: Basic Materials
• Sector Strength: 65
• Industry: Aluminum
• EPS (TTM): 1.21
• Shares Outstanding: 16,177,956
• 10 Day Avg. Volume: 91,752
• 30 Day Avg. Volume: 127,278
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.88
• Enterprise Value/Revenue: 0.77
• Enterprise Value/Gross Profit: 7.30
• Enterprise Value/Ebitda: 9.66
• 1Y Price Target: $82.50
• Price Target Upside: 4.83% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 69 Neutral
• Price Target: $83.00 ▲(5.46% Upside)

Kaiser Aluminum's overall stock score reflects stable financial performance and a reasonable valuation, offset by technical challenges and mixed earnings call results. The company's strong balance sheet and attractive dividend yield are key strengths, while cash flow issues and operational challenges present risks.

Positive Factors

Automotive Performance

Automotive conversion revenue increased due to an improved mix of higher value-added products, with a focus on high-demand SUV and light truck platforms positioning Kaiser to outperform the overall market.

Product Development

The new Warrick roll coat line is set to open, supporting a 20%-25% year-over-year increase in conversion revenue.

Trade Policies

Kaiser is benefiting from trade policies, providing a favorable environment for domestic supply.

Negative Factors

Aerospace Segment

Aerospace revenue declined due to short-term disruptions in aircraft OEM supply chains.

Economic Uncertainty

Broader economic uncertainty has led to a more cautious outlook on demand.

Price Target Reduction

The price target for Kaiser Aluminum has been reduced from $100 to $74, indicating a less optimistic outlook.

Kaiser Aluminum Business Overview & Revenue Model

Company Description

Kaiser Aluminum Corporation (KALU) is a leading manufacturer of fabricated aluminum products, primarily serving the aerospace, automotive, and industrial sectors. The company specializes in producing high-strength aluminum extrusions and fabricated aluminum products, including plate, sheet, and other custom solutions. With a focus on innovation and quality, Kaiser Aluminum operates multiple facilities across North America, leveraging advanced technologies to meet the diverse needs of its customers.

How the Company Makes Money

Kaiser Aluminum generates revenue through the sale of its aluminum products across various industries, including aerospace, automotive, and general industrial applications. The company’s main revenue streams include the production and sale of aluminum extrusions, plates, sheets, and engineered products. Kaiser Aluminum often engages in long-term contracts with major clients, securing steady income and reducing volatility in revenue. Additionally, partnerships with key players in the aerospace and automotive sectors enhance its market presence and contribute to consistent earnings. The company’s focus on customer-driven solutions and continuous innovation further supports its financial performance, allowing it to capture value in niche markets and adapt to changing industry demands.

Kaiser Aluminum Financial Statement Overview

Summary

Kaiser Aluminum demonstrates stable financial performance with steady revenue growth and modest profitability margins. Despite a strong equity base and low leverage, the company faces challenges in cash flow generation, primarily due to significant capital expenditures. Overall, financial stability is present, but improvements in cash flow management are needed.

Income Statement

Kaiser Aluminum shows a moderate financial performance with a gross profit margin of 9.67%, a net profit margin of 2.94%, and an EBIT margin of 3.82% in TTM (Trailing-Twelve-Months). The revenue growth rate over the past year is 2.96%, indicating stable but slow growth. The EBITDA margin of 6.49% reflects moderate operational efficiency. Overall, while the profitability ratios are modest, the company maintains steady revenue growth, which is a positive indicator.

Balance Sheet

The company exhibits a debt-to-equity ratio of 0.03, showing low leverage and a strong equity base. The return on equity (ROE) of 11.81% in TTM is fairly healthy, indicating efficient use of equity. The equity ratio stands at 30.88%, suggesting a balanced capital structure. Despite the high total liabilities, the low debt-to-equity ratio mitigates the risk, demonstrating financial stability.

Cash Flow

Kaiser Aluminum faces challenges in cash flow generation with a negative free cash flow of -$67.8 million in TTM, although the operating cash flow to net income ratio is 0.84, showing some cash generation capability relative to net income. The free cash flow to net income ratio is negative due to significant capital expenditures, which may limit flexibility. The company needs to improve its cash flow management to enhance financial health.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.02B	3.09B	3.43B	2.62B	1.17B
Gross Profit	332.90M	332.10M	247.70M	273.90M	231.40M
EBITDA	223.60M	211.80M	131.50M	151.00M	136.60M
Net Income	46.80M	47.20M	-29.60M	-18.50M	28.80M
Balance Sheet
Total Assets	2.31B	2.27B	2.29B	2.42B	1.86B
Cash, Cash Equivalents and Short-Term Investments	18.40M	82.40M	57.40M	303.20M	780.30M
Total Debt	1.09B	1.08B	1.08B	1.09B	876.20M
Total Liabilities	1.65B	1.62B	1.66B	1.73B	1.13B
Stockholders Equity	668.00M	652.20M	631.20M	692.50M	732.40M
Cash Flow
Free Cash Flow	-13.70M	68.70M	-205.60M	21.40M	155.00M
Operating Cash Flow	167.10M	211.90M	-63.10M	79.40M	206.90M
Investing Cash Flow	-174.60M	-128.20M	-125.80M	-665.80M	26.90M
Financing Cash Flow	-55.30M	-54.30M	-56.80M	109.10M	281.90M

Kaiser Aluminum Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 78.70
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KALU, the sentiment is Positive. The current price of 78.7 is above the 20-day moving average (MA) of 75.46, below the 50-day MA of 80.11, and above the 200-day MA of 71.98, indicating a neutral trend. The MACD of -0.52 indicates Negative momentum. The RSI at 52.81 is Neutral, neither overbought nor oversold. The STOCH value of 77.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KALU.

Kaiser Aluminum Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AA	72 Outperform	$8.27B	8.16	20.01%	1.26%	21.32%	―
KALU	69 Neutral	$1.28B	20.19	8.89%	3.91%	4.62%	56.04%
CSTM	67 Neutral	$2.03B	75.72	3.02%	―	2.52%	-83.35%
CENX	66 Neutral	$2.09B	20.19	17.74%	―	15.39%	-47.91%
Sector *	61 Neutral	$10.31B	6.18	0.76%	2.94%	3.30%	-36.34%
RDUS	55 Neutral		―		―	4.13%	62.89%
NEXA	49 Neutral	$647.62M	―	-9.63%	2.13%	8.66%	66.06%

Kaiser Aluminum Corporate Events

Kaiser Aluminum Board Member Resigns Effective August 1

On July 28, 2025, Kevin W. Williams announced his resignation from the board of directors of Kaiser Aluminum Corporation, effective August 1, 2025. His departure was not due to any disagreements with the company. The board plans to fill the vacancy with a candidate possessing critical skills to support the company’s strategic execution and board succession planning.

Kaiser Aluminum Declares Quarterly Dividend Announcement

On July 15, 2025, Kaiser Aluminum Corporation announced a quarterly cash dividend of $0.77 per share, payable on August 15, 2025, to stockholders of record as of July 25, 2025. This announcement reflects the company’s ongoing commitment to providing shareholder value and may impact its financial strength and flexibility, considering various economic and business conditions affecting its diverse market segments.

Kaiser Aluminum Appoints Glenda J. Minor as Director

On June 10, 2025, Kaiser Aluminum Corporation appointed Glenda J. Minor as a director, recognizing her extensive financial and business expertise in relevant industries. Ms. Minor will serve as a Class II director until the 2026 annual meeting and will be part of the audit and compensation committees. The same day, the company held its 2025 Annual Meeting of Stockholders, where four Class I directors were elected for terms expiring in 2028, and the stockholders approved the executive compensation and ratified Deloitte & Touche LLP as the independent accounting firm for 2025.