Kaiser Aluminum (KALU) AI Stock Analysis

• Market Cap: $1.47B
• Dividend Yield: 3.4%
• Average Volume (3M): 172.68K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 1.77
• Revenue Growth: 7.69%
• EPS Growth: 91.86%
• Country: US
• Employees: 3,900
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Aluminum
• EPS (TTM): 1.86
• Shares Outstanding: 16,206,255
• 10 Day Avg. Volume: 300,762
• 30 Day Avg. Volume: 172,679
• PEG Ratio: -17.79
• Price to Book (P/B): 1.69
• Price to Sales (P/S): 0.37
• P/FCF Ratio: -82.42
• Enterprise Value/Market Cap: 1.59
• Enterprise Value/Revenue: 0.73
• Enterprise Value/Gross Profit: 6.94
• Enterprise Value/Ebitda: 8.17
• 1Y Price Target: $106.50
• Price Target Upside: 33.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: $107.00 ▲(34.17% Upside)

Kaiser Aluminum's stock is supported by strong technical momentum and a positive earnings call outlook. Financial performance shows improvement but is offset by high leverage and cash flow concerns. Valuation is reasonable but not exceptionally attractive.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Kaiser Aluminum's products across key sectors, supporting long-term business stability and market presence.

Strategic Investments

Strategic investments in capacity expansion enhance production capabilities, positioning Kaiser Aluminum for future growth and improved competitive advantage.

Improved Financial Metrics

Significant improvement in net income reflects enhanced operational efficiency and profitability, contributing to stronger financial health and shareholder value.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting Kaiser Aluminum's ability to invest in growth opportunities.

Negative Free Cash Flow

Negative free cash flow growth highlights cash constraints, which could affect the company's ability to fund operations and strategic initiatives without additional financing.

Aerospace Segment Challenges

Declines in aerospace revenue due to shipment reductions and outages may hinder growth in a key market segment, impacting overall revenue potential.

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 moderate profitability margins and steady revenue growth. The balance sheet shows low leverage and a strong equity position, contributing to financial stability. However, the cash flow position indicates challenges, with negative free cash flow and substantial capital expenditures, which need improvement.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.21B	3.02B	3.09B	3.43B	2.62B	1.17B
Gross Profit	336.90M	332.90M	332.10M	247.70M	273.90M	231.40M
EBITDA	286.30M	223.60M	211.80M	131.50M	151.00M	136.60M
Net Income	91.40M	46.80M	47.20M	-29.60M	-18.50M	28.80M
Balance Sheet
Total Assets	2.59B	2.31B	2.27B	2.29B	2.42B	1.86B
Cash, Cash Equivalents and Short-Term Investments	17.20M	18.40M	82.40M	57.40M	303.20M	780.30M
Total Debt	1.07B	1.09B	1.08B	1.08B	1.09B	876.20M
Total Liabilities	1.79B	1.65B	1.62B	1.66B	1.73B	1.13B
Stockholders Equity	806.10M	668.00M	652.20M	631.20M	692.50M	732.40M
Cash Flow
Free Cash Flow	-16.30M	-13.70M	68.70M	-205.60M	21.40M	155.00M
Operating Cash Flow	175.40M	167.10M	211.90M	-63.10M	79.40M	206.90M
Investing Cash Flow	-145.70M	-174.60M	-128.20M	-125.80M	-665.80M	26.90M
Financing Cash Flow	-56.70M	-55.30M	-54.30M	-56.80M	109.10M	281.90M

Kaiser Aluminum Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 79.75
• 50DMA: Positive
• 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 79.75 is below the 20-day moving average (MA) of 83.17, above the 50-day MA of 79.11, and above the 200-day MA of 72.60, indicating a bullish trend. The MACD of 3.96 indicates Negative momentum. The RSI at 61.61 is Neutral, neither overbought nor oversold. The STOCH value of 65.60 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	―	$9.53B	8.36	19.77%	1.12%	20.08%	―
KALU	―	$1.47B	16.35	12.41%	3.40%	7.69%	91.86%
MTAL	―	―	―	―	―	―	―
CENX	―	$2.76B	26.64	17.74%	―	15.39%	-47.91%
MTRN	―	$2.38B	124.64	2.08%	0.42%	3.93%	-73.94%
CSTM	―	$2.17B	19.57	12.22%	―	8.48%	12.10%
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Kaiser Aluminum Corporate Events

Kaiser Aluminum’s Earnings Call: Strong Growth Amid Challenges

Kaiser Aluminum’s recent earnings call reflected a balanced sentiment of robust operational performance and financial growth, juxtaposed with challenges in the aerospace and packaging sectors. Despite these hurdles, the outlook remains optimistic, buoyed by improved market demand and strategic investments nearing full capacity.

Kaiser Aluminum Amends Credit Agreement with Wells Fargo

On October 14, 2025, Kaiser Aluminum Corporation and its subsidiaries amended their Credit Agreement with Wells Fargo, extending the maturity date and modifying financial terms. This amendment allows for increased borrowing flexibility and potential debt restructuring, impacting the company’s financial strategy and operational capacity.

The most recent analyst rating on (KALU) stock is a Buy with a $88.00 price target. To see the full list of analyst forecasts on Kaiser Aluminum stock, see the KALU Stock Forecast page.

Kaiser Aluminum Announces Quarterly Cash Dividend

On October 14, 2025, Kaiser Aluminum Corporation announced a quarterly cash dividend of $0.77 per share, payable on November 14, 2025, to shareholders recorded by October 24, 2025. This decision reflects the company’s ongoing commitment to returning value to its shareholders and may impact its financial flexibility and future dividend decisions, considering various economic and industry factors.

The most recent analyst rating on (KALU) stock is a Buy with a $88.00 price target. To see the full list of analyst forecasts on Kaiser Aluminum stock, see the KALU Stock Forecast page.

Kaiser Aluminum Appoints James Hoffman as Director

On September 18, 2025, Kaiser Aluminum Corporation announced the appointment of James D. Hoffman as an independent director on its Board. Hoffman, with over 43 years of experience in the metals distribution and service center industries, previously served as CEO of Reliance, Inc. His extensive industry knowledge and leadership expertise are expected to significantly contribute to Kaiser’s strategic growth plans and long-term objectives.

The most recent analyst rating on (KALU) stock is a Hold with a $84.00 price target. To see the full list of analyst forecasts on Kaiser Aluminum stock, see the KALU Stock Forecast page.

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.

The most recent analyst rating on (KALU) stock is a Hold with a $82.00 price target. To see the full list of analyst forecasts on Kaiser Aluminum stock, see the KALU Stock Forecast page.

Kaiser Aluminum Exceeds Q2 Expectations Amid Challenges

Kaiser Aluminum’s recent earnings call presented a balanced view of their financial performance, highlighting both achievements and challenges. The company exceeded expectations for the second quarter, leading to an improved full-year EBITDA outlook. They demonstrated strong performance in their packaging and general engineering segments and maintained a robust liquidity position. However, the company faced setbacks with delays in the Warrick mill start-up, declines in aerospace and automotive revenues, and a downward revision of their free cash flow projection due to increased working capital requirements.