Kaiser Aluminum (KALU) AI Stock Analysis

• Market Cap: $1.19B
• Dividend Yield: 4.17%
• Average Volume (3M): 138.48K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 1.78
• Revenue Growth: 4.62%
• EPS Growth: 56.04%
• Country: US
• Employees: 3,900
• Sector: Basic Materials
• Sector Strength: 53
• Industry: Aluminum
• EPS (TTM): 1.21
• Shares Outstanding: 16,177,956
• 10 Day Avg. Volume: 164,404
• 30 Day Avg. Volume: 138,481
• 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: 2.02
• Enterprise Value/Revenue: 0.77
• Enterprise Value/Gross Profit: 7.30
• Enterprise Value/Ebitda: 9.66
• 1Y Price Target: $82.00
• Price Target Upside: 11.04% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: $79.00 ▲(6.97%Upside)

Kaiser Aluminum's overall score reflects stable financial performance and valuation, but is tempered by weak technical indicators and cash flow challenges. The positive earnings call guidance supports the score, though operational delays and revised cash flow projections present risks. The relatively high dividend yield provides a buffer, making it attractive for income-focused investors.

Positive Factors

Automotive Market

Confidence for the full year stems from a focus on high-demand SUV and light truck platforms and new programs, positioning Kaiser to outperform the overall market.

Product Expansion

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.

Automotive Tariffs

Kaiser's automotive exposure is vulnerable to potential tariffs and increased uncertainty.

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 engages in manufacture and sale of semi-fabricated specialty aluminum mill products in the United States and internationally. The company offers rolled, extruded, and drawn aluminum products used for aerospace and defense, aluminum beverage and food packaging, automotive and general engineering products. 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 packaging products consist of bare and coated 3000- and 5000-series alloy aluminum coil used for beverage and food packaging industry; and 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. In addition, it offers rerolled, 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. The company was founded in 1946 and is headquartered in Foothill Ranch, California.

How the Company Makes Money

Kaiser Aluminum generates revenue primarily through the production and sale of semi-fabricated aluminum products. The company's main revenue streams include the sale of rolled aluminum products, such as sheet and plate, and extruded aluminum products, including rods, bars, and tubes. These products are sold directly to manufacturers in the aerospace, automotive, and industrial sectors, who use them to create finished goods. The company's earnings are bolstered by strategic partnerships with key customers and suppliers, enabling it to secure long-term contracts and maintain a steady demand for its products. Additionally, Kaiser Aluminum benefits from its strong operational efficiency and ability to innovate, which help in sustaining its competitive edge and profitability in the market.

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: Negative
• Last Price: 73.85
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KALU, the sentiment is Negative. The current price of 73.85 is below the 20-day moving average (MA) of 85.32, below the 50-day MA of 79.80, and above the 200-day MA of 71.60, indicating a neutral trend. The MACD of -0.57 indicates Positive momentum. The RSI at 30.90 is Neutral, neither overbought nor oversold. The STOCH value of 3.99 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KALU.

Kaiser Aluminum Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AA	70 Outperform	$7.35B	7.28	20.01%	1.41%	21.32%	―
CENX	70 Outperform	$1.91B	18.05	18.03%	―	11.42%	-49.21%
KALU	65 Neutral	$1.19B	18.97	8.89%	4.17%	4.62%	56.04%
CSTM	61 Neutral	$1.84B	68.75	3.02%	―	2.52%	-83.35%
NEXA	59 Neutral	$618.49M	―	-16.64%	2.17%	12.30%	42.72%
RDUS	55 Neutral	$847.73M	―	-17.65%	2.50%	4.13%	62.89%
Sector *	44 Neutral	C$842.44M	-6.68	-16.47%	2.80%	16.34%	-27.11%

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.

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 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.

The most recent analyst rating on (KALU) stock is a Hold with a $80.00 price target. To see the full list of analyst forecasts on Kaiser Aluminum stock, see the KALU Stock Forecast page.

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.

The most recent analyst rating on (KALU) stock is a Hold with a $80.00 price target. To see the full list of analyst forecasts on Kaiser Aluminum stock, see the KALU Stock Forecast page.