Kaiser Aluminum is a leading producer of semi-fabricated specialty aluminum products, serving customers worldwide with highly-engineered solutions for aerospace and high-strength, general engineering, and custom automotive and industrial applications. The company was founded in 1946 and is based in Foothill Ranch, California.
KALU Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for KALU, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Kaiser Aluminum Corp ranked in the 77th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 496.17% on a DCF basis. The most interesting components of our discounted cash flow analysis for Kaiser Aluminum Corp ended up being:
The company's balance sheet shows it gets 49% of its capital from equity, and 51% of its capital from debt. Its equity weight surpasses that of just 21.32% of free cash flow generating stocks in the Basic Materials sector.
The business' balance sheet reveals debt to be 51% of the company's capital (with equity being the remaining amount). Approximately 71.92% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Kaiser Aluminum Corp's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 20.85% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Kaiser Aluminum Corp? See WMS, CNR, FF, LEU, and WLKP.
Kaiser Aluminum Corporation (KALU) Q2 2020 Earnings Conference Call July 23, 2020, 01:00 PM ET Company Participants Melinda Ellsworth - VP, IR and Corporate Communications Jack Hockema - CEO and Chairman Keith Harvey - President and COO Neal West - SVP and CFO Conference Call Participants Josh Sullivan - Benchmark...
Ladies and gentlemen, thank you for standing by, and welcome to the Kaiser Aluminum Second Quarter 2020 Earnings Conference Call. If you have not seen a copy of our earnings release, please visit the Investor Relations page on our website at kaiseraluminum.com. Joining me on the call today are Chief Executive Officer and Chairman, Jack Hockema; President and Chief Operating Officer, Keith Harvey; Senior Vice President and Chief Financial Officer, Neal West; and Vice President and Chief Accounting Officer, Jennifer Huey.
Shares of Kaiser Aluminum (NASDAQ:KALU) fell 1.47% in after-market trading after the company reported Q2 results.Quarterly Results Earnings per share decreased 74.29% year over year to $0.36, which beat the estimate of ($0.04).Revenue of $275,700,000 declined by 26.54% from the same period last year, which beat the estimate of $263,900,000.Looking Ahead Earnings guidance hasn't been issued by the company for now.View more earnings on KALUKaiser Aluminum hasn't issued any revenue guidance for the time being.Technicals 52-week high: $117.06Company's 52-week low was at $54.54Price action over last quarter: down 1.59%Company Description Kaiser Aluminum Corp produces and sells semi-fabricated specialty aluminum products primarily to industrial customers. The firm purchases primar...