Kaiser Aluminum Corp (KALU) Stock Analysis
Verdict: HOLD
Successive triple-digit earnings beats drive momentum, but negative free cash flow and insider selling at $173 signal a valuation ceiling.
Investment score: 62/100
Analysis as of
Is Kaiser Aluminum Corp stock worth reviewing? The TradeMates thesis
KALU is currently a story of operational excellence vs. structural balance sheet weakness. While packaging and aerospace volume are driving massive EPS beats, the company remains FCF negative with high leverage. The model suggests holding to capture remaining momentum but warns against new entries at this valuation.
7-factor investment score
- Valuation: 45/100 (weight 20%)
- Financial Health: 50/100 (weight 15%)
- Technical Momentum: 85/100 (weight 15%)
- Earnings Quality: 90/100 (weight 15%)
- Insider Sentiment: 20/100 (weight 10%)
- Analyst Consensus: 40/100 (weight 10%)
- Risk-Adjusted Return: 60/100 (weight 15%)
Kaiser Aluminum Corp opportunities and risks
What speaks for KALU
- Exceptional Earnings Momentum
What speaks against KALU
- Persistent Cash Burn & Capex Demands
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| KALU | 13.0x | 0.7x | 9.5x | 4.2% | 1.6% | -0.6% |
| AA | 9.2x | 0.9x | 6.4x | 18.8% | 9.4% | 3.0% |
| CENX | 12.9x | 1.8x | 10.6x | 12.7% | 13.7% | 0.6% |
| TG | 9.2x | 0.4x | 5.1x | 14.5% | 3.9% | 7.6% |
| BORK | n/a | 0.0x | n/a | 0.0% | 0.0% | -705.8% |
| ORMTQ | 0.0x | 0.0x | 2.0x | 8.6% | 20.6% | -2540996.8% |
| Peer median | 9.2x | 0.4x | 5.1x | 12.7% | 9.4% | 0.6% |
Frequently asked questions about Kaiser Aluminum Corp (KALU)
Is KALU stock a good investment?
The TradeMates model rates Kaiser Aluminum Corp as HOLD with an investment score of 62/100. KALU is currently a story of operational excellence vs. structural balance sheet weakness. While packaging and aerospace volume are driving massive EPS beats, the company remains FCF negative with high leverage. The model suggests holding to capture remaining momentum but warns against new entries at this valuation. This is algorithmic model output, not personal investment advice.
Is KALU stock a buy?
The TradeMates model verdict for KALU is HOLD with an investment score of 62/100. Treat this as a model signal to review, not a personal buy recommendation.