Investment Thesis
Alexander & Baldwin demonstrates solid financial fundamentals with strong profitability margins (38.7% operating, 31.3% net) and conservative leverage (0.50x debt/equity). However, concerning revenue decline of 12.7% YoY and modest FCF margin of 13.2% suggest operational headwinds that warrant caution despite healthy balance sheet metrics.
ALEX Strengths
- Strong operating margins (38.7%) and net margins (31.3%) indicate efficient cost management
- Conservative capital structure with 0.50x debt/equity ratio and 14.5x interest coverage providing financial flexibility
- Positive free cash flow generation of $27.3M with healthy operating cash flow of $79.5M
- Solid balance sheet with stockholders equity of $987.2M and manageable debt burden
ALEX Risks
- Significant revenue contraction of 12.7% YoY raises concerns about business segment performance and market conditions
- Low cash position of only $11.3M relative to $1.7B assets may limit operational flexibility
- Modest ROE of 6.6% and ROA of 3.9% suggest limited returns on deployed capital
- FCF margin of 13.2% is relatively thin for a REIT, indicating limited cash generation relative to revenue
Key Metrics to Watch
- Revenue stabilization and growth trajectory to reverse YoY decline
- Free cash flow sustainability and dividend coverage ratios
- Operating margin maintenance amid revenue headwinds
ALEX Financial Metrics
ALEX Profitability Ratios
ALEX Balance Sheet & Liquidity
ALEX 5-Year Financial Trend
5-Year Trend Summary: Alexander & Baldwin, Inc.'s revenue has declined by 46% over the 5-year period, indicating business contraction. The most recent EPS of $0.41 reflects profitable operations.
ALEX Growth Metrics (YoY)
ALEX Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $50.2M | $14.3M | $0.20 |
| Q2 2025 | $51.0M | $9.1M | $0.13 |
| Q1 2025 | $53.7M | $20.0M | $0.28 |
| Q3 2024 | $52.5M | $14.6M | $0.20 |
| Q2 2024 | $51.0M | $9.1M | $0.13 |
| Q1 2024 | $50.4M | $5.3M | $0.07 |
| Q3 2023 | $49.4M | $6.4M | $0.09 |
| Q2 2023 | $51.1M | $4.1M | $0.05 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ALEX Capital Allocation
ALEX SEC Filings
Access official SEC EDGAR filings for Alexander & Baldwin, Inc. (CIK: 0001545654)