📊 KALU Key Takeaways
Is KALU a Good Investment? Thesis Analysis
Kaiser Aluminum faces significant structural challenges as a commodity nonferrous metals processor with extremely thin 2.1% gross margins and negative free cash flow of -$25.5M despite $111.4M operating cash flow. The company cannot fund $136.9M in required capex from operations and maintains dangerously low cash reserves of $7.0M against $1.1B debt, creating financial inflexibility and vulnerability to market disruptions.
Why Buy KALU? Key Strengths
- Revenue growing solidly at 11.5% YoY in nonferrous metals sector
- Positive operating cash flow of $111.4M demonstrates underlying operational viability
- Strong interest coverage ratio of 8.4x indicates ability to service debt obligations
- Reasonable ROE of 13.6% and current ratio of 2.95x provide near-term financial stability
KALU Investment Risks to Consider
- Negative free cash flow of -$25.5M creates unsustainable capital structure reliant on debt financing
- Critically thin gross margin of 2.1% indicates zero pricing power and vulnerability to raw material cost shocks
- Severely depleted cash position of $7.0M relative to $3.4B revenue and high capex creates liquidity risk
- Flat net income despite 11.5% revenue growth signals deteriorating unit economics and operational leverage failure
Key Metrics to Watch
- Free cash flow trend and cash conversion rate from operating cash flow
- Gross margin trajectory - any further compression is critical warning signal
- Cash balance absolute level and debt refinancing requirements
- Capital expenditure sustainability relative to operating cash generation
KALU Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.95x current ratio provides a solid financial cushion.
KALU Profitability Ratios
KALU vs Default Sector
How KAISER ALUMINUM CORP compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is KALU Overvalued or Undervalued?
Based on fundamental analysis, KAISER ALUMINUM CORP shows some fundamental concerns relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
KALU Balance Sheet & Liquidity
KALU 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: KAISER ALUMINUM CORP's revenue has grown significantly by 29% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.21 reflects profitable operations.
KALU Growth Metrics (YoY)
KALU Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $747.7M | $8.8M | $0.54 |
| Q2 2025 | $773.4M | $18.2M | $1.15 |
| Q1 2025 | $737.5M | $18.2M | $1.12 |
| Q3 2024 | $743.6M | $3.1M | $0.34 |
| Q2 2024 | $773.4M | $3.1M | $0.19 |
| Q1 2024 | $737.5M | $15.9M | $0.99 |
| Q3 2023 | $743.6M | $2.5M | $0.16 |
| Q2 2023 | $814.1M | -$5.7M | $-0.36 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
KALU Capital Allocation
KALU SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for KAISER ALUMINUM CORP (CIK: 0000811596)
📋 Recent SEC Filings
❓ Frequently Asked Questions about KALU
What is the AI rating for KALU?
KAISER ALUMINUM CORP (KALU) has an AI rating of SELL with 68% confidence, based on fundamental analysis of SEC EDGAR filings.
What are KALU's key strengths?
Claude: Revenue growing solidly at 11.5% YoY in nonferrous metals sector. Positive operating cash flow of $111.4M demonstrates underlying operational viability.
What are the risks of investing in KALU?
Claude: Negative free cash flow of -$25.5M creates unsustainable capital structure reliant on debt financing. Critically thin gross margin of 2.1% indicates zero pricing power and vulnerability to raw material cost shocks.
What is KALU's revenue and growth?
KAISER ALUMINUM CORP reported revenue of $3.4B.
Does KALU pay dividends?
KAISER ALUMINUM CORP pays dividends, with $51.3M distributed to shareholders in the trailing twelve months.
Where can I find KALU SEC filings?
Official SEC filings for KAISER ALUMINUM CORP (CIK: 0000811596) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KALU's EPS?
KAISER ALUMINUM CORP has a diluted EPS of $6.77.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is KALU a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, KAISER ALUMINUM CORP has a SELL rating with 68% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is KALU stock overvalued or undervalued?
Valuation metrics for KALU: ROE of 13.6% (sector avg: 15%), net margin of 3.3% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy KALU stock in 2026?
Our dual AI analysis gives KAISER ALUMINUM CORP a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is KALU's free cash flow?
KAISER ALUMINUM CORP's operating cash flow is $111.4M, with capital expenditures of $136.9M. FCF margin is -0.8%.
How does KALU compare to other Default stocks?
Vs Default sector averages: Net margin 3.3% (avg: 12%), ROE 13.6% (avg: 15%), current ratio 2.95 (avg: 1.8).