📊 KALU Key Takeaways
Is Kaiser Aluminum Corp. (KALU) a Good Investment?
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.
Solid top-line growth and adequate interest coverage support stability, but profitability remains thin and free cash flow is negative despite positive earnings. Leverage is elevated with minimal cash, so sustained margin expansion and a turn to positive FCF are needed before a more constructive view.
Why Buy Kaiser Aluminum Corp. Stock? 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
- Double-digit revenue growth (+11.5% YoY)
- Healthy liquidity (current 2.95x; quick 1.26x)
- Adequate interest coverage (8.4x) and respectable ROE (13.6%)
KALU Stock Risks: Kaiser Aluminum Corp. Investment Risks
- 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
- Ultra-thin margins (gross 2.1%, operating 5.6%) leave little buffer
- Negative free cash flow driven by capex/working capital
- Elevated leverage (Debt/Equity 1.28x) with low cash balance
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
- Free cash flow and FCF margin
- Gross and operating margin trajectory
Kaiser Aluminum Corp. (KALU) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.95x current ratio provides a solid financial cushion.
KALU Profit Margin, ROE & Profitability Analysis
KALU vs Materials Sector: How Kaiser Aluminum Corp. Compares
How Kaiser Aluminum Corp. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Kaiser Aluminum Corp. Stock Overvalued? KALU Valuation Analysis 2026
Based on fundamental analysis, Kaiser Aluminum Corp. shows some fundamental concerns relative to the Materials 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.
Kaiser Aluminum Corp. Balance Sheet: KALU Debt, Cash & Liquidity
KALU Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
KALU Quarterly Earnings & 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.
Kaiser Aluminum Corp. Dividends, Buybacks & Capital Allocation
KALU SEC Filings: Latest 10-K & 10-Q 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 a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 67% combined 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. ChatGPT: Double-digit revenue growth (+11.5% YoY). Healthy liquidity (current 2.95x; quick 1.26x).
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. ChatGPT: Ultra-thin margins (gross 2.1%, operating 5.6%) leave little buffer. Negative free cash flow driven by capex/working capital.
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 67% 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: 14%), net margin of 3.3% (sector avg: 10%). 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 Materials stocks?
Vs Materials sector averages: Net margin 3.3% (avg: 10%), ROE 13.6% (avg: 14%), current ratio 2.95 (avg: 1.6).