Kaiser Aluminum Corporation Common Stock (KALU)

FairStock Score: 55/100 — STEADY

Key Financials

Strengths

• Solid return on equity of 14.3% above cost of capital
• Revenue growth of 21.4% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($88) with negative 90% margin of safety—limited downside protection
• Weak Piotroski F-Score of 3/9 suggests deteriorating financial quality across multiple dimensions

AI Analysis

Kaiser Aluminum Corporation Common Stock is a small-cap basic materials company valued at $2.7 billion. The business generates $3.4 billion in annual revenue with a 1.9% net margin. From a quality standpoint, Kaiser shows weak Piotroski F-Score of 3/9 signaling deteriorating fundamentals and Altman Z-Score of 1.8 in the grey zone. On valuation, the stock is reasonably priced at 24.4x earnings, with trades above its Graham Number with a negative 90% margin. Growth dynamics show revenue growing at 21.4% and profit growth of 297.2%. The 1.9% dividend yield adds an income component for patient holders. Our composite FairStock Score of 55/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Kaiser's 21% revenue growth trajectory could accelerate as it captures additional market share in the basic materials sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the basic materials space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer