Kaiser Aluminum (KALU) is a play on the growing demand for aluminum in the aerospace and automotive industries, but without exposure to the volatile (and now declining) price of aluminum. The aerospace and automotive industries are in cyclical uptrends and the amount of aluminum that goes into airplanes and cars is increasing. Because Kaiser Aluminum focuses on the downstream part of the aluminum industry, it does not have exposure to aluminum prices like upstream producers of aluminum. Kaiser Aluminum is trading at a low relative valuation, but has a solid financial position and strong balance sheet. In this article, I will analyze Kaiser Aluminum's growth prospects and valuation.
Kaiser's history dates back to 1946, when it...
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