Kaiser Aluminum: Long-Term Play At A Very Decent Valuation

Sep. 12, 2022 11:05 AM ETKaiser Aluminum Corporation (KALU) StockKALU

Summary

  • Founded in 1946 and previously part of Kaiser Aluminum and Chemicals Corporation, Kaiser Aluminum is an aluminum producer based in the United States.
  • Once the free cash flow commences to accelerate, and expected synergies are realized, perhaps the debt would decrease. As a result, Kaiser Aluminum may acquire new targets.
  • If management successfully reduces its total amount of debt, the cost of capital may decline, which may lead to stock appreciation.

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Kaiser Aluminum Corporation (NASDAQ:KALU) recently signed a large acquisition, and reported more than double digit sales growth. In my view, further research and development and the use of lean manufacturing would imply higher stock valuations. Besides, assuming expectations from management about the company's

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I am a hedge fund analyst based in Romania. I love DCF models. I started trading at 13, and also traded for one large institution. I write investment research to help retail investors.Note that I don't give financial advice. Nothing contained in my articles should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.Feel free to reach out to me, via comments, on any questions you may have on my financial models.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of KALU either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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