Core Viewpoint - The article emphasizes the importance of value investing and highlights Kaiser Aluminum (KALU) as a strong value stock based on its financial metrics and Zacks Rank [1][2][7] Company Overview - Kaiser Aluminum (KALU) currently holds a Zacks Rank of 1 (Strong Buy) and has a Value grade of A, indicating strong potential for value investors [4] - The stock has a Forward P/E ratio of 14.58, significantly lower than the industry average of 21.26, suggesting it may be undervalued [4] - Over the past 12 months, KALU's Forward P/E has fluctuated between a high of 26.64 and a low of 11.50, with a median of 14.12 [4] Valuation Metrics - KALU has a Price-to-Sales (P/S) ratio of 0.38, compared to the industry average of 0.81, indicating a favorable valuation [5] - The Price-to-Cash Flow (P/CF) ratio for KALU is 6.92, which is attractive when compared to the industry's average P/CF of 22.61 [6] - In the past year, KALU's P/CF has ranged from a high of 10.80 to a low of 4.85, with a median of 7.47 [6] Investment Outlook - The combination of KALU's strong earnings outlook and favorable valuation metrics suggests that the stock is likely undervalued at present [7]

Core Viewpoint - The U.S. stock market is experiencing volatility, with the S&P 500 declining 0.8% in April, marking its third consecutive monthly drop, while GDP shrank 0.3%, the first decline since early 2022. However, strong consumer spending and a stable job market indicate underlying confidence in the economy [1]. Group 1: Investment Strategy - In uncertain market conditions, a relative price strength strategy can help investors identify stocks that outperform their peers, thus staying aligned with market momentum [2]. - Stocks that show better performance than their industry or benchmark should be included in investment portfolios, as they are more likely to yield significant returns [4]. - It is essential to assess whether a stock has upside potential, particularly those that have outperformed the S&P 500 over the past 1 to 3 months and possess solid fundamentals [5]. Group 2: Screening Parameters - The screening criteria for identifying potential stocks include positive relative price changes over 12 weeks, 4 weeks, and 1 week, as well as positive current-quarter estimate revisions [7]. - Stocks must have a Zacks Rank of 1 (Strong Buy), a current price of at least $5, and an average 20-day trading volume of at least 50,000 to ensure adequate liquidity [8]. Group 3: Featured Stocks - **Kaiser Aluminum Corporation (KALU)**: Expected earnings growth of 66.1% for 2025, with a market cap of $1.1 billion. The Zacks Consensus Estimate for 2025 earnings has increased by 35.4% over the past 30 days, although shares have decreased by 29.3% in the past year [10][11]. - **Sprouts Farmers Market, Inc. (SFM)**: Anticipated earnings growth of 30.7% for 2025, with shares rising 131.9% in the past year. The company has consistently beaten earnings estimates, with a trailing four-quarter earnings surprise of approximately 16.5% [12][13]. - **BGC Group, Inc. (BGC)**: Projected EPS growth rate of 23.2% year-over-year for 2025, with a favorable expected growth rate of 24.7% over the next three to five years compared to the industry average of 13.8%. Shares have gained 7% in the past year [14][15]. - **ODDITY Tech Ltd. (ODD)**: Expected earnings growth of 3.1% for 2025, with shares increasing by 95.8% in the past year. The company has a trailing four-quarter earnings surprise of about 32.8% [16][17].

Core Viewpoint - The article emphasizes the importance of value investing and highlights Kaiser Aluminum (KALU) as a strong value stock based on its financial metrics and Zacks Rank [1][2][7]. Group 1: Value Investing - Value investing is a preferred strategy for identifying strong stocks, relying on traditional analysis of key valuation metrics to find undervalued stocks [2]. - Zacks has developed a Style Scores system to identify stocks with specific traits, particularly in the "Value" category, where stocks with "A" grades and high Zacks Ranks are considered strong [3]. Group 2: Kaiser Aluminum (KALU) Metrics - Kaiser Aluminum (KALU) has a Zacks Rank of 1 (Strong Buy) and a Value grade of A, indicating strong potential [4]. - KALU's P/E ratio is 15.87, significantly lower than the industry average of 20.36, suggesting it may be undervalued [4]. - The stock's Forward P/E has ranged from 11.50 to 26.64 over the past year, with a median of 14.31 [4]. - KALU's P/S ratio is 0.32, compared to the industry's average of 0.73, further indicating undervaluation [5]. - The P/CF ratio for KALU is 6.18, while the industry average is 19.95, reinforcing the notion of KALU being undervalued [6]. - Over the past 52 weeks, KALU's P/CF has fluctuated between 4.97 and 10.36, with a median of 7.32 [6]. - These financial metrics collectively suggest that KALU is likely undervalued and has a strong earnings outlook, making it an impressive value stock [7].

Group 1: Nomad Foods Limited - Nomad Foods Limited manufactures and distributes frozen foods primarily in the United Kingdom, Italy, Germany, Sweden, France, and Norway [1] - The company has a Zacks Rank 1 (Strong Buy) and has seen a 6.2% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Nomad Foods has a price-to-earnings ratio (P/E) of 9.36 compared to 21.15 for the S&P, and possesses a Value Score of A [2] Group 2: Yara International ASA - Yara International ASA is the world's leading supplier of mineral fertilizers, particularly strong in nitrogen-based fertilizers [2] - The company carries a Zacks Rank 1 and has experienced a 12% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Yara International has a price-to-earnings ratio (P/E) of 10.90 compared to 21.15 for the S&P, and also possesses a Value Score of A [3] Group 3: Kaiser Aluminum - Kaiser Aluminum is a leading producer of semi-fabricated specialty aluminum products, serving customers in aerospace, high-strength general engineering, and custom automotive and industrial applications [4] - The company holds a Zacks Rank 1 and has seen a 13% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [4] - Kaiser Aluminum has a price-to-earnings ratio (P/E) of 17.43 compared to 21.15 for the S&P, and possesses a Value Score of A [5]

Core Viewpoint - The article highlights three stocks with a buy rank and strong income characteristics, focusing on Kaiser Aluminum as a notable investment opportunity due to its recent earnings estimate increase [1] Company Summary - Kaiser Aluminum (KALU) is a leading producer of semi-fabricated specialty aluminum products, catering to global customers with engineered solutions for aerospace, high-strength general engineering, and custom automotive and industrial applications [1] - The Zacks Consensus Estimate for Kaiser Aluminum's current year earnings has increased by 13% over the last 60 days, indicating positive market sentiment and potential for growth [1]

Group 1: Company Highlights - Kaiser Aluminum (KALU) is a leading producer of semi-fabricated specialty aluminum products, with a 13% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Yara International ASA (YARIY) is the world's leading supplier of mineral fertilizers, particularly nitrogen-based fertilizers, with a 12% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - South Plains Financial (SPFI) provides commercial and consumer financial services to small and medium-sized businesses and individuals, with a 10.2% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] - Nomad Foods Limited (NOMD) manufactures and distributes frozen foods primarily in Europe, with a 6.2% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [4] - Pegasystems (PEGA) is a leading provider of Customer Relationship Management software, with a 6.1% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [5]

First Quarter 2025 Earnings Conference Call April 24, 2025 © Kaiser Aluminum All Rights Reserved Forward Looking Statements The information contained in this presentation includes statements based on management's current expectations, estimates and projections that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include statements regarding the company's anticipated financial and operating performance, relate to future event ...

Financial Performance - Consolidated net sales for the quarter ended March 31, 2025, totaled $777.4 million, with approximately 275.6 million pounds shipped, reflecting a 5% increase in net sales compared to $737.5 million in the same quarter of 2024[121][128] - Net income for the quarter was $21.6 million, with a diluted earnings per share of $1.31[129] - Net income for the quarter ended March 31, 2025, was $21.6 million, an increase of 19% compared to $18.2 million for the same quarter in 2024[137] - Adjusted EBITDA for the quarter ended March 31, 2025, was $73.4 million, reflecting a $19.4 million increase from $54.0 million in the prior year[139] - Total net sales for the quarter ended March 31, 2025, were $777.4 million, up from $737.5 million in the same quarter of 2024[141] Sales and Shipments - The average realized sales price per pound increased by $0.29, or 11%, despite a 5% decrease in shipment volume of 15.4 million pounds[128] - Shipments in the Aero/HS Products segment decreased by 10% to 56.3 million pounds, while net sales decreased by 3% to $214.7 million[128] - The Packaging segment saw a 9% decrease in shipments to 130.2 million pounds, but net sales increased by 5% to $314.2 million[128] - GE Products shipments increased by 12% to 65.1 million pounds, with net sales rising by 19% to $181.6 million[128] - Shipments for Aero/HS Products decreased to 56.3 million pounds in Q1 2025 from 62.9 million pounds in Q1 2024[141] Costs and Expenses - Cost of Goods Sold (COGS) for the quarter was $673.4 million, representing 87% of net sales, a slight decrease from 88% in the prior year[129] - The company reported a decrease in SG&A and R&D expenses to $30.8 million for Q1 2025, down 6% from $32.6 million in Q1 2024[136] - Restructuring costs increased to $1.8 million for the quarter ended March 31, 2025, compared to $0.1 million in the prior year[132] Liquidity and Cash Flow - Total liquidity as of March 31, 2025, was $576.7 million, slightly up from $571.8 million as of December 31, 2024[142] - Cash provided by operating activities for the quarter ended March 31, 2025, was $57.0 million, down from $63.3 million in the same quarter of 2024[145] - Cash flows from investing activities for the quarter ended March 31, 2025, were $(38.2) million, compared to $(29.9) million in the same quarter of 2024[145] Inventory and Valuation - The company transitioned from LIFO to WAC inventory valuation methodology effective January 1, 2025, impacting financial reporting[113] - The hedged cost of alloyed metal for Q1 2025 was $414.2 million, compared to $370.6 million in Q1 2024[141] Capital and Investments - Total capital spending is anticipated to be approximately $120.0 million to $130.0 million in 2025[156] - Significant investments have been made in modernization projects to enhance manufacturing cost efficiency and product quality[155] Stock and Dividends - At March 31, 2025, $93.1 million remained authorized and available for future repurchases of common stock under the stock repurchase program[161] - The company has consistently paid a quarterly cash dividend since Q2 2007, but future payments will depend on various financial factors[158] Risk and Financing - A $0.10/lb decrease in the LME market price of aluminum would have resulted in an unrealized mark-to-market loss of $5.0 million as of March 31, 2025[169] - A $0.10/lb decrease in the market price of zinc and copper would have resulted in an unrealized mark-to-market loss of $0.7 million as of March 31, 2025[170] - A $1.00 per mmbtu decrease in natural gas prices would have resulted in an unrealized mark-to-market loss of $2.7 million as of March 31, 2025[171] - A 10% decrease in the exchange rate of hedged foreign currencies to U.S. dollars would have resulted in an unrealized mark-to-market loss of $0.6 million as of March 31, 2025[173] - The company does not believe that covenants in the indentures governing the Senior Notes will limit its ability to obtain additional financing in the next 12 months[154] Customer and Market Strategy - The company maintains a strategy of metal price neutrality, allowing it to pass through aluminum and alloy cost fluctuations to customers[117][118] - Approximately 70% of shipments are sold directly to manufacturers or tier one suppliers, with the remaining 30% sold to metal service centers[122]

Kaiser Aluminum Corporation (NASDAQ:KALU) Q1 2025 Earnings Conference Call April 24, 2025 10:00 AM ET Company Participants Kim Orlando - Investor Relations Keith Harvey - Chairman, President and Chief Executive Officer Neal West - Executive Vice President and Chief Financial Officer Conference Call Participants Bill Peterson - JPMorgan Operator Greetings. And welcome to the Kaiser Aluminum Corporation's First Quarter 2025 Earnings Call. At this time, all participants are in a listen-only mode. A question-an ...

Kaiser Aluminum (KALU) Q1 2025 Earnings Call April 24, 2025 10:00 AM ET Company Participants Kimberly Orlando - Senior Managing DirectorKeith Harvey - CEO, President & DirectorNeal West - Executive VP & CFOBill Peterson - Equity Research Operator Greetings, and welcome to the Kaiser Aluminum Corporation First Quarter twenty twenty five Earnings Call. At this time, participants are in a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is bein ...