Kaiser Aluminum Corporation (KALU): a potential bargain?

Buy — the drop looks like profit-taking after a huge run-up and a planned, orderly CEO handoff, not a business problem.

🔥 HOT Fundamentals66/100

Fell 20% in 11 trading day(s) — now $153.80

Why KALU dropped

The stock ran to an all-time high near $195-197 after blowout Q1/Q2 2026 earnings (huge EPS and revenue beats, raised full-year guidance), then pulled back as some analysts called it overvalued (GF Value pegged fair value far below price) and the company announced a planned leadership transition — current CEO Keith Harvey moving to Executive Chairman while Fred Stephan becomes CEO on Nov 1, 2026.

Fwd P/E 13.6Op margin 10.6%Rev growth 52.7%Debt/equity 113.3%Analyst upside 10.0%

How this scored 66/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 5.5%

✅ Generates cash Free cash flow $33M

✅ Not drowning in debt Debt/equity 113.3% (limit 200%)

✅ Can pay its bills Current ratio 2.5 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 14/25

Operating margin 10.6% 4/9

Net profit margin 5.5% 2/8

Return on equity 26.4% 8/8

Growth Is it getting bigger, or dying? 17/25

Revenue growth 52.7% 9/9

Earnings growth 305.7% 8/8

Expected profit change -16.9% 0/8

Value Is it cheap right now? 15/25

Forward P/E 13.6 8/10

PEG ratio 1.2 6/8

Analyst target upside 10.0% 1/7

Balance sheet Will it survive? 20/25

Debt / equity 113.3% 5/10

Current ratio 2.5 8/8

Free cash flow $33M 7/7

🔒 Read the full AI analysis

Create a free account to unlock the bull case and the risks for KALU — plus today's other picks.

Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-08-26. Research only — not financial advice.