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Alexander & Baldwin (ALEX)
NYSE:ALEX
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Alexander & Baldwin
(NYSE:ALEX)
71Outperform
Positive Factors
Business Model
Alexander & Baldwin continues to benefit from a more streamlined business model, the portfolio are supported by commercial real estate land limitations, while the balance sheet is positioned to accommodate growth.
Market Position
Alexander & Baldwin continues to leverage its dominant market position to source off-market deals that are complementary to the portfolio, supplementing its steady portfolio growth.
Negative Factors
NOI Growth
Same-store NOI growth came in at 2.9%, decelerating both from the prior quarter and the prior year.
Upside Potential
Shares lack an upside catalyst.
Alexander & Baldwin (ALEX) vs. S&P 500 (SPY)
Market Cap
$1.25B
Dividend Yield5.2%
Average Volume (3M)512.05K
Price to Earnings (P/E)20.6
Beta (1Y)0.70
Revenue Growth13.28%
EPS Growth103.74%
CountryUS
Employees96
SectorReal Estate
Sector Strength73
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.83
Shares Outstanding72,711,410
10 Day Avg. Volume445,337
30 Day Avg. Volume512,047
Financial Highlights & Ratios
PEG Ratio0.20
Price to Book (P/B)N/A
Price to Sales (P/S)5.26
Price to Cash Flow (P/CF)12.80
P/FCF Ratio16.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$23.00Price Target Upside31.28% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Alexander & Baldwin Business Overview & Revenue Model
Company DescriptionAlexander & Baldwin, Inc. (A&B) is Hawai'i's premier commercial real estate company and the largest owner of grocery-anchored, neighborhood shopping centers in the state. A&B owns, operates and manages approximately 3.9 million square feet of commercial space in Hawai'i, including 22 retail centers, ten industrial assets and four office properties, as well as 154 acres of ground leases. These core assets comprise nearly 72% of A&B's total assets. A&B's non-core assets include renewable energy generation facilities, approximately 27,000 acres of agricultural and conservation land and a vertically integrated paving business. A&B is achieving its strategic objective of becoming a Hawai'i-focused commercial real estate company by expanding and strengthening its Hawai'i CRE portfolio and monetizing non-core assets. Over its 150-year history, A&B has evolved with the state's economy and played a leadership role in the development of the agricultural, transportation, tourism, construction, residential and commercial real estate industries.
How the Company Makes MoneyAlexander & Baldwin generates revenue primarily through its commercial real estate segment, which involves leasing and managing a diverse portfolio of properties, including retail, office, and industrial spaces across Hawaii. They also earn income from land operations, which include the sale of land parcels and development rights. Additionally, the company's materials and construction segment contributes to earnings through the sale of construction materials and related services. Strategic partnerships and joint ventures in property development further enhance their revenue streams, leveraging local market expertise and fostering sustainable growth in the Hawaiian real estate sector.
Alexander & Baldwin Financial Statement Overview
Summary
Alexander & Baldwin presents a robust financial position with strong profitability, a solid balance sheet, and efficient cash flow management. The company has made significant strides in reducing debt, enhancing its financial stability. While revenue growth has been somewhat inconsistent, the company has effectively managed its costs and improved margins, positioning itself well in the REIT industry.Income Statement
Alexander & Baldwin shows strong profitability with a high gross profit margin and improving net profit margin over recent years. Revenue has been relatively stable, with some fluctuations, but the company has managed to increase its EBIT and EBITDA margins, indicating effective cost management. However, the revenue growth rate has seen some volatility, which could be a potential risk.75
Positive
Balance Sheet
The company maintains a solid balance sheet with a debt-free position as of the latest year, which is a significant improvement from previous years. Return on equity (ROE) is healthy, and a high equity ratio indicates strong financial stability. The reduction in debt levels enhances the company's leverage position, mitigating potential risks associated with high debt.80
Positive
Cash Flow
Cash flow analysis reveals a strong free cash flow position, with significant growth compared to previous periods. The operating cash flow to net income ratio is favorable, demonstrating efficient cash generation from operations. The company has improved its free cash flow to net income ratio, which indicates better cash flow management. However, fluctuations in financing activities should be monitored.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 236.64M | 208.90M | 230.50M | 379.30M | 305.30M | Gross Profit |
| 107.65M | 102.30M | 131.80M | 125.20M | 71.80M | EBIT |
| 79.77M | 64.60M | 80.10M | 62.10M | 29.70M | EBITDA |
| 126.01M | 100.60M | 100.70M | 137.00M | 79.70M | Net Income Common Stockholders |
| 60.54M | 29.80M | -49.50M | 17.20M | 5.60M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 33.44M | 13.50M | 33.30M | 70.00M | 57.20M | Total Assets |
| 1.67B | 1.65B | 1.79B | 1.88B | 2.04B | Total Debt |
| 474.84M | 465.10M | 477.10M | 552.10M | 705.50M | Net Debt |
| 441.40M | 451.60M | 443.80M | 482.10M | 648.30M | Total Liabilities |
| 666.89M | 643.20M | 743.60M | 806.30M | 939.90M | Stockholders Equity |
| 1.00B | 1.00B | 1.04B | 1.07B | 1.10B |
| Cash Flow | Free Cash Flow | |||
| 97.99M | 35.90M | 12.30M | 70.70M | 38.00M | Operating Cash Flow |
| 97.99M | 67.10M | 34.00M | 124.20M | 63.10M | Investing Cash Flow |
| -16.11M | 7.10M | 44.60M | 96.50M | 12.00M | Financing Cash Flow |
| -61.96M | -94.90M | -115.20M | -207.10M | -33.10M |
Alexander & Baldwin Technical Analysis
Negative
17.52
Price Trends
17.55
Negative
17.91
Negative
17.91
Negative
Market Momentum
-0.11
Positive
43.65
Neutral
40.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALEX, the sentiment is Negative. The current price of 17.52 is above the 20-day moving average (MA) of 17.47, below the 50-day MA of 17.55, and below the 200-day MA of 17.91, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 43.65 is Neutral, neither overbought nor oversold. The STOCH value of 40.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALEX.
Alexander & Baldwin Risk Analysis
Alexander & Baldwin disclosed 44 risk factors in its most recent earnings report. Alexander & Baldwin reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Alexander & Baldwin Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $8.45B | 28.59 | 9.58% | 4.52% | 6.21% | 22.32% | |
71 Outperform | $13.47B | 34.91 | 5.82% | 3.72% | 10.15% | 3.36% | |
71 Outperform | $1.25B | 20.64 | 6.38% | 5.20% | 13.28% | 103.74% | |
70 Outperform | $7.99B | 23.44 | 11.61% | 4.23% | 3.41% | 10.54% | |
63 Neutral | $14.22B | 37.89 | 4.03% | 4.63% | 14.51% | -45.53% | |
61 Neutral | $4.70B | 17.65 | -3.00% | 11.43% | 5.99% | -19.07% | |
55 Neutral | $3.19B | 31.54 | 4.27% | 6.84% | -0.98% | -32.02% |
* Real Estate Sector Average
Performance Comparison
ALEX
Alexander & Baldwin
17.23
2.00
13.13%
HIW
Highwoods Properties
29.50
6.52
28.37%
KIM
Kimco Realty
21.14
3.07
16.99%
REG
Regency Centers
73.57
16.19
28.22%
FRT
Federal Realty
97.82
1.00
1.03%
BRX
Brixmor Property
26.52
5.06
23.58%
Alexander & Baldwin Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -1.41% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with strong financial performance, significant cost reductions, and effective leasing strategies. However, challenges with tenant bankruptcies and slight declines in economic occupancy and same store NOI growth were noted.Highlights
Strong FFO and AFFO Increase
Fourth quarter FFO increased by $0.03 to $0.30 per share, and AFFO increased by $0.02 to $0.19 per share compared to the same quarter last year. Full year FFO was $1.37 per share, $0.28 higher than the prior year.
Significant Reduction in G&A Expenses
G&A expenses were reduced by $4.2 million or 12.4% in 2024 compared to 2023, contributing to overall cost efficiency.
Successful Leasing Activity
Executed 209 leases totaling 630,000 square feet in 2024, with strong leasing spreads of 14% in Q4 and 11.7% for the year.
Improvement in Capital Structure
Refinanced $130 million of mortgage debt with unsecured debt at fixed rates, extended the maturity date on the revolving credit facility to 2028, and established a new at-the-market share program.
Lowlights
Decline in Economic Occupancy
Economic occupancy at quarter end was 92.9%, down 10 basis points from the last quarter and the same period last year due to industrial and office vacancies.
Tenant Bankruptcy Impact
Liberated Brands filed for bankruptcy, affecting about $450,000 of annual base rent (ABR), with space liquidation expected around mid-year 2025.
Deceleration in Same Store NOI Growth
Same store NOI growth guidance for 2025 is between 2.4% and 3.2%, a slight deceleration from the 2024 performance.
Company Guidance
In the Alexander & Baldwin Fourth Quarter 2024 earnings call, guidance for 2025 highlighted several key metrics and strategic priorities. The company expects same-store NOI growth to range between 2.4% and 3.2%, while FFO is projected to be between $1.13 and $1.20 per share. Additionally, CRE and corporate-related FFO is anticipated to fall between $1.11 and $1.16 per share. The guidance also includes potential contribution from external acquisitions estimated at $0.01 of FFO per share in the latter half of the year. For 2024, the company reported a strong finish with fourth-quarter FFO of $0.30 per share, marking a $0.03 increase year-over-year, and AFFO of $0.19 per share, up by $0.02. Their strategic focus for 2025 includes improving revenue through leasing, increasing occupancy in the industrial portfolio, developing land assets, and maintaining cost efficiency, with G&A expected to be flat or improve by $0.01 per share from 2024 levels.Alexander & Baldwin Corporate Events
Business Operations and StrategyFinancial Disclosures
Alexander & Baldwin Reports Strong 2024 Financial Results
Positive
Feb 27, 2025
On February 27, 2025, Alexander & Baldwin reported its financial results for the fourth quarter and full year of 2024, showing a net income of $12.4 million for the fourth quarter and $60.5 million for the full year. The company highlighted a strong performance in its commercial real estate operations, with significant growth in funds from operations and leasing spreads, as well as strategic developments including the construction of a new warehouse and the extension of its credit facility.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.