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Alexander & Baldwin (ALEX)
NYSE:ALEX
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Alexander & Baldwin
(NYSE:ALEX)
70Outperform
Positive Factors
Business Model
Alexander & Baldwin continues to benefit from a more streamlined business model, the portfolio is supported by commercial real estate land limitations, while the balance sheet is positioned to accommodate growth.
Market Position
ALEX 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
Growth Catalysts
Shares lack an upside catalyst.
NOI Growth
Same-store NOI growth came in at 2.9%, decelerating both from the prior quarter and the prior year.
Alexander & Baldwin (ALEX) vs. S&P 500 (SPY)
Market Cap
$1.22B
Dividend Yield5.38%
Average Volume (3M)585.86K
Price to Earnings (P/E)20.2
Beta (1Y)0.51
Revenue Growth13.28%
EPS Growth103.74%
CountryUS
Employees96
SectorReal Estate
Sector Strength77
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.83
Shares Outstanding72,711,410
10 Day Avg. Volume753,123
30 Day Avg. Volume585,855
Financial Highlights & Ratios
PEG Ratio0.19
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 Upside37.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Alexander & Baldwin Business Overview & Revenue Model
Company DescriptionAlexander & Baldwin, Inc. (ALEX) is a premier real estate and land company primarily operating in Hawaii. The company is involved in commercial real estate, land operations, and materials and construction. Their portfolio includes retail, office, and industrial properties, with a focus on sustainable and community-oriented development. They are committed to enhancing the value of their lands while preserving Hawaii's unique cultural and environmental heritage.
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
16.71
Price Trends
17.24
Negative
17.52
Negative
17.96
Negative
Market Momentum
-0.17
Negative
46.93
Neutral
76.26
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 16.71 is below the 20-day moving average (MA) of 16.74, below the 50-day MA of 17.24, and below the 200-day MA of 17.96, indicating a bearish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 46.93 is Neutral, neither overbought nor oversold. The STOCH value of 76.26 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 (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $1.22B | 20.22 | 6.38% | 5.38% | 13.28% | 103.74% | |
68 Neutral | $1.19B | 25.08 | 5.12% | 1.96% | 3.83% | -5.55% | |
66 Neutral | $686.95M | 28.46 | 5.73% | 11.10% | 6.17% | ― | |
64 Neutral | $1.16B | 20.12 | 4.85% | 7.07% | 3.78% | 12.43% | |
62 Neutral | $1.08B | 10.13 | 4.62% | 4.64% | 3.70% | ― | |
60 Neutral | $1.71B | ― | -5.48% | 14.59% | 56.29% | 55.99% | |
59 Neutral | $2.73B | 11.72 | 0.09% | 8795.52% | 5.45% | -17.33% |
* Real Estate Sector Average
Performance Comparison
ALEX
Alexander & Baldwin
16.71
1.66
11.03%
SAFE
Safehold
15.35
-2.40
-13.52%
ESRT
Empire State Realty
7.10
-1.89
-21.02%
AHH
Armada Hoffler Properties
6.78
-2.97
-30.46%
AAT
American Assets
18.64
-1.45
-7.22%
GNL
Global Net Lease
7.49
1.46
24.21%
Alexander & Baldwin Earnings Call Summary
Earnings Call Date: Apr 24, 2025 | % Change Since: 0.00% | Next Earnings Date: Jul 24, 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
Shareholder MeetingsBusiness Operations and StrategyFinancial Disclosures
Alexander & Baldwin Reports Strong Q1 2025 Results
Positive
Apr 24, 2025
On April 22, 2025, Alexander & Baldwin held its Annual Meeting of Shareholders, where six directors were elected, executive compensation was approved, and Deloitte & Touche LLP was ratified as the independent accounting firm. The company decided to hold annual advisory votes on executive compensation. On April 24, 2025, Alexander & Baldwin reported its first quarter 2025 results, showing a net income of $21.4 million and a CRE operating profit of $23.4 million. The company achieved a 4.2% growth in CRE Same-Store NOI and executed a 75-year ground lease at Maui Business Park, contributing to its strategic growth efforts.
Spark’s Take on ALEX Stock
According to Spark, TipRanks’ AI Analyst, ALEX is a Outperform.
Alexander & Baldwin’s strong financial performance, with solid profitability and cash flow, is a key strength. Despite reasonable valuation and attractive dividends, technical indicators show a lack of strong momentum, and challenges such as tenant bankruptcies present risks. Overall, the stock is well-positioned but faces some headwinds.
To see Spark’s full report on ALEX stock, click here.
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.