Alexander & Baldwin Inc. (ALEX) on the Path to Profitability

Alexander & Baldwin Inc. (ALEX) on the Path to Profitability


Many stocks have been testing new highs in 2020, and one of the most notable is Alexander & Baldwin Inc. (ALEX). Currently, ALEX is trading at $15.49 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $20.00.

To add more color to this target, the company’s high over the last year is $25.38 and the low is $8.32. Over the last 52 weeks, ALEX is down -38.97% while the S&P 500 is up 1.21%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, ALEX reported a profit of $10.2 million. Alexander & Baldwin Inc. also saw revenues increase to $80.8 million. In addition, ALEX has free cash flow of $12.7 million as of 03-2020 The company’s EBITDA came in at $23.8 million which compares well with its peers.

ALEX booked profit margins of -10.20%, its Return on Equity (ROE) is -3.50%, and its Return on Assets is -1.80%. All told, it is clear that, ALEX needs to be on your watchlist.

About Alexander & Baldwin Inc.

If readers are unfamiliar, Alexander & 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 70% of A&B’s total assets. A&B’s non-core assets include renewable energy generation facilities, 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.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. ALEX has a short ratio of 1.71 and outstanding shares of 72.30M.

Company Outlook

ALEX has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.51 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -0.53. Investors should also keep an eye on sector updates as ALEX has historically followed its peers on positive news.

All told, Alexander & Baldwin Inc. ALEX has strung together solid data and demonstrated underlying fundamentals. At its current valuation, ALEX represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Alexander & Baldwin Inc. ALEX is now commanding a market cap of 1.12B and a float of 68.11M. ALEX is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of ALEX stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in ALEX, either long or short, and we have not been compensated for this article.