ALCOA CORP (1AA.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1AA - US0138721065 - Common Stock
31.8 EUR
+3.72 (+13.23%)
1AA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 36 industry peers in the Metals & Mining industry. There are concerns on the financial health of 1AA while its profitability can be described as average. 1AA may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year 1AA was profitable.
In the past year 1AA had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: 1AA reported negative net income in multiple years.
Each year in the past 5 years 1AA had a positive operating cash flow.
1.2 Ratios
1AA has a Return On Assets of 7.18%. This is in the better half of the industry: 1AA outperforms 73.81% of its industry peers.
1AA has a Return On Equity of 18.06%. This is amongst the best in the industry. 1AA outperforms 88.10% of its industry peers.
The Return On Invested Capital of 1AA (8.26%) is better than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.18% | ||
| ROE | 18.06% | ||
| ROIC | 8.26% |
ROA(3y)-1.67%
ROA(5y)-0.66%
ROE(3y)-5.52%
ROE(5y)-2.51%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
1AA's Profit Margin of 8.91% is fine compared to the rest of the industry. 1AA outperforms 73.81% of its industry peers.
In the last couple of years the Profit Margin of 1AA has declined.
1AA has a Operating Margin (10.77%) which is in line with its industry peers.
1AA's Operating Margin has declined in the last couple of years.
1AA has a Gross Margin (18.41%) which is in line with its industry peers.
1AA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.77% | ||
| PM (TTM) | 8.91% | ||
| GM | 18.41% |
OM growth 3Y-24.44%
OM growth 5Y-2.57%
PM growth 3Y-47.72%
PM growth 5YN/A
GM growth 3Y-14.25%
GM growth 5Y-3.06%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1AA is destroying value.
The number of shares outstanding for 1AA has been increased compared to 1 year ago.
1AA has more shares outstanding than it did 5 years ago.
1AA has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.79, we must say that 1AA is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of 1AA (1.79) is comparable to the rest of the industry.
The Debt to FCF ratio of 1AA is 4.97, which is a neutral value as it means it would take 1AA, 4.97 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.97, 1AA is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
1AA has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
1AA's Debt to Equity ratio of 0.41 is on the low side compared to the rest of the industry. 1AA is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 4.97 | ||
| Altman-Z | 1.79 |
ROIC/WACC0.93
WACC8.9%
2.3 Liquidity
A Current Ratio of 1.56 indicates that 1AA should not have too much problems paying its short term obligations.
The Current ratio of 1AA (1.56) is comparable to the rest of the industry.
A Quick Ratio of 0.91 indicates that 1AA may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.91, 1AA is in line with its industry, outperforming 40.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
1AA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 656.25%, which is quite impressive.
The earnings per share for 1AA have been decreasing by -48.01% on average. This is quite bad
1AA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.94%.
1AA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.66% yearly.
EPS 1Y (TTM)656.25%
EPS 3Y-48.01%
EPS 5YN/A
EPS Q2Q%-103.51%
Revenue 1Y (TTM)16.94%
Revenue growth 3Y-0.71%
Revenue growth 5Y2.66%
Sales Q2Q%3.13%
3.2 Future
The Earnings Per Share is expected to grow by 19.17% on average over the next years. This is quite good.
1AA is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.55% yearly.
EPS Next Y211.25%
EPS Next 2Y72.1%
EPS Next 3Y49.47%
EPS Next 5Y19.17%
Revenue Next Year7.44%
Revenue Next 2Y3.95%
Revenue Next 3Y3.67%
Revenue Next 5Y-0.55%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.32, which indicates a very decent valuation of 1AA.
Based on the Price/Earnings ratio, 1AA is valued cheaply inside the industry as 88.10% of the companies are valued more expensively.
1AA is valuated cheaply when we compare the Price/Earnings ratio to 26.54, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 12.92 indicates a correct valuation of 1AA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1AA is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, 1AA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.32 | ||
| Fwd PE | 12.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1AA is valued cheaper than 80.95% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 1AA is valued a bit cheaper than the industry average as 76.19% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.33 | ||
| EV/EBITDA | 5.29 |
4.3 Compensation for Growth
1AA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
1AA's earnings are expected to grow with 49.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y72.1%
EPS Next 3Y49.47%
5. Dividend
5.1 Amount
1AA has a Yearly Dividend Yield of 1.09%.
1AA's Dividend Yield is comparable with the industry average which is at 2.61.
Compared to an average S&P500 Dividend Yield of 2.27, 1AA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1AA pays out 9.25% of its income as dividend. This is a sustainable payout ratio.
DP9.25%
EPS Next 2Y72.1%
EPS Next 3Y49.47%
BIT:1AA (10/21/2025, 7:00:00 PM)
31.8
+3.72 (+13.23%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners81.04%
Inst Owner ChangeN/A
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap8.23B
Revenue(TTM)12.87B
Net Income(TTM)1.15B
Analysts78.1
Price Target35.14 (10.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
Yearly Dividend0.36
Dividend Growth(5Y)N/A
DP9.25%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)56.23%
Min EPS beat(2)21.88%
Max EPS beat(2)90.58%
EPS beat(4)4
Avg EPS beat(4)36.9%
Min EPS beat(4)3.63%
Max EPS beat(4)90.58%
EPS beat(8)7
Avg EPS beat(8)39.11%
EPS beat(12)9
Avg EPS beat(12)21.11%
EPS beat(16)12
Avg EPS beat(16)1.64%
Revenue beat(2)1
Avg Revenue beat(2)-3.05%
Min Revenue beat(2)-7.1%
Max Revenue beat(2)1%
Revenue beat(4)2
Avg Revenue beat(4)-3.03%
Min Revenue beat(4)-7.39%
Max Revenue beat(4)1.37%
Revenue beat(8)2
Avg Revenue beat(8)-2.81%
Revenue beat(12)2
Avg Revenue beat(12)-2.97%
Revenue beat(16)3
Avg Revenue beat(16)-3.12%
PT rev (1m)17.75%
PT rev (3m)6.49%
EPS NQ rev (1m)66.45%
EPS NQ rev (3m)99.33%
EPS NY rev (1m)-8.58%
EPS NY rev (3m)-15.76%
Revenue NQ rev (1m)4.8%
Revenue NQ rev (3m)5.49%
Revenue NY rev (1m)1.02%
Revenue NY rev (3m)0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.32 | ||
| Fwd PE | 12.92 | ||
| P/S | 0.74 | ||
| P/FCF | 18.33 | ||
| P/OCF | 8.95 | ||
| P/B | 1.5 | ||
| P/tB | 1.5 | ||
| EV/EBITDA | 5.29 |
EPS(TTM)3.08
EY9.69%
EPS(NY)2.46
Fwd EY7.74%
FCF(TTM)1.73
FCFY5.46%
OCF(TTM)3.55
OCFY11.17%
SpS43.02
BVpS21.21
TBVpS21.21
PEG (NY)0.05
PEG (5Y)N/A
Graham Number38.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.18% | ||
| ROE | 18.06% | ||
| ROCE | 11.01% | ||
| ROIC | 8.26% | ||
| ROICexc | 9.37% | ||
| ROICexgc | 9.37% | ||
| OM | 10.77% | ||
| PM (TTM) | 8.91% | ||
| GM | 18.41% | ||
| FCFM | 4.03% |
ROA(3y)-1.67%
ROA(5y)-0.66%
ROE(3y)-5.52%
ROE(5y)-2.51%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y-23.91%
ROICexgc growth 5Y3.19%
ROICexc growth 3Y-23.93%
ROICexc growth 5Y3.18%
OM growth 3Y-24.44%
OM growth 5Y-2.57%
PM growth 3Y-47.72%
PM growth 5YN/A
GM growth 3Y-14.25%
GM growth 5Y-3.06%
F-Score7
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 4.97 | ||
| Debt/EBITDA | 1.29 | ||
| Cap/Depr | 87.74% | ||
| Cap/Sales | 4.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 52.99% | ||
| Profit Quality | 45.29% | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 1.79 |
F-Score7
WACC8.9%
ROIC/WACC0.93
Cap/Depr(3y)84.05%
Cap/Depr(5y)72.99%
Cap/Sales(3y)4.59%
Cap/Sales(5y)4.15%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)656.25%
EPS 3Y-48.01%
EPS 5YN/A
EPS Q2Q%-103.51%
EPS Next Y211.25%
EPS Next 2Y72.1%
EPS Next 3Y49.47%
EPS Next 5Y19.17%
Revenue 1Y (TTM)16.94%
Revenue growth 3Y-0.71%
Revenue growth 5Y2.66%
Sales Q2Q%3.13%
Revenue Next Year7.44%
Revenue Next 2Y3.95%
Revenue Next 3Y3.67%
Revenue Next 5Y-0.55%
EBIT growth 1Y377.93%
EBIT growth 3Y-24.98%
EBIT growth 5Y0.02%
EBIT Next Year100.13%
EBIT Next 3Y30.43%
EBIT Next 5Y9.85%
FCF growth 1Y203.18%
FCF growth 3Y-57.05%
FCF growth 5Y-32.82%
OCF growth 1Y9563.64%
OCF growth 3Y-12.23%
OCF growth 5Y-1.94%
ALCOA CORP / 1AA.MI FAQ
What is the ChartMill fundamental rating of ALCOA CORP (1AA.MI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to 1AA.MI.
What is the valuation status of ALCOA CORP (1AA.MI) stock?
ChartMill assigns a valuation rating of 7 / 10 to ALCOA CORP (1AA.MI). This can be considered as Undervalued.
Can you provide the profitability details for ALCOA CORP?
ALCOA CORP (1AA.MI) has a profitability rating of 5 / 10.
What is the valuation of ALCOA CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ALCOA CORP (1AA.MI) is 10.32 and the Price/Book (PB) ratio is 1.5.
How sustainable is the dividend of ALCOA CORP (1AA.MI) stock?
The dividend rating of ALCOA CORP (1AA.MI) is 3 / 10 and the dividend payout ratio is 9.25%.