ALCOA CORP (AA)
US0138721065 - Common Stock
AA gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 155 industry peers in the Metals & Mining industry. AA has a bad profitability rating. Also its financial health evaluation is rather negative. AA is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year AA has reported negative net income.
In the past year AA had a positive cash flow from operations.
AA had negative earnings in 4 of the past 5 years.
In the past 5 years AA always reported a positive cash flow from operatings.
1.2 Ratios
AA has a Return On Assets of -4.60%. This is in the lower half of the industry: AA underperforms 60.65% of its industry peers.
With a Return On Equity value of -15.31%, AA is not doing good in the industry: 72.26% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.6% | ||
| ROE | -15.31% | ||
| ROIC | N/A |
ROA(3y)-0.86%
ROA(5y)-2.28%
ROE(3y)-2.85%
ROE(5y)-8.21%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
AA's Gross Margin of 6.99% is on the low side compared to the rest of the industry. AA is outperformed by 63.23% of its industry peers.
AA's Gross Margin has declined in the last couple of years.
AA does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 6.99% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-20.99%
GM growth 5Y-22.49%
2. Health
2.1 Basic Checks
AA does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for AA has been increased compared to 1 year ago.
The number of shares outstanding for AA has been reduced compared to 5 years ago.
Compared to 1 year ago, AA has a worse debt to assets ratio.
2.2 Solvency
AA has an Altman-Z score of 1.08. This is a bad value and indicates that AA is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.08, AA is doing worse than 70.32% of the companies in the same industry.
AA has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
AA's Debt to Equity ratio of 0.41 is on the low side compared to the rest of the industry. AA is outperformed by 72.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.08 |
ROIC/WACCN/A
WACC8.26%
2.3 Liquidity
A Current Ratio of 1.45 indicates that AA should not have too much problems paying its short term obligations.
With a Current ratio value of 1.45, AA is not doing good in the industry: 76.13% of the companies in the same industry are doing better.
AA has a Quick Ratio of 1.45. This is a bad value and indicates that AA is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.74, AA is doing worse than 84.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
AA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -148.51%.
Looking at the last year, AA shows a very negative growth in Revenue. The Revenue has decreased by -15.26% in the last year.
AA shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.67% yearly.
EPS 1Y (TTM)-148.51%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q20%
Revenue 1Y (TTM)-15.26%
Revenue growth 3Y4.35%
Revenue growth 5Y-4.67%
Revenue growth Q2Q-2.55%
3.2 Future
AA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 48.04% yearly.
Based on estimates for the next years, AA will show a small growth in Revenue. The Revenue will grow by 2.95% on average per year.
EPS Next Y115.34%
EPS Next 2Y70.58%
EPS Next 3Y48.04%
EPS Next 5YN/A
Revenue Next Year1.57%
Revenue Next 2Y2.75%
Revenue Next 3Y2.95%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for AA. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 101.58, AA can be considered very expensive at the moment.
AA's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of AA to the average of the S&P500 Index (21.26), we can say AA is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 101.58 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.3 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
AA's earnings are expected to grow with 48.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y70.58%
EPS Next 3Y48.04%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.13%, AA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.87, AA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, AA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
5.2 History
AA has been paying a dividend for over 5 years, so it has already some track record.
The dividend of AA decreased in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
AA has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-11.06%
EPS Next 2Y70.58%
EPS Next 3Y48.04%
ALCOA CORP
NYSE:AA (4/19/2024, 6:20:25 PM)
After market: 35.6 +0.07 (+0.2%)35.53
+0.06 (+0.17%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.38B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 101.58 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.6% | ||
| ROE | -15.31% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 6.99% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.45 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-148.51%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y115.34%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-15.26%
Revenue growth 3Y4.35%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y