ALCOA CORP (AA)

US0138721065 - Common Stock

33.96  -0.57 (-1.65%)

Fundamental Rating

2

AA gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 157 industry peers in the Metals & Mining industry. AA may be in some trouble as it scores bad on both profitability and health. AA has a valuation in line with the averages, but it does not seem to be growing.



1

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.
In the past 5 years AA reported 4 times negative net income.
Each year in the past 5 years AA had a positive operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of -3.84%, AA is doing worse than 60.51% of the companies in the same industry.
AA's Return On Equity of -14.11% is on the low side compared to the rest of the industry. AA is outperformed by 67.52% of its industry peers.
Industry RankSector Rank
ROA -3.84%
ROE -14.11%
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 has a Gross Margin of 8.14%. This is in the lower half of the industry: AA underperforms 60.51% of its industry peers.
In the last couple of years the Gross Margin of AA has declined.
The Profit Margin and Operating Margin are not available for AA so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 8.14%
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%

1

2. Health

2.1 Basic Checks

AA does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, AA has more shares outstanding
Compared to 5 years ago, AA has less shares outstanding
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.
AA has a Altman-Z score of 1.08. This is in the lower half of the industry: AA underperforms 70.70% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that AA is somewhat dependend on debt financing.
AA has a Debt to Equity ratio of 0.63. This is amonst the worse of the industry: AA underperforms 82.17% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.63
Debt/FCF N/A
Altman-Z 1.08
ROIC/WACCN/A
WACC8.1%

2.3 Liquidity

A Current Ratio of 1.55 indicates that AA should not have too much problems paying its short term obligations.
AA has a worse Current ratio (1.55) than 70.70% of its industry peers.
A Quick Ratio of 0.92 indicates that AA may have some problems paying its short term obligations.
AA's Quick ratio of 0.92 is on the low side compared to the rest of the industry. AA is outperformed by 74.52% of its industry peers.
Industry RankSector Rank
Current Ratio 1.55
Quick Ratio 0.92

3

3. Growth

3.1 Past

The earnings per share for AA have decreased strongly by -45.96% in the last year.
Looking at the last year, AA shows a decrease in Revenue. The Revenue has decreased by -1.53% 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)-45.96%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%145.71%
Revenue 1Y (TTM)-1.53%
Revenue growth 3Y4.35%
Revenue growth 5Y-4.67%
Sales Q2Q%8.27%

3.2 Future

AA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 48.91% yearly.
Based on estimates for the next years, AA will show a small growth in Revenue. The Revenue will grow by 3.06% on average per year.
EPS Next Y102.36%
EPS Next 2Y74.4%
EPS Next 3Y48.91%
EPS Next 5YN/A
Revenue Next Year3.38%
Revenue Next 2Y2.86%
Revenue Next 3Y3.06%
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

4

4. Valuation

4.1 Price/Earnings Ratio

AA reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 14.30, the valuation of AA can be described as correct.
63.06% of the companies in the same industry are more expensive than AA, based on the Price/Forward Earnings ratio.
AA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.74, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 14.3

4.2 Price Multiples

AA's Enterprise Value to EBITDA ratio is in line with the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 12.79

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.
A more expensive valuation may be justified as AA's earnings are expected to grow with 48.91% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y74.4%
EPS Next 3Y48.91%

2

5. Dividend

5.1 Amount

AA has a Yearly Dividend Yield of 1.15%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.66, AA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, AA's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.15%

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

The earnings of AA are negative and hence is the payout ratio. AA will probably not be able to sustain this dividend level.
DP-13.27%
EPS Next 2Y74.4%
EPS Next 3Y48.91%

ALCOA CORP

NYSE:AA (7/23/2024, 12:14:08 PM)

33.96

-0.57 (-1.65%)

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 Cap6.10B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.15%
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 RankSector Rank
PE N/A
Fwd PE 14.3
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 RankSector Rank
ROA -3.84%
ROE -14.11%
ROCE
ROIC
ROICexc
ROICexgc
OM N/A
PM (TTM) N/A
GM 8.14%
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 RankSector Rank
Debt/Equity 0.63
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.55
Quick Ratio 0.92
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)
High Growth Momentum
Growth
EPS 1Y (TTM)-45.96%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y102.36%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.53%
Revenue growth 3Y4.35%
Revenue growth 5Y
Sales 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