Arconic Corporation (ARNC)
US03966V1070 - Common Stock
ARNC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 154 industry peers in the Metals & Mining industry. Both the profitability and financial health of ARNC have multiple concerns. ARNC has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
ARNC had negative earnings in the past year.
In the past year ARNC had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: ARNC reported negative net income in multiple years.
Of the past 5 years ARNC 4 years had a positive operating cash flow.
1.2 Ratios
The profitability ratios for ARNC are negative, so there is not much use analyzing them.
With a decent Return On Invested Capital value of 6.84%, ARNC is doing good in the industry, outperforming 72.97% of the companies in the same industry.
ARNC had an Average Return On Invested Capital over the past 3 years of 6.44%. This is below the industry average of 8.86%.
The 3 year average ROIC (6.44%) for ARNC is below the current ROIC(6.84%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROIC | 6.84% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)6.44%
ROIC(5y)6.5%
1.3 Margins
ARNC has a Operating Margin (4.41%) which is in line with its industry peers.
In the last couple of years the Operating Margin of ARNC has grown nicely.
ARNC has a Gross Margin (10.75%) which is comparable to the rest of the industry.
ARNC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.41% | ||
| PM (TTM) | N/A | ||
| GM | 10.75% |
OM growth 3Y3.22%
OM growth 5Y3.28%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-7.23%
GM growth 5Y-5.88%
2. Health
2.1 Basic Checks
ARNC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ARNC has less shares outstanding
The number of shares outstanding for ARNC has been reduced compared to 5 years ago.
The debt/assets ratio for ARNC is higher compared to a year ago.
2.2 Solvency
ARNC has an Altman-Z score of 2.02. This is not the best score and indicates that ARNC is in the grey zone with still only limited risk for bankruptcy at the moment.
ARNC has a worse Altman-Z score (2.02) than 60.14% of its industry peers.
The Debt to FCF ratio of ARNC is 9.24, which is on the high side as it means it would take ARNC, 9.24 years of fcf income to pay off all of its debts.
ARNC has a better Debt to FCF ratio (9.24) than 74.32% of its industry peers.
ARNC has a Debt/Equity ratio of 1.08. This is a high value indicating a heavy dependency on external financing.
ARNC's Debt to Equity ratio of 1.08 is on the low side compared to the rest of the industry. ARNC is outperformed by 89.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 9.24 | ||
| Altman-Z | 2.02 |
ROIC/WACC0.75
WACC9.15%
2.3 Liquidity
A Current Ratio of 1.62 indicates that ARNC should not have too much problems paying its short term obligations.
The Current ratio of ARNC (1.62) is worse than 77.03% of its industry peers.
ARNC has a Quick Ratio of 1.62. This is a bad value and indicates that ARNC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of ARNC (0.80) is worse than 82.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
ARNC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -236.96%.
ARNC shows a decrease in Revenue. In the last year, the revenue decreased by -7.14%.
The Revenue has been growing slightly by 5.60% on average over the past years.
EPS 1Y (TTM)-236.96%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-44.76%
Revenue 1Y (TTM)-7.14%
Revenue growth 3Y7.19%
Revenue growth 5Y5.6%
Revenue growth Q2Q-21.9%
3.2 Future
ARNC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 58.56% yearly.
ARNC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.43% yearly.
EPS Next Y204.68%
EPS Next 2Y89.31%
EPS Next 3Y58.56%
EPS Next 5YN/A
Revenue Next Year-8.02%
Revenue Next 2Y-3.31%
Revenue Next 3Y-1.43%
Revenue Next 5YN/A
3.3 Evolution
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
ARNC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 9.97, the valuation of ARNC can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ARNC is valued a bit cheaper than the industry average as 73.65% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.72, ARNC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.97 |
4.2 Price Multiples
72.30% of the companies in the same industry are more expensive than ARNC, based on the Enterprise Value to EBITDA ratio.
ARNC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ARNC is cheaper than 83.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.4 | ||
| EV/EBITDA | 7.5 |
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 ARNC's earnings are expected to grow with 58.56% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y89.31%
EPS Next 3Y58.56%
5. Dividend
5.1 Amount
No dividends for ARNC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Arconic Corporation
NYSE:ARNC (8/17/2023, 7:04:00 PM)
After market: 29.99 0 (0%)29.99
+0.01 (+0.03%)
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 Cap3.01B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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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 | 9.97 | ||
| 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 | N/A | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.41% | ||
| PM (TTM) | N/A | ||
| GM | 10.75% | ||
| 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 Turnover1.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.62 | ||
| Quick Ratio | 0.8 | ||
| 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)-236.96%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y204.68%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.14%
Revenue growth 3Y7.19%
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