ARNC Fundamental Analysis - Arconic Corporation

Fundamental Rating

We assign a fundamental rating of 3 out of 10 to ARNC. ARNC was compared to 156 industry peers in the Metals & Mining industry. Both the profitability and financial health of ARNC have multiple concerns. ARNC is valued correctly, but it does not seem to be growing.

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1. Profitability

1.1 Basic Checks

ARNC had negative earnings in the past year.

ARNC had a positive operating cash flow in the past year.

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

ARNC has negative profitability rations, so we won't be analyzing them here.

Looking at the Return On Invested Capital, with a value of 6.84%, ARNC is in the better half of the industry, outperforming 72.97% of the companies in the same industry.

Measured over the past 3 years, the Average Return On Invested Capital for ARNC is significantly below the industry average of 12.18%.

The last Return On Invested Capital (6.84%) for ARNC is above the 3 year average (6.44%), which is a sign of increasing profitability.

		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's Gross Margin of 10.75% is in line compared to the rest of the industry. ARNC outperforms 43.92% of its industry peers.

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.

ARNC has less shares outstanding than it did 1 year ago.

Compared to 1 year ago, ARNC has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 2.02 indicates that ARNC is not a great score, but indicates only limited risk for bankruptcy at the moment.

With a Altman-Z score value of 2.02, ARNC is not doing good in the industry: 60.14% of the companies in the same industry are doing better.

ARNC has a debt to FCF ratio of 9.24. This is a negative value and a sign of low solvency as ARNC would need 9.24 years to pay back of all of its debts.

ARNC's Debt to FCF ratio of 9.24 is fine compared to the rest of the industry. ARNC outperforms 74.32% of its industry peers.

A Debt/Equity ratio of 1.08 is on the high side and indicates that ARNC has dependencies on debt financing.

ARNC has a worse Debt to Equity ratio (1.08) than 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.

With a Quick ratio value of 0.80, ARNC is not doing good in the industry: 82.43% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Current Ratio	1.62
Quick Ratio	0.8

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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%.

Looking at the last year, ARNC shows a decrease in Revenue. The Revenue has decreased by -7.14% in the last year.

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 Q2Q%-44.76%

Revenue 1Y (TTM)-7.14%

Revenue growth 3Y7.19%

Revenue growth 5Y5.6%

Sales 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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for ARNC. In the last year negative earnings were reported.

A Price/Forward Earnings ratio of 9.97 indicates a reasonable valuation of ARNC.

Based on the Price/Forward Earnings ratio, ARNC is valued a bit cheaper than 73.65% of the companies in the same industry.

ARNC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.57, which is the current average of the S&P500 Index.

		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.

Based on the Price/Free Cash Flow ratio, ARNC is valued 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

ARNC's 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%

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5. Dividend

5.1 Amount

ARNC does not give a dividend.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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Arconic Corporation

NYSE:ARNC (8/17/2023, 8:04:00 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)07-31 2023-07-31/amc

Earnings (Next)10-30 2023-10-30/bmo

Inst Owners0%

Inst Owner Change0%

Ins Owners45.06%

Ins Owner Change0%

Market Cap3.01B

Analysts45.71

Price Target23.97 (-20.07%)

Short Float %N/A

Short RatioN/A

Dividend

		Industry Rank	Sector Rank
Dividend Yield	N/A

Yearly DividendN/A

Dividend Growth(5Y)N/A

DPN/A

Div Incr Years0

Div Non Decr Years0

Ex-DateN/A

Surprises & Revisions

EPS beat(2)1

Avg EPS beat(2)-4.56%

Min EPS beat(2)-22.85%

Max EPS beat(2)13.73%

EPS beat(4)1

Avg EPS beat(4)-354.78%

Min EPS beat(4)-1053.9%

Max EPS beat(4)13.73%

EPS beat(8)N/A

Avg EPS beat(8)N/A

EPS beat(12)N/A

Avg EPS beat(12)N/A

EPS beat(16)N/A

Avg EPS beat(16)N/A

Revenue beat(2)1

Avg Revenue beat(2)-1.11%

Min Revenue beat(2)-4.6%

Max Revenue beat(2)2.39%

Revenue beat(4)2

Avg Revenue beat(4)-0.92%

Min Revenue beat(4)-4.6%

Max Revenue beat(4)3.03%

Revenue beat(8)N/A

Avg Revenue beat(8)N/A

Revenue beat(12)N/A

Avg Revenue beat(12)N/A

Revenue beat(16)N/A

Avg Revenue beat(16)N/A

PT rev (1m)0%

PT rev (3m)0%

EPS NQ rev (1m)12.94%

EPS NQ rev (3m)-0.78%

EPS NY rev (1m)-8.24%

EPS NY rev (3m)1.79%

Revenue NQ rev (1m)-6.45%

Revenue NQ rev (3m)1.84%

Revenue NY rev (1m)0.2%

Revenue NY rev (3m)-1.58%

Valuation

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	9.97
P/S	0.37
P/FCF	17.4
P/OCF	7.01
P/B	2.03
P/tB	2.53
EV/EBITDA	7.5

EPS(TTM)-2.52

EYN/A

EPS(NY)3.01

Fwd EY10.03%

FCF(TTM)1.72

FCFY5.75%

OCF(TTM)4.28

OCFY14.26%

SpS81.13

BVpS14.79

TBVpS11.86

PEG (NY)N/A

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	N/A
ROE	N/A
ROCE	N/A
ROIC	6.84%
ROICexc	7.31%
ROICexgc	7.91%
OM	4.41%
PM (TTM)	N/A
GM	10.75%
FCFM	N/A

ROA(3y)N/A

ROA(5y)N/A

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)6.44%

ROIC(5y)6.5%

ROICexc(3y)7.09%

ROICexc(5y)6.95%

ROICexgc(3y)7.8%

ROICexgc(5y)7.75%

ROCE(3y)N/A

ROCE(5y)N/A

ROICexcg growth 3Y8.13%

ROICexcg growth 5Y6.88%

ROICexc growth 3Y9.28%

ROICexc growth 5Y7.91%

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%

F-Score4

Asset Turnover1.35

Health

		Industry Rank	Sector Rank
Debt/Equity	1.08
Debt/FCF	9.24
Debt/EBITDA	2.76
Cap/Depr	116.36%
Cap/Sales	N/A
Interest Coverage	N/A
Cash Conversion	N/A
Profit Quality	N/A
Current Ratio	1.62
Quick Ratio	0.8
Altman-Z	2.02

F-Score4

WACC9.15%

ROIC/WACC0.75

Cap/Depr(3y)80.35%

Cap/Depr(5y)87.47%

Cap/Sales(3y)N/A

Cap/Sales(5y)N/A

Profit Quality(3y)N/A

Profit Quality(5y)N/A

High Growth Momentum

Growth

EPS 1Y (TTM)-236.96%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-44.76%

EPS Next Y204.68%

EPS Next 2Y89.31%

EPS Next 3Y58.56%

EPS Next 5YN/A

Revenue 1Y (TTM)-7.14%

Revenue growth 3Y7.19%

Revenue growth 5Y5.6%

Sales Q2Q%-21.9%

Revenue Next Year-8.02%

Revenue Next 2Y-3.31%

Revenue Next 3Y-1.43%

Revenue Next 5YN/A

EBIT growth 1Y-16.12%

EBIT growth 3Y10.64%

EBIT growth 5Y9.07%

EBIT Next Year124.34%

EBIT Next 3Y41.78%

EBIT Next 5YN/A

FCF growth 1Y145.41%

FCF growth 3Y-28.65%

FCF growth 5YN/A

OCF growth 1Y325.79%

OCF growth 3Y-9.57%

OCF growth 5Y13.18%

Arconic Corporation (ARNC) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

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