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Arconic Corporation (ARNC) Stock Fundamental Analysis

USA - NYSE:ARNC - US03966V1070 - Common Stock

29.99 USD
+0.01 (+0.03%)
Last: 8/17/2023, 8:04:00 PM
29.99 USD
0 (0%)
After Hours: 8/17/2023, 8:04:00 PM
Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to ARNC. ARNC was compared to 154 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.


Dividend Valuation Growth Profitability Health

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3

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.
ARNC Yearly Net Income VS EBIT VS OCF VS FCFARNC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 200M -200M 400M -400M 600M

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 12.61%.
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 RankSector 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%
ARNC Yearly ROA, ROE, ROICARNC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 -10 -20

1.3 Margins

ARNC has a Operating Margin (4.41%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of ARNC has grown nicely.
Looking at the Gross Margin, with a value of 10.75%, ARNC is in line with its industry, outperforming 43.92% of the companies in the same industry.
ARNC's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
ARNC Yearly Profit, Operating, Gross MarginsARNC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 0 5 -5 10 15

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2

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ARNC is destroying value.
ARNC has less shares outstanding than it did 1 year ago.
The debt/assets ratio for ARNC is higher compared to a year ago.
ARNC Yearly Shares OutstandingARNC Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 2022 20M 40M 60M 80M 100M
ARNC Yearly Total Debt VS Total AssetsARNC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2017 2018 2019 2020 2021 2022 2B 4B 6B

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.
The Altman-Z score of ARNC (2.02) is worse 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'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.
With a Debt to Equity ratio value of 1.08, ARNC is not doing good in the industry: 89.86% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.08
Debt/FCF 9.24
Altman-Z 2.02
ROIC/WACC0.75
WACC9.15%
ARNC Yearly LT Debt VS Equity VS FCFARNC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 1B 2B

2.3 Liquidity

ARNC has a Current Ratio of 1.62. This is a normal value and indicates that ARNC is financially healthy and should not expect problems in meeting its short term obligations.
ARNC has a worse Current ratio (1.62) 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.
ARNC has a Quick ratio of 0.80. This is amonst the worse of the industry: ARNC underperforms 82.43% of its industry peers.
Industry RankSector Rank
Current Ratio 1.62
Quick Ratio 0.8
ARNC Yearly Current Assets VS Current LiabilitesARNC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2017 2018 2019 2020 2021 2022 1B 2B 3B

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2

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%.
The Revenue has decreased by -7.14% in the past year.
ARNC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.60% yearly.
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.
Based on estimates for the next years, ARNC will show a decrease in Revenue. The Revenue will decrease by -1.43% on average per year.
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

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
ARNC Yearly Revenue VS EstimatesARNC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B
ARNC Yearly EPS VS EstimatesARNC Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 0 2 -2

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6

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 73.65% of the companies in the same industry.
ARNC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 33.72.
Industry RankSector Rank
PE N/A
Fwd PE 9.97
ARNC Price Earnings VS Forward Price EarningsARNC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 -10 20 30

4.2 Price Multiples

ARNC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ARNC is cheaper than 72.30% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARNC indicates a rather cheap valuation: ARNC is cheaper than 83.11% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 17.4
EV/EBITDA 7.5
ARNC Per share dataARNC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60 80

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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0

5. Dividend

5.1 Amount

No dividends for ARNC!.
Industry RankSector 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
Revenue(TTM)8.14B
Net Income(TTM)-254.00M
Analysts45.71
Price Target23.97 (-20.07%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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 RankSector 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
Graham NumberN/A
Profitability
Industry RankSector 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
ROICexgc growth 3Y8.13%
ROICexgc 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 RankSector 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 FAQ

What is the ChartMill fundamental rating of Arconic Corporation (ARNC) stock?

ChartMill assigns a fundamental rating of 3 / 10 to ARNC.


What is the valuation status for ARNC stock?

ChartMill assigns a valuation rating of 6 / 10 to Arconic Corporation (ARNC). This can be considered as Fairly Valued.


How profitable is Arconic Corporation (ARNC) stock?

Arconic Corporation (ARNC) has a profitability rating of 3 / 10.


Can you provide the expected EPS growth for ARNC stock?

The Earnings per Share (EPS) of Arconic Corporation (ARNC) is expected to grow by 204.68% in the next year.