ARNC gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 154 industry peers in the Metals & Mining industry. ARNC has a bad profitability rating. Also its financial health evaluation is rather negative. ARNC is valued correctly, but it does not seem to be growing.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.

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.
Measured over the past 3 years, the Average Return On Invested Capital for ARNC is below the industry average of 10.32%.
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

The Operating Margin of ARNC (4.41%) 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 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

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ARNC is destroying value.
The number of shares outstanding for ARNC has been reduced compared to 1 year ago.
The debt/assets ratio for ARNC is higher compared to a year ago.

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.
ARNC's Altman-Z score of 2.02 is on the low side compared to the rest of the industry. ARNC is outperformed by 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.
ARNC has a Debt/Equity ratio of 1.08. This is a high value indicating a heavy dependency on external 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 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.
With a Current ratio value of 1.62, ARNC is not doing good in the industry: 77.03% of the companies in the same industry are doing better.
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.
Looking at the Quick ratio, with a value of 0.80, ARNC is doing worse than 82.43% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.62
Quick Ratio	0.8

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WACC

Debt/Equity

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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%.
ARNC shows a decrease in Revenue. In the last year, the revenue decreased by -7.14%.
Measured over the past years, ARNC shows a small growth in Revenue. The Revenue has been growing by 5.60% on average per year.

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

The Earnings Per Share is expected to grow by 58.56% on average over the next years. This is a very strong growth
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

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.
With a Price/Forward Earnings ratio of 9.97, the valuation of ARNC can be described as very reasonable.
ARNC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ARNC is cheaper than 73.65% of the companies in the same industry.
ARNC is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, 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

Based on the Enterprise Value to EBITDA ratio, ARNC is valued a bit cheaper than the industry average as 72.30% of the companies are valued more expensively.
83.11% of the companies in the same industry are more expensive than ARNC, based on the Price/Free Cash Flow ratio.

		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.