Executive Summary
Alumina Limited, through its 40% interest in Alcoa World Alumina and Chemicals, engages in bauxite mining, alumina refining, and aluminum smelting businesses. More Details
Rewards
Risk Analysis
Dividend of 4.03% is not well covered by earnings or forecast to be in the next 3 years
Snowflake Analysis
Adequate balance sheet with acceptable track record.
Similar Companies
Share Price & News
How has Alumina's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: AWC is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: AWC's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
4.7%
AWC
8.2%
AU Metals and Mining
1.7%
AU Market
1 Year Return
18.9%
AWC
64.2%
AU Metals and Mining
36.6%
AU Market
Return vs Industry: AWC underperformed the Australian Metals and Mining industry which returned 64.2% over the past year.
Return vs Market: AWC underperformed the Australian Market which returned 36.6% over the past year.
Shareholder returns
| AWC | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.7% | 8.2% | 1.7% |
| 30 Day | -1.4% | 10.0% | 2.2% |
| 90 Day | 6.2% | 12.6% | 4.6% |
| 1 Year | 24.5%18.9% | 72.5%64.2% | 40.6%36.6% |
| 3 Year | -20.4%-36.1% | 75.0%50.5% | 32.0%16.3% |
| 5 Year | 82.5%28.7% | 196.8%150.5% | 64.1%33.2% |
Long-Term Price Volatility Vs. Market
How volatile is Alumina's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
Need To Know: Alumina Limited (ASX:AWC) Insiders Have Been Buying Shares2 months ago | Simply Wall St
What Type Of Shareholders Own The Most Number of Alumina Limited (ASX:AWC) Shares?4 months ago | Simply Wall St
News Flash: Analysts Just Made A Captivating Upgrade To Their Alumina Limited (ASX:AWC) ForecastsValuation
Is Alumina undervalued compared to its fair value and its price relative to the market?
11.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AWC (A$1.8) is trading below our estimate of fair value (A$2.02)
Significantly Below Fair Value: AWC is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: AWC is poor value based on its PE Ratio (27.8x) compared to the Australian Metals and Mining industry average (14.2x).
PE vs Market: AWC is poor value based on its PE Ratio (27.8x) compared to the Australian market (20.6x).
Price to Earnings Growth Ratio
PEG Ratio: AWC is poor value based on its PEG Ratio (2.4x)
Price to Book Ratio
PB vs Industry: AWC is good value based on its PB Ratio (2.4x) compared to the AU Metals and Mining industry average (2.7x).
Future Growth
How is Alumina forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
11.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AWC's forecast earnings growth (11.7% per year) is above the savings rate (1.9%).
Earnings vs Market: AWC's earnings (11.7% per year) are forecast to grow slower than the Australian market (13.6% per year).
High Growth Earnings: AWC's earnings are forecast to grow, but not significantly.
Revenue vs Market: AWC's revenue (39.4% per year) is forecast to grow faster than the Australian market (5% per year).
High Growth Revenue: AWC's revenue (39.4% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: AWC's Return on Equity is forecast to be low in 3 years time (12.7%).
Past Performance
How has Alumina performed over the past 5 years?
21.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AWC has high quality earnings.
Growing Profit Margin: AWC's current net profit margins are higher than last year .
Past Earnings Growth Analysis
Earnings Trend: AWC's earnings have grown significantly by 21.8% per year over the past 5 years.
Accelerating Growth: AWC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: AWC had negative earnings growth (-31.3%) over the past year, making it difficult to compare to the Metals and Mining industry average (25.6%).
Return on Equity
High ROE: AWC's Return on Equity (8.5%) is considered low.
Financial Health
How is Alumina's financial position?
Financial Position Analysis
Short Term Liabilities: AWC's short term assets ($12.2M) exceed its short term liabilities ($1.4M).
Long Term Liabilities: AWC's short term assets ($12.2M) do not cover its long term liabilities ($60.7M).
Debt to Equity History and Analysis
Debt Level: AWC's debt to equity ratio (3.5%) is considered satisfactory.
Reducing Debt: AWC's debt to equity ratio has reduced from 6.3% to 3.5% over the past 5 years.
Debt Coverage: AWC's debt is well covered by operating cash flow (257.3%).
Interest Coverage: Insufficient data to determine if AWC's interest payments on its debt are well covered by EBIT.
Balance Sheet
Dividend
What is Alumina current dividend yield, its reliability and sustainability?
4.03%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AWC's dividend (4.03%) is higher than the bottom 25% of dividend payers in the Australian market (2.08%).
High Dividend: AWC's dividend (4.03%) is low compared to the top 25% of dividend payers in the Australian market (5.21%).
Stability and Growth of Payments
Stable Dividend: AWC's dividend payments have been volatile in the past 10 years.
Growing Dividend: AWC's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (112.2%), AWC's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: AWC's dividends in 3 years are not forecast to be well covered by earnings (91.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
8.6yrs
Average management tenure
CEO
Mike Ferraro (60 yo)
3.92yrs
Tenure
US$1,629,371
Compensation
Mr. Michael Peter Ferraro, also known as Mike, LLB (Hons), has been Non-Executive Director of Helloworld Travel Limited (formerly known as Helloworld Limited) since January 1, 2017. He was previously a Par...
CEO Compensation Analysis
Compensation vs Market: Mike's total compensation ($USD1.63M) is about average for companies of similar size in the Australian market ($USD1.70M).
Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: AWC's management team is seasoned and experienced (8.6 years average tenure).
Board Members
Experienced Board: AWC's board of directors are considered experienced (3.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: AWC insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Alumina Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Alumina Limited
- Ticker: AWC
- Exchange: ASX
- Founded: 1970
- Industry: Aluminum
- Sector: Materials
- Market Cap: AU$5.265b
- Shares outstanding: 2.90b
- Website: https://www.aluminalimited.com
Location
- Alumina Limited
- 2 Southbank Boulevard
- Level 36
- Southbank
- Victoria
- 3006
- Australia
Listings
Biography
Alumina Limited, through its 40% interest in Alcoa World Alumina and Chemicals, engages in bauxite mining, alumina refining, and aluminum smelting businesses. The company has a network of bauxite mines and...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/11 08:08 |
| End of Day Share Price | 2021/05/11 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.