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AA

AlcoaNYSE:AA Stock Report

Last Price

US$61.21

Market Cap

US$11.3b

7D

1.9%

1Y

229.8%

Updated

26 Jan, 2022

Data

Company Financials +
AA fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance2/6
Financial Health4/6
Dividends0/6

AA Stock Overview

Alcoa Corporation, together with its subsidiaries, produces and sells bauxite, alumina, and aluminum products in the United States, Spain, Australia, Brazil, Canada, and internationally.

Alcoa Competitors

Arconic

NYSE:ARNC

US$3.4b

Kaiser Aluminum

NasdaqGS:KALU

US$1.5b

Reliance Industries

NSEI:RELIANCE

₹15.1t

Boeing

NYSE:BA

US$119.9b

Price History & Performance

Summary of all time highs, changes and price drops for Alcoa
Historical stock prices
Current Share PriceUS$61.21
52 Week HighUS$64.37
52 Week LowUS$17.30
Beta2.45
1 Month Change3.12%
3 Month Change33.38%
1 Year Change229.80%
3 Year Change112.90%
5 Year Change67.93%
Change since IPO172.04%

Recent News & Updates

Jan 17

Alcoa: Future Is Looking Brighter For Free Cash Flow And Shareholder Returns

Alcoa has recently initiated their first-ever dividends and despite only providing a very low yield, their future is looking brighter for their free cash flow than their past. They have historically produced negative free cash flow since at least 2018, although this has been very significantly weighed down by their pension liability payments. These have been materially reduced during the first nine months of 2021 and thus when looking ahead, their impact upon their cash flow performance should wind down. They have also eliminated the majority of their net debt thanks to divestitures, which will provide a lasting benefit by lowering their interest expense and thus boosting their operating cash flow. When these are combined, their future free cash flow is looking brighter but I still only believe that a neutral rating is appropriate due to their all-time high share price and unpredictable industry.

Nov 23
Alcoa (NYSE:AA) Might Have The Makings Of A Multi-Bagger

Alcoa (NYSE:AA) Might Have The Makings Of A Multi-Bagger

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Ideally, a business will show two...

Shareholder Returns

AAUS Metals and MiningUS Market
7D1.9%-6.4%-5.1%
1Y229.8%16.0%3.3%

Return vs Industry: AA exceeded the US Metals and Mining industry which returned 13.4% over the past year.

Return vs Market: AA exceeded the US Market which returned 4.2% over the past year.

Price Volatility

Is AA's price volatile compared to industry and market?
AA volatility
AA Average Weekly Movement7.6%
Metals and Mining Industry Average Movement9.3%
Market Average Movement6.7%
10% most volatile stocks in US Market15.4%
10% least volatile stocks in US Market2.4%

Stable Share Price: AA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: AA's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
201612,900Roy Harveyhttps://www.alcoa.com

Alcoa Corporation, together with its subsidiaries, produces and sells bauxite, alumina, and aluminum products in the United States, Spain, Australia, Brazil, Canada, and internationally. The company operates through three segments: Bauxite, Alumina, and Aluminum. It engages in bauxite mining operations; and processes bauxite into alumina and sells it to customers who process it into industrial chemical products, as well as aluminum smelting, casting, and rolling businesses.

Alcoa Fundamentals Summary

How do Alcoa's earnings and revenue compare to its market cap?
AA fundamental statistics
Market CapUS$11.27b
Earnings (TTM)US$429.00m
Revenue (TTM)US$12.15b

26.3x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AA income statement (TTM)
RevenueUS$12.15b
Cost of RevenueUS$9.15b
Gross ProfitUS$3.00b
ExpensesUS$2.57b
EarningsUS$429.00m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.33
Gross Margin24.68%
Net Profit Margin3.53%
Debt/Equity Ratio27.6%

How did AA perform over the long term?

See historical performance and comparison

Dividends

0.7%

Current Dividend Yield

4%

Payout Ratio

Valuation

Is Alcoa undervalued compared to its fair value and its price relative to the market?

26.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AA ($61.21) is trading above our estimate of fair value ($59.13)

Significantly Below Fair Value: AA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AA is poor value based on its PE Ratio (26.3x) compared to the US Metals and Mining industry average (8.2x).

PE vs Market: AA is poor value based on its PE Ratio (26.3x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: AA is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: AA is overvalued based on its PB Ratio (2.4x) compared to the US Metals and Mining industry average (2x).


Future Growth

How is Alcoa forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

14.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AA's forecast earnings growth (14.9% per year) is above the savings rate (2%).

Earnings vs Market: AA's earnings (14.9% per year) are forecast to grow faster than the US market (13% per year).

High Growth Earnings: AA's earnings are forecast to grow, but not significantly.

Revenue vs Market: AA's revenue (1.1% per year) is forecast to grow slower than the US market (9.1% per year).

High Growth Revenue: AA's revenue (1.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AA's Return on Equity is forecast to be low in 3 years time (15.4%).


Past Performance

How has Alcoa performed over the past 5 years?

-0.04%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AA has a large one-off loss of $1.1B impacting its December 31 2021 financial results.

Growing Profit Margin: AA became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: AA has become profitable over the past 5 years, growing earnings by -0.04% per year.

Accelerating Growth: AA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: AA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (125.5%).


Return on Equity

High ROE: AA's Return on Equity (9.1%) is considered low.


Financial Health

How is Alcoa's financial position?


Financial Position Analysis

Short Term Liabilities: AA's short term assets ($5.0B) exceed its short term liabilities ($3.2B).

Long Term Liabilities: AA's short term assets ($5.0B) do not cover its long term liabilities ($5.5B).


Debt to Equity History and Analysis

Debt Level: AA has more cash than its total debt.

Reducing Debt: AA's debt to equity ratio has increased from 18.8% to 27.6% over the past 5 years.

Debt Coverage: AA's debt is well covered by operating cash flow (53.3%).

Interest Coverage: AA's interest payments on its debt are well covered by EBIT (10.7x coverage).


Balance Sheet


Dividend

What is Alcoa current dividend yield, its reliability and sustainability?

0.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AA's dividend (0.65%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: AA's dividend (0.65%) is low compared to the top 25% of dividend payers in the US market (3.57%).


Stability and Growth of Payments

Stable Dividend: AA is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: AA is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: AA is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.2yrs

Average management tenure


CEO

Roy Harvey (46 yo)

5.17yrs

Tenure

US$13,280,808

Compensation

Mr. Roy C. Harvey has been the Chief Executive Officer of Alcoa Corporation since November 01, 2016 and has been its President since May 9, 2017. Mr. Harvey served as Executive Vice President and President...


CEO Compensation Analysis

Compensation vs Market: Roy's total compensation ($USD13.28M) is about average for companies of similar size in the US market ($USD11.47M).

Compensation vs Earnings: Roy's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: AA's management team is seasoned and experienced (5.2 years average tenure).


Board Members

Experienced Board: AA's board of directors are considered experienced (5.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AA insiders have only sold shares 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

Alcoa Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Alcoa Corporation
  • Ticker: AA
  • Exchange: NYSE
  • Founded: 2016
  • Industry: Aluminum
  • Sector: Materials
  • Implied Market Cap: US$11.269b
  • Shares outstanding: 184.10m
  • Website: https://www.alcoa.com

Number of Employees


Location

  • Alcoa Corporation
  • 201 Isabella Street
  • Suite 500
  • Pittsburgh
  • Pennsylvania
  • 15212-5858
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/26 01:10
End of Day Share Price2022/01/25 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.