Market Cap
US$5.8b
Last Updated
2021/04/11 22:02 UTC
Data Sources
Company Financials +
Executive Summary
Alcoa Corporation, together with its subsidiaries, produces and sells bauxite, alumina, and aluminum products in the United States, Spain, Australia, Brazil, Canada, and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Mediocre balance sheet with moderate growth potential.
Similar Companies
Share Price & News
How has Alcoa's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: AA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 11% a week.
Volatility Over Time: AA's weekly volatility (11%) has been stable over the past year.
Market Performance
7 Day Return
-2.7%
AA
-0.3%
US Metals and Mining
2.1%
US Market
1 Year Return
323.2%
AA
90.5%
US Metals and Mining
56.3%
US Market
Return vs Industry: AA exceeded the US Metals and Mining industry which returned 90.5% over the past year.
Return vs Market: AA exceeded the US Market which returned 56.3% over the past year.
Shareholder returns
| AA | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.7% | -0.3% | 2.1% |
| 30 Day | -0.5% | -2.8% | 2.4% |
| 90 Day | 27.7% | 7.9% | 6.8% |
| 1 Year | 323.2%323.2% | 94.7%90.5% | 59.1%56.3% |
| 3 Year | -42.9%-42.9% | 38.0%28.8% | 65.7%55.1% |
| 5 Year | n/a | 124.8%104.4% | 122.3%97.7% |
Long-Term Price Volatility Vs. Market
How volatile is Alcoa's share price compared to the market and industry in the last 5 years?
Simply Wall St News
5 days ago | Simply Wall St
Estimating The Intrinsic Value Of Alcoa Corporation (NYSE:AA)3 weeks ago | Simply Wall St
Have Insiders Been Selling Alcoa Corporation (NYSE:AA) Shares?1 month ago | Simply Wall St
These Metrics Don't Make Alcoa (NYSE:AA) Look Too StrongValuation
Is Alcoa undervalued compared to its fair value and its price relative to the market?
1.76x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: AA ($31.36) is trading above our estimate of fair value ($27.99)
Significantly Below Fair Value: AA is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: AA is unprofitable, so we can't compare its PE Ratio to the US Metals and Mining industry average.
PE vs Market: AA is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate AA's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: AA is good value based on its PB Ratio (1.8x) compared to the US Metals and Mining industry average (2.3x).
Future Growth
How is Alcoa forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
42.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).
Earnings vs Market: AA is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: AA's is expected to become profitable in the next 3 years.
Revenue vs Market: AA's revenue (3.5% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: AA's revenue (3.5% 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 (11.4%).
Past Performance
How has Alcoa performed over the past 5 years?
7.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AA is currently unprofitable.
Growing Profit Margin: AA is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: AA is unprofitable, but has reduced losses over the past 5 years at a rate of 7.5% per year.
Accelerating Growth: Unable to compare AA's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: AA is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-5%).
Return on Equity
High ROE: AA has a negative Return on Equity (-0.28%), as it is currently unprofitable.
Financial Health
How is Alcoa's financial position?
Financial Position Analysis
Short Term Liabilities: AA's short term assets ($4.5B) exceed its short term liabilities ($2.8B).
Long Term Liabilities: AA's short term assets ($4.5B) do not cover its long term liabilities ($7.1B).
Debt to Equity History and Analysis
Debt Level: AA's debt to equity ratio (49.1%) is considered high.
Reducing Debt: AA's debt to equity ratio has increased from 2% to 49.1% over the past 5 years.
Balance Sheet
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable AA has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: AA is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 18.7% per year.
Dividend
What is Alcoa current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate AA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate AA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if AA's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if AA's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
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?
4.4yrs
Average management tenure
CEO
Roy Harvey (45 yo)
4.42yrs
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 above average for companies of similar size in the US market ($USD6.40M).
Compensation vs Earnings: Roy's compensation has increased whilst the company is unprofitable.
Leadership Team
Experienced Management: AA's management team is considered experienced (4.4 years average tenure).
Board Members
Experienced Board: AA's board of directors are considered experienced (4.4 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 company bio, employee growth, exchange listings and data sources
Key Information
- Name: Alcoa Corporation
- Ticker: AA
- Exchange: NYSE
- Founded: 2016
- Industry: Aluminum
- Sector: Materials
- Market Cap: US$5.843b
- Shares outstanding: 186.32m
- Website: https://www.alcoa.com
Number of Employees
Location
- Alcoa Corporation
- 201 Isabella Street
- Suite 500
- Pittsburgh
- Pennsylvania
- 15212-5858
- United States
Listings
Biography
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 operat...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/11 22:02 |
| End of Day Share Price | 2021/04/09 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.